Why Raising Minimum Wage Means Less Money in Your PocketPosted: October 15, 2014
“The Affordable Care Act demonstrates the phenomenon. This landmark piece of social legislation extended free or highly subsidized health insurance to millions of additional Americans. But it also, therefore, increases the loss of benefits to low-income workers after a raise.“
Will you actually be richer when your pay is raised to $15 per hour?
Perhaps the question seems ludicrous. Of course you’re better off making $15 an hour than you were at $9 per hour, right? But the answer is, unfortunately, not as obvious as you might think. And the question itself—will workers getting a raise be better off?—has been missing from debates in cities from New York to Los Angeles over whether to establish $15 per hour minimum wages for some workers.
Instead, we’re seeing the same old arguments — from San Francisco, where voters must decide on a November ballot measure proposing a new $15 per hour wage floor, to Seattle, which will begin phasing in $15 per hour next year — over whether the minimum wage hurts business and jobs, or whether it boosts local economies by giving workers more money to spend. For the record, I…
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