For all the political yammering about raising the Federal minimum wage, it would seem that almost 1/2 of the country is already above the Federal level with Connecticut being the first to jump to $10.10 per hour just yesterday.
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 over staffs anyway (unless it's the holidays)? In my opinion, businesses hire what employees they need to service their customer flow and keep down their bottom line but don't take my word for it.
Examine San Jose, 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.
If anything, Washington can become the poster child for raising and linking minimum wage to cost of living, 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 above the national rate. Impressive.
From a stock market point of view, with approx. 40% already paying above $7.25/hr., wouldn't one think the states have already begun to "bake it in"?
Food for thought.
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