Tuesday, May 19, 2015

Los Angeles Raises Minimum Wage to $15 an Hour

From the New York Times:

The nation’s second-largest city voted on Tuesday to increase its minimum wage to $15 an hour by 2020, in what is perhaps the most significant victory so far in the national push to raise the minimum wage.

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.
More here.
Now, if conservatives are right about economics, which they're not, Los Angeles' economy will soon collapse because of this, which it won't. In fact, I'd bet you credits to navy beans that LA's economy will actually expand because of this. Getting money into the hands of people who will spend it, you know, consumers, who also happen to be workers, means MORE economic activity, not less. So businesses will grow, hiring will increase, and more businesses will be created. Pretty simple old school demand side Keynesian economics. A shame we got away from that, really.
I await my opportunity to say "In yer face, conservatives!" Sometime next year, I'd imagine.