Minimum Wage

Los Angeles City Council Votes Overwhelmingly to Raise Minimum Wage to $15 an Hour

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credit: SenseiAlan / Foter / CC BY

For the past few years, liberal economists and policy wonks have been increasingly vocal in arguing that that it's not true that increasing the minimum wage costs jobs. As senior administration econ adviser Jason Furman said last year when President Obama called for a national increase in the minimum wage, "Zero is a perfectly reasonable estimate of the impact of the minimum wage on employment." Echoing the sentiment, The New York Times editorial board wrote around the same time that "the weight of the evidence shows that increases in the minimum wage have lifted pay without hurting employment." 

The evidence for this isn't nearly as overwhelming as boosters sometimes like to suggest. Economists David Neumark and William Wascher, for example, have surveyed the literature and found that, overall, most studies still show that wage increases cost jobs. And the Congressional Budget Office (CBO) estimated that raising the federal minimum from $7.25 to $10.10 over a three year period would probably cost about 500,000 jobs, and perhaps as many as 1 million. But the CBO also said it was possible that the number of jobs lost would be minimal, pointing to some studies suggesting that the wage floor could be increased with very little effect on jobs, at least in certain circumstances, up to a certain point. 

Economists can and will keep performing studies and meta-studies, and coming to whatever conclusions they come to in the process, but at this point there's really only one way to advance* this debate: Some place or places are going to have to try it out. Several cities have already taken steps to do so, and as of yesterday it looks like one of those places will be the city of Los Angeles, whose City Council voted 14-1 (!) yesterday to increase its minimum wage to $15 an hour, in a process that will likely take place over the next five years or so, reports The New York Times:

The increase — which the Los Angeles City Council passed in a 14-1 vote — comes as workers across the country are rallying for higher wages, and several large companies, including Facebook and Walmart, have moved to raise their lowest wages. 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 effects here will be the biggest by far," said Michael Reich, an economist at the University of California, Berkeley, who was commissioned by city leaders here to conduct several studies on the potential effects of a minimum-wage increase. "The proposal will bring wages up in a way we haven't seen since the 1960s. There's a sense spreading that this is the new norm, especially in areas that have high costs of housing."

Assume, just for a moment, that liberal wonks are basically right and it is possible to hike the minimum wage without significantly reducing employment. Fine, sure. But this only gets you so far, because at some point, a high enough minimum wage would eventually start to cost jobs. There's no serious person who thinks that employment will remain the same if you, say, raise the minimum wage to $100 an hour, or even $40 an hour. So the question becomes: If it's possible to raise the minimum wage some amount without significantly reducing employment, then how big a hike would it take to have a meaningful effect? 

We may be about to find out, because the Los Angeles minimum wage hike is not in any way modest. The research suggesting that the wage floor can be raised without cost generally focuses on small hikes to lower levels. But relative to anything else, L.A.'s new minimum wage is not low. At $15 an hour, Los Angeles would, along with a few other places, basically have the highest minimum wage in the entire world, once you adjust for various factors—higher, really, than the minimum wage in France or Australia. Even if you think upward adjustments won't necessarily result in job losses, is it really plausible that this rather large hike won't eventually cost a fair number of jobs?

I suppose that workers, and those who hope to find work, in Los Angeles (and Seattle and elsewhere) will just have to wait and find out. If nothing else, I suppose, the move could serve as a useful (obviously imperfect) natural experiment. We'll probably be able to get county-comparison data over the next few years that should suggest how L.A. is doing compared to its neighbors. 

One worry, however, is that local officials elsewhere may not wait until the results are in to decide whether to follow suit. The Times reports that "Tuesday's vote could set off a wave of minimum wage increases across Southern California," and perhaps even beyond, in places like New York, where Gov. Andrew Cuomo is putting a wage increase on the table, and has suggested that he wants New York to lead the nation. That might be welcome news for whichever workers who get paid more as a result of the law, but I rather suspect that those who end up losing their jobs or unable to find work won't be quite as pleased. 

*I initially wrote "solve," but then I thought better of it. 

