Monday, April 4, 2016

Great for the "Job Haves" and Illegals but Nasty for the Have Nots

That 69 percent ratio would be all but unprecedented, in U.S. terms and internationally. The current California minimum wage represents about half the state’s median hourly wage, just as the federal minimum wage averaged 48 percent of the national median between 1960 and 1979, according to a 2014 Brookings Institution paper by economist Arindrajit Dube. (It is currently 38 percent of the national median.) 
Other industrial democracies with statutory minimum wages typically set theirs at half the national median wage, too.
Dube, generally a supporter of minimum wages, recommended that states use 50 percent of the median as their benchmark in the United States. (He told me by email that California’s experiment is worth running and monitoring.)
Krueger has written that a “$15-an-hour national minimum wage would put us in uncharted waters, and risk undesirable and unintended consequences,” though he said it might be okay in certain high-wage cities and states.
https://www.washingtonpost.com/opinions/the-risks-of-californias-minimum-wage-increase/2016/03/30/6d58cc6a-f68e-11e5-a3ce-f06b5ba21f33_story.html

Sure will incentives barters and employment of those already in violation of the law to be here. Glad that experiment is being done in Cali, none are more deserving of further government inflicted economic mayhem.

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