Live Like Common People
5:33 pm, 1/4/05
Live Like Common PeopleThe Californization of Illinois is
nearly complete.
The $1-per-hour hike in the state minimum wage began to ripple through the economy Monday, with winners and losers concentrated among small businesses and workers at the bottom of the economic ladder.
In Quincy, the owner of two McDonald's restaurants cut employees' hours and planned to raise prices to cover his increased payroll costs, while a convenience store owner in Peoria hiked prices on sodas and bread.
Meanwhile, health-care worker Christin Howard of Chicago's West Side said the pay increase will help her make ends meet.
"It's the difference of paying the bill and not paying the bill," said Howard, 28, a home-care aid with Addus Healthcare.
Howard is among an estimated 450,000 minimum wage workers in Illinois who received an 18 percent pay increase on Jan. 1 under a law signed by Gov. Rod Blagojevich in 2003.
Gov. Rod Blagojevich said Monday he hopes to pass similar increases, though he did not directly answer how high the minimum should go.
That may be the case
in the west side of Chicago, where it's more reflective of the absolute minimum cost of living. Given that I've seen job advertisements for Chicago-area grocery baggers paying $10/hour or more, though, I suspect that the great majority of minimum wage positions are downstate, where the cost of living is lower and this will be much more distortive. Chicago can absorb this (in fact, Chicago is considering
an insane $10 living wage rule for "big box" retail workers, but it's not so easy elsewhere. It would be more effective to reduce the burden on undercapitalized entrepreneurs so that they can hire underemployed laborers and actually create jobs.
Put another way, increasing the minimum wage doesn't help anyone who doesn't have a job.
money at 07:19 PM, 10/26/06
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money at 08:03 PM, 11/7/06
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money at 04:08 AM, 12/13/06
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