Go ahead, make their day. Thrill the labor unions and put a smirk on the faces of well-established, larger businesses. Meanwhile, you might want to hold off on the warm-fuzzy feeling you expect from your vote, which you probably believe will help “the working poor”. Even the Congressional Budget Office (an entity with a history of estimates that tend to support intervention and underestimate damage from policies) reports the number of available jobs decrease when the minimum wage goes up. Poor people need more full-time job opportunities, not fewer, and not seventy-five cents an hour added to wages for a part-time job.
And since we’ve already tried the “shovel-ready” routine, which failed, seems like we need to look to private business to create those full-time jobs. Nebraska’s economy is actually growing slower (1.5% in 2013) than the national economy (2.5% in 2013), making it harder for private businesses.
The smaller the business, the harder hit they are by increased expenses. And that’s a crucial point. Here in Nebraska, increasing the number of opportunities will largely depend on small businesses (<500 employees), since they employ nearly half of Nebraska’s private sector workforce and because the number of people who are self-employed is increasing.
Have you noticed there is lots of advertising in support of the proposed minimum wage increase? Have YOU seen any advertising opposing it? I haven’t. Why? The folks with the ability to fund a “no” campaign stand to gain more than they stand to lose from a minimum wage increase.
Every public opinion poll of which I’m aware shows that minimum wage increases are popular with voters. The bigger and more visible businesses are in a world with social media, the more sensitive they become to bad P.R. Also, the established, larger businesses know that the increased costs of a minimum wage hike make it more difficult for smaller-sized businesses to start up and/or grow, so the net result is likely reduced competition.
Avoiding bad press and incurring some additional costs is preferred, even though minimum wage increases cost the employer more than the wage hike itself: payroll taxes (Social Security and Medicare), unemployment and disability insurance, and workers’ compensation fees are all based on the amount employees are paid.
Larger businesses, with their economies of scale, simply spread those expenses across their prices, upping them a bit here and there, resulting in slightly increased prices customers rarely notice.
The new or very small business trying to establish themselves or to grow has a much harder time increasing their prices. And even if they don’t have employees who make minimum wage – and many fewer do than you might think – they are likely to be effected by increased prices from some of their suppliers.
And why do labor unions love the idea of a minimum wage increase? In some cases, labor contracts include automatic wage increases if the minimum wage goes up, while others include provisions requiring immediate wage re-negotiations. And even if the existing union members don’t benefit at all, union leaders would still love it. They’ve led a very loud charge for increases, especially within industries not currently unionized. If a lot of states pass these measures, they’ll take the credit as loudly as they advocated, hoping to add to historically low membership numbers.
When you consider the whole picture, it’s hard to find any group who benefits from a minimum wage increase whose motives are worthy, whose advocacy is straight-forward. Besides labor unions and crony capitalists seeking p.c. points from the ruling class elite and accustomed to government policy advantages, there’s just one other group in support: Democratic politicians and people who live off them (“non-profits”, strategists, consultants, support staff).
In a lot of states, the Democratic candidate for U.S. Senate is leading the charge for a minimum wage increase. In Nebraska, it’s Democratic Gubernatorial candidate Chuck Hassebrook and his Lt. Gov. nominee, Jane Reybould who have heavily promoted Initiative Measure 425. And well they should: it was Mr. Hassebrook’s Center for Rural Affairs who was responsible for the effort to get the measure on the ballot. Well, under the auspices of a separate entity called “Nebraskans for Better Wages”1So as to leave no doubts, I don’t want any reader to think that the subterfuge – legal subterfuge, mind you – I’m pointing to ...continue, that is, which had collected nearly $1.4 million as of October 21, from a list of donors which includes the Center for Rural Affairs, Dick Holland, the state teachers and many other unions, Nebraska Appleseed, and more. The usual far-left suspects, in other words2I recommend you check out the full filing to date for “Nebraskans for Better Wages” at the Nebraska Accountability and Disclosure ...continue.
For anyone with questions about Chuck’s potential for independence from his political party, then, the answer can be found, if nowhere else, in the minimum wage measure and its supporters. That is an idea sent directly from the Democratic mothership as both a warm fuzzy (note, popularity mentioned above) with no political downside and a get-out-the-vote strategy for the notoriously absent Democratic voters in non-Presidential election years.
I don’t care with which political party you identify or whether it’s none at all — aren’t you tired of these kind of insults to our intelligence?
I say, go ahead. Wreck their (politicians, labor union leaders, crony capitalists) day. Vote NO on Initiative Measure 425.
That’ll be a YES to to increased opportunities for the poor, yes to small businesses, yes to entrepreneurs. Then, go ahead, indulge in that warm fuzzy feeling. You will have actually earned it.
For additional information about the impact of a minimum wage increase, in addition to the footnotes and links, see also:
Notes & References [ + ]
|1.||↑||So as to leave no doubts, I don’t want any reader to think that the subterfuge – legal subterfuge, mind you – I’m pointing to by Hassebrook, the Center for Rural Affairs, and the Democratic cabal is in any way unusual or limited to the Democratic Party in Nebraska. Republican politicians and associated cabals do the same thing all the time and we’ve written about it, numerous times.|
|2.||↑||I recommend you check out the full filing to date for “Nebraskans for Better Wages” at the Nebraska Accountability and Disclosure Commission. Their site isn’t especially user-friendly, so, to assist, here are the links: Committee information, Financial Summary, Contributions of $250 or more from Individuals, Contributions of $250 or more received from all sources except individuals, Expenditures|