Minimum Wage in Texas and Other States
Apparently, there is some sort of movement to boost its minimum wage above the $7.25 federal minimum wage that acts as a floor on wages.
All the same players are back with all the same warnings and admonishments, but this time many of those old positions just simply don’t hold water. It seems that more than a few places in the U.S. and much of what foes and supporters insisted would come true, just never came true.
The Original Big Wage
Portland was one of the first cities to implement minimum over the cries of catastrophe. While Portland has had many bumps since then, none of them ever seem to be about minimum wage. Following them were smaller cities, and very large cities like Los Angeles.
In Colorado, citizens got an amendment to the state constitution in 2011. It required that minimum wage be indexed for inflation. No more waiting 20 years while the value of the old minimum wage stayed the same.
Ironically, though Colorado along with the rest of America was dealing with the impacts of the Great Recession and the banks that caused it. Supporters no doubt counted on something like 3% or 4% inflation. Instead, low inflation numbers ended up boosting Colorado’s minimum wage by less than $1 since the first year.
It required a minimum wage of $9.30 for 2017. To get everyone time to get ready, the amendment stipulated $0.90 increases every year until a wage of $12.00 would take effect in January 2020.
The Colorado people know that when you want something done you take it to the voters.
Amendment 70 Changes Colorado Minimum Wage Law Again
Tired of waiting for inflation to meaningfully raise minimum wage, they came up with a plan that was more palatable to business than raising the minimum wage straight to $15. Amendment 70 just flat out set the rates for minimum wage through 2020.
Minimum wage was set at $9.30 in 2017. Then it increased by $0.90 cents per year until 2020, when the minimum wage would be $12.00. The original increased by inflation language was untouched, so Colorado minimum wage continues to change. It was up 32 cents (2.7%) and up 24 cents in 2022, at a wage of $12.56. In 2023 the minimum wage is $13.65 per hour.
Is Higher Minimum Wage Bad?
Here is the reason that the old arguments won’t work in the Texas battle over minimum wage. We can already see the effects. The minimum wage in many places has been higher than the federal minimum wage for years. The reality is not much happened except people making minimum wage jobs got a little more money.
The minimum wage doomsayers point to things like McDonalds allowing you to order on a kiosk. They were already working on it because customers like it. I guess there are enough of our lives in front of gaming screens that we figure it out. And, best of all, it helps get orders right, especially in my no-pickles, no-onions, extra-mayo, family.
My young vegetarian wants some of her items without meat (and tomato and onions… don’t ask). Some cashiers get it just right, others do not. At the kiosk we can see exactly what we ordered, including all of the plus cheese, minus pickles, and extra sauce before hitting send.
The reality of most minimum wage jobs is that they have to be done in person, and they have to be done near the customer. You can’t expect people to drive up to fast food places in Wyoming just because you don’t want to pay a higher minimum wage.
Denver Minimum Wage
Denver is a highly liberal town and in the words of Inigo Montoya (no, his other words), “I hate waiting.” So, they didn’t wait.
Denver set a minimum wage of $12.85 in 2020 after 2021, all of increases have been made according to the CPI. Colorado boosted its minimum wage to $15.87 in 2022. It is $17.20 per hour in 2023.
It’s hard to tell which business closed with high minimum wage and which places closed because they lost too much revenue to Covid. What we do know is that there are plenty of places already paying over the minimum. In other parts of Colorado, they need employees so badly that they can’t shortchange them anymore. I have seen signs on fast food restaurants touting $17 to $20 as a starting wage out in the suburbs where the lower version of minimum wage is required.
If a higher minimum wage was going to destroy Colorado, it sure is taking its time. Minimum wage has already become what it always was, a way to make sure that hard workers in jobs that pay minimum wage would at least earn enough money to have a shot.
At $17.20 an hour, anyone, working at any job, should pull down around something around $34,000 before taxes. This person would likely qualify for enough credits, and deductions to pay almost no taxes.
Someone in the hard place of trying to work two full-time jobs could actually earn a nice income for their family.
Texas is unlikely to change its minimum wage law. It comes from people forgetting what minimum wage was like, coupled with all those politicians who were born on third base and think they hit triple. A great many of them skipped any association with minimum wage when a Junior Partner job at daddy’s law firm was waiting for them “whenever they were ready.”
To change that, Texans would have to vote for different kinds of congressmen and Governor. In the meantime, houses in Austin aren’t getting any cheaper.
