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People rally in support of a $15 minimum wage at Seattle Central Community College in Washington March 15, 2014. Voters in SeaTac, Washington recently passed a ballot initiative for $15 minimum wage.  REUTERS/Jason Redmond
The evidence keeps adding up: Raising the minimum wage is just fine for employment. Maybe even good! An analysis by the Center for Economic and Policy Research's Ben Wolcott finds there's been more employment growth in states that raised their minimum wages at the beginning of 2014 than in states that didn't:
Of the 13 states that increased their minimum wage in early 2014, all but one (New Jersey) are seeing employment gains. Furthermore, nine of the remaining 12 states are above the median for this period. The average change in employment for the 13 states that increased their minimum wage is +0.99% while the remaining states have an average employment change of +0.68%.
As Wolcott cautions, "this kind of simple exercise can't establish causality." But "it does provide evidence against theoretical negative employment effects of minimum-wage increases." In other words, it's one more piece of evidence that when Republicans squawk about raising the minimum wage being a jobs-killer, they're wrong. In fact, when you take it alongside falling unemployment in San Jose and strong small business jobs growth in Washington state after their minimum wages went up, it's getting really hard to say "raising the minimum wage is a job-killer" with a straight face. Or it would be, if the people saying it had any shame.

Originally posted to Daily Kos Labor on Thu Jul 03, 2014 at 11:08 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  lotsa poor people spend ever dollar they earn; (18+ / 0-)

    which turns the wheels of the national economy as fast and far as the money goes. if no one has anything to spend, the grind halts. I made this theory up. because I've lived it.

    decent wages don't eliminate jobs. Republicans eliminate jobs; and workers, and prospects, and then excuse it all and call for more austerity. there is no end to their ignorant, arrogant avarice. only political dinosaurs support their treachery.

    by renzo capetti on Thu Jul 03, 2014 at 11:19:26 AM PDT

    •  Spending on payday = best economic stimulus known. (1+ / 0-)
      Recommended by:
      hbk

      You don't need to be an economist to understand this simple equation.

      •  If only (1+ / 0-)
        Recommended by:
        Keeping it Simple

        If only we could get the rich to spend the our tax dollars the GOP insists on giving them.

        I would tell you the only word in the English language that has all the vowels in order but, that would be facetious.

        by roninkai on Sat Jul 05, 2014 at 02:17:26 PM PDT

        [ Parent ]

      •  Not to the Economic Know Alls of the GOP.... (1+ / 0-)
        Recommended by:
        BelgianBastard

        There can't be any sort of growth unless it has come in the form of a warm stream produced by reduced taxes on Jobcreaters on any funds that are not earmarked for investment in offshore manufacturing. It's a simple equation that anyone could understand if they had just satyed at home to be educated by Mom. Less taxes on jobcreaters allows more offshore investment which leads to more profits......and a need to having to hire a whole crew to staff the third home. There's your growth --- none of this commiesocialist nonsense of workers haveing a few more dollars to spend every week? Phshaw....are they going to buy a third home? huh? Hire a whole crew at generous justundertheminimum wages? No way. They just would spend it stupid stuff like food and clothing. Probably Obamacare too......

        it tastes like burning...

        by eastvan on Sat Jul 05, 2014 at 02:38:23 PM PDT

        [ Parent ]

  •  Whocoodanode? (15+ / 0-)

    Trickle up economics works, trickle down doesn't and never did.

    "The philosophy of conservatism is inevitably doomed by its adherents' willingness to accept bluster as a sign of character and thick-headed devotion to meaningless symbols as sign of moral fiber." (Albert Einstein)

    by Jim R on Thu Jul 03, 2014 at 11:20:00 AM PDT

  •  It would be if the people saying it had any shame, (4+ / 0-)

    OR if the people they're talking to had any brains.

  •  Thanks. We don't say there is causation but (4+ / 0-)
    Recommended by:
    a2nite, slow typissed, Mopshell, hbk

    there is a much stronger basis to argue that raising the WM increases employment than that it decreases employment.

