Economists from six states that have increased the minimum wage say the boost has had little impact on prices and hasn’t hurt sales growth or employment.
Colorado voters will decide on Nov. 7 whether to approve a ballot initiative that would amend the state’s constitution to increase the minimum wage above the federally mandated $5.15 an hour to $6.85 an hour.
The amendment would link future increases to the consumer price index, guaranteeing low-wage workers automatic pay boosts.
Coloradans for a Fair Minimum Wage, a group supported by the AFL-CIO and other nonprofit political groups, arranged a conference call between the economists and other experts and state media Tuesday to promote the ballot initiative.
The restaurant industry, a large employer of low wage workers, and other business interests object to the increase, saying it will increase prices, reduce hiring and hurt the state’s economy.
That hasn’t happened in Oregon, Washington, New York, Minnesota, Illinois, or Wisconsin, all states where the wage has been increased above the federal level since 1997, the economists and other experts said.
Tom Clark, executive vice president of the Metro Denver Economic Development Corp., who opposes the raise, said economies of those states haven’t suffered because inflation has been low during the period.
Guaranteeing an increase every year would eventually “make it impossible to correct and control inflation,” Clark said.
Oregon has linked its minimum wage to the consumer price increase, and it is now $7.50, said Chuck Sheketoff, executive director of the Oregon Center for Public Policy.
In spite of that, he said, the National Restaurant Association is projecting increased restaurant sales and job growth over the next 10 years, he said.
Staff writer Tom McGhee can be reached at 303-954-1671 or tmcghee@denverpost.com.
