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Home Publications Blogs Beat the Press The Post Hopes for Job Loss in San Francisco, May be Disappointed

The Post Hopes for Job Loss in San Francisco, May be Disappointed

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Friday, 03 February 2012 06:37

A Washington Post editorial on indexing the minimum wage told readers:

"at the margins, minimum-wage increases probably destroy jobs in small restaurants, landscaping and janitorial firms."

It then added:

"as the city of San Francisco, which has just imposed a highest-in-the-nation $10.24 minimum, may soon find out."

Whether or not the first claim is accurate, the warning to San Francisco clearly is not. San Francisco first put its city-wide minimum wage in place in 2004. Since that time, it has risen in step with inflation. If the minimum wage was going to cost jobs the city should have seen the job loss already. Research on this issue failed to find any evidence of job loss -- but the Post can still hope.

Comments (2)Add Comment
The Marginal Revolution at a Tipping Point
written by izzatzo, February 03, 2012 7:08
"at the margins, minimum-wage maximum income increases to the 1% probably destroy jobs in small restaurants, landscaping and janitorial firms due to the declining exclusive consumption of these services in the aggregate by only the ultra rich."


Stupid liberals.
Minimum Wage Increase Will INCREASE Jobs
written by PAUL, February 03, 2012 9:34
Doesn't anyone read Keynes anymore?

By increasing the minimum wage, SF will increase jobs by increasing demand. This is especially the case at the lowest end of the income scale where very little of the increased income is saved and most of it goes to consumption.

As usual, the WaPo has things bass ackwards.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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