By Mark Perry
Here are some recent reports below on the results of Seattle’s “radical minimum wage experiment” so far. Depending on the size of the firm, Seattle’s minimum wage is currently between $10.50 to $13 an hour, and will increase to $15 an hour between January 2017 and January 2021. The chart above displays the history of the minimum wage in Seattle in both nominal terms (light blue line) and inflation-adjusted 2016 dollars (dark blue line) for those firms that will be forced to pay $15 an hour in less than five months. Adjusted for inflation, the highest previous minimum wage in Seattle was in 1968, when the minimum wage was $11.12 an hour in 2016 dollars. Therefore, the $15 an hour minimum wage that will go into affect on January 1, 2017 will be almost 35% above the previous all-time record high minimum wage. In light of that reality, when Seattle Mayor Ed Murray called his city’s $15 minimum wage a “radical experiment” he couldn’t have been more right. When Mayor Murray claimed that Seattle’s “action will serve as a model for the rest of the nation to follow,” I predict that he’ll learn eventually that he couldn’t have been more wrong. Expect more of the early disappointing results outlined below.
1. “Why raising the minimum wage in Seattle did little to help workers, according to a new study,” from the Washington Post:
Although some workers are earning more, fewer of them have a job than would have without an increase. Those who do have a job are working fewer hours than they would have without the wage hike.
2. “Early data show $15 minimum hurting Seattle’s poor” from the Washington Examiner:
The minimum wage hikes resulted in modest declines to their employment rates and hours worked. While …read more
Read more here:: American Enterprise Institute