Spend more, make more; make more, spend more?
If you made more money, does that mean you would spend more? In order to pay workers more, won’t businesses have to raise prices for consumers, allowing you to purchase no more than you already can? These are the conundrums that we face here in SF.
As I mentioned to you in August, the California state minimum wage is being raised to $7.50 on January 1st, 2007 and then onto an even $8 by the middle of next year. On Friday, it was announced that the city of San Francisco minimum hourly wage would be increased as well. A 3.6% rise will be enacted on January 1st, 2007, lifting the hourly wage from $8.82 to $9.17.
Why 3.6%? Approved at the polls in November 2003, the city’s minimum wage law is an annual adjustment based on the Consumer Price Index of money-makers in three local cities: SF, Oakland, and San Jose. Stats yanked from the US Department of Labor help to make calculation and set a yearly raise.
Is a wage increase really what we need? Real estate in the city is some of the most expensive in the country, so the raise will help to pay rent. Also, this means we will all be paying more taxes that will be funneled back into the city (we hope) and much needed changes. Is that really going to make it all better though?