In addition to marking the beginning of a new year, January 1, 2024, it also marked an increase in the minimum wage in 22 states across the country. Additionally, 43 other cities and towns also implemented this measure, in some cases exceeding $16 per hour.
While the federal minimum wage has remained at $7.25 an hour since 2009, individual states can raise it depending on their jurisdiction.
The effects of these measures do not always go according to plan. For example, California recently announced a raise to $20 an hour for fast food workers, which did not sit well with Pizza Hut, a national restaurant chain headquartered in the counties of Los Angeles, Orange, San Bernardino, Riverside and Fortune.
Consequently, the company announced the "elimination of all delivery driver positions," which translates into dismissing these workers.
Although inflation slowed throughout 2023, its effects caused activists in 22 states to achieve increases in their respective minimum wages, making it illegal to work for less than what is now established in the following states.
Minimum wage by state
Washington: $16.28 per hour
California: $16 an hour
Connecticut: $15.69 per hour
New Jersey: $15.13 per hour
New York: 15 dollars an hour
Maryland: $15 an hour
Colorado : $14.42 per hour
Arizona: $14.35 per hour
Maine: $14.15 per hour
Illinois: $14 an hour
Hawaii: $14 an hour
Rhode Island: $14 an hour
Vermont: $13.67 per hour
Delaware: $13.45 per hour
Missouri: $12.30 per hour
Nebraska: $12 an hour
Alaska: $11.73 per hour
South Dakota: $11.20 per hour
Minnesota: $10.85 per hour
Ohio: $10.45 per hour
Michigan: $10.33 per hour
Montana: $10.3 per hour
What happens when the minimum wage is increased?
According to the Spanish economist Juan Ramón Rallo, who is also a teacher and author of several books, "the result when these types of policies are applied is quite different from what is intended," since "increasing the minimum wage can condemn workers to the worst possible scenario: unemployment."
In his explanation for Visualpolitik, he explained that the increase in the minimum wage harms those who have lower productivity in the market, such as young people or those who offer certain types of lower productivity services, given that they are more likely to be fired in these scenarios.
"Raising the minimum wage is the quintessential proposal of populist politicians, and a way by which the majority of the population is deceived and harmed, particularly the poorest," Rallo said.
