Louisiana Gov. Edwards will again push to raise minimum wage; critics say change would kill jobs

Louisiana Gov. John Bel Edwards is calling for a $10 minimum wage in Louisiana, renewing an effort to raise the state’s pay floor that has been stymied since the beginning of his first term.

“We know that an overwhelming majority of the people of Louisiana agree with us on this,” Edwards said Monday.

Edwards endorsed a bill by state Sen. Troy Carter, a New Orleans Democrat, that would raise the state minimum wage to $9 an hour on Jan. 1 of next year and $10 an hour on July 1. The legislation provides for annual adjustments thereafter tied to increases in the Consumer Price Index.

Louisiana does not have a state minimum wage, so the federal minimum of $7.25 an hour applies. Proponents say a higher minimum would boost consumers’ buying power, reduce the need for public taxpayer assistance for the working poor, and help people climb out of poverty.

Some economists argue raising the minimum wage leads businesses to hire fewer workers. In opposing last year’s effort, Dawn Starns, state director for the National Federation of Independent Business, said raising the minimum wage could lead to a net loss of 36,000 jobs in the state. Jim Patterson with the Louisiana Association of Business and Industry said that while large companies perhaps could absorb a higher mandated wage minimum, smaller firms could have more trouble.

Critics also warn that raising the minimum wage would lead to increased prices on consumers and benefit reductions for workers.

But Edwards has pointed to Arkansas, saying Louisiana’s neighbor has raised its minimum wage multiple times with no apparent harm to its economy. Carter’s current proposal is more ambitious than the $9 wage floor Edwards supported last year.

Asked why this year’s effort might succeed, given the past failures, Edwards said the legislature’s new members might not have formed an opinion on the issue yet. He said he is urging the public to contact their legislators to request action.

According to the 2019 Louisiana Survey conducted by the Reilly Center for Media & Public Affairs at LSU’s Manship School of Mass Communication, 81 percent of Louisiana residents favor raising the minimum wage to $8.50. Support dropped to 59 percent when asked about a $15 minimum wage. The survey did not ask about wages between those two.

Louisiana does not have a state minimum wage, so the federal minimum of $7.25 an hour applies. Proponents say a higher minimum would boost consumers’ buying power, reduce the need for public taxpayer assistance for the working poor, and help people climb out of poverty.

Some economists argue raising the minimum wage leads businesses to hire fewer workers. In opposing last year’s effort, Dawn Starns, state director for the National Federation of Independent Business, said raising the minimum wage could lead to a net loss of 36,000 jobs in the state. Jim Patterson with the Louisiana Association of Business and Industry said that while large companies perhaps could absorb a higher mandated wage minimum, smaller firms could have more trouble.

Critics also warn that raising the minimum wage would lead to increased prices on consumers and benefit reductions for workers.

But Edwards has pointed to Arkansas, saying Louisiana’s neighbor has raised its minimum wage multiple times with no apparent harm to its economy. Carter’s current proposal is more ambitious than the $9 wage floor Edwards supported last year.

Asked why this year’s effort might succeed, given the past failures, Edwards said the legislature’s new members might not have formed an opinion on the issue yet. He said he is urging the public to contact their legislators to request action.

According to the 2019 Louisiana Survey conducted by the Reilly Center for Media & Public Affairs at LSU’s Manship School of Mass Communication, 81 percent of Louisiana residents favor raising the minimum wage to $8.50. Support dropped to 59 percent when asked about a $15 minimum wage. The survey did not ask about wages between those two.

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