Deflation is Coming

Photograph by Ralph Orlowski/Bloomberg

Colorado’s minimum wage is set to decline next year due to a decrease in the inflation rate during the first half of the year, according to an order from the Colorado Department of Labor and Employment. The new order would lower the state’s current hourly minimum of $7.28 to $7.24 on January 1. … Rich Jones, director of policy research at the Bell Policy Center, Denver, said he hopes employers will focus more on maintaining goodwill with their workers rather than lowering wages because they can.
—Aldo Svaldi, Colorado Minimum Wage Set to Fall, Denver Post, Oct. 13, 2009

To continue reading this article you must be a Bloomberg Professional Service Subscriber.