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Jennifer Medina reports at the NYT that the the city council of nation’s second-largest city voted by a 14-1 margin to increase its minimum wage to $15 an hour by 2020, in what is perhaps the most significant victory so far in the national push to raise the minimum wage. Several other cities, including San Francisco, Seattle and Oakland, Calif., have already approved increases, and dozens more are considering doing the same.
In 2014, a number of Republican-leaning states like Alaska and South Dakota also raised their state-level minimum wage by referendum. The impact is likely to be particularly strong in Los Angeles, where, according to some estimates, more than 40 percent of the city’s work force earns less than $15 an hour. “The proposal will bring wages up in a way we haven’t seen since the 1960s," says Michael Reich. "There’s a sense spreading that this is the new norm, especially in areas that have high costs of housing.”
It's important to remember that the minimum wage hike comes at a significant direct cost to business — well over a $1 billion a year, according to the mayor's analysis — and it would be foolish to pretend that it won't lead to some job losses and business closures. Critics say the increase will turn the city into a “wage island,” pushing businesses away into nearby places where they can pay employees less. “They are asking businesses to foot the bill on a social experiment that they would never do on their own employees,” says Stuart Waldman, president of the Valley Industry and Commerce Association, a trade group that represents companies and other organizations in Southern California. “A lot of businesses aren’t going to make it. It’s great that this is an increase for some employees, but the sad truth is that a lot of employees are going to lose their jobs.”
(Score: 3, Insightful) by Leebert on Wednesday May 20 2015, @04:59PM
I'm curious where and when this occurred. Could you please share?
(Score: 0) by Anonymous Coward on Wednesday May 20 2015, @11:23PM
California. When minimum wage went up after about three to four months or so I noticed that fast food prices, for instance (and essentially the price of everything) went up. The local taco bell (and all of them around here) charges more for tacos (as one example) and for ... just about everything else. Even chicken sandwiches and just about everything went up. Even food from Costco and various grocery stores went up. My rent also went up at the beginning of this year as well. Didn't happen right away but after a few months I started noticing a gradual hike in everything. I pay attention.
(Score: 0) by Anonymous Coward on Wednesday May 20 2015, @11:25PM
(that is chicken sandwiches from fast food restaurants that sell them and even the ones you buy from Costco in packages).
The good news is we own a business and our customers aren't as price aversive now that they make more. We simply stick it back to the customer ... hence negating the effect of everything getting more expensive on us ...
(Score: 2) by Leebert on Thursday May 21 2015, @12:26AM
Interesting; thank you. I'm guessing (based on this table [ca.gov] that you were referring to July 2014?
(Score: 0) by Anonymous Coward on Thursday May 21 2015, @02:35AM
Yeah, when it went up to $9/hour.