<$BlogRSDUrl$>

7.27.2006

Experiment 

Apparently the city of Chicago may adopt a minimum wage of $9.25 per hour. It'll be interesting to see if this does or does not lead to rampant inflation throughout the city. According to the article, San Francisco and Washington, DC both have similar laws. The cost of living in both cities is ridiculous, but that can probably be blamed on a number of other factors besides the minimum wage. I don't know about Santa Fe.

Comments:

i believe the main consequence is not inflation, but rather unemployment.
 


MINIMUM WAGE! hyah!
 


*crack*
 


your comment is appropriate because most crack dealers do make about the minimum wage.
 


Sante Fe is a somewhat unique example. Generally, it is accepted in New Mexico that raising the minimum wage for Sante Fe has been benificial for Sante Fe. Specifically, both employment and tax revenues have increased since enacting the increased minimum wage. IMHO, some of this is due to Sante Fe being a tourism town for the arts. This implies that one has a decent number of artists who want to live there. Artists generally have day jobs, so by raising the minimum, one makes it a little bit easier for the artists to get by. For the most part, they spend everything they take home. Secondly, the economy in Sante Fe is fueled by Tourism. The people who fly from New York City to visit Sante Fe are price insensitive with respect to the lower category of prices. The inflation issue in Sante Fe is with respect to home prices. Over the last five years, home prices in Sante Fe have doubled. This is a consequence of being a cool city.

One important aspect of a similar proposal in Columbus Ohio was the boundraries to which it would apply. Columbus has a lot of the development occuring just outside of the city limits due to tax reasons. Significantly raising the minimum in the city without raising it outside the city would impact building decisions for things close to the boundry. With that said, developers will still build in the cooler parts of the city regardless of minor increases in the minimum wage.
 


Post a Comment

Links to this post:

Create a Link

This page is powered by Blogger. Isn't yours?