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July 07, 2014

Unexpectedly (!): Minimum Wage Edition

If only there were a college course that taught people how increasing the price of a good or service affects the amount buyers are willing/able to purchase:

Saginaw Valley State University (SVSU) is anticipating major cuts in student employment opportunities after budgeting for state mandated increases in Michigan’s minimum wage.

In an interview with The Valley Vanguard, Jim Muladore, SVSU executive vice president of administration and business affairs, estimated that Michigan’s minimum wage increase will cost the university approximately $760,000 annually by 2018.

"[D]epartments will likely be pressed to hire less students or decrease the amount of hours student employees are able to work." Tweet This

The problem is that the university, which is facing depressed fall enrollment numbers and diminishing housing and dining revenue, cannot fund these additional costs within departments.

“In order to maintain their budgets, departments will likely be pressed to hire less [isn't that 'fewer'???] students or decrease the amount of hours student employees are able to work,” the Vanguard reports.

However, Saginaw Valley State University is not the only Michigan university amending their budget.

Central Michigan University (CMU), the fifth largest university in the state, is preparing departments for a $691,000 wage increase for the anticipated 5,400 student hires.

It's almost as though some invisible force were at work here.

Posted by Cassandra at July 7, 2014 06:47 AM

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Comments

I told you so.

Posted by: Adam Smith Riding an Invisible Unicycle Naked at July 7, 2014 11:06 AM

When an invisible hand gets smacked and there's no one around to hear it, is there still a sound? :)

Posted by: The Invisible Hand of the Matriarchy at July 7, 2014 11:56 AM

How did you manage to smack the invisible hand in the first place?

Posted by: DL Sly at July 7, 2014 01:06 PM

I used my Invisible Hand Smacker :p

Posted by: Cassandra at July 7, 2014 01:08 PM

Is it invisible, too?

Posted by: DL Sly at July 7, 2014 02:57 PM

Because it's invisible, not insubstantial. Blind people interact with invisible stuff all the time.

Posted by: MikeD at July 8, 2014 08:40 AM

The invisible hand always does the smacking.
Pretty bitter pill for dim Dems & Keynsian economists.

Posted by: CAPT Mike at July 11, 2014 03:04 AM

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