Building an Economy that Works for Everyone

Federal minimum wage increase supported by business leaders, backed by economists

Recently, Costco President and CEO Craig Jelinek joined other business owners in support of a proposal that would gradually raise the federal minimum wage to $10.10/hour and peg future increases to inflation, much like we do here in Washington state.

In a statement from Business for a Fair Minimum Wage, Jelinek said: “An important reason for the success of Costco’s business model is the attraction and retention of great employees. Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the federal minimum wage.”

As the New York Times Economix blog recently reported, economists are generally split on the question of whether or not the minimum wage may make it harder for low-skill workers to find jobs. More recent, sophisticated studies have shown that raising the minimum wage had no effect on employment, although other studies “have shown negative, though generally small, employment effects.” None of the economists polled felt strongly either way.

Despite their uncertainty around employment affects, there’s little debate among the economists polled that raising the minimum wage would be a net benefit for those same low-skill workers. Nearly half of the economists polled agreed that raising the minimum wage would be worth any potential downside, while just 11% disagreed.

From the NYT Economix Blog

From the NYT Economix Blog

  • Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More To Read

February 27, 2024

Which Washington Member of Congress is Going After Social Security?

A new proposal has Social Security and Medicare in the crosshairs. Here’s what you can do.

February 27, 2024

Hey Congress: “Scrap the Cap” to Strengthen Social Security for Future Generations

It's time for everyone to pay the same Social Security tax rate – on all of their income

February 22, 2024

Why Is Health Care Declining in Washington? Look to Hospital Consolidation

People are hurting in our state. And it’s no accident.