In a state that is ranked as 聽in the nation 鈥 for groceries, housing, utilities, transportation, health care and other indexes 鈥 it鈥檚 absurd to think someone can get by on $21,000 a year. Yet that鈥檚 what $10.10 an hour works out to.

That鈥檚 also the same figure as Hawaii鈥檚 minimum wage, which was stuck at $7.25 for eight years until the Legislature finally moved in 2015 to increase it annually to its current level.

Today many lawmakers and the governor are on the same page in calling for another increase in the minimum wage. Initial proposals range from $12 by 2022 to $17 by 2025. A consensus that $15 may be an acceptable compromise, and that makes sense.

After all, that鈥檚 what in the District of Columbia in 2020, in California in 2022, in Massachusetts in 2023, and in New York sometime after 2020, when the rate will be adjusted annually for inflation until it reaches $15. Just this week, New Jersey to adopt a plan to gradually raise its minimum wage to $15 an hour for most workers, by 2024.

It’s no coincidence that D.C. and those four states are also among the most expensive places to live in this country.

Living Wage Hawaii hearing at the Capitol.
A member of Living Wage Hawaii at a minimum wage hearing at the Capitol last month. Cory Lum/Civil Beat

Similar to the last time wage discussions dominated our Legislature, differences this time boil down to business groups opposed to a wage hike and social progressives who support it. The former argues that the minimum wage is a 鈥渟tarting鈥 or 鈥渇loor鈥 wage while the latter calls for a 鈥渓iving鈥 or “fair” wage.

Raising the minimum wage appears to have public聽 support in many parts of the nation. In recent years, voters in red states such as Nebraska, Missouri and Arkansas have approved wage hikes.

We encourage Hawaii legislators to rely on knowledgable, informed sources and to resist specious arguments on how a wage increase might slash jobs, shutter businesses and hurt workers and consumers. A good place to start is to look at what happened in other states and cities that recently increased their minimum wage.

Consider the following reports:

  • New York Magazine (): 鈥淚n the first six major U.S. cities to raise their minimum wage above $10 an hour, workers鈥 earnings went up while job growth held steady or improved, according to聽聽from Berkeley鈥檚 Center on Wage and Employment Dynamics.鈥
  • The New York Times (): 鈥淎 research team including economists from the University of Washington has put out a paper showing that Seattle鈥檚 recent minimum-wage聽increases聽brought benefits to many workers employed at the time, while leaving few employed workers worse off.鈥
  • The Washington Post (): 鈥淎rkansas and Missouri voters approved substantial increases to their state minimum wages Tuesday as people across the political spectrum endorsed higher pay for low-wage workers. It marks a decisive victory for a liberal cause in two red states that strongly support President Trump.鈥

These are respected, reputable sources. But there is also a lot of false information influencing wage debates.

The Employment Policies Institute a nonprofit research organization 鈥渄edicated to studying public policy issues surrounding employment growth.鈥 A from EPI cited economists whose research led them to conclude that California鈥檚 $15 wage had led to significant job cuts.

That sounds like a strong argument for Hawaii to reject minimum wage increases. But, , EPI 鈥渋s run by a public relations firm that also represents the restaurant industry, as part of a tightly coordinated effort to defeat the minimum wage increase that the White House and Democrats in Congress have pushed for.鈥

To be sure, there are liberal groups pushing their own pro-wage-hike agendas. The Times identified two 鈥 the聽聽and the聽 鈥 but concluded that neither had the reach and impact of EPI.

The data battle is happening here too.

The Chamber of Commerce Hawaii and the Hawaii Restaurant Association have cited national reports opposing a wage hike, suggesting the $15 wage in Seattle and New York had led to mixed or negative results. The HRA did not cite its data, but it appears to be from . The alliance, no surprise, represents restaurants.

The chamber did cite the UW study on Seattle鈥檚 $15 wage. The problem is, UW released two studies, the second of which appeared to contradict the first. As a researcher , the truth about the impact of a wage hike is complicated. For example, it affects different groups of workers differently. But it was the first study, which said that Seattle鈥檚 minimum-wage聽increases “had large costs for workers,” that was capitalized on by wage increase opponents.

The chamber does make a good point that Hawaii businesses have burdens not shared by most states, such as a prepaid health care mandate. One of the proposed , which could well emerge as the primary legislative vehicle, would provide a lower rate of wage increase for employees with health plans.

, this one favored by Gov. David Ige, would provide an income tax credit for qualifying businesses to offset the impact of increasing the minimum wage. That measure has been deferred, but the idea is worth exploring as lawmakers pursue a final bill.

Indeed, in addition to being an expensive place to live, Hawaii is when it comes to business tax climate. It鈥檚 also for best and worst places for business overall.

The most critical data to keep in mind, however, is that Hawaii will likely continue to be an expensive place to live in the foreseeable future.

In its testimony in favor of a wage increase, a group called Living Wage Hawaii used Hawaii Department of Business Economic Development and Tourism statistics to show that 鈥渁 single childless adult requires approximately $35,000 annually, or $17 per hour to be able to afford their basic necessities working 40 hours a week and 52 weeks a year.鈥

Meantime, as the Hawaii Appleseed Center for Law and Economic Justice put it in its testimony in favor of a wage hike, 鈥淵ou’d think that with the lowest unemployment rate in the nation, our workers would’ve seen big raises over the past few years. Yet we have the lowest average wage in the nation, when you adjust for our cost of living. Something’s out of balance. There’s a lot of evidence that it’s not just our prices, but also our low wages.鈥

Hawaii lawmakers and the governor have an opportunity to put things back into balance for low-wage workers. They can do so by finding ways to help businesses, including a gradual increase in the minimum wage.

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