New York’s Increased Minimum Wage Increased Revenue for Businesses and People

Interview

With inequality increasing throughout the world she jurisdictions are fighting back by raising the minimum wage. Business owners must pay employees at least the minimum wage set by the government, no matter how little they want to actually pay people. Minimum wage increases were rare for the first years of this century so it’s good to see places like New York raise theirs. An added bonus of the recent wage increase is that business have seen revenue gains similar to that of the workers.

The focus on single restaurants also ignores the larger economic impact of raising the minimum wage. According to an analysis by the Federal Reserve Bank of Chicago, if low-wage workers have more money in their pockets, they will have more money to spend, potentially expanding the number of consumers who can afford to eat out.

In fact, some people — including those from the Economic Policy Institute — have posited that a minimum-wage increase will actually lead to an increase in employment because of the effects of giving low-wage workers a raise. Other advantages to restaurants may include lower turnover rates and better job performance.

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