Page 7 - Aruba Today

U.S. NEWS A7
Tuesday 5 April 2016

US Financial Front:
California, New York enact US-highest $15 minimum wages

tional divide between rich of job creators in this state

and poor. Experts say other is deeply concerning and

states may follow, given illustrates why many feel

Congress’ reluctance to Sacramento is broken.”

act despite entreaties from Democrats who control the

President Barack Obama. Legislature approved the

“This is about economic jus- increase Thursday, days

tice. It’s about people. It’s after the agreement was

about creating a little, tiny announced. The measure

amount of balance in a passed with no Republican

system that every day be- support.

comes more unbalanced,” The bill will bump the state’s

Brown said before signing $10 hourly minimum by 50

the bill at the Ronald Rea- cents next year and to $11

gan State Building. in 2018. Hourly $1 raises will

Republicans and busi- then come every January

ness groups warn that the until 2022, unless the gover-

move could cost thou- nor imposes a delay during

sands of jobs, while a legis- an economic recession.

lative analysis puts the cost Businesses with 25 or fewer

to California taxpayers at employees have an extra

$3.6 billion a year in higher year to comply.

pay for government em- Wages will rise with inflation

ployees. each year thereafter.

A $15 base wage will have New York’s state budget in-

California Gov. Jerry Brown lifts a signed bill creating highest statewide minimum wage at $15 an “devastating impacts on cludes gradually raising the
hour by 2022 at the Ronald Reagan building in Los Angeles, Monday, April 4, 2016. small businesses in Califor- $9 minimum wage to $15,
nia,” Tom Scott, executive starting in New York City in
(AP Photo/Nick Ut)

director of the state branch three years and phasing in

MICHAEL R. BLOOD security that comes from a minimum wage to $15 an of the National Federation at a lower level elsewhere.
DON THOMPSON living wage.” hour by 2022. of Independent Business, An eventual statewide in-
Associated Press In Los Angeles, Gov. Jerry Together with New York, it said in a statement. “Ignor- crease to $15 would be
LOS ANGELES (AP) — Cali- Brown signed a bill into law marks the most ambitious ing the voices and con- tied to economic indica-
fornia and New York acted that will lift the statewide moves yet to close the na- cerns of the vast majority tors such as inflation.

Monday to gradually push

their statewide minimum American factory orders contracted in February
wages to $15 an hour —

the highest in the nation — MARTIN CRUTSINGER and household appliances appliances, dropped 3 20.1 percent, while orders
as Hillary Clinton and Ber- AP Economics Writer also fell. Orders in a cate- percent in February, slightly for commercial aircraft
nie Sanders again seized WASHINGTON (AP) — Or- gory that serves as a proxy worse than the 2.8 percent plunged 27.2 percent.
on wage disparity and the ders to U.S. factories fell in for business investment estimate in an advance re- The Institute for Supply Man-
plight of the working poor February for the third time declined 2.5 percent after port on March 24. Orders agement said Friday that its
as a defining issue in the in the past four months. a 3.3 percent increase in for nondurable goods such closely watched manufac-
presidential race. Meanwhile, a key catego- January. The report under- as petroleum, chemicals turing index rose to 51.8 in
Clinton joined New York ry that tracks business in- scores how American man- and paper products were March, up from 49.5 in Feb-
Gov. Andrew Cuomo as vestment plans dropped ufacturers are struggling down 0.4 percent follow- ruary. Any reading over 50
he signed the law that by the largest amount in with weak global demand ing a 1.9 percent drop in signals growth in the manu-
will gradually boost that two months. Factory orders and a rising dollar, which January. Orders for all fac- facturing sector. It marked
state’s pay rate and she fell 1.7 percent in February makes their goods less tory goods totaled $454 the first positive reading af-
predicted the movement after a 1.2 percent rise in competitive on overseas billion on a seasonally ad- ter five straight months with
will “sweep our country.” January, the Commerce markets. In addition, the justed basis in February. the index below 50.
In a statement, Sanders Department reported Mon- big fall in oil prices has re- Over the past two months, Analysts said they believed
said his campaign is about day. There was weakness in sulted in sharp cutbacks in demand is down 1.7 per- manufacturing may be sta-
building on the steps in a number of categories, investment spending in the cent from the same period bilizing but that the contin-
California and New York led by a big drop in the energy industry. Demand a year ago, reflecting the ued strength of the dollar
“so that everyone in this volatile category of com- for durable goods, every- pressures facing manufac- and weak growth in major
country can enjoy the dig- mercial aircraft. Demand thing from airplanes to turers. Orders for mining markets would act as a
nity and basic economic for machinery, computers computers and household and oil field equipment fell drag on any rebound.