Here are some current examples of what happens to a sector of the economic structure when the minimum wage level is increased:

Michael Hillard, a labor economist at the University of Southern Maine in Portland, sees another benefit that gets to the heart of American capitalism. “A new set of social norms are being set. It’s not just a static thing to raise wages at the bottom. It really pushes on business models that rely on very low wages,” he says.

This may already be happening in the retail industry. In March, Costco raised its starting wage to $13 an hour, up from $10.50. In February, Wal-Mart raised its minimum hourly rate to $10, its second hike in two years. Target followed suit.

Jim Wellehan’s retail footprint is smaller. Started by his father in 1914, Lamey Wellehan Shoes has six branches and employs about 100 people. Mr. Wellehan, who has a Bernie Sanders sticker on his car, has joined the campaign for $12 an hour. He’s proud of his staff’s pay – an average hourly rate of $15 – and their benefits, including paid vacations and sick leave. Retention is high; many raise families and retire from the job.

This was how companies used to treat employees, and he regrets the passing of this brand of capitalism and what he says has resulted: divided communities and rising inequality. “We’ve developed into a society of poor ghettos and rich ghettos,” he says. “We separated. We’re not a society anymore.”


Read the whole story here:

https://www.yahoo.com/news/portland-gave-minimum-wage-workers-raise-heres-happened-120004830.html