CA: Minimum Wage is a Maximum Fallacy - Sacramento distortions…

CaliforniaRepublic.org ^ | 12/22/05 | Anthony P. Archie

[NormsRevenge]

Anthony P. Archie is a public policy fellow in Business and Economic Studies. Prior to joining Pacific Research Institute, Anthony earned his masters degree in public policy from Pepperdine University, specializing in economics and regional/local policy. As part of his graduate work, he co-authored Crisis in California: Reforming Workers’ Compensation, a proposal that drew praise from an esteemed panel of scholars and policy advisors. Mr. Archie has held internships on Capitol Hill and in the State Assembly. He received his B.A. in economics and political science from Pepperdine University.

[EagleUSA]

Beautiful. How liberal, Arnie! Just what we need to drive more jobs offshore and out of California.

[tfecw]

The article looks good aside from the below listed parts. I would like to see the evidence on them. They seem a little anemic to me

"Minimum-wage laws prevent a low-skilled employee from working at the best possible job she or he could find. Faced with the specter of unemployment, many lower skilled workers will resort to “under the table” employment at lower wages, or even engage in illegal activities such as drug dealing, prostitution, or property crimes.

Minimum-wage laws also create an incentive for gender and racial discrimination in the workplace. Because the higher wages do not reflect the employees’ real worth, the employer must determine who is more “worthy” to receive the higher rate. Employers may prefer one group over another based upon preconceived assumptions. "

I'm sure the GOP backing of this maneuver is part of some greater ploy to dig CA out of the liberal cesspool it's stuck it right?

[Casloy]

There is a certain irony to the fact that the Dems, who claim to care most about those on the bottom rung support a minimum wage which does more to hurt those on the bottom than any other single law.

[Wiseghy]

It might be interesting if they were to include a exception for those who provide health benefits, especially family benefits.

However, the socialists will undoubtly attempt to twist that into some type of single payor program, and or a union mandate.

Pathetic.

[im4eagles]

Although in this case my Freep name may not apply.

Confused by your assertion that not increasing minimum wage will drive more jobs offshore. An increase in minimum wage also causes an increase in L&I in most states. It has a double impact on employers.

Jobs move offshore because corporations cannot deliver products at a competitive market price. The labor cost to produce are excessive if manufactured in the U.S.compared to offshore workers.

Proof of this concept is the Japanese entrance into the automobile industry and the current state of GM. Yes the union people at GM are well paid, but GM cannot re-coupe the wage, health, and leave entitlements in the cost of the products. Thus the threat of bankruptcy and need for a government bailout.

[Pessimist]

Unfortunately there's also a certain irony to the fact that the 'pubs - who are supposed to believe in the market - back it.

[EagleUSA]

Jobs move offshore because corporations cannot deliver products at a competitive market price.
-----
You really answered your own question. Many even non-labor intensive jobs are moving away, due to increased costs in taxation, regulation and labor. This is really Business 101. Increasing the COST of doing business is having a huge impact -- many companies I do business with have moved OUT OF THE STATE OF CALIFORNIA to Nevada and elsewhere and have stayed in business because they have reduced labor costs. And now California wants to throw more gasoline on the fire?

Hello??

[HKMk23]

...there's also a certain irony to the fact that the 'pubs...back it.

Well, in California, where I was born, raised and still live, "Republican" is most often spelled R-I-N-O and, in "Republican" circles, Conservatives are more frequently viewed with a jaundiced eye, and even a palpable level of derision. The time has long passed when a registered Republican politician could be readily trusted to uphold truly conservative political values. Certainly there remain many truly conservative politicians in California who, for lack of any other party to call "home", call themselves "Republicans", but their numbers are on the wane. In election after election, in district after district, most California voters are forced to choose between a flaming lIberal Democrat who'll destroy the State and a spaghetti-spined RINO who hasn't the conservative principles to stop it. So, we get a Legislature chock-a-block with liberal Dems and spaghetti-spined RINOs; one gang actively eroding the State and the other gang passively looking on. Meanwhile, the few truly Conservative Republicans left, work feverishly to shore up whatever they can, but most frequently end up beating their heads against the walls.

[Amerigomag]

I'm sure the GOP backing of this maneuver ....

The CAGOP isn't anywhere near the front end of this train. The governor, while promoted to his position by the CAGOP , has not shown himself to be very partisan, except during fund raising, with a minimum regard for the CAGOP.

The CAGOP is back in the passenger coach, along with the electorate, on most policies matters that the Schwarzenegger administration concocts.

[bannie]

[HKMk23]

The CAGOP isn't anywhere near the front end of this train.

Can we be at all sure that it would make any difference if they were? Can you say, with any degree of certainty, whether they'd hit the brakes or juice the throttle? I don't know that I could make that prediction.

[Amerigomag]

Can you say whether they'd hit the brakes or juice the throttle?

No I couldn't.

The CAGOP is a poorly managed, disparate group of philosophies whose only common purpose appears to be to oppose the CADEM. Their current profile is fast approaching the traditional profile of the Democrat Party.

Based on their recent history, the CAGOP's public position will be predicated on the maximum political gain in the next election cycle with little or no regard to political philosophy or the financial consequences to the state.

[HKMk23]

Their current profile is fast approaching the traditional profile of the Democrat Party.

Yep. And every conservative Republican in California knows how it feels to be homeless.

[ImphClinton]

I agree.

Don't know what glasses this guy was using but they need fixed.

First of all Drug Dealers make far more than minimum wage. Thus a lower wage would mean more Drug Dealers not less.

The unemployment rate is low enough that it is very obvious that the minimum wage is hardly too low.

Ignored by the article is the fact that many employers fire all employees that get above a certain wage. I know many Restaurant Owners that tend their bottom line by never giving employees a raise or giving it then firing the employee once they get above a certain level of pay. They know another minimum wage employee will be no problem to find and they either perform or are fired quick.

The main need for a minimum wage it to keep wages high enough such that the taxpayer need not supplement the income of people that are working. It makes no sense for people that get a good education and job to have to pay higher taxes to support "Wall-Mart employees." It keeps unscrupulous employers from forcing wages down so low that the employees must be on the dole. This should be the test. What wage is necessary to support an adult and a child. 40 hours per week should suffice. Thus if one adult and child can survive on $300 / week the minimum wage should be $300 / 40 or $7.50. This single parent at this wage should not qualify for food stamps or welfare if so the minimum wage should be raised.

I really do not understand why so many here like to pay higher taxes so bad employers like Wall-Mart can pay low wages. Wall_Mart was convicted of unfair practices again today and will 45 more times as the legal actions underway complete. Where are the teeth in these law to send the execs to prison?

[FOG724]

bttt

[HKMk23]

This should be the test.

See your "adult and a child" and raise you another adult. One working adult ought to be able to support a small family on a single income. Traditional roles are far more popular than any sociopathic leftist would dare imagine, much less believe; not every woman in the world wants to bail out on her kids all day long just so the tax man will be happy in April. A great degree of our social degredation has come about as Mothers have been forced out of the house and into the workplace, and much of the economic realty that makes that happen traces back to elevated taxation and regulation of business by sticky-fingered government entities.

[Munson]

mininum wage increases only drive inflation. in my retail store they jacked the prices up to compensate for the increase.

most businesses will jack prices up. maybe in 10 years id see an increase to the mininum wage but in California its fair as is.

[Lancey Howard]

Amazing. Arnie is full of surprises. None of them good.

[im4eagles]

I think this is a case of talking by each other and making the same point. It is obviously my reading of your sentence structure that threw me off.

Once again my faith in eagles is restored.