Minimum wage has to go up in America. The levels of wealth for the super-rich are higher right now than it was in the 1900's before the great depression. If you go back to 1968, workers then earned $10 a hr. in today’s pay. We don’t even allow for that now. Canada has passed us as the Strongest Middle class in the world and they have increased pay 20% since 2000 till now. But, the best case for this is in San Francisco, CA.
This city starting in 2003 to increase the Minimum wage , and according to studies by Berkeley the following are true:
- 77,500 low-wage workers are receiving higher pay; the minimum wage law alone put $1.2 billion in the pockets of workers
- 59,000 workers can stay home from work when they or a loved one is sick without risk of losing a job or a paycheck
- More people have access to health care—three-quarters of city employers have invested more in health care
You can read the whole report here.
Rotor123, the look at the CBO report also included the following benefits as well:
For family income overall and for various income groups, CBO estimates the following:
- Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $1 billion.
- Real income would increase, on net, by about $1 billion for families whose income will be below the poverty threshold under current law, boosting their average family income by about 1 percent and moving about 300,000 people, on net, above the poverty threshold.
- Families whose income would have been between one and three times the poverty threshold would receive, on net, $3 billion in additional real income. About $1 billion, on net, would go to families whose income would have been between three and six times the poverty threshold.
- Real income would decrease, on net, by $4 billion for families whose income would otherwise have been six times the poverty threshold or more, lowering their average family income by about 0.1 percent
Overall, the thought that raising wages will result in losing jobs is only initially true. Over the period of a year that is not the case, anywhere this has happened. In countries where the middle class is the strongest, the country does the best. In countries where the wage income gap is the greatest from rich to poor, these countries (USA) do the worse.
Bottom line, places that give more money to the employees and adjust for this each year or so, have more money in the economy, and this is the key factor in lateral movement as well as vertical movement in class and income levels. The secondary benefit is when more people make more the tax base grows, and kids enjoy better schools, roads are fixed, and services are updated and restored. If you want gigabyte internet as the standard in the US, then the money has to come from somewhere.
Think about this, in 1968 minimum wage could provide for a family of 4 in the United States. Try doing that today working at Walmart.... we have to have this, because right now, most kids can’t afford college and have no backup plan that can pay enough to live on.