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  1. “We love the poor, just look how many we make. We love markets, especially black markets.”

    1. Black markets? Well, America was built on slavery so might as well bring it back.

      1. The south will rise again!
        *fires cap and ball revolver into air*

        1. Leave plate tectonics out of this.

    2. I wonder if the progtards will make any connection when they’re ordering food via kiosk, to be made by a robot, and served on a conveyor belt. My guess is no.

      1. They might ponder it as they are being ripped limb for limb by the greasy claws of a fast food robot during the sudden but ineveitable Robot Revolt.

        1. SKYNET!

          1. I’m thinking more along the lines of the fast-food machines from Idiocracy. Lets just pay people 15 brawndos an hour.

        2. Stanis?aw Lem approves.

        3. I for one welcome our new robot overlords.

          1. Yeah, I trust robots more than people, particularly authority figures.

        4. ‘I am Bemder, baby! PLEASE insert liquor!’

      2. Nah, that’s just evil corporations replacing workers because they hate the poor. It has nothing to do with a mandated floor on wages, because that’s not the intent of these laws. But it is the intent of evil corporations to maximize profits, so they must be replacing workers out of meanness.

      3. Of course not. They’ll say “look how modern L.A. is” without a clue why no young people can get jobs.

        1. Young people won’t be able to get jobs because of market failure, duh!

          1. Corporate greed!

      4. You already have your answer. ATMs are the job killers — not the MW.

      5. Progs have actually told me that that cannot happen, even as I have pointed to evidence that it’s happening.

        1. Evidence shmevidence! It’s not the intention so it can’t possibly be the result!

        2. I used to work in a bank, as a teller, and I was required to tell every person who came in to make a deposit or withdrawal that they could have gotten that done at the ATM outside and didn’t have to bother us.

          Fascinating.

        3. I used to work in a bank, as a teller, and I was required to tell every person who came in to make a deposit or withdrawal that they could have gotten that done at the ATM outside and didn’t have to bother us.

          Fascinating.

        4. I used to work in a bank, as a teller, and I was required to tell every person who came in to make a deposit or withdrawal that they could have gotten that done at the ATM outside and didn’t have to bother us.

          Fascinating.

          1. Stupid Autoplay teller

          2. SimonJester|5.20.15 @ 10:52AM|#
            “I used to work in a bank, as a teller, and I was required to tell every person who came in to make a deposit or withdrawal that they could have gotten that done at the ATM outside and didn’t have to bother us.”

            And I’ve had check-out people at the grocery seem less than happy to take care of my goods when the auto-check out it right over there.
            Some people can be blind.

        5. In Progtopia (Denmark), LEGO decided long ago to robotify their local production and warehouses. They also outsourced a lot of jobs to places with cheaper meat-based labor. This had quite an impact on the surrounding city, which exists almost solely because of LEGO.

          But it’s OK, because progressive Danish politicians think the country should focus on service jobs, rather than production jobs.

          1. I adore LEGO. It is as a thousand toys in one.

      6. Trigger Warning|5.20.15 @ 8:53AM|#
        “I wonder if the progtards will make any connection when they’re ordering food via kiosk, to be made by a robot, and served on a conveyor belt. My guess is no.”

        Yes, and the ‘connection’ is that the greedy KKKorpurashuns just ‘put profit before people!’

  2. wage floor could be increased with very little effect on jobs, at least in certain circumstances, up to a certain point

    That point being the value of an hour of unskilled labor.

  3. How could raising the minimum wage result in unemployment? That’s not the intention!

    1. It’s all about intention, and reality be damned with these class warriors…

    2. Laws are magic. MAGIC!

      1. It’s not magic?

        If you create a landing strip with sticks and stones, including a hut that looks like a radio tower, and you put a man with wooden earmuffs in that hut, surely, eventually, some goodies will fall from the big metal birds in the sky?

    3. Labor is magic, donchaknow?

      It’s the only commodity that people don’t buy less of as the price increases.

      1. I guess I could read the other posts claiming magic, before I do.

  4. The value of a thing is what that thing will bring – preferably without a government agent putting a gun in your face and making you hand over more.

