Let me reiterate. I am not a proponent of an increase in the minimum wage. Instead, I advocate for all large ($ 2.5 million in gross sales or 50 employees, which ever threshold is exceeded) firms to be penalized (that’s 110% to 125% of the costs) when their employees need to rely on AFDC (Aid For Dependent Children), SNAP (the new name for Food Stamps), Medicaid, etc. to make up for an employer not paying a living wage to its staff.
I’ve reported before on studies that showed the change in minimum wage has little affect on employment. But, a new study appeared this week, using the data from Seattle, which just recently raised it’s minimum wage from $ 9.47 to $11, and then subsequently to $ 13 an hour.
So, yesterday things changed. In 20 of these United States, the minimum wage rate has changed- plus in the District of Columbia. Now, some (9, to be precise) states will be changing the future minimum wage rates automatically. But, the other 11- plus DC- are reacting to legislative mandates. (OK, New York changed its wage laws on 31 December.)
Here in the DC area, we are about to engage in a new kind of experiment. The minimum wage in the Maryland suburbs is going up to $ 11.50 an hour. As it will be in the city of DC. But, in Northern Virginia, the minimum wage will be the Federally mandated one of $7.25. Do you really think the jobs will leave the northern suburbs and move to Virginia?