Moving minimum wage standards from the federal level to the state level is an interesting idea. Many companies already do something like this. For example: Starbucks starting wage in New York City (Manhattan) is almost double the starting wage in LA.
Inflation would skyrocket with higher minimum wage.
Unfortunately, we are in a "transitionary period". We're moving from primarily a manufacturing economy to a tech secto/services one. I don't really see it getting better until:
1. The rest of the world catches up and wages stabilize along with globalized economies. (We just keep outsourcing until an equilibrium is reached in wages)
2. Our mode of economy experiences a paradigm shift: Say robots or automated labor replaces human labor and the savings are redistributed accordingly.
Still, one can move. Not easy but still possible. There's no need to crowd urban centers for jobs that don't really exist anymore. LA garment industry has shrunk incredibly.
In my opinion, market factors, supply and demand should be the determinants.
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