    Further, affiant sayeth not. 53959

    by Gary Norton on Thu Jul 03, 2014 at 12:12:02 PM PDT

    •  Evidence, Shmevidence (0+ / 0-)

      When was the last time any of us can remember the GOOPers showing any cognizance of evidence, much less acknowledging its validity and acting on what it tells us?  They're "faith-based", and all faith-based movements, whether religious or political (and the difference is vanishing small these days) care only about the revealed truth contained in their ideologies.  Evidence is beneath their contempt, much less their consideration.

  •  I've been waiting for this!! (3+ / 0-)
    Recommended by:
    Mopshell, janmtairy, hbk

    Thank you Laura for this info! With it, we may be able to inject some sanity into this argument over MW.

  •  Not even close (1+ / 0-)
    Recommended by:
    Sparhawk

    States which have raised the minimum wage might be more educated, more economically dynamic and less dysfunctional than states that have not.  

    Studies comparing states were generally determined to be of no value nearly two decades ago because of confounding factors like those mentioned above.

  •  In a consumer-driven economy (0+ / 0-)

    you need as many consumers in drivers' seats as possible and the further they can drive, the healthier the economy.

    Please note that lamps in the MAGIC LAMP EMPORIUM are on a genie time-share program so there may be a slight delay in wish fulfillment. (◕‿◕)

    by Mopshell on Thu Jul 03, 2014 at 07:51:25 PM PDT

  •  OK, but what kind of jobs are they? (0+ / 0-)

    http://www.zerohedge.com/...

    It ain't pretty. Once Obama gets the TPP pushed through the final nail should be in the working man's coffin.

    Will anybody trade a massage for a haircut? When does that get taxed?

  •  With a straight face (0+ / 0-)
    In May, legislation passed in Michigan to have minimum wage steadily increase, until it is $9.25 an hour in 2018. The first step will go into effect on September 1, bringing the hourly rate to $8.15.
    Jim Muladore, executive vice president of administration and business affairs, estimated this increase will cost SVSU $760,000 annually once it is in full effect by 2018. Budget restraints do not currently allow for this cost to be covered within departments.
    A decline in fall enrollment has decreased the general budget, and a dip in housing and campus dining revenue has lowered the auxiliary operations budget. The lower capacities of these university budgets make the cost of the law harder to cover.
    In order to maintain their budgets, departments will likely be pressed to hire less students or decrease the amount of hours student employees are able to work.
    http://www.valleyvanguardonline.com/...
  •  Any ideas as to why New Jersey is the exception (0+ / 0-)

    Other than our wonderful governor?

  •  Republicans squawk (2+ / 0-)
    Recommended by:
    sunbro, BelgianBastard
    Republicans squawk about raising the minimum wage being a jobs-killer, they're wrong.

    Name anything the GOP has gotten correct over the last four decades.

    Go ahead, name one thing.

    I would tell you the only word in the English language that has all the vowels in order but, that would be facetious.

    by roninkai on Sat Jul 05, 2014 at 02:15:41 PM PDT

    •  I've got one: (0+ / 0-)

      The invaision of Grenada. I was just there and it's very popular. Remember the regime that was overthrown had executed the popular leftist prime minister (oh and his pregnant girlfriend).

      But that this is what I can come up with kind of proves your point (my first thought was the EPA, but that falls just outside your four decade time frame).

      I ride the wild horse .

      by BelgianBastard on Sat Jul 05, 2014 at 04:22:33 PM PDT

      [ Parent ]

  •  In "high tax" Minneapolis... (4+ / 0-)
    Recommended by:
    Geenius at Wrok, Dbug, DavidMS, Done4nau

    we are now at 3.9% unemployment. The state of Minnesota is at 4.6%.

    The 3.9% makes Minneapolis the city with the lowest unemployment rate in the nation.

    We are the antithesis of "trickle-down economics". And it works. We haven't cut taxes in years.

    •  On the other hand, our (MN) minimum wage is cur... (0+ / 0-)

      On the other hand, our (MN) minimum wage is currently lower ($6.50) and the new rate that doesn't mature until 2018 is $9.50, and then is governed by inflation. It seems a little low to me, but we have a lower cost of living than either coast. We also have employers who give people raises.

