CHARLESTON, W.Va. – Raising the minimum wage would help the state's working poor and in the process, improve the economy for everyone, according to a new analysis.

Sean O'Leary, policy analyst with the West Virginia Center on Budget and Policy, is the author of the new report, Giving West Virginia's Workers a Raise.

It highlights a big gap between rich and poor that is dragging both groups down.

O'Leary says boosting wages at the bottom would help more than 100,000 of the people who need it most.

"We're not talking about part-time workers, kids working summer jobs for spending money,” he says. “We're talking about adult workers, working full-time, who are supporting their families."

O'Leary adds raising the minimum wage is not a silver bullet, but it would help slow the erosion of the middle class and strengthen an economy that he sees as badly out of balance.

Several states have raised their minimum wages, although West Virginia isn't one of them, and there's a proposal in Congress to raise the national minimum wage to $10.10 an hour.

Critics say that would increase unemployment and inflation. But O'Leary says economists have studied the topic extensively and have found that isn't the case.

He points out that the businesses paying the higher wage make the money back almost immediately.

"When Wal-Mart pays their employees more, they turn right back around and spend that money at Wal-Mart," he explains.

O'Leary’s analysis also finds raising wages at the low end is actually only a small expense for businesses that is often covered by reduced turnover and training costs.

"There's less turnover, there's less vacancies, there's fewer training and hiring costs,” he explains. “That really saves them a significant amount of money, in some cases, completely offsetting the cost of increasing the minimum wage."

The report says raising the wage even to $8.50 an hour would benefit 120,000 workers in West Virginia – many, O'Leary adds, in families being left behind by the decline in well-paid industrial jobs.

"By raising the minimum wage, you're giving those working families an opportunity to work their way out of poverty,” he says, “where right now, there's very little they can do."




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The recent collapse of Silicon Valley Bank and Signature Bank has put a spotlight on the safety and stability of the U.S. financial system. Now, some experts are pointing to a greater role for community banks.

Nuray Ozbay, investment officer for Self Help Federal Credit Union in California, said Community Development Financial Institutions and Minority Depository Institutions, known as CDFIs and MDIs, are comparatively well-capitalized, and with high levels of liquidity.

"Community banks, CDFIs and MDIs are usually financially conservative," Ozbay explained. "They put their members first, and they are usually risk-averse. So, they are safe places to invest."

Silicon Valley Bank focused heavily on startups while Signature Bank had a lot of money tied up in cryptocurrency. Ozbay noted local banks are much less likely to rely on such higher-risk investments.

Brady Quirk-Garvan, co-owner and financial adviser for Natural Investments, which helps people invest their money according to their values, said smaller credit unions are more accountable to their members, because the members are also the banks' main investors.

"They're more likely to take profits from the year and invest it in member services," Quirk-Garvan pointed out. "Whether that's hiring more tellers, or whether it's investing by making loans in a local community bakery, they're making a different set of decisions when it comes to their values."

The Federal Deposit Insurance Corporation, the FDIC, keeps the banking system stable by insuring all deposits up to $250,000, no matter the size of your bank.

Mexican fast-food chain Chipotle will pay workers at its former location in Augusta, Maine as part of a settlement over labor law violations. The National Labor Relations Board found the chain of restaurants broke laws by closing the location in July just weeks after employees became the first Chipotle workers in the country to file for union recognition. The company also blacklisted union organizers from being hired at other Chipotle locations.

Brandi McNease, Chipotle United organizer, said the company got the message.

"The union busting will not be tolerated and there's no way around it," she said.

Chipotle will pay a total of $240,000 to employees who were on the payroll when it closed the store, and offer "preferential rehiring" to all Augusta employees at its other Maine locations for up to one year.

The Augusta workers formed their union to bargain for safer working conditions, better staffing and a voice in any negotiations regarding workplace policies, they said. Now stores throughout the Northeast will post notices stating that Chipotle broke the law, and that employees have the right to unionize without consequences.
It is "a win for food service workers everywhere," McNease said.

"We fought for this specifically because the movement isn't over and every employee in those stores should know that they have rights and that the Labor Board is on our side," she added.

Chipotle was not forced to reopen the Augusta location, so workers say the payouts will help those who have yet to secure employment elsewhere, as well as inspire other Chipotle workers to stand up for respectful working conditions.


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More than one in three Ohioans are relying on credit cards for spending needs, and nearly a quarter say they've increased their credit-card use in response to cost-of-living increases, according to a new report.

Michael Welker, editor of Upgraded Points, a website tracking credit-card reward and travel programs, explained when the pandemic began, people spent less and got a financial boost from stimulus checks, leading to lower credit-card balances overall. Now, persistent high inflation is causing many to use credit to cover basic household expenses.

Welker said it poses a risk as interest rates rise.

"As you carry over balances month to month, and interest starts to accrue, potentially it's going to be even harder to pay down your debt," Welker advised. "That's going to be even more pressure, in terms of covering your household expenses."

The Consumer Financial Protection Bureau has proposed new regulations which would, among other changes, cap late fees for credit-card payments at 25% of the minimum payment amount. The agency is taking public comments about its proposal until April 3.

According to the report, nationwide more than 95% of people with annual incomes below $75,000 said they are feeling stressed about inflation. Welker recommended using credit cards only when needed to meet basic expenses, and shifting habits instead to reduce dining out, entertainment and other leisure spending.

"Be more mindful of your spending," Welker suggested. "Figure out where you might be able to cut or trim back, find less expensive alternatives."

He added consumers may soon feel relief as the federal government works to combat inflation, but only those who rein in their credit-card use.

"The Fed is still raising interest rates trying to tame inflation," Welker pointed out. "Potentially, at some point later in the year, we finally start to see that come down to a more manageable level."

In another survey, by Clever Real Estate, 40% of Americans believe high prices are the "new normal," and 62% say they expect everyday prices will be even higher this year.

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.