According to a recent study by the Center for Sustainable Economy, opponents of the minimum wage are blatantly wrong yet again. This study is the first of several form the Center of Sustainable Economy, a think tank centered in Maryland. The think tank uses a unique economic indicator called the Genuine Prosperity Index (GPI), which addresses not just economic transactions like GDP, but also, as the think tank explains:
The environmental and social costs of what we buy, the quality of life impacts of how we live, [and] the significant contributions of our natural systems.
As pioneer of the GPI, Dr. John Talberth, tells the Institute for Policy Studies:
Opposition to minimum wage hikes in Congress, Maryland and other states often rests on the costs to business and governments as a justification for no action while overlooking benefits. Our research indicates that benefits to workers, businesses, and households dwarf costs by orders of magnitude and thus justify federal leadership, not foot-dragging, in giving Americans the raise they deserve.
As the study ultimately finds:
The study found that if HB 275 were fully implemented now, Maryland’s GPI would be nearly $1.7 billion higher than it is today in 2000 dollars (the baseline year for the Maryland GPI) or over $2.2 billion higher in current dollars. Benefits would include reduced costs of inequality (a benefit of $1.02 billion), increased consumption expenditures by low and middle-income families (a benefit of $625.51 million), reduced costs of underemployment ($29.67 million), reduced costs of crime ($11.49 million) and increased benefits of consumer durables (a benefit of $2.07 million). Against these benefits, the Department of Legislative Services predicts increases in state and local government expenditures of over $14 million ($10.81 in 2000 dollars). CSE’s analysis also takes into account the costs to some small business owners who would have less take-home profits.
So not only will Maryland's economy see $2 billion of improvement, but most of that comes through other sources beyond increased economic activity/consumption, such as reduced inequality costs, increased benefit of consumer goods, and reduced costs of crime.
So yet again, we see another nail in the coffin of the minimum wage debate. Let's just hope Republicans don't take the $14 million of government spending required to fund the act (measly compared to the project $2 billion of benefits) and run with it.