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

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/