Economy
The Case for Caution on the $15 Minimum Wage
And what cities can do instead.
Seattle and Los Angeles will phase-in a $15 minimum wage over the next five to six years. The mayors of St. Louis and Kansas City appear poised to follow suit. Though not all cities have the authority to set their own wage floors, those that do should think carefully before jumping on the $15 bandwagon.
The disemployment risks from setting the minimum wage too high are real. However well intentioned, large minimum wage hikes can end up limiting economic opportunities for the low-income workers they’re supposed to help. Mayors and council members eyeing the $15 movement should ask themselves two questions.