  •  So four of them see no job growth, or less than (0+ / 0-)

    median job growth.

    Makes you wonder about all the factors at play,  not to mention which way the arrow of causality points.

    A couple of things come to mind:

    Places with stronger economies might be more likely to institute higher minimum wages, or, perhaps, higher minimum wages are easier to institute in places where few people actually receive minimum wage.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Sat Jul 05, 2014 at 02:19:57 PM PDT

  •  That's all well and good, but... (4+ / 0-)

    ...if republicans have demonstrated one thing it's that they don't care about evidence. Not even a little bit.

    GOP Motto: The rich don't have nearly enough and the poor have way too much.

    by DawnG on Sat Jul 05, 2014 at 02:34:47 PM PDT

  •  The logic is not refutable. (1+ / 0-)
    Recommended by:
    sunbro

    When people who spend their entire paycheck every month, because they have to, have more to spend every month, the increase in the minimum wage goes DIRECTLY BACK INTO AMERICAN JOBS for increased production, services and cycling of cash, in direct proportion to the increase. They are living close to the bone, and will continue to, even at 17.10 an hour.  

    It is not a fact open to question. It is simply a fact. Increasing the minimum wage to 10.10 will increase the GNP by about 30 percent over a year or two, once consumer debts are paid back. Increasing it to 17.10 will increase the GNP by about 100 percent over a a two to three year period. If people save some, the effect will be smaller, but more long term.  

    For the Overlords, they will take a temporary, very temporary hit as they are forced to hire, train and service new workers, meaning "people" whom they will be forced to hire, and who they do not really like because they are "people." Very shortly, however, every retail and manufacturing and service businesss in America will start to expand, many dramatically.

    Figures don't lie, but liars do figure-Mark Twain

    by OregonOak on Sat Jul 05, 2014 at 02:36:34 PM PDT

    •  It's not about logic (1+ / 0-)
      Recommended by:
      DavidMS

      It's about the principle that workers are nobodies and deserve nothing. If you acknowledge that they deserve something today, they'll expect something else tomorrow. The purpose of the law is to keep them in their place, not feather their nests.

      "The great lie of democracy, its essential paradox, is that democracy is the first to be sacrificed when its security is at risk. Every state is totalitarian at heart; there are no ends to the cruelty it will go to to protect itself." -- Ian McDonald

      by Geenius at Wrok on Sat Jul 05, 2014 at 04:12:09 PM PDT

      [ Parent ]

      •  Self interest could guide the Oligarchs... (0+ / 0-)

        And if it did, they would be out campaigning for the 17.10 minimum wage, if they wanted to make some REAL money in the next few years.

        Figures don't lie, but liars do figure-Mark Twain

        by OregonOak on Sat Jul 05, 2014 at 06:58:32 PM PDT

        [ Parent ]

        •  That would be "enlightened" self-interest (0+ / 0-)

          and there's nothing enlightened about hegemony. Their preferred methods are to hit and yell, and if that doesn't do the trick, to hit harder and yell louder. They don't do the carrot and the stick -- they do the stick, the bigger stick and the biggest stick.

          "The great lie of democracy, its essential paradox, is that democracy is the first to be sacrificed when its security is at risk. Every state is totalitarian at heart; there are no ends to the cruelty it will go to to protect itself." -- Ian McDonald

          by Geenius at Wrok on Sat Jul 05, 2014 at 08:28:40 PM PDT

          [ Parent ]

  •  Race to the bottom was never a good idea (3+ / 0-)

    Okay, I'm preaching to the choir here.  

    For decades now right wing, mainly southern states have been boasting about their efforts to take jobs away from other states, by offering low wages, crappy workplace protections, no regulations against pollution, and zero expectation that companies will contribute any taxes to help local services.

    Even if that worked and created a lot of crappy, dangerous, polluting jobs, it would be a questionable policy.  

    And it doesn't even work.  You end up with crappy, dangerous, polluting jobs, but average or high unemployment.  Even Texas, where a normal professional level economy exists side by side with the low wage working class economy, has a nothing special unemployment rate.

