Tuesday, December 24, 2013

Study: Minimum Wage Rise Of $10.10 Would Boost Economy By $22 Billion

According to a study by the Economic Policy Institute, raising the minimum wage to $10.10 by 2016 would boost workers' wages, jobs and the economy. The Institute also reports that those who would be helped are older and have more family responsibilities than those traditionally thought of as low-wage workers. Among the key findings:

• Raising the federal minimum wage to $10.10 by 2016 would return the federal minimum wage to roughly the same inflation-adjusted value it had in the late 1960s.

• An increase to $10.10 would either directly or indirectly raise the wages of 27.8 million workers, who would receive about $35 billion in additional wages over the phase-in period.

• Across the phase-in period of the increase, GDP would grow by about $22 billion, resulting in the creation of roughly 85,000 net new jobs over that period.

• The workers who would receive a raise do not fit the stereotypes of low-wage workers:
• Among affected workers, the average age is 35 years old, nearly 88 percent are at least 20 years old, and more than a third (34.5 percent) are at least 40 years old.
• Of affected workers, about 54 percent work full time, about 69 percent come from families with family incomes less than $60,000, and more than a quarter have children.
• The average affected worker earns half of his or her family’s total income.

2 comments:

Michael J. Mand said...

I'm convinced that a $15.00/hour minimum wage would do even more to boost the economy. I'd probably have more patients able to afford the treatment they should get. I'd be willing to pay a little more for that. I suspect other "Non-Park Avenue" dentists would agree.

Jeff Tone said...

It's the same principle espoused by Henry Ford, who wanted to pay his workers enough so that they could buy his cars.