According to a June 2 article in the USA Today; the Seattle Council has voted to increase the State’s minimum wage. The plan is scheduled to take effect on April 1. Seattle currently has the highest minimum wage rate in the country. The new minimum wage will be $15 per hour.
According to CNN Money, 19 states have raised their minimum wage higher than the national average. At the bottom of the minimum wage scale is Arkansas, Georgia, Minnesota, and Wyoming; according to ABC News. The unemployment rate in Wyoming was 3.7% in April.
Business leaders have hinted in the past that an increase in the minimum wage may result in short and long term job loss in certain industries. They believe that it will disrupt the delicate nature of capitalism, and drive unemployment to dangerous levels.
One business executive stated that the plan could “backfire” if businesses don’t have a vote on the timing. “I think increasing household income is good for both the short and long run. It takes pressure off of government subsidies, and may ultimately pay for itself. The probable, is timing. Implementing the law in the middle of a fiscal year can be catastrophic to a business. Financial projections are missed; Wall Street reacts, and the stock tanks. That scenario would be bad for us all.”
The Council’s vote was unanimous.
“Minimum wage increases have become more and more a partisan vote than a practical one. The threat of job loss has made even those who would benefit the most from the increase afraid to support it. Do you support a minimum wage increase? Would you feel different if you were a business owner?
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Source: USA Today