    1. Just pay your Obamacare tab and move along, sailor!

      1. +1 “Shared Responsibility Fee”

  5. I would like to see restaurants post food prices separate from labor prices.

    Server: “Here’s your bill sir.”
    Patron: “I don’t understand. My coffee is 38 cent and labor charge is $7.50?
    Server: “Well sir, you did take 30 minutes to drink your coffee, do you expect me to Facebook and smoke cigarettes for free? Monster.”

    1. Hey Florida Man, why has it been so quiet in homeland the last few weeks? It makes a reptile nervous

      1. It Texas’s turn right now. It’ll be ours again soon.

    2. Where do you find a 38 cent cup of joe?

      1. I’m itemizing the bill. Coffee is cheap, especially when bought in bulk.

    3. I would like all businesses, everywhere, to have a section on their receipts or invoices which shows what the price would be in a free market; without taxes or any government interference in the economy.

      That might blow a few people’s minds.

      1. There aught to be a law mandating this.

      2. I doubt it could be calculated. There are too many levels of intervention to strip away.

        1. That’s certainly a consideration, and I think if it was possible to strip them away and get a reasonable ballpark calculation, it would indeed blow some minds.

          1. It would be earth shattering. No EPA, FDA, OSHA, etc regs. No property tax, tariffs, sin taxes, employee taxes, mandated benefits. No zoning laws, building codes, minimum wage. I’m guessing you could get a nice meal at a diner for under a buck.

            1. Local, state, and federal governments spend roughly $7-8T a year out of a $18T GDP; 40%. I think it safe to say 90% of governmnt functions would be handled better by private enterprise. Then add in all the private bureaucrats whose only function is to combat the government bureaucrats, and I bet prices could drop by half or a third if government were to shed that 90%. And all those shed bureaucrats would have to find honest jobs and contribute to the economy instead of being parasites.

      3. Here in Florida (or, perhaps, it was just Tampa) many, many years ago, the liquor stores were considering using the pre-tax price in their newspaper ads for a week or so, to demonstrate the true price of booze.

      4. I think it is in Ohio that many gas stations post the tax separately from the fuel cost. Additionally many aviation fuel suppliers charge tax separately.

        We need gas stations to post the pretax price instead of including it. Why they post the taxed price I have no idea, unless the govt requires it to obfuscate its graft.

        1. Around here a lot of gas stations have a sticker on the pump that shows a pie graph of where the price of the gas goes. The largest chunk is in production, the next largest is taxes, and finally a tiny sliver that represents profit for the store.

          1. They should include the station employees’ wages as a separate item.

            Basically the only reason many gas stations even have attendants is state laws requiring them for “safety” reasons.

          2. Michigan had something similar, “Each gallon is $.X in federal taxes and $.Y is state.” Suspiciously, in 2001, all these stickers vanished.

          3. Michigan had something similar, “Each gallon is $.X in federal taxes and $.Y is state.” Suspiciously, in 2001, all these stickers vanished.

  6. If they really cared, they should have also voted to lower rent and food costs.

  7. As senior administration econ adviser Jason Furman said last year when President Obama called for a national increase in the minimum wage, “Zero is a perfectly reasonable estimate of the impact of the minimum wage on employment.” Echoing the sentiment, The New York Times editorial board wrote around the same time that “the weight of the evidence shows that increases in the minimum wage have lifted pay without hurting employment.”

    You know, I always thought that most people, even as children, learn to grasp the concept that you can’t get something for nothing. Everything has a cost.

    Do the ones incapable of doing so just somehow end up gravitating towards politics? Truly astounding how many people embrace the idiocy of an ideology that denies the existence of opportunity costs and trade-offs.

    1. Employers will just have to suck it up and take in less profits off of their laborers. Everyone knows that they’ve got plenty of money. I mean, they’re rich, right? So obviously they aren’t paying their fair share, or they wouldn’t be rich!

      1. They’ll have to give up that swimming pool full of money they’ve got at their huge mansion, right next to their giant boats. Those greedy bastards!

