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Raising the Minimum Wage for Working Men and Women in California and the Rest of America

A Business Owner’s Case for Raising the Minimum Wage

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What if we could create a program that would strengthen our tax base, make government spending more fiscally responsible and provide a powerful financial incentive to low-income workers? It sounds too good to be true.

But it already exists and dates back to 1938 – the minimum wage.

When wages are too low for even full-time workers to buy basic necessities, workers turn to taxpayer-funded programs like food stamps and Medicaid. A surprising beneficiary is the low-wage employer who is being subsidized by taxpayers.

It’s a perverse incentive program. A corner business or giant retailer like Costco that pays a starting wage of $11.50 an hour gets no government subsidy while a store across the street paying the federal minimum wage of $7.25 is actually getting a government handout because it pays a substandard wage. This does not make economic sense.

• Category: National, Notable • Tags: David Bolotsky