March 30, 2016
By Natalie Kitroeff
More (click here) than a third of the state's workers would benefit from those moves, UC Berkeley estimates.
"California's proposal would be the highest minimum wage we have seen in the United States, and because of California's sheer size, it would cover the largest number of workers," said Ken Jacobs, chairman of the UC Berkeley center. "This is a very big deal for low-wage workers in California, for their families and for their children....
California's low income workers will take on an entirely new economic profile. They will move up in tax brackets as well as graduating from government subsides such as food stamps.
The $15.00 minimum wage is nearly double the current minimum wage in most states. That is a lot of new liquidity in the US economy.
Most families considered the working poor work at least two jobs. Let's say they now work 60 hours per week. California's current minimum wage is $10.00 per hour. The working poor is making $600 per week. The cost of living in California is higher than the rest of the USA with perhaps the exception of Massachusetts. There are cities such s NYC that has a higher quality of life cost, but, this is within the context of states.
Let's say a person working 60 hours per week continues to do so with a higher minimum wage. That person in California will have added a full third to their income. The gross income is now $900. That moves that family out of a sustainable life into one with disposable income. It pushes that person and family into the income level where home ownership is realistic and sustainable.
Across the country a mandated $15.00 per hour would increase the economy in drastically different dynamics.
There may be some job losses with an increase of a $15.00 minimum wage, but, it would be minimal. The increase in minimum wage, in time, would return those jobs as the liquidity infused the economy. It is a win-win-win decision.
