Initiative 1433 & Our Economy
Initiative 1433 will boost the economy and help small businesses thrive, because when workers have more, they spend more.
Raising the minimum wage over four years will boost Washington’s economy.
Raising the minimum wage to $13.50 over four years for more than 730,000 workers will add $600 to the pockets of a minimum-wage worker every month.1 When low-wage workers and families earn more, they spend more, which means small businesses make more and create more good-paying jobs.
Initiative 1433 will inject more than $2.5 billion in spending into Washington’s economy every year. It’s a win-win for workers and the economy.
Raising the minimum wage is good for jobs and the economy.
Don’t believe the scare tactics from corporate lobbying groups who oppose Initiative 1433 — in places that have raised the minimum wage and passed paid sick leave, businesses of all sizes have prospered. In fact, according to the U.S. Department of Labor, every state that raised its minimum wages in 2014 saw faster job growth than states that left their wages stagnant.2 Additionally, a National Employment Law Project study showed that over the course of 70 years, the majority of federal minimum wage increases led to increases in overall employment levels. Because when workers have more, they spend more, which boosts our economy.
Better pay and paid sick leave means happier employees and reduced turnover.
Business owners know that rapid turnover and the need to train new workers can be one of the biggest costs of operation, especially in the restaurant industry and low-wage industries that can see as high as 50 percent annual turnover. Low-wage workers frequently change their employment as they find other jobs that offer more money or better benefits. But workers with higher pay and paid sick leave are more productive, have higher morale and have less incentive to find a new job. This leads to a reduction in turnover rates, which saves businesses money.3
1 “Three Reasons to Raise Minimum Wage.” Budget and Policy Center. January 2016.
2 “Higher Wages, a Stronger Bottom Line and Job Growth.” U.S. Department of Labor. August 2014.
3 “Local Minimum Wage Laws: Impacts on Workers, Families and Businesses.” Michael Reich, Ken Jacobs and Annette Bernhardt, Institute for Research on Labor and Employment, UC Berkeley. March 2014.