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The Center for American Progress reports:
Think a higher minimum wage is a job killer? Think again: The states that raised their minimum wages on January 1 have seen higher employment growth since then than the states that kept theirs at the same rate.
The minimum wage went up in 13 states Arizona, Connecticut, Colorado, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont, and Washington either thanks to automatic increases in line with inflation or new legislation, as Ben Wolcott reports in his analysis at the Center for Economic and Policy Research. The average change in employment for those states over the first five months of the year as compared with the last five of 2013 is 0.99 percent, while the average for all remaining states is 0.68 percent.
Digging deeper, all but one of those states are experiencing increases in employment, and nine of them have seen growth above the median rate.
(Score: 2) by khallow on Monday July 07 2014, @08:27PM
This model became a "rule" because it was usually right. Why should we expect, aside from wishful thinking, that labor costs are the exception to the rule? Especially, when labor markets are as competitive as they are in the world today?
Things don't end up on the market, if they cost more to produce than the market will bear. And reinvestment in a process (such as putting money into increasing production of something at a lower cost) depends on how much profit from the process there is to reinvest.