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Yet again, allegations and skewed logic by opponents of minimum wage fail to reach reality. The Associated Press breaks down a report by the Congressional Budget Office released to make this aptly clear:

"In the 13 states that boosted their minimums at the beginning of the year, the number of jobs grew an average of 0.85 percent from January through June. The average for the other 37 states was 0.61 percent.
"Nine of the 13 states increased their minimum wages automatically in line with inflation: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington. Four more states — Connecticut, New Jersey, New York and Rhode Island — approved legislation mandating the increases."
" 'It raises serious questions about the claims that a raise in the minimum wage is a jobs disaster,' said John Schmitt, a senior economist at the liberal Center for Economic and Policy Research. The job data 'isn't definitive,' he added, but is 'probably a reasonable first cut at what's going on.' "
So let's just look at two of the most compelling (and unaddressed by opponents of minimum wage) reasons why a minimum wage isn't expected to have economically catastrophic effects, shall we?
1) When we implement a minimum wage, we give the employees affected, who happen to constitute a large share of our country's consumers and have been proven in the past to have the highest marginal propensity to consume, more buying power. That increase in their income partially comes back to our economy.
2) Anne Hallam of Iowa State University has found that, "Paying wages 10% above the market norm increases output between 2 and 6%". Just why? To put it bluntly, higher wages makes a job more valuable and rewarding to a worker. More value and reward means a happier worker. And a happier worker means more productivity and performance.

And yet again, we have been presented with a reason to raise our long-outdated minimum wage, one in the status quo makes the lives of the people supported by it near unsustainable.

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Comment Preferences

  •  Higher productivity from paying above market norm (3+ / 0-)
    Recommended by:
    a2nite, 6412093, VClib

    is not relevant to min wage issue.

    When paying above market, employers are better able to be more selective of who they hire, those better employees are more likely to stay, and employers can "rank" employees and ask those at the bottom 5% to leave with no morale problems.

    None of the above occurs when an employer paying min wage raises wages to a new higher minimum wage.

    My preference on min wage is that it be based on the local regIon's cost of living.  The cost of living varies greatly in the US, so a single min wage is inherently wrong for most of the country - being too low in high cost cities to be a living wage, and too high in low cost areas causing unacceptable unemployment.  

    If the issue is fairness, having the min wage adjust so min wage workers get the same standard of living across the country is what's fair.  There is nothing fair in underpaying min wage workers in high cost of living cities.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Sat Jul 26, 2014 at 03:37:40 PM PDT

    •  But Nextstep (0+ / 0-)

      minimum wage is adjustable.  The cities (and states) you are worried about are free to require a higher minimum wage.

      I demur, higher productivity is clearly relevant to a higher minimum wage.  Simply put, employees worker harder and smarter when paid more.

      “The answer must be, I think, that beauty and grace are performed whether or not we will or sense them. The least we can do is try to be there.” ― Annie Dillard, Pilgrim at Tinker Creek

      by 6412093 on Sat Jul 26, 2014 at 06:01:11 PM PDT

      [ Parent ]

      •  I do economics professionally, I have not seen (2+ / 0-)
        Recommended by:
        6412093, VClib

        evidence the the same min wage workers work harder or smarter when their wage increases to a new higher min wage.

        When looking at aggregate data, I will agree that on average the min wage worker population may have higher productivity, but this will be largely due to the least effective workers having a higher rate of losing their jobs, and employers using more automation, outsourcing and changing business processes.

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Sat Jul 26, 2014 at 06:12:57 PM PDT

        [ Parent ]

        •  So, nextstep (0+ / 0-)

          you don't buy the Efficiency Wage theory.

          speaking as a minimum wage worker myself, I am a damned lot happier since the min. wage where I live went up 2 bucks an hour, and I work harder when I'm happier.

          before that, I worked 10 years without an increase and that makes you a little bitter and you really don't care so much about your work product.

          “The answer must be, I think, that beauty and grace are performed whether or not we will or sense them. The least we can do is try to be there.” ― Annie Dillard, Pilgrim at Tinker Creek

          by 6412093 on Sat Jul 26, 2014 at 06:26:17 PM PDT

          [ Parent ]

          •  The pseudo-science of economics. (0+ / 0-)

            Significant factors that can't easily be assigned numeric values are simply ignored. Socio-psycholigal conditions, while of paramount importance and directly effecting performance etc., just discarded. Social conditions and expectations, ignored. Cultural factors, not important. And on and on.

            With very few exceptions, economists are simply corporate lackeys getting paid to tell rich people what they want to hear.

            Economist, politician, and meteorologist are the only three professions I know of where the practitioners can be wrong all the time and keep collecting a check, and the meteorologists are improving every year.

            "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

            by Greyhound on Sun Jul 27, 2014 at 04:17:50 AM PDT

            [ Parent ]

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