For Immediate Release: February 19th, 2014
Contact: Matt Sinovic, (515) 423-0530

‘Iowa Deserves a Raise’ finds that more than $270 million will be added to Iowa’s economy by raising the minimum wage to $10.10 per hour

DES MOINES, IOWA — A report released today by the Center for American Progress Action Fund (CAPAF) and Progress Iowa examines the impact of a minimum wage increase in Iowa and across the country. ‘Iowa Deserves a Raise’ highlights research indicating that an increase in the minimum wage would bolster the economy by creating additional spending power for working class families across the state.

The new report comes just one day after a Senate subcommittee gave initial approval for legislation that would gradually increase the minimum wage to $10.10 per hour by 2016. The Senate Labor committee is expected to consider the legislation today.

“Raising the minimum wage makes good economic sense and it’s the right thing to do,” said Matt Sinovic, executive director of Progress Iowa. “$7.25 an hour is not nearly enough to survive, let alone raise a family. Today’s report shows that raising the minimum wage to $10.10 per hour will add more than $270 million to the Iowa economy. That infusion will get the economy moving and working for every Iowan, increase the bottom line for businesses, and lead to job creation.”

Among the report’s findings:

– 300,000 Iowans will receive a pay increase if the minimum wage is raised to $10.10 per hour; the increase in Iowa wages would spur economic activity and boost demand for goods and services, creating a virtuous cycle where businesses will need to hire additional workers to keep pace with demand.

– More than half of the states that increased the minimum wage during periods of high unemployment saw the unemployment rate decrease over the next 12 months. The same would be true in Iowa, with $430,462,000 in wage increases and $272,483,000 being infused into the state economy.

– Minimum wage workers aren’t teenagers any more. The average age of a minimum wage workers is 35; two-thirds of minimum wage workers are women.

To read full analysis, click here