Opinion: In many states, workers still earn only $7.25 an hour. If we want to fix the 'labor shortage,' it should start with raising wages. (by paulconstant)
to David Card, Joshua Angrist, and Guido Imbens for their extensive work disproving the trickle-down threat that raising the minimum wage kills jobs.
So to say it as plainly as possible: Seattle's move to raise the minimum wage to $15 was good for workers, good for businesses, and good for consumers. Despite the trickle-down threats and warnings that jobs would be killed and businesses would shutter, the opposite is true: When businesses pay workers more money, those workers spend that money on local businesses, which hire more workers to meet increased consumer demand.
Leaders around the country paid close attention to Seattle and saw that the sky didn't fall. Now dozens of other cities, counties, and states around the country are raising their minimum wage to $15 and beyond. And more minimum-wage increases are just over the horizon: Last year the Biden Administration passed legislation that willBut despite this progress, the federal minimum wage is still stalled at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees.
that the $7.25 federal minimum wage is worth 21% less today than it was worth when established in 2009. found that an all-time record of 4.5 million Americans quit their jobs in November, even while 6.7 million workers were hired in the same month — and that many of those quits and hires were in the low-paying hospitality sector.
The numbers indicate that many workers are leaving low-paying jobs for better-paying positions in the same sector, suggesting that the"labor shortage" is really a wage shortage. Raising the minimum wage then would likely be an effective economic policy to combat the pandemic-era labor crisis, as raising the wage
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