How a $15 Federal Minimum Wage Might Affect the Economy | WSJ

Biden has identified raising the minimum wage as a key goal of his administration, but economists and lawmakers disagree on the potential impact. WSJ asked two economists and a minimum-wage worker what the costs and benefits of a $15 minimum wage might be. Photo: Bill Clark/Congressional Quarterly/Zuma Press

More from the Wall Street Journal:

#WSJ #MinimumWage #Economy

[pathaleyguitar]

I really appreciate how WSJ is pretty much the only news source I find that doesn't blatantly try to twist in their own narrative. Giving an equal floor to two economists of differing opinions and mentioning problems with both sides. 10/10 WSJ.

[link]

The problem I'm having is that I NEVER hear anything about the increased wage equaling increased buying power. It's always about job loss due to labor costs, never increased revenue due to increased buying power.

[stevenz]

Amazon and other big techs are already paying 15 and automating lots of robots. They must be super happy raising to 15$, because it will just drive out all of their competitors (small businesses) .

[XtarShoter]

It's not about a minimum wage.... healthcare, education and etc needs to be fixed. You can raise it to $20/hr and still not be able to afford college if they keep adding a few thousand every yr to the tuition.

[tobycustom]

What isn’t being taken into account: automation. How much motivation is enough for a company to start automating?

[JohnDoe-ersn]

They raised minimum wages here in AZ to $12 an hour... Rents and cost living went up the same %. Taxes took in more money.

[Junyuancreme]

The answer also lies in reducing health bill costs, education, food and rent, transportation, and the y. Which I forgot what it stands for.

[sonydominates]

Why must the minimum wage be the same across the country for every single job? Wouldn't it make more sense to set it based on industry, location, and company size? Man, politicians are so useless

[User_]

Im on both sides, but we have to keep in mind that prices will go up regardless of minimum wages

[nunogomes]

"if businesses can't offer a 15 dollar minimum wage they shouldn't even be open"- she clearly has now idea how the economy operates. Inflationary-pressures, incentives to hire, then people complain that businesses drift to digitalisation.... doubling minimum wage is a huge risk

[FinancialShinanigan]

It's not just minimum wage. There's rising health cost and education cost and people's inability to live below their means.

[kleocatra]

When they raised the minimum wage in the late 80's early 90's my employer just cut each persons hours so we did not get ahead like everyone said we would. Unless you had a skill then your hours were not cut cause you were already making more than minimum wage.

[turtlelover]

“I can’t even put a roof over my head”.
….
Bruh

[johnmartin]

If I am a employer and my labor expenses just double-am I going to keep my prices the same? Or am I going to decrease my number of employees? Or am I going to raise the prices of my services and/or my products? There doesn't seem to be a win win situation. Somebody is going to lose.

[hi-nwqy]

People also seem to forget what 15 dollars means in different parts of the country. 15 dollars in Chicago isn't too much. It helps but isn't like over the top. 15 dollars in a medium sized town in the midwest is a lot though.

[SunnyMaroju]

This is why most USA companies are hiring more in developing countries.

[lears]

Simple math and basic economics. Companies exist to make money for their owners (stock holders). They do not exist to create jobs. You want a good job? Create more value for your company than it costs them to pay you. Artificially inflating a wage beyond the market value for that labor only accelerates inflation. Not only does it help devalue the dollar, you're right back to needing another wage increase in another few years. Vicious cycle that many don't seem to understand.

[hangtime]

I keepnsaying this.
If you want a $15 wage. Come to CA. It's $14 right now.
I use to rent a small apartment fkr 1500. My sister in NC mortgage is 1100.
Now my property tax is 6k. When I lived in NC it was 600.

Come here and get pay more. Just got to deal with the higher cost of living also.

[npc]

Once price increases due to higher labor costs, the new poverty wage will be $15 and the fight for $25 minimum wage will begin and once price increases (inflation) due to higher labor costs, the fight for $50 minimum wage will

[hikodzu]

Up to $15 companies may cut their employees amount like ½/¼, and expect the rest to do multitask to compensate the lost worker maybee? Which can means harder work for employees