You are a member of a city council in Ohio. The population of this town is approximately 150,000. As budget season approaches, the council has found an opportunity to
attach a proposed $1.00 increase in the minimum wage to another bill. The economic recovery has been generally better in Ohio than the rest of the United States, but
not optimal. Unemployment currently stands at 5.6% in Ohio compared to 5.9% for the United States. For your city, the unemployment rate stands higher than the US and
Ohio average at about 6.5%, largely due to a decline in manufacturing jobs during the last recession.
You notice that inequality in your town is also increasing. The economic recovery has largely benefited certain industries over others. Manufacturing is slowly coming
back thanks to new investments by the Big Three automotive companies, but hiring and wages in the services sector have stagnated. Overall per capita income in the city
has largely flat lined and not kept pace with inflation.
The Ohio minimum wage is $7.95. This would bring the city minimum wage to $8.95. The city council has been in communication with a few retailers to bring 12,000 more
jobs to the city, but they are highly concerned about the minimum wage increase. Indeed, one retailer that promised 250 of the 12,000 jobs has threatened to leave the
city if the minimum wage is raised.
Your job is to decide as a council if the minimum wage has been increased. Please provide a two paragraph explanation why. Please feel free to provide real life
evidence of the state of the US economy to back up your decision.