    2. Do the ones incapable of doing so just somehow end up gravitating towards politics? Truly astounding how many people embrace the idiocy of an ideology that denies the existence of opportunity costs and trade-offs.

      No, government is the only place where your intentions rather than your results determine your employability.

      1. Not to mention that politics pays pretty well for unskilled labor.

        You can be the dumbest person in the world with zero accomplishments to your name, but if you can convince enoug people to vote for you, you’ll make $175K a year.

  8. One worry, however, is that local officials elsewhere may not wait until the results are in to decide whether to follow suit. The Times reports that “Tuesday’s vote could set off a wave of minimum wage increases across Southern California,”

    Leaving the cities not participating in this retarded idea to scoop up those businesses that don’t have to be in a specific geographic location.

  9. “Zero is a perfectly reasonable estimate of the impact of the minimum wage on employment.”

    Then why not raise it to $100/hr, you cheap fuck.

    1. Yeah, either he’s lying and evil or he’s stupid and evil.

      1. Statistically the impact on employment is actually pretty close to zero. Very few people work for minimum wage. The thing is, the people who do are the young and the unskilled, who work for a low wage to gain the experience and responsibility to demand a higher wage. The effect on that small group will be huge. But they’re mostly unseen, so no one cares.

        1. I bet more than just young people are noticing it in Seattle

          1. Businesses are shutting down up here in droves. The $15/hr minimum wage is destroying Seattle’s service industry.

            And of course the employees learned a hard lesson about compensation being more than just salary as soon as the minimum wage was enacted, when businesses cut perks like free parking (huge cost saver in Seattle) and meals. And those are the people who were lucky enough to still have jobs.

            1. Have you ever been to Australia? Of all the restaurants we visited, only one had table service like you’d find in any pub here in the states (and that was an expensive one). So when you’re paying $20 for your burger (I kid you not, food is double what it costs here) you have to order it at the counter, and a runner will deliver it to the table. You can’t tell me the high minimum wage (which applies to servers, because there is no tipping there) is not responsible for that.

        2. And the union wages being tied to “prevailing wage” in an area will go up too – oops, looks like LA is going to be ponying up more to AFSCME…

          1. This is of course the real reason for this push. Nobody in places like LA or NY makes minimum wage. I would love to walk up to one of these idiots at one of their protests and explain to them what a tool they are.

        3. It’s also because managers don’t like to get rid of people that have already been taught the job. So few people lose their jobs on account of the policy, but when people do leave, their positions are less likely to be backfilled (this is also unseen, so nobody cares).

          Minimum wage increases are inflationary, increase job lock, and decrease overall employment. They’re a terrible idea from a strict utilitarian perspective, which is the lowest bar to clear in the “good idea” matrix, and why the government keeps trying to prove reality wrong is just beyond me.

        4. This is exactly right at current levels. It is something like 1.5% and would include tipped employees. That is why the proggies can say with some level of honesty that there won’t be a meaningful impact. They look at studies where there is a modest increase in the minimum wage without a major employment effect. Duh! Marginal changes in the rate for 1% of the population is not going to have a major impact on the net unemployment rate for the other 98.5% of the population.

          Naturally the solution is to legislate an astronomical increase because if a 50 cent increase didn’t have a big effect certainly a 5 dollar increase won’t. Basically they are looking for the sweet spot of stupid.

        5. But if min wage goes up 15 dollars, the impact on employment will be huge. Lots of people who earn more than minimum wage make 10-12 dollars an hour. Many businesses who hire those people will cease to make a profit once min wage hits the 15 dollar mark.

          1. Well, those business just need a better model then don’t they ?

    2. “Zero is a perfectly reasonable estimate of the impact of the minimum wage on employment.”

      Then why not raise it to $100/hr, you cheap fuck.

      I have seen internet leftists, in discussions of the minimum wage, sneeringly post stuff like, “Oh, I bet the libertardians are going to show up and say, ‘Why don’t you just make it $100/hour, then’.” (Note that they have to get the snark in there pre-emptively – they do this even before anyone has shown up to challenge them, and in places where no one is likely to because the forum is an echo chamber.)

