Saturday, January 30, 2016

Job Creation Is Not Hurt By A Higher Minimum Wage

The chart above shows the Gallup Poll Job Creation Index for the states. They get this index figure by subtracting the workers saying their company is laying off people from the workers who say their company is hiring people. The resulting figure shows the health of the job market in each state (with the higher number meaning the best job creation economy of the state). The figure on the right shows how many workers were questioned in each state.

It is a mantra of Republican elected officials (and candidates) that a higher minimum wage results in decreased job creation. This chart shows that is a fallacy. Sixteen of the twenty states with the best job creation index are states where is minimum wage is higher than the minimum wage established by the federal government ($7.25 hr.).

Raising the minimum wage doesn't hurt job creation, and it doesn't result in workers being laid off. It will help workers to get off federal assistance though, and it will boost the economy (thus creating more jobs). Americans may disagree about how much the minimum wage should be raised to, but an overwhelming majority want it raised. It's time that was done.

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