It’s time for Howard’s Illustrated Economics. This morning, the effect of raising the minimum wage.
When you raise the minimum wage, you raise the cost of doing business for any establishment that is “paying” the minimum wage. And possibly others will be affected indirectly.
So business owners that don’t want higher costs oppose any minimum wage increase, arguing that people like them will cut back on the number of people they use.
Seattle did a major minimum wage hike, and Seattle is surrounded by other cities that didn’t, like Federal Way and Bellevue and Everett and Redmond.
The Los Angeles Times compared Seattle with five nearby cities and their employment has been virtually identical.
I got this from Barry Ritholtz’s blog “The Big Picture,” in which he shoots holes in the arguments of those using fault data to produce a false impression of widespread harm from raising minimum wages.
But he also says he thinks it’s far too soon to tell.
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