California's minimum wage is currently set at $10.00 an hour. The state is currently tied for second place, along with Massachusetts, for states with the highest minimum wage. The only "state" with a higher wage is Washington DC, which pays $10.50 an hour. Based on these wages, I do not think it's surprising that Washington, DC, San Francisco, San Jose and Orange County are four of the nations 10 most expensive cities in America.
If state lawmakers and labor unions can get the tentative deal through the legislation, The Golden State will be looking at a new $15 minimum wage by 2022. This would be far ahead of any other city assuming current state minimum wages remain sticky for the next three to five years. According to Business insider, California already contains six of the nations top 20 most expensive cities for renters. Six! That's thirty percent of the nation's most expensive cities are all in California.
The $5 increase would be staggered over six years except for businesses with less than 25 employees who would be given an extra year.
Arguments are being constructed in many forms. Some saying that the statewide increase could cause massive layoffs. Others say it could leave workers in high-cost areas that are now unable to afford a basic standard of living. Other arguments propose that the wage hike would destroy jobs in low-costing towns.
San, Francisco and Los Angeles have already raised their city minimum wage level to $15 and may offer some explanation for the high cost of living in these cities.
Law makers and union workers alike are not being overly aggressive of jumping this potential raise into action. They understand the possible implications, whether positive or negative, and are taking into account all of these possibilities before making action.
Find the original article here: California eyes $15 minimum wage
I had read the same article. It was interesting to see the reservations some people had about raising the minimum wage. I do agree with creating a "livable wage" for those living in one of the most expensive cities in the world. the term living wage is powerful as it is. basic economics hints at the possible negative outcomes as well as the positive. I do believe that the benefits of raising the minimum wage will be larger than the potential job cuts.
ReplyDeleteMinimum wage has always been a hot topic among economists. Some believe that it is beneficial, while others believe it is the opposite. I think that this will be looked on as a mistake. Not only will it cause an increase in unemployment, but it will increase the already high cost of living. Barely any adults are actually living off the minimum wage... so this will mostly benefit families that are looking for a small source of additional income. To me, that benefit is not enough to outweigh the increased costs of living.
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