Is new L.A. Minimum wage a good idea?
in Economy

agsr · July 2017

Workers celebrate L.A.'s new $12 minimum wage, businesses brace for impact
http://www.latimes.com/business/la-fi-minimum-wage-los-angeles-20170701-story.html

Oakchairbc · October 2017

A) Studies that analysis states that increased their minimum wages find that minimum wage increases are followed by stronger employment growth[1]. In this decade states with minimum wage increases have seen a third more job growth[1].

Several cities have increased increased their minimum wage to $15 and as a result they have seen net benefits. Seattle has seen larger employment growth then comparable counterparts[2].
C) States with minimum wage increases saw 44% larger real wage gains[3]
D) Science research has found that increasing the minimum wage decreases crime. Increasing the minimum wage to $12 would reduce crime by 3-5%[4]. This provides 8-17 billion dollars in savings.
E) There several reasons why minimum wage increases are a net positive for the economy and job growth.
1- Higher wages are linked with higher happiness and happiness increases productivity.[5]
2- Higher wages reduce employee turnover. This saves money on training new employees and having untrained employees working inefficiently.
3- It transfers income from the rich to the poor and the poor spend more of their money.

[1]http://thinkprogress.org/economy/2014/07/03/3456393/minimum-wage-state-increase-employment/

[2]http://irle.berkeley.edu/seattles-minimum-wage-experience-2015-16/

[3]https://mediamatters.org/blog/2016/09/06/new-research-greatest-low-wage-earnings-gains-came-states-raised-minimum-wage/212862

[4]https://www.theatlantic.com/politics/archive/2016/05/raise-the-minimum-wage-reduce-crime/480912/

[5]http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/05/14/does-a-higher-minimum-wage-make-people-happier/