      The funny thing is that they never do answer why not…

  10. This will certainly boost off the books employment.

  11. In proggie think a big raise to workers just come out of the large pile of money the business owner rolls in every night before beating his orphans.

    1. I beat my orphans while they roll my money. I get a whole extra hour a night to torture puppies.

      1. But do you fry and eat their hearts to gain their power?

        1. You really need to eat them raw and still beating if you want every bit of their essence. Otherwise the power is diminished.

          1. I like mine in butter and onions.

            1. I like mine with fava beans and a nice chianti.

  12. Janitors will now get paid $15 per hour. That will not have any adverse affect on their income, the income of the company they work for, or the building that pays them to clean. Nope.

    1. No. Janitors will get paid $0 per hour as robots wash the floors.

      1. “$15 per Hour – Rise of the Machines”

        1. “I’m back! To mop your floor”

      2. I doubt many people at Roomba work for minimum wage.

        1. I doubt many people work at Roomba work for minimum wage.

  13. I think this is great that LA has done this but a really against the FEDS doing this on a national scale… Let’s let LA be the little test bed for this idea but I think what it will do is speed up the Computerization and Robotics of the fast food industry and many jobs will be lost. AND think of the number of Illegals that will be working under the table… They will be getting 10$ or more cash and pay not taxes… All in all I think it is fine for Californians to live the way they want to…. To bad they won’t let me live the way I want to.

  14. The wealthier and more influential restaurant owners in LA have seen the nice effect the Seattle minimum wage has had on the restaurant competition there and they want the same, so the cronies were sent in to do their thing. Good intentions have shit all to do with it, that’s just what they tell the media.

  15. If there is no downside to raising the minimum wage, and if it’s a moral imperative that we do so, why wait 5 years to have full implementation? Why not make it take effect June 1? Why make poor people suffer for 5 more years? They need help now!

    1. If there is no downside to raising the minimum wage, and it’s a moral imperative that we do so, why wait until prices slowly creep up over the years due to inflation? Peg the minimum wage to the cost of living so poor people won’t be suffering again in another 5 years!

  16. The proggies fancy themselves the intellectual giants of the nation. So I imagine they’ll have no trouble whatsoever in explaining how they arrived at the figure of $15 per hour, showing their mathematical calculations.

    “…err, it’s a nice sounding number”

  17. Perhaps it’s time to just let people figure their own worth and pay them accordingly.

    ‘How much you think you’re worth, Pete?’
    ‘Um, I don’t know? Elevnty thousand per hours?’
    ‘Deal!’

  18. What’s the minimum market wage in LA? I would think it wouldn’t be much less than $15/hr.

  19. Several years ago we remodeled our house .I did much of the work,baths kitchen,decks et..We built a bar in the downstairs family room.Since the top was all red oak and needed to be done carefully we hired a guy who was a carpenter were my wife worked. She said he would charge 15.00 an hour,which was union scale then .I told her to tell him we could pay that in a check and file a 1099 or he could take 10.00 an hour cash.He took the 10.

  20. Several years ago we remodeled our house .I did much of the work,baths kitchen,decks et..We built a bar in the downstairs family room.Since the top was all red oak and needed to be done carefully we hired a guy who was a carpenter were my wife worked. She said he would charge 15.00 an hour,which was union scale then .I told her to tell him we could pay that in a check and file a 1099 or he could take 10.00 an hour cash.He took the 10.

    1. Adans — And if said carpenter got hurt on your job he would have ended up owning your house.

  21. Setting aside issues of whether it is moral to force employers/employees into the terms of employment, this is a great move. This is how federalism should work. Wages, costs of living, etc. are all inherently local and should be et at the local level. And it provides a natural experiment for studying the effects that you could not get with a national or even state minimum wage.

    1. Or……we could just wipe out all the progtards. PLEASE can we wipe out all the progtards? I promise it will be cathartic. And their chilling wails of agony shall be most pleasing to the ear.

