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States Vote For Minimum Wage Hike, But Is It Enough?

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If there was upsets and contention in much of midterm voting, there was one topic on which the electorate was largely united: raising the minimum wage. Alaska, Arkansas, Nebraska, and South Dakota all had ballot measures on raising state minimum wages above both their current levels and the federal $7.25 an hour figure.

All four states passed the measures, most by significant margins. More than two-thirds of voters in Alaska agreed to raise minimum wage to $9.75 by 2016. Sixty-five percent of Arkansas voters set the state on course to adopt an $8.50 figure by 2017. In Nebraska, 59 percent said the number should be $9 an hour by 2016. Only South Dakota stood out with a slimmer margin; 53 percent voted to raise minimum wage to $8.50 an hour next year. In Alaska and South Dakota, minimum wage is now pegged to inflation, meaning that it will rise as the cost of living does.

Those weren't the only votes on the topic. San Francisco, one of the most expensive American cities to live in, increased its local minimum wage to $15 an hour. In Illinois, 62 percent voted for a non-binding referendum to increase minimum wage to $10 an hour by next year. On a related topic, Massachusetts voters passed mandatory paid sick leave. California and Connecticut were the first two states to require the benefit.

Image: The All-Nite Images

Given the gains that Republicans, who have generally opposed increases in minimum wage, made yesterday, the advance of minimum wage is remarkable. Perhaps the split between the party and the people who voted for its candidates happened because long-standing economic pain has become increasingly unbearable for many. And yet, most employees in the U.S. do not work for minimum wage.

That suggests voters have come to see minimum wage, and economic inequality, as practical issues that can directly or indirectly affect them. If people make more money, they might be less likely to require government assistance, taking some pressure off spending and taxes. Increased spending could help move the economy.

However, minimum wage alone cannot solve the issue of income inequality. Shortened work weeks prevent low-wage workers from getting ahead because, even at higher rates of pay, they cannot generate enough income. Second jobs may be impractical if both employers demand first access to workers' time. Furthermore, the high-deductible health insurance plans that low wage workers can afford leave them in danger of economic catastrophe in the face of a serious illness.

Even so, votes for increased minimum wages were a clear win for low-wage workers and the unions that have been backing campaigns to raise the numbers. With 28 states now supporting minimum wages higher than the federal level, pressure on Congress will increase, while states with lower figures could find themselves economically uncompetitive for workers and, therefore, businesses.