The sound of raising minimum wage from $9 to $13.25 to eventually $15.25, sounds pretty nice for Angelenos but will it be good for Los Angeles economy? According to L.A.Times Eric Garcetti has proposed a raise for minimum wage from $9 to $13.25 by 2017 and eventually raise that wage to $15.25 by 2019.
Economist were hired to figure out numbers in order to answer business and labor groups main question, will this affect Los Angeles in a good way or a bad way?Economist made an analysis of the potential wage raise and believe it or not, the rain to $13.25 is not that great of idea and $15.25 worse.
Based on Beacon Economic’s results, there would be a decline of jobs from 73,000 to 140,000 less jobs. Garcetti’s intentions are to help fellow Angelenos move from poverty to a better lifestyle. Two other economic researchers say it would benefit L.A, which will create more jobs by 2019. It would also improve the living situations for low-waged workers.
Essentially, jobs will still be created even if the wage was raised, according to UC Berkeley Institute for Research on Labor and Employment. This would benefit employers, the city, workers and their family. Seems like there is more pros then cons based on two other researchers. Maybe raising minimum wage isn’t such a bad idea after all.