Movement in “Fight for $15”

, staff writer for New Republic, reviews his analysis of the ‘Fight for $15’ movement.  He points to Los Angeles as the newest of several cities (including San Fransisco and Seattle) to move toward the $15 per hour minimum wage.  This move places minimum wage on par with approximately 50% of median wage as charted in the article.  Points are credited toward the movement for accomplishing goals however future impact has yet to be seen.

As I have pointed out previously, Wage Growth Possible?, currently we are seeing a reduction in flexible spending that might be accounting for a reduction in extreme poverty.  The potential of minimum wage increases is that spending increases could stimulate economic growth.  This is especially important as $15 per hour is still below the mean real wage of $20 per hour but could provide relief in areas of necessity.  If spending increases are found in areas of flexible spending rather than debt reduction, savings increases, asset accumulation, etc. this could be a strong indicator that there was a need for minimum wage workers to alleviate stress related to financial burden and/or working without vacations and time off to match revenues with expenses.  Alternatively or simultaneously minimum wage increases could create increased demand thereby pushing up the supply price; in my opinion it would most likely be seen in the flexible spending areas (unpaid vacations, gifts) rather than from staple areas (housing/rent, transportation, clothing) areas with a middle and moderate increase almost assuredly in food areas (grocery stores, convenience ‘fast-food’, and restaurants).  I hope to see the minimum wage increase come from increased profits related to improved productivity as a result of job value and a reduction to increases in long-term investments as opposed to price increases or diminishing benefits.

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