Raising the Minimum Wage in Ithaca Ny

In this paper I will argue for an introduction of a living wage law in Ithaca, NY, that would theoretically raise the minimum wage and improve quality of life for low wage employees. First, I believe it is important to define exactly what a living wage law is. The law is set in place to give the earner the opportunity to live above the poverty line, and to be able to maintain this lifestyle free of government handouts and welfare policies. Living wage laws are set up by cities, counties, and school districts and are wage floors imposed on employers that are set higher than the state or federal minimum wage. For this reason, the living wage laws only apply to a certain type of employer.

According to USA.com, Ithaca is a city of roughly 30,000 people with a median household income of roughly $31,000 per year. While it may be fair to evaluate the effects of a national increased minimum wage and apply it to this situation to predict an outcome, it is also important to note that Ithaca is not a microcosm of the United States. Many argue that an increased minimum wage would raise the cost for employers resulting in a reduction of labor therefore raising the unemployment level. Additionally, people fear that the raised cost will result in businesses moving to areas that don’t impose this added cost. However, factors unique to Ithaca, including a large support of local businesses, a world renowned university serving as the community’s number one employer, and a vast politically left population distinguish this small town from the rest of the country. For that reason, I believe it is most effective to speculate outcomes based on the economy and dynamic of this particular town rather than that of the nation.

In theory, it’s hard to argue against the fact that an increased minimum wage results in more unemployment. The graph below shows the logical affects than an increased minimum wage would induce.

This graph shows the expected outcome...