By Megan McArdle, Bloomberg View
So Los Angeles is raising its minimum wage to $15 an hour by 2020, and then indexes the wage to inflation, so that it will never fall below this level in real terms. The politicians who have passed this law are understandably very excited that many low-wage workers — perhaps almost half of the city’s labor force — will be getting raises, some from the current minimum of $9. I’m sure the workers themselves are pretty excited about having more money in their pockets. What’s less clear is what happens next.