Okay, I assume it was actually rather hard even though they succeeded. Because I imagine they ran into similar challenges to current attempts to increase the minimum wage.
Perhaps if wages reached a certain level the old understanding that a minimum wage increases unemployment and inflation would hold true. And yet study after study shows that's not true, and when I think about my own experiences I think I understand why.
It's all about disposable income.
Or rather, it's about suppressed demand due to limits on disposable income.
I, for example, am a homeowner...
Which means I have was very long list of things I would like to do for my house, most of which cost enough money that I can't do it all at once.
That goes for other things I would probably buy, if I weren't determined to pay off some debts. (I do spend some on the little pleasures, but there are quite a few things I would consider buying if I didn't want to pay off various things first).
Yes, economists are rather familiar with stimulating an economy by giving people money. But face it, a one time boon is just not the same as knowing that every month you have an extra $100+ to spend.
When housing, food, and transportation costs take up most of your monthly budget, every seller is now competing for the small slice of your budgetary pie. (I. E. If you only have $100 or so of disposable income, do you spend it on dinner and a movie? On a new video game? New shoes? A ticket to a show? You probably can only afford one or two.)
When that slice grows larger, that untapped demand is more likely to be met. (I. E. Where before you could only pick one or two options, now you can choose three or four. That means more consumption --> stimulus --> economic growth. Not that this is unlimited, naturally. I'm sure economists can run some studies to try and find the sweet spot between when better wages lead to economic growth and when they lead to inflation and unemployment... Though given how some businesses seem to have deliberately caused inflation, I'm sure that relationship is not as objective as we sometimes pretend it is).
Anyways, given repeated studies on the benefits of increasing the minimum wage, you would think the powers that be would do something intelligent about it.
Instead, crickets.
Like so many other times when studies contradict what people want to believe.
