$9 with indexing adds hundreds of millions of dollars more in consumer spending and more jobs

March 13, 2013. A report by the National Employment Law Project and the Fiscal Policy Institute shows the dangers of watering down the $9.00 plus indexing minimum wage proposal, which has the backing of most New Yorkers and majorities in both the Senate and the Assembly.  The report details the greater benefits for workers and the state economy from an increase to $9.00 an hour with indexing compared to the proposal for an $8.75 an hour increase without indexing:

  • $9.00 plus indexing would boost the state’s economy by $1.2 billion in the first year. A weaker deal such as $8.75 without indexing would generate $840 million in new economic activity, $360 million less, by contrast.
  • Plus, indexing the minimum each year for the change in the cost of living would also mean an added boost in spending each future year as compared to the $8.75 proposal without indexing.
  • $9.00 plus indexing would support the creation of 10,200 full-time jobs, and more in subsequent years. $8.75 without indexing would generate just 7,300 jobs — 2,900 fewer jobs in the first year.
  • A full-time minimum wage worker would earn $520 less in 2014, $936 less in 2015, $1,352 less in 2016, and approximately an additional $400 less each successive year under a weaker deal such as $8.75 without indexing, than under $9.00 with indexing.
  • An estimated 1.7 million low-paid workers – more than one out of every five New Yorkers – would receive a pay raise if the minimum wage is raised to $9.00 and then indexed.
  • $9.00 plus indexing is a smaller increase (24%) than New York’s last minimum wage boost approved in 2004 (39%).  An increase today comparable to that achieved by Assembly Speaker Sheldon Silver and Senate President Joe Bruno in 2004 would entail raising New York’s minimum wage to $10.10 per hour.

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