The Texas Alliance for Human Needs reports that fully one million Texans are earning at a minimum wage level. Paying a Living Wage is good for the local economy because small local businesses rely on local dollars. More money for Austinites will mean more customers for Austin businesses. Paying a living wage will create new business as new revenue promotes commerce. Also, some economists argue that higher pay results in increased productivity by making jobs more desirable to both get and to keep, thereby reducing recruitment, training and supervisory costs associated with high rates of turnover.
New businesses come to Austin because of quality of life issues and governmental considerations.
The kinds of recent businesses attracted to Austin pay a wage or salary far in excess of a minimum wage. Once again, the increase did not lead to job loss. Most employers recognize that they need to be wage competitive right from the start. Factors such as manufacturing, transportation, equipment, rent, advertising, business location, income demographics of the community, employee recruitment and training, expenses all add together with wages to create the cost make-up of an item. Clearly, the cost of goods does not have to automatically rise just because one small portion of their make-up increases.