St. Louis Drops Minimum Wage More Than $2
St. Louis, Missouri lowered its minimum wage from $10 to $7.70, the minimum for the rest of the state.
St. Louis raised the minimum wage to $10 in 2015. On Aug. 28, however, a Missouri law will go into effect preventing cities from inventing their own minimum wage separate from the state.
Republican Gov. Eric Greitens had said the raised minimum wage will "kill jobs, and despite what you hear from liberals, it will take money out of people's pockets."
"This increase in the minimum wage might read pretty on paper, but it doesn't work in practice," Greitens said. "Government imposes an arbitrary wage, and small businesses either have to cut people's hours or let them go."
Democratic St. Louis Mayor Lyda Krewson disagreed, calling the law "a setback for working families."
The $7.70 rate is still higher than the federally mandated minimum, $7.25.
Meanwhile, cities across the nation raised their minimum wages. Seattle and Minneapolis voted to eventually raise it to $15. Washington, D.C. and several California cities raised the minimum to $12 or $12.50.
A report on Seattle's wage hike showed the new policy had at least a few unintended effects. Low-wage workers' hours went down on average 9 percent in 2016 and made $125 less per month.