Tