Previous measures increased wage to nine dollars as of July, 2014 and ten by January, 2016.
In October, Vice President Joe Biden met with Mayor Eric Garcetti concerning minimum wage. Biden suggested a raise to $13.75 would help spur economic growth. More money in consumers pockets would boost spending; hence create jobs.
Recent census report shows that approximately 18% of those in the LA metro area are currently living below the poverty line. This is the highest percentage across all big cities in America.
While many assume that poverty is directly correlated to joblessness, it is actually not entirely accurate. USC professor Manuel Pastor asserts that although many residents of Los Angeles have jobs and work full time, the wages are simply not adequate to support a household; therefore, the families cannot come above the poverty line.
Business owners and workers alike bolster different views of raising minimum wage. Not only would an increase encourage local spending, it would bring families above the poverty line. Concerns rest among the effects on small businesses. Some argue small business will not be able to afford the hike and will need to layoff employees.
Reasonably higher prices may neutralize greater labor costs. At the end of the day higher prices will be an effect but increase make higher costs feasible.
Councilman Paul Krekorian states to problem is not whether we should raise minimum wage but how.
Raising minimum wage can lead to repercussions for workers benefits, hours and tax revenues.
In the past year Seattle, San Francisco and Emeryville have enacted measures. Los Angeles is the fourth and largest to enact gradual increments to fifteen dollars an hour. New York, Washington, D.C., and Kansas City all have proposed actions.
Los Angeles council has pledged to study the probable ramifications of increased costs.
Minimum wage in California does not keep pace with inflation. By 2022, the phasing of minimum wage will be indexed to inflation.
Debates at state levels press Congress to raise federal minimum from $7.25 to $12.00 by the end of 2020.
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