Well, this should be interesting…Bernie Sanders has campaigned on a $15 an hour minimum wage, a radical proposal even among economists who support raising the minimum wage. And what would more than doubling the minimum wage do to the economy?
The debate isn’t over whether or not it’ll be positive or negative, it’s over the extent of the carnage. The Congressional Budget Office has estimated that raising the national minimum wage to $10.10 an hour would cost 500,000 jobs – so who knows what $15 an hour would do. Keep in mind, a raise from $7.25 to $15 an hour is nearly three times as large as a raise to $10.10 an hour.
Apparently intent on compounding its economic problems, California is going to be the first state to adopt a $15 an hour minimum wage. As USA Today reports:
A deal to raise California’s minimum wage to $15 an hour by 2022 was reached Monday by Gov. Jerry Brown and state legislators, making the nation’s largest state the first to lift base earnings to that level and propelling a campaign to lift the pay floor nationally.The increase will boost the wages of about 6.5 million California residents, or 43 percent of the state’s workforce, who earn less than $15, according to worker group Fight for $15. The proposal had been headed to a statewide referendum. It’s now expected to be approved by the state assembly.
Under California’s plan, its minimum wage, currently one of the highest in the nation at $10 an hour, would rise to $10.50 in 2017, $11 in 2018 and a dollar each year through 2022.
Businesses are fleeing California in droves – with a sizable percentage relocating in Texas and other low tax states. It wasn’t their intent, but I suppose we should be thanking California for sending all their businesses fleeing to Red States.