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Not All Downtown L.A. Workers Are Fine With New Minimum Wage Line

Kenneth Mashinchi |
September 4, 2014 | 5:07 p.m. PDT

Staff Reporter

Councilmember Curren D. Price, Jr. played a role in the proposal of the minimum wage increase. (Ken Mashinchi/Neon Tommy)
Councilmember Curren D. Price, Jr. played a role in the proposal of the minimum wage increase. (Ken Mashinchi/Neon Tommy)
Raise the wage, L.A.!

These words resounded like a battle cry Monday during the Labor Day rally at Martin Luther King Jr. Park where Los Angeles Mayor Eric Garcetti proposed a raise to the minimum wage.

“Since I became mayor, I said that we were going to put recession in the rear view mirror," Garcetti said. "This is good for business. This is good for the community."

The proposal, which would bring the minimum wage to $13.25 by 2017 and continually rise after that, requires City Council approval before it can be instituted. The current minimum wage in Los Angeles is $9.00, which falls in line with the baseline set for the state of California.

Garcetti also stated that one million Los Angeles residents, a quarter of the city’s population, live below the poverty line.

Councilmember Curren D. Price, Jr., who represents the 9th Council District of Los Angeles, was one of the leaders in the proposed wage increase.

People always want to achieve a better way of life,” Price said. “This is an opportunity to help meet the basic needs.

The 9th District represents a great snapshot into the disparity that plagues Los Angeles, from the glitz and glamour of L.A. Live, Staples Center and USC to the historically poorer regions of South Los Angeles.

“I’ve got a disproportionate number of citizens who live in poverty already, many of whom work in the service industry…so they’re going to be great beneficiaries of this,” Price said.

Despite the mayor and councilmember’s belief that this proposal will help Los Angeles, not everyone sees the proposed wage increase as a positive for the 9th District.

Monica Munoz believes a rise in the minimum wage is not the best move. (Ken Mashinchi/Neon Tommy)
Monica Munoz believes a rise in the minimum wage is not the best move. (Ken Mashinchi/Neon Tommy)
Monica Munoz, a manager at Quizno’s Subs in the 9th District, does not agree with the effects that might come from the proposed wage increase.

“They give you a raise, but they raise meal, vegetables, meat, everything” Munoz said. “It’s going to effect in the way that they will give you a raise, but still it’s not going to be enough.”

Lissie Isais, a cosmetologist at Deja Vu Hair Salon, shared a similar view as Munoz.

“If the prices are going to go up, might as well keep it how it is. What’s the point in bringing it up?”

Selahattin Imrohoroglu, a macroeconomics professor at USC’s Marshall School of Business, believes the proposal will ultimately hurt the Los Angeles economy.

Selahattin Imrohoroglu believes there are other alternatives than raising the minimum wage. (Ken Mashinchi/Neon Tommy)
Selahattin Imrohoroglu believes there are other alternatives than raising the minimum wage. (Ken Mashinchi/Neon Tommy)

“It’s going to have a negative impact on employment. Is it going to be large? Nobody knows for sure.”

A study by U.C. Berkeley was conducted to see if this raise in wage would impact employment. The research shows that while restaurant prices (among other products) will increase, it will be offset by reduced worker turnover and the additional spending money that low income families will have.

Imrohoroglu did offer up a suggestion that he believes would be more favorable.

Lissie Isais does not see a point to the wage increase if everything else rises as well. (Ken Mashinchi/Neon Tommy)
Lissie Isais does not see a point to the wage increase if everything else rises as well. (Ken Mashinchi/Neon Tommy)

“If you really want to help the workers and not hurt them to lose their jobs, then make the Earned Income Tax Credit more generous.”

The Earned Income Tax Credit helps lower to moderate income families by offsetting federal payroll and income taxes if they fall under certain guidelines. To read more about Earned Income Tax Credit click here.

Despite possible negative views toward this proposal, Councilmember Price is not worried about the naysayers.

“There's some…who feel that raising the minimum wage is bad for business, it’s going to cause layoffs, it’s going to negatively impact individuals... I'd say they're wrong. There's a number of incidents around this country that have proven otherwise, and I hope Los Angeles is one of them soon.

Contact Staff Reporter Ken Mashinchi here.



 

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