Sunday, February 21, 2021

A $15 minimum wage will save taxpayers' up to $31 billion

 The irony of the $15 minimum wage issue is that the opposite of both professed conservative principles and proponents of more social programs. Here is the issue with the $15 minimum wage: Those who oppose it, want to government to make up the difference in the ability of low income earners to survive and those who support it will eliminate a great deal, up to $31 billion less, of taxpayer-funded subsidies.. The opposition to a $15 minimum must want government subsidies. .It flies against conservative GOP principles of self-sufficiency, personal accountability, power of work over welfare, and limited government assistance.

There are some ways to address special circumstances that make sense. For example, It should be indexed to inflation because we do not want to debate this every few years to play catchup. It can and should also take into account tip-based jobs, including tips as income, or the minimum is set lower than hourly waged employees..  Phasing it in over a limited time period is a reasonable compromise, but the downside is that business benefits from a level playing field if competitors play by the same rules.  

I can hear the whining now, but others have already made the switch to some degree:  The Chamber of Commerce is the loudest that raising minimum wages will cost consumers a bundle in higher prices. However, whatever studies are out there show the impact is a small percentage." Despite the different methodologies, data periods and data sources, most studies found that a 10% US minimum wage increase raises food prices by no more than 4% and overall prices by no more than 0.4%. This is a small effect. "The Effect of the Minimum Wage on Prices - IZA - Institute of ...

Walmart gave an increaset to 425 thousand employees.  26 states have already raised minimum wages considerably (Colorado is one) or are and have been phasing it in. Changes coming for Colorado employers and workers alike starting in 2021 ( The city and county of Denver is around  $15  indexed to inflation.

States Where the Minimum Wage Is Going Up (

Minimum Wage By State In 2020 & 2021 | Paycor

What Walmart Raises Mean for President Biden’s $15 Minimum-Wage Plan - WSJ

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