  22. A rising tide floats all boats… even the inflation boat.

    I think it’s time to stop thinking that deflation is a bad thing. People are clamoring for a raise in the minimum wage because their cost of living keeps rising… homes, apartments, cars always get more expensive, and don’t get me started on health care. Some of us have to work 2-3 jobs just to pay the rent on time, but instead of us begging for more money, we should demand real estate reform. I think part of the reason the “rent is too damn high” is that unoccupied “investment properties” artificially suppress the supply of houses.

    1. I think part of the reason the “rent is too damn high” is that unoccupied “investment properties” artificially suppress the supply of houses.

      That doesn’t make any sense. An investment property only works if you expect someone to pay a lot more for it than it cost you to acquire and maintain it. If that’s the case, then wouldn’t developers also be scrambling to provide new homes to meet such demand?

      Supply can only be kept artificially low by the government or some other sort of criminal conspiracy. Rent control, high taxes, restrictive zoning, and other factors can reduce the supply of homes relative to what is demanded. People buying and selling homes to make money are just exercising arbitrage.

      In fact, a lot of “unoccupied investment properties” is a symptom of artificially low supply. If it looks like a cause to you, then you really don’t understand economics.

    2. So many things wrong with what you just said…….

  23. Nathaniel . although Stephanie `s rep0rt is super… I just bought a top of the range Mercedes sincee geting a check for $4416 this last four weeks and would you believe, ten/k last-month . no-doubt about it, this really is the best-job I’ve ever done . I actually started seven months/ago and almost straight away started making a nice over $79.. p/h….. ?????? http://www.netcash9.com

  24. My guess is that the minimum wage hike will have little visible effect on the local unemployment numbers. If you’re a low-skill worker and live near LA, aren’t you more likely to head to LA to look for work? Yeah, and so is every other minimum wage worker. Minimum wage employers are going to get a lot pickier about who they hire, looking for somebody who can boost productivity enough to offset the increased wages. Both employers and employees who can’t boost productivity are going to go somewhere else. Low-paid jobs and low-paid workers are going to disappear one way or the other – if they transmute into higher-paid jobs and higher-paid workers that’s great, but if they just crawl off and die somewhere out of sight, well, that works, too.
    .
    What will be “unseen”, unseen in the sense that people are simply going to close their eyes to it, is that the working poor are simply going to disappear out of LA. The welfare poor will still be there but you zone them into their own little ghetto, the working poor with their shabby jobs and their shabby houses and their shabby cars and their shabby lives you just pass “quality of life” laws that mandate people improve the quality of their lives or stop living. Everybody gets to feel good about what a wonderful job they did getting rid of poverty and it would just be unseemly to point out that they only got rid of poor people – and we all know who else had a plan to get rid of poor people.

    1. On my first visit to San Francisco (from living in urban Texas), one of the things which really struck me was, “Where are all the poor people? How did they get them to totally leave San Francisco?”. This was some 30 years ago, which I guess illustrates the social forces have been there awhile.

      1. They keep some pets with rent control.

  25. I predict lots of ‘Going out of business’ events.

    1. Or ‘moving our store’ clearance sales.

  26. I guess the fact that after raising its minimum wage to $15 an hour, Seattle saw restaurants close and other business stop hiring is not proof. The true stupidity of this argument is when you artificially raise wages all other wages rise as does the price of goods. $15 an hour is an annual salary of $30,000. Right now, the median salary of a person with a bachelors degree is $38,000. Do progressives actually think a person with a high school diploma and few job skills warrants a salary only $8000 less than a person who worked to get a college degree and in 99% of cases also assumed debt to do so? The destructive nature of paying employees more than the market can support for a position has no better example than the American auto industry. During the 1970s and 80s, the UAW forced car companies to sign contracts with salaries and benefits far greater than the market could support. As a result, two of the big three have gone through bankruptcy twice. In turn, the city that they supported, Detroit, also collapsed because it too was forced to pay wages and benefits greater than it was actually able to support and it too is not bankrupt.

    1. Same goes for basically every pubsec job in the country. The guy pushing a broom in my subway station (and that is all he is contracted to do) probably makes more than I do.

    2. In the progressive future, everyone will go to college, and everyone will earn $38,000 a year. Including people who mop floors for a living and people who flip burgers for a living, I guess.

    3. Yes. Yes they do. For they have decreed prosperity.

  27. If the minimum wage has no effect on the number of jobs why not a $ 1 billion an hour? Or $100 trillion an hour?

    $15 an an hour is a rip off.

  28. There are people who aren’t considered at all in these equations.

    The guy who started at the minimum when it was X and has worked hard and gotten raises until he’s at $11 an hour now. Oh, he’ll get a raise–to the bottom wage.

    The guy who started at $10, when the minimum was around $7 because he had some skill and experience, and has moved up to $15 as he’s gained more. What happens when they raise the minimum to $15?

    I know someone who’s encountered this–they’re working a part time job while in school, they’ve worked out of the minimum wage range and into a wage that says they know what they’re doing. And a minimum wage increase comes through and suddenly people who’ve just started are making what they make.

    There are millions of people who are making a decent wage now that are going to see that wage turned into the unlivable bottom wage or something just above it–when they were doing okay before.

    1. Absolutely right. Plus, $15/hour is pretty serious dough. These people who struggled to work their way to $11/hr now have to compete with people who can easily make $14 or $15 an hour.

      The job I’m at now started at less than $15/hr. Would I have even bothered to look for this job, or take it, if I could have made the same at Starbucks or a movie theater?

    2. that won’t be what happens. At least not over time. The guy with skills making $15 an hour will become more in demand, because useless space fillers will be making $15 an hour. He’ll get offered $18 an hour, and so on up the ladder.

      Initially, he makes a bit more right away and feels resentful that a do nothing, no skills job gets $15 an hour, but in time his wages will increase. Nothing more is produced, price level will simply rise.

  29. Has any one considered that it may cause a rise in internship?

    1. Not really, California already has labor laws that test whether internship is real – very hard to get past to create a non-wage position.

      http://www.shegerianlaw.com/ca…..ion-works/

  30. Hereyee! Hereyee! Your progressive Overlords hath decreed from on high! Minimum wage shall increase! Let prosperity ensue! So mote it be!

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  33. Minimum wage hikes don’t just cost jobs, unfortunately. They over-price the value of labor in many cases. A high school student or an elderly Wal-Mart greeter probably isn’t doing $15/hour of work most of the time. So not only should we expect fewer jobs, but we should expect all of the remaining jobs to be pickier in the hiring process. After all, if the price of advantage of hiring a pimply-faced snot student over a 21-year-old high school graduate to grill is effectively gone, then why do it? I’d rather hire the older person with a little more experience in the job market if no matter what I’m paying the minimum wage.

  34. Actually, some workers apparently are already learning the effects in Seattle as long-established restaurants close down. It won’t be long before the same thing happens in LA. Too bad liberals have no interest in microeconomic concepts such as supply and demand.

  35. The big downside is that more of these Cali retards are going to be moving out infecting every berg in which they land.

  36. Hey, it’s LA. If they want to wreck their economy further proving an economic point, they are welcome to it.

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  39. This is so great. I love this stuff. Forget this incremental destruction of an economy. Do it right! Rip off the bandage! Go for it! Destroy it overnight.

    Love it when Statists get their stupidity shoved right back in their faces. Which this will do.

    1. BTW….I’m a landlord. Please, please, please let my City Council raise the minimum wage to $15 an hour. My $1500 rent suites should shoot up to about $2200 pm. It will take about two years. But, that would be like devaluing my mortgage by 1/3.

  40. Actually this is just a way for the Progressives to put an end to fast food workers spitting in their food and then serving it to them.

    Plus this will add to the ranks of the unemployed helping to bring the entire system crashing down sooner so they can implement their socialist state that much quicker.

    IT’S ALL OVER FOLKS! And the socialists have won.

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  42. Start making cash right now… Get more time with your family by doing jobs that only require for you to have a computer and an internet access and you can have that at your home. Start bringing up to $8596 a month. I’ve started this job and I’ve never been happier and now I am sharing it with you, so you can try it too. You can check it out here…
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  43. My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can’t believe how easy it was once I tried it out. This is what I do,
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