Would like to hear some reasonable arguments for a minimum wage increase since 2012 Census results tell us that:
91% of those 16 and older who are living in poverty either do not work or do not work full time.
Of the 91% and again according to Census results; 66% do not work at all and 25% work less than full time.
A secondary issue with minimum wage increases has to do with cost of living.
Recently there was a piece posted showing how the US minimum wage was lower than a dozen other countries; I will compare two of them and with luck, spur additional discussion regarding any benefit of minimum wage increases.
Canada which is #10 on this list and our nearest neighbor has an average 17.54% less disposable monthly income after taxes. Local purchasing power in the US is 26.28% greater than in Canada – meaning we have the ability to purchase 26.28% more goods and services than our Canadian counterparts.
France which is #2 on the list has an average of 18.03% less disposable monthly income after taxes. Local purchasing power in the US is 44.76% greater than in France – meaning we have the ability to purchase 44.76% more goods and services than our French counterparts.
Yes dollar-wise these countries may give you more for minimum wage, but at what cost are these minimum wage increases afforded?
The Canadian minimum wage is roughly 21% greater than our minimum wage, yet we have 17.54% more disposable income and the ability to purchase 26.28% more goods and services. The French breakdown is even worse since their minimum wage is roughly 29% greater, yet we have 18.03% more disposable income and the ability to purchase a whopping 44.76% more goods and services.
One last comment; Of the last 17 minimum wage increases, 9 were followed by a minor increase in poverty rates and 8 were followed by a minor decrease which would tend to substantiate economists assertion that minimum wage increases neither improve or worsen poverty levels.