Mayor Keller’s non-sensical minimum wage video

06.01.2026

In his push for a shift in the local minimum wage from $12 to $15 an hour (and index the wage to inflation and apartment values) Albuquerque Mayor Tim Keller made a video. Not surprisingly, it relies on numerous economic fallacies and misguided economics. Here’s our response to the Mayor:

  1. The Mayor claims that raising the minimum wage “much.” The reality is that businesses don’t simply deal with minimum wage increases by raising prices. In California which imposed a $20 minimum wage on the fast food industry prices increased by 8-12%. Instead, they do a combination of things as was discussed in a recent UC Santa Cruz report businesses raised prices, reduced hiring (between 12 and 21% according to the California report), and automated. Not surprisingly businesses attempted to minimize the negative impact of an artificial minimum wage hike in a variety of ways.
  2. Raising the minimum wage provides more stability and spending money: If raising the minimum wage had no negative impact why stop at $15 an hour? If it’s all “gravy” why not go with a $25 an hour wage?
  3. Keller claims that “he doesn’t think politicians should set minimum wages.” We agree with that, but find it weird because Keller is actually the one pushing this issue at City Council.