Here's What Happened When 13 States Raised Their Minimum Wages

[applegrove]

Here's What Happened When 13 States Raised Their Minimum Wages

By Danny Vinik at the New Republic

http://www.newrepublic.com/article/119440/states-raised-their-minimum-wages-had-stronger-job-growth

"SNIP......................


In 2014, 13 states raised their minimum wages, five through legislation and eight through inflation indexing. Gould compared wage growth for the bottom 10 percent of Americans in those 13 states with the rest of America. In the former, real wages grew 0.9 percent, a non-negligible increase. In the remaining 37 states, real wages declined 0.1 percent. In other words, wage growth for the bottom 10 percent of Americans is entirely attributable to states that increased their minimum wages.

.....

That’s good news, but it’s not unexpected. Conservatives largely concede that raising the minimum wage increases wages. They oppose it, they say, because it will reduce job growth. So, did that happen in those 13 states? Jared Bernstein, the former chief economist for Vice President Joe Biden and a senior fellow at the Center for Budget and Policy Priorities, looked at the data. He found that job growth was higher in states that raised their minimum wages than it was in those that didn’t (1.8 percent versus 1.5 percent).

.............

Bernstein is quick to point out the limitations of this data. “Now, these are all small changes and I wouldn’t make a federal case out of any of them,” he writes. But it’s also important to note that minimum wage hikes have not crippled job growth in those 13 states. When the Senate next votes on raising the national minimum wage—possibly in the next few weeks—that’s something Republicans should keep in mind.



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[diabeticman]

1. Bet you will not hear these facts on the house or senate floors being uttered during the day....

If it is heard they will make sure it is around 1 or 2 am.

[Politicalboi]

4. Facts, who needs facts

We can't convince them of climate change with weather staring them in the face. Oh look it snowed in NY 3 days straight. Tree huggers don't have a clue. 4th 5th 6th day temps 65 sunny melting snow floods everything. Still doesn't register.

[pampango]

16. Exactly. Studies, history, evidence are all liberal schemes. True conservatives KNOW

what the "truth" is already and will only accept the "facts" that support the "truth".

[cannabis_flower]

19. Homer Simpson says:

[gratuitous]

20. Facts are so 20th Century

Now it's enough to "feel" or "believe" something in order to base your decision on things. Congress critters from one side of the aisle in particular are so enamored of their own beliefs, that mere facts are insufficient to crack their steely convictions. They just "know" that higher wages lead to greater unemployment, lower growth, and business flight. Show them facts to the contrary, and they will simply state again that they know what they know, and all your facts and statistics and reality aren't going to sway them. Their wealthy bankrollers smile, and their idiot constituents lap up this bullshit and call it filet mignon.

[NaturalHigh]

2. Thanks for posting this. Recommended.

[Aerows]

3. People want to work for higher wages

You can hire a hell of a lot more people by paying them a more fair wage than trying to get people to work for peanuts. People will move to get higher wages.

Finally, when people aren't so stressed that they worry about paying their bills, it frees up their minds to be more productive.

Whoever decided that making an employee so desperate that they are stressed about where their childrens next meal is coming from is a good business strategy is dumber than a box of rocks.

Oh wait. Long term strategy. That's part of the problem, too. Too many are solely concerned about one fiscal quarter instead of looking at growth over the long haul.

[laundry_queen]

24. And the reason for that

is simple. The reason they are only concerned about one fiscal quarter is because the reward structure for upper management is all wrong. If I was a major shareholder, I would be fighting tooth and nail for upper management to have their compensation directly tied to the long term performance of the company - measured by multiple measurements and benchmarking.

This is basic stuff that anyone with a business degree (I have a Bcom, major in accounting) should know. Lopsided compensation at the upper levels is a major issue to long term success of many companies.

And as you say, low wages at the lower levels often costs a company far more than they are willing to account for. That's also business basics. I've seen many examples play out IRL. It's apparent to me the companies with staying power treat their employees right.

[Omaha Steve]

5. Thanks for posting

K&R!

[cantbeserious]

6. Well Duh - Marginal Propensity To Consume - Poorer People Spend Their Pay Raise In The Economy

Rich People Do Not because their marginal propensity to consume is very, very low.

Poorer people, with no pay raise, have nothing additional to spend in the economy - they can consume no more without a pay raise.

All basic economics.

[Dont call me Shirley]

7. I'd like to see a "Hoarders, Rich Style" tv show

[Thav]

8. That'd be boring

All you'd see is a balance statement with a really large "net worth" line.

[Dont call me Shirley]

14. LOL

[pansypoo53219]

9. ideology DOES NOT TRUMP REALITEE. WHEN ARE THE GNEWZ GONNA GET A FUKING CLUE.

[FiveGoodMen]

18. They know what they're up to

When are their dumb-ass viewers going to get a clue?

[sheshe2]

10. Kick!

[daredtowork]

11. Jared Bernstein is awesome

He should still be a White House adviser. Why isn't he there anymore?

[Donald Ian Rankin]

12. Wouldn't those things correlate with inflation?

So he may have cause and effect at least partly backwards, I'm afraid

[951-Riverside]

13. LA city to raise the minimum wage, LA public transportation fares and fees increased

[IMG][/IMG]

Garcetti asking nearby cities to join L.A. in boosting minimum wages

http://www.latimes.com/local/cityhall/la-me-minimum-wage-neighbors-20140915-story.html

[IMG][/IMG]

MTA bus and train fares to rise Monday

http://www.latimes.com/local/cityhall/la-me-transit-fares-20140914-story.html

___________________________

The more money you make, the more money they take. Raising the minimum wage won't prevent greedy fatcats in the private sector or government from raising the prices of goods and services.

[librechik]

15. states with higher minimum wages suggest prosperity--and where does business go?

to prosperous areas, of course! That's where the money is! And they're right!

tight fisted penny pinchers leave the country in fear and poverty

[ZombieHorde]

17. K&R&NT

[daleanime]

21. K&R....

[rhett o rick]

22. k&r. Thanks for posting. nm

[On the Road]

23. Minimum Should be $12 an Hour Short-Term,

$15 longer-term. Best economic stimulus package and anti-poverty program available.

[Electric Monk]

25. k&r

[shenmue]

26. When people get paid money, they eat

Wow!