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At least 4 killed in Oklahoma tornado outbreak; 10 shot outside Florida bar; AZ receives millions of dollars for solar investments; Maine prepares young people for climate change-related jobs, activism; Feds: Grocery chain profits soared during and after a pandemic.

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Ukraine receives much-needed U.S. aid, though it's just getting started. Protesting college students are up in arms about pro-Israel stances. And, end-of-life care advocates stand up for minors' gender-affirming care in Montana.

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More rural working-age people are dying young compared to their urban counterparts, the internet was a lifesaver for rural students during the pandemic but the connection has been broken for many, and conservationists believe a new rule governing public lands will protect them for future generations.

Minimum Wage Myths – Who in Arizona Needs a Raise?

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Friday, September 6, 2013   

PHOENIX – Fast-food workers are agitating for a raise and some in Congress are pressing to increase the minimum wage.

But what would the actual economic impact be of a boost for the lowest-paid workers?

Critics charge that raising the minimum wage would mostly help teenagers, but there are economists who say that's largely a myth.

David Cooper, an economic analyst with the Economic Policy Institute, looked at who would get a bump in pay if the hourly minimum went up to just over $10, as one bill in Congress proposes.

Cooper found it would be mostly the working poor, including a large portion of single mothers.

"The reality is that the average age of these workers is 35 years old,” he says. “The majority of them are women, a little over a quarter have children and 55 percent work full-time. This is their full-time job."

Almost 600,000 Arizonans would see their pay increase if the federal minimum wage went up to $10.10 an hour.

Another common criticism is that raising the minimum wage would increase unemployment.

Cooper says that was the conventional wisdom, until a series of studies in the 1990s compared states that raised their minimum wages with others that had not.

He says the first looked at border counties between New Jersey and Pennsylvania.

"What they found was that in New Jersey, where the minimum wage was raised, employment actually went up relative to Pennsylvania,” he adds, “the direct opposite of what the textbook model would suggest."

Cooper says other studies have also confirmed that raising low-end wages doesn't increase unemployment.

And he says economists found that a higher minimum wage improved productivity, reduced turnover and absenteeism and boosted morale among low-wage employees.

Plus, he says, the new wages have a ripple effect on the local economy, because most minimum-wage workers have to spend every dime they make.

"Maybe they needed to buy a new car,” he explains. “Now that they're making a little more money, they can afford to make a payment plan, so they go and they buy that new car. That not only benefits the car manufacturer, but it also benefits the local dealership."

Cooper's figures show raising the federal minimum wage to $10.10 an hour would boost the pay of a full-time Arizona minimum-wage worker by roughly $200 a month.





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