Raising The Minimum Wage, Increases Employment And One City Proved It

[El_Johns]

Many states and large cities have already moved to increase the minimum wage above and beyond the federal minimum of $7.25. San Francisco was one of the early leaders in pushing up the minimum wage. In fact the city raised their minimum wage in 2004 and indexed it to inflation. Currently the minimum wage in San Francisco is $10.74, well above the federal minimum, and even more than the proposed $10.10 federal minimum wage increase.

The fact that San Francisco raised the minimum wage almost a decade ago has given us a real life test bed for how it will impact the local economy. The results were staggering. In San Francisco between 2004-2011, private employment grew by 5.6%. Neighboring towns also benefited from the increase. The entire Santa Clara Country saw a 3% increase in private employment.

More importantly employment in the food service industry grew by 17.7%, debunking the myth that raising the minimum wage will cost low-wage workers their jobs.

That is not to say that there were not drawbacks to raising the minimum wage. There was a minor (2.8%) increase in prices at local fast food restaurants compared to the surrounding areas. This increase would mean that your $2.00 hamburger now costs $2.06. This is hardly the massive inflation that some people claim.

The minimum wage increase in San Francisco also benefited low-wage employers. According to Ken Jacobs, chairman of the US Berkley Labor Center, turnover in low-wage jobs “decreased by 60%”, which saves employers from having to spend additional money to hire and train new workers.

Americans overwhelmingly support raising the minimum wage. The Quinnipiac University Poll showed that 71% support an increase. The Washington Post Poll found similar results, 66% support an increase.

http://nhlabornews.com/2014/01/raising-the-minimum-wage-increases-employment-and-one-city-proved-it/

[seattledo]

1. Six cents might not sound like much...

but over the period of a year, it's more than $65. That's more than I saved last year.

[Bluenorthwest]

7. 'Seven and A Half Cents' from the Pajama Game, an American musical

Seven and a half cents doesn't buy a hell of a lot,
Seven and a half cents doesn't mean a thing!
But give it to me every hour,
Forty hours every week,
And that's enough for me to be living like a king!

[SidDithers]

2. Can we expect links to wsws.org soon?...

Or has nhlabornews become your new favourite source?

Sid

[Bluenorthwest]

9. What is your specific beef with this site? It's labor news from Union Members

Who is the NH Labor News? We are a group of proud Union members from multiple different professions across New Hampshire. We work in both the private and public sector. We are working to promote the message of Labor in NH.

Some of the organizations that also post on the NH Labor News:

The New Hampshire AFL-CIO

The American Federation of Teachers

The Communication Workers of America

National Association of Letter Carriers (NALC)


I am a Union member and have been throughout my career so I support labor oriented news from other Union members.

[NHLabor]

12. That is all true...

Aside from our union membership we are progressives pushing to end income inequality, push for better wages, fight against poverty, and other social issues. I also like to show how unions and union members are out in public pushing for things that are not typical of union activities. For example we push for stronger gun regulations to keep our children safer in our schools and our communities.

[reformist2]

3. I'm all for a higher mimimum wage, but the results are not 'staggering.'

I view it as the bare minimum Obama should be trying to do. And sadly, that's all I see Obama doing.

[hobbit709]

4. Of course $10.74/hr still won't get you a place to live in SF.

[pampango]

5. I doubt that republicans think that 'reality' "proves" anything.

They will keep repeating their mantra that a higher minimum wages increases unemployment. The use of half-logic and fear trumps 'reality' every time in their way of thinking.

[Adrahil]

6. And Businesses should bear the cost of their labor!

This is dead simple to understand. Republicans want everyone off welfare and working for what they get. But if even working full time, people can't afford basic necessities, then what do we have? People working full time AND on welfare. Who benefits from that? Business owners who essentially get subsidized labor.

Anyone working full time in this country should earn enough to support themselves, and yes, we'll still need welfare and food stamps for those who are working a minimum wage job and need to support dependents.

[Bluenorthwest]

8. Minimum wage is tied to inflation in Oregon and Washington, OR is now $9.10

and Washington is $9.30 an hour. Less than SF, but then again no one can live on SF's wage in SF, not even on two of them.

[NHLabor]

11. Thank you for posting...

From Matt, the lead blogger and creator of the NH Labor News.

[El_Johns]

13. Thank you, I love your site. Very informative, even for those outside NH.