Why LA's new minimum wage isn't what it seemed

538 - The Los Angeles City Council  voted to raise the city’s minimum wage to nearly $10 an hour.

Oh, sure, the headlines in Wednesday’s papers all said the council raised the wage floor to $15 an hour. That’s what the actual ordinance says, too. But $10 is a more accurate reflection of what low-wage Angelenos will actually experience.

There are two reasons for this. The first is inflation: Los Angeles’ minimum wage won’t go up to $15 tomorrow. Instead, the hike will be phased in over the next five years. Assuming inflation holds more or less steady, $15 an hour in 2020 will be worth the equivalent of about $13.75 today.

But the bigger issue is that $15 doesn’t go as far in Los Angeles as it does in most of the rest of the country. Not even close. According to data from the Council for Community and Economic Research, it costs workers about 40 percent more to live in Los Angeles than in the average American community. That means that $15 in LA is the equivalent of less than $11 in the U.S. overall.