What’s the denominator?
In response to “Zerophobia and minimum wages”, Lynn Thompson, the Seattle Times reporter who wrote the story I was commenting on, replied with an e-mail that made a good point:
“Other readers also suggested that I put the amount in the context of the city budget. $1 billion is actually the amount of the general fund from which any $15 an hour pay increase will come. The other $3.4 billion is in City Light and SPU [Seattle Public Utilities] revenues—utilities that get their money from rate payers and are operated as independent business lines.”
In broader terms, when you’re calculating a fraction it’s important to get the denominator right. This is another major piece of making budget figures meaningful.
With an estimated $1 million price tag for the minimum wage increase, or $1.5 million if summer youth programs are included, that still makes the proportion of the available budget 0.1 percent, or 0.15 percent with the youth programs. This does not include any effects of bumping up pay levels that were close to the new minimum wage. On the other hand, neither does it include potential increases in city revenues from the multiplier effects of the wage increases.
In any case, it still appears overall that the raises will have a very small impact on the city budget.
En Español
The Latest
From IPS News
- AI Policy Can’t Ignore Climate Change: We Need Net Zero AI Emissions
- Conditions Worsen for Belarus Migrants Stuck in ‘Death Zone’ on EU Border
- Another Climate Victory in Europe… and Counting
- By Sending Nuclear Weapons to UK, Could US be Fueling Nuclear Proliferation?
- Small Island States Fostering Effective Energy Transition To Achieve a Blue Economy
- Attacks on UNRWA Not About Its Neutrality, Says UNRWA Chief
- US Foreign Policy in Middle East Still Governed by Israeli Priorities
- Rich Nation Hypocrisy Accelerating Global Heating
- Seeking Justice for the Civilian Victims of the Syrian Civil War
- Who Should be the Next UN Leader?PART 7 FINAL
- Online fundraising for IPS Inter Press Service at Razoo