The Wages Of Reality

Wage hikers continue to suffer setbacks in the real world:
Mike Whatley, director of state and local government policy for the National Restaurant Association, which generally opposes the higher rates, said activists had plucked the long-hanging fruit when they got traditionally liberal places such as Los Angeles, San Francisco and New York City to adopt $15 rates. Other regions are taking a "more measured approach."

"You see it more and more from politicians of all stripes. They are taking a hard look at the economic impact of this," Whatley said.

The stalled efforts come as reports are trickling in that $15 minimum wage increases in other regions are causing economic problems – well before the full rate has been phased in.

A study by the University of Washington last year on Seattle's increase to $11 an hour — the rate is set to rise to $15 by 2021 — found that the region's low-income workers were marginally worse off because of it.

"The city's low-wage workers did relatively well after the minimum wage increased, but largely because of the strong regional economy. Seattle's low-wage workers would have experienced almost equally positive trends if the minimum wage had not increased. Although the minimum wage clearly increased wages for this group, offsetting effects on low-wage worker hours and employment muted the impact on labor earnings," the report said.
You don't need wage hikes when they aren't necessary...


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