A year later, and no Min Wage cataclysm

Filed in National by on June 15, 2017

Crazy moron fears are, as usual, unfounded.

More than a year after a new minimum wage took effect in Seattle–$12.50 an hour now for small employers, increasing to $15 an hour by January 2018–prices at most stores haven’t gone up.

In a new report, researchers from the University of Washington presented data that showed “little or no evidence” of price increases in most sectors. Before the minimum wage law took effect, most retailers said they would have to charge more–and most low-wage workers were worried that they would have to spend more for necessities. So far, that hasn’t happened.

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Jason330 is a deep cover double agent working for the GOP. Don't tell anybody.

Comments (10)

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  1. SussexAnon says:

    The McD’s in Rehoboth is advertising $10 an hour. The owner is Mike Meoli, republican. Prices at McDs haven’t skyrocketed and the world did not end.

    And in fast food workers circles, people want to work there because the pay is the best on the strip. And other restaurants have had to step up and raise their wages.

  2. chris says:

    Jut was in an Aldi’s Market over the line in Elkton Maryland and they were advertising $12 an hour starting wage .

  3. meatball says:

    My daughter is working a summer job in Rehoboth for $12 an hour
    and they gave her off for Firefly.

  4. Dave says:

    There were some noticeable prices increases in restaurants. The report authors did explain that the fewer hours of labor necessary to generate revenue, the lower the anticipated impact of the wage increase (gas stations vs restaurants for example).

    As the reports authors state “To conclude, it is important to restate that this report describes employer and worker perspectives of the minimum wage, and provides preliminary analysis of the introduction of an $11 per hour minimum wage on prices. The patterns reported here provide no information about the impacts of the policy on businesses, workers, or the local economy. This is the first chapter in
    a story with many more to come.”

    Wage increases are real costs of doing business. Wage increases might be offset by increases in revenue, prices or a decreases in profit, or jobs. The economic analysis is incomplete. Hopefully they will continue the analysis until such things become clear.

    For those who are interested in the actual report – http://seattle.legistar.com/View.ashx?M=F&ID=4395916&GUID=23C988CE-DB66-4FA2-A58A-F5B4FBD4AD7D

  5. chris says:

    Was in Seattle last year and noticed that a pizza was pretty expensive….like 15 bucks…but if it means people can live with dignity, so be it! I bought it.
    Have you eaten at Anthonys Coal Fired Pizza on 202 or Pike Creek ? theirs cost that much anyway here in Delaware.

  6. RE Vanella says:

    Prices have been artificially suppressed (as inflation has been also). This has caused wages to stagnate for over a decade. See the work of Mark Blyth at Brown for details.

    This is why people are so angry with austerity, too, by the way.

  7. Anono says:

    Of course Jason likes to jump the gun and not take in the full report, typical!

  8. jason330 says:

    I read that for what it was – a “let’s cover our ass and bring in some Q’s at the end” epilogue from U of W researchers. The basic point stands un-refuted.

    But do you know what’s typical? You being a standard boner.

  9. Phil says:

    Prices artificially suppressed has caused wages to remain stagnant? Wow, nice backwards economics there. I’ve honestly never heard that one before. Stagnation of wages (a decrease in wages, ie buys power actually), is caused by the lack of available work, increasing the competition of the job market. Lower prices coupled with the sorta lower unemployment, (90mil out of the workforce though) should be a boon, and increase families current buying power.

    I’m so tired of all of this neo-economic bs. We need to stop worrying about tweaking monetary policy, or adjusting interest rates, and focus on the fundamental building blocks of economics. I mean come on, it’s common sense. When a sports team is trying to rebuild, do the focus on complex plays, or on fundamentals? Fundamentals, because if you have a weak base there is nothing else you can do.

    We need to try and right the ship a little bit before the next crash comes. It’s only about 5 years away, and this time with the Fed will have even less to work with. Jesus, it will be like Venezuela here.

  10. Rusty Dils says:

    It constantly amazes me that many liberals who would never, ever try their hand at small business are so sure of themselves when commenting on how a business’s cost (including labor) affect the sale prices of their products. Why don’t you liberals put your money where your mouth is and start your own small business, and pay top tier wages in a mature industry, and then try and keep your pricing fair for your customers, while at the same time making a profit for yourself and any investors you may have? No, I did not think so!