‘Highest Minimum-Wage State Washington Beats U.S. Job Growth’
‘When Washington residents voted in 1998 to raise the state’s minimum wage and link it to the cost of living, opponents warned the measure would be a job-killer. The prediction hasn’t been borne out’.
‘In the 15 years that followed, the state’s minimum wage climbed to $9.32 — the highest in the country’.
‘Meanwhile job growth continued at an average 0.8 percent annual pace, 0.3 percentage point above the national rate’.
‘Payrolls at Washington’s restaurants and bars, portrayed as particularly vulnerable to higher wage costs, expanded by 21 percent’.
‘Poverty has trailed the U.S. level for at least seven years’.
@ : http://www.bloomberg.com/news/2014-03-05/washington-shows-highest-minimum-wage-state-beats-u-s-with-jobs.html
‘Washington state, for example, has the nation’s highest rate, $9.32 an hour. Despite dire predictions that increases would cripple job growth and boost unemployment, this isn’t what happened’.
‘At 6.6 percent, the unemployment rate in December was a click below the U.S. average, 6.7 percent, and the state’s job creation is sturdy, 16th in the nation, according to a report by Stateline, the news service of the Pew Charitable Trusts’.
‘At the Olive Garden in Coeur D’Alene, Idaho, the spaghetti and meatballs are about $1.70 cheaper than at the Olive Garden about a half-hour away in Spokane, Washington’.
‘That may be explained by Idaho’s lower minimum wage, taxes, land costs or something else’.
‘A restaurant spokeswoman would only cite vague costs of products and of doing business in various locations. Whatever it is hasn’t stopped Olive Garden from operating two restaurants in the Spokane area’.
‘Bruce Beckett, government affairs director of the Washington Restaurant Association, said he wasn’t aware of any restaurants bailing out of Spokane for Idaho. He said he had heard anecdotes about local restaurateurs buying cheaper supplies in Idaho — fairly small potatoes’.
‘Two bakeries moved across the border a few years ago, said Robin Toth of Greater Spokane Incorporated, a Chamber of Commerce and economic-development organization, but she said those businesses cited Washington’s taxes, not its higher minimum wage, as the reason for doing so’.
@ : http://www.nationalmemo.com/real-life-higher-minimum-wage-doesnt-kill-jobs/
What the CBO report actually said :
‘According to the report, a $10.10 minimum wage hike would boost the weekly earnings of an estimated 16.5 million hourly workers and reduce the number of Americans in poverty by 900,000. In addition, the report provided a range of job-loss estimates. While the central estimate is 500,000 jobs lost, there is a two-thirds chance that a $10.10 minimum wage would create anywhere from a slight reduction in workers to a reduction of 1 million’.
‘Elmendorf said this also means there is a roughly one-sixth chance that a $10.10 minimum wage would add zero or more workers to the economy, and likewise that there is a one-sixth chance it could subtract more than 1 million workers’.
@ : http://www.usnews.com/news/articles/2014/02/19/cbo-director-elmendorf-defends-minimum-wage-report
And the economists :
“Under current labor market conditions, where tepid consumer demand is a major factor holding businesses back from expanding their payrolls, raising the minimum wage can provide a catalyst for new hiring. Economists generally agree that low-wage workers are more likely than any other income group to spend any additional earnings they receive, largely because they must in order to meet their basic needs”.
@ : –David Cooper, Economic Policy Institute “Raising the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost,” Dec. 19, 2013.
“The minimum wage has little or no discernible effect on the employment prospects of low-wage workers. The most likely reason for this outcome is that the cost shock of the minimum wage is small relative to most firms’ overall costs and only modest relative to the wages paid to low-wage workers. . .”
@ : –John Schmitt, “Why Does the Minimum Wage Have No Discernible Effect on Employment” February 2013.
Last two articles from : http://blogs.wsj.com/economics/2014/01/30/should-the-minimum-wage-be-raised-economists-weigh-in/