[Los Angeles's] higher minimum wage, he said, will likely speed the conversion of the downtown area from warehouses and small factories to luxury lofts and high-end restaurants.
Morath, Eric and Lazo, Alejandro. "Wage Debate Upends L.A. Garment Makers" The Wall Street Journal., Thursday, July 16, 2015, B1, Accessed on July 16, 2015, http://www.wsj.com/articles/los-angeles-garment-industry-frets-over-pay-hike-1436986903
That's from a supplier of clothing items commenting on the City of Los Angeles's recent decision to raise the minimum wage to $15 by 2020. Garment industry employers tend to agree with the supplier, arguing that they will be priced out of the market and have to either cut back on hiring or close down and move to more friendly pastures. The mayor and labor activists claim, on the other hand, that the changes will bring more salutary effects such as the attraction of more productive workers and higher consumption spending. Economics says nothing will happen unless the wages turn out to be a binding price-floor in which case the employers may be on to something. Only time will tell.
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