Think Higher Wages Destroy Job Growth? Think Again.

by
Lauren Burgoon
Raising minimum wage doesn't destroy job growth. Even Mary Poppins says so.

It's a classic big business argument: raise minimum wages and unemployment will go up. Companies simply can't afford to pay their workers a decent, much less living, wage.

Except it's not true. And if you don't believe us, believe Mary Poppins.

States that bumped up their minimum wages actually have better job growth in the first half of 2014. The 13 states -- Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington -- saw a 0.85 percent job rate increase.

The other 37 states had a 0.61 percent growth.

The realization comes months after the Congressional Budget Office predicted raising the minimum wage to $10.10 would cost the economy 500,000 jobs. 

Of course, other factors could be at work for the job growth besides wages. But it's time to challenge the idea that higher wages automatically mean job losses.