Editorials: Raise the minimum wage

May 1, 2012. Today the New York Times mentioned FPI in their editorial in favor of increasing the minimim wage. The Albany Times-Union did the same last week.

An excerpt from the Times Union:

Here’s how a higher minimum wage creates jobs, as economist James Parrott of the Fiscal Policy Institute explained to the Assembly Labor Committee on Monday:

Industries that pay such low wages tend to serve small markets, often no bigger than a neighborhood. It’s not as if there’s competition for these services in other states. Nor are retailers or people in the restaurant business about to relocate to where wages are lower.

Instead, when the minimum wage inches higher, productivity tends to increase, the research suggests. Prices might go up slightly, but more typically businesses cover those costs by retaining workers longer, thus spending less to train replacements.