Santa Clara is the heart of Silicon Valley, where some of the world’s biggest companies began in cramped garages. These cramped garages used to symbolize resourcefulness that led to some of the greatest innovations in the world. But now, these same garages where billion-dollar companies were founded represent something darker: they are home to individuals and families that can’t afford proper living spaces in Santa Clara because of rising home prices and lack of affordable housing stock.
Studies have shown that two parents can earn the current minimum wage and still be homeless in Silicon Valley. We all know there are serious income inequality problems in Silicon Valley, and Santa Clara isn’t immune from those. But Santa Clara—the city I call home—has the opportunity to be the next Silicon Valley city to raise its minimum wage to combat the negative effects of income inequality. Councilman Dominic Caserta has proposed a revision of the ordinance to raise the minimum wage to from $9 to $11.
Some will say that this 22% minimum wage increase will hurt small businesses. Others will say that this number is not high enough. What it represents is sound compromise between the two sides. Research has shown that higher wages sharply reduce employee turnover which can reduce training costs, and the wage increase makes a significant positive change in the lives of minimum wage workers and their families. Raising the minimum wage to $11 means adding $4,160 annually into the pockets of families to spend on food, healthcare, and housing.
As a proud resident of Santa Clara, I’m excited that the city will soon be following in the footsteps of other progressive cities in raising the minimum wage. This is the right thing to do, not just for our working families, but for all of Santa Clara and Silicon Valley.
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