Sunday, January 26, 2014

San Francisco's Higher Minimum Wage Hasn't Hurt the Economy

http://www.businessweek.com/articles/2014-01-22/san-franciscos-higher-minimum-wage-hasnt-hurt-the-economy


San Francisco was one of the first cities to increase the minimum wage beyond the federal level and mandate better benefits for low-income workers. The wage increase went into effect in 2004, long before the notion of one percenters and the recent wave of wage protests by fast-food and retail workers. And now everyone from President Obama to Fox News star Bill O’Reilly is talking about raising the federal minimum wage. For those who need more evidence, a new book hopes to persuade them. When Mandates Work: Raising Labor Standards at the Local Level, San Francisco’s decision to increase the minimum wage and offer other benefits, such as sick leave pay, hasn’t hurt the city’s economy at all. The three editors—all labor experts—found that from 2004 to 2011 overall private employment grew 5.6 percent in San Francisco and 3 percent in Santa Clara County. Other Bay Area counties saw an overall 4.4 percent drop during that time. Among food-service workers, who are more likely to be affected by minimum-wage laws, employment grew 17.7 percent in San Francisco, faster than either of the other Bay Area counties. “We did see a small increase, 2.8 percent, in food prices compared to other counties,” Ken Jacobs, the chairman of the UC Berkeley Labor Center says. Jacobs also pointed out that companies saved money because of reduced turnover.  

1 comment:

  1. I believe that it is time for our government to raise the minimum-wage level. If the minimum wage increased with the inflation over the years the minimum wage would be at $10.74. Having a higher minimum wage would do little effect with job growth and could increase worker moral. People would be more likely to work harder jobs for higher pay and companies would be able to reduce turnover. In 1914 Henry Ford raised his wages to five dollars that more then doubled the national minimum wage. This increased company moral, decreased turnover, and increased production in the work place. I think that making the minimum wage higher would be a good way to increase worker moral. New Jersey also increased there minimum wage and has helped economy. There increase was only to 8.25 compared to the previous 7.25.

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