A new study shows that despite its flagging economy, Ohio can not only afford to increase the minimum wage, but could actually benefit from it in terms of economic growth. ideastream's Karen Schaefer reports.
The non-profit research group Policy Matters Ohio and the Center for American Progress in Washington, D.C. say new research shows Ohio can easily afford to raise the minimum wage. This fall Ohio voters will decide the issue. Amy Hannauer of Policy Matters says worker productivity has increased 2.1% in five years and corporate profits in Ohio have gone up as much as 9%, but workers' income has remained stagnant. She says in many other states with higher minimum wages, job growth has actually gone up.
Amy Hannauer: We don't argue that increasing the minimum wage has caused these states to have better job growth, although there is some evidence that they may be true. But we simply argue that the dire arguments that opponents often make clearly don't hold up.
Hannauer also says that linking the minimum wage increase to inflation has not caused wage spikes in other states, an issue opponents contend is likely. Karen Schaefer, 90.3.