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Minimum wage at $15/hour: Economic boon to San Diego?

Roger Showley, SAN DIEGO UNION-TRIBUNE

Friday, April 8, 2016

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Kelly Cunningham, National University System

Answer: NO

Overall the economy will see a net loss. Businesses operating on slim margins will eliminate positions, raise prices or go out of business. Increasing the minimum by 50 percent is projected to reduce employment among the least skilled by 5 to 10 percent. But this is probably too low because it is based on research from much smaller wage hikes. Everyone will see real income slightly reduced as products purchased from lower-skilled workers become more expensive.