Student Senate proposals would likely exacerbate those issues.
Over the past few weeks, we have heard a great deal about Student Senate’s proposals for a higher minimum wage, no tuition hikes, and financial transparency from the university administration. It is clear by these proposals that the senate recognizes some serious financial issues related to college costs, but it is unfortunate that their proposals would likely exacerbate those issues.
The proposal for a $15 minimum wage, nearly a 90 percent increase from the current wage, has been particularly contentious. Trying to improve students’ livelihoods is a noble goal, but drastically increasing minimum wage is no guarantee for better living standards. In fact, increasing wages that strongly would likely detract from current working situations by reducing the number of jobs available and reducing the number of working hours for students. By rejecting the Senate’s proposal, the university administration is the one acting in the best interest of the students.
A college education has steadily grown into a major investment over the past half century with average tuition and fees for four-year public institutions climbing 342 percent even after controlling for inflation, as reported by the National Center for Education Statistics.
Traditionally, other major investments like a house or car have helped people climb the economic ladder. However, recent research from the Federal Reserve Bank of New York, an authority on student debt issues, provides evidence that student debt is becoming so pernicious that people are delaying these investments, making it more difficult to advance in society. While it is reassuring that the Student Senate recognizes these issues and wants to combat them, they should not expect to do so with a $15 minimum wage.
Ohio University students are no strangers to these long-term cost burdens either. Recent articles in The Post have highlighted how Ohio University ranks, by some measures, as one of the worst schools for student loan repayment. New research from the Federal Reserve Board of Governors offers evidence that student loan burdens are not only contributing to graduates moving back in with their parents, but also a rising trend in loan delinquency is extending the amount of time they live with them. So there is growing cause for concern that the typical Ohio University student will have a more difficult time advancing in society after graduation than necessary.
Up to this point, the senate’s proposals have seemed arbitrary. We have yet to see how they determined $15 to be the optimal hourly student wage, and we have yet to see how they would propose implementing it. A recent quote from Senate Vice President Caitlyn McDaniel sheds some light on the situation, though. By stating that the Executive Board is concerned that Ohio University and others are “operating more like private corporations,” she rejects basic facts related to the university’s operations. Corporations and universities alike can more efficiently meet their customers’ demands by controlling costs to lower prices. If the administration focuses on reining in tuition prices and improving teaching quality, its students might require fewer loans and be in a better position to pay off whatever debt they accrue. Surely, this would be in the best interest of the students.
We concede that greater financial transparency on the administration’s end would help the senate draft more substantial proposals, but that would require them to cooperate with the administration.
For the senate, facing the fundamental issue of financial irresponsibility is a more reasonable approach to productive proposals. By embracing the reality of the university’s scarce resources, the senate can work together with the administration to help mitigate the growing burden of college costs. No blood necessary.
The Ohio University Economics Society consists of Joe Hartge, Kathy Copas, Praelo Zandonadi and Kane Pickrel. The group meets bi-weekly to discuss current economic issues and advance students’ engagement in economic affairs on campus. Contact Hartge, its president, at jh755410@ohio.edu with any questions or comments.
