From Priorities USA Action
“A deal has been reached to raise California’s minimum wage, Governor Jerry Brown said on Monday, adding to a wave of minimum wage increases at state level in the United States.
In a brief statement, Brown described it as a “landmark deal” and said he would release details at a press conference later on Monday.
A legislative source said the proposal, which still must win approval from moderate lawmakers in the state assembly, would gradually raise the state’s minimum wage to $15, but give the governor the right to opt out if the economy was struggling.”
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Thirteen Reasons Why it’s Time for a Raise – #1 Raising the federal minimum wage will boost the economy
The Economic Policy Institute estimates a federal minimum wage raise to $10.50 would raise the wages of over 30 million workers, stimulating the economy by $32.6 billion. Also, the Chicago Federal Reserve estimated in 2011 that for every dollar increase in the hourly pay for a minimum wage worker would result in $2,800 in new consumer spending.
Thirteen Reasons why it’s Time for a Raise – #13 Raising the federal minimum wage will help save social security
Raising the federal minimum wage would have a “spillover effect” to different parts of the economy. As wages grow, other parts of the economy will see
A study by the Economic Policy Institute found that by raising wages for the working class, there would be an increase in social security contributions, leading to more money in the Social Security Trust Fund, and could eliminate up to 75% of the current shortfall in Social Security.
Thirteen Reasons why it’s Time for a Raise – #12 Raising the federal minimum wage won’t hurt corporate bottom lines
Companies that pay over the federal minimum wage are thriving. Costco, the third largest retailer in the United States, has a starting wage of $11.50 an hour and provides healthcare. Costco has the lowest amount of employee theft, higher worker productivity and half the employee turnover rate of Wal-Mart, creating a more stable work environment. And companies that don’t pay over the federal minimum wage in America pay a higher wage in other countries with a similar standard of living and are still profitable. Wal-Mart is profitable in Ontario, Canada where they pay a $10.25 an hour minimum wage.
Prices would not be experience a large affect from an increase in the federal minimum wage. Studies show that an increase in the federal minimum wage to $10 an hour would increase overall price levels by no more than .5%. Lower turnover from a higher federal minimum wage increases productivity as training and recruitment costs are reduced, saving companies money.