will raising the minimum wage hurt the economy - What We're Reading - StockBuz2024-03-28T21:40:35Zhttp://stockbuz.ning.com/articles/feed/tag/will+raising+the+minimum+wage+hurt+the+economyMinimum Wage by Statehttp://stockbuz.ning.com/articles/minimum-wage-by-state2014-03-29T19:04:12.000Z2014-03-29T19:04:12.000ZStockBuzhttp://stockbuz.ning.com/members/1t2xbcvddkrir<div><p><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/1290474?profile=original"><img class="align-left" src="http://storage.ning.com/topology/rest/1.0/file/get/1290474?profile=RESIZE_480x480" width="375"></a>For all the political yammering about raising the Federal minimum wage, it would seem that almost <a href="http://www.dol.gov/whd/minwage/america.htm" target="_blank">1/2 of the country</a> is already above the Federal level with Connecticut being the first to jump to $10.10 per hour just <a href="http://www.reuters.com/article/2014/03/28/us-usa-minimumwage-connecticut-idUSBREA2R04C20140328" target="_blank">yesterday</a>.</p>
<p>For all the fear mongering that raising the minimum wage would lead to job loss, the results don't match the scary bedtime story being spread. To be honest, who really <em>over staffs</em> anyway (unless it's the holidays)? In my opinion, businesses hire what employees they need to service their customer flow and keep <strong>down</strong> their bottom line but don't take my word for it. </p>
<p>Examine <a href="http://www.mercurynews.com/opinion/ci_25315215/san-jose-minimum-wage-year-old-success-story" target="_blank">San Jose</a>, who raised their minimum wage to $10 an hour a year ago. The results after one year have not been massive job loss and small business failure. Rather San Jose has enjoyed a jump in small business creation, job growth and a drop in their unemployment rate. With more money in the citizens pockets, it definitely seems to be translating into money flowing into local businesses and their economy.</p>
<p>If anything, Washington can become the poster child for raising and linking <a href="http://www.bloomberg.com/news/2014-03-05/washington-shows-highest-minimum-wage-state-beats-u-s-with-jobs.html" target="_blank">minimum wage to cost of living</a>, which they did back in 1998. Since then they've enjoyed job growth at an average 0.8 percent annual pace, 0.3 percentage point <span style="text-decoration: underline;"><strong>above</strong></span> the national rate. Impressive.</p>
<p>From a stock market point of view, with approx. 40% already paying <span style="text-decoration: underline;">above</span> $7.25/hr., wouldn't one think the states have already begun to <em>"bake it in</em>"? </p>
<p>Food for thought.</p>
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