    Now, of course, the implied issue for such states is that, without education or infrastructure, these are the jobs they can get.  They need to attract the employers who want to pay rock bottom to easily fired workers for dangerous work, because those are the only employers who will hire their residents.  Companies that want reasonably skilled employees or decent infrastructure, end up going elsewhere no matter what they offer (google "car plant mississippi ontario" for example).

    Of course, if these states would educate their population, get rid of anti-gay and anti-woman laws that turn off professional talent, and so on, they might actually attract decent employers.

    •  But they don't WANT to attract decent employers (0+ / 0-)

      They want to attract hegemonists like themselves: bosses who will work people as hard as they can for as little as they can, cutting every corner they can. They are utterly committed to the principle that workers. deserve. nothing.

      "The great lie of democracy, its essential paradox, is that democracy is the first to be sacrificed when its security is at risk. Every state is totalitarian at heart; there are no ends to the cruelty it will go to to protect itself." -- Ian McDonald

      by Geenius at Wrok on Sat Jul 05, 2014 at 04:10:34 PM PDT

      [ Parent ]

  •  Add this up & see if it sounds good (1+ / 0-)
    Recommended by:
    DavidMS

    1.Let ministers in RW churches tell the people of the country how to think, how to act and what to value.
    2. Let our government invade 2 countries under the pretext of "freeing" their citizens at the cost of 4-5 trillion dollars. Let them go into more ME countries.
    3. Democratic politicians continue to believe Americans care about poor people and care about truth. (Most don't-They care about their families and beliefs that make them feel superior to everyone else.
    4. Democrats keep doing the same thing for the next election; rely on poor people and minorities to register and vote (They won't). Keep appealing to rational thought while the GOP panders to religion.Always works in Red States. Don't change a thing. Let GOP steal them.
    5. Trust the media  to tell us anything important (Usually not).Believe them when they tell us it's not about oil.
    6. Encourage and insist and clamor for immigrants to enter this country anytime they want to because they have problems. If that means all of Mexico, so be it. We have money to burn. Same with Central and South America. Somehow that will work out. To be worked out later, like the Iraq war. The liberal mantra, no matter what. All of Mexico is waiting for it, can't disappoint them.We owe them something, for some reason. Anything else is selfish.
    7. Believe politicians when they tell us they don't want amnesty Reagan, Bush & Obama all wanted it(Both parties do, because the businesses will have a huge supply of cheap labor, thus negating the need for unions and higher minimum wage. It's a political dance designed to have the result of furnishing a constant supply of cheap labor. They have Dem. liberals fighting to bring in millions and millions. What could be better?
    8.Demand utopia in the next election, alienating voters an losing the Presidency as well as House, Senate, SCOTUS.

  •  Is there another reason? (0+ / 0-)

    Since 2005 and the beginning of the devastation caused by the final crash of the Economy, we have seen many more jobs - you know- where people pay for you to show up and do something. Unfortunately those jobs have been overwhelmingly low end, "service" jobs with less than 40 hours a week and mostly no benefits. We have heard that complaint and the response used to be not the government's job to make jobs - that is the Private sector's deal. And THEN the complaint that the people who can't live on crappy jobs with crappy pay for reduced hours end up "taking" by needing food stamps and other assistance. Well - the logical way for that to be solved is for someone - ANYONE - to create large numbers of good paying jobs with benefits and full work weeks, doing something other than serving fries and gravy. OR raise the pay for the crap jobs, offer no benefits and cut the ones we have now, and then there will be a double benefit for our modern slave masters - no more need for taxes to pay for benefits, and a stronger excuse to ship more jobs to third world countries! Watch as the FOX parade explains that workers making $11-$15 an hour are fine now even though those workers will still be working dead end jobs and working 30 hours with no benefits.They will also be expected to pay out of pocket for their medical and perhaps their housing and their food. $18K Gross is still a pretty crappy wage in tis era (30 hours at $12 an hour)

  •  In other news (0+ / 0-)

    Water is wet and fire burns.  It confirms what we already know.  

    I'm a 4 Freedoms Democrat.

    by DavidMS on Sun Jul 06, 2014 at 07:02:21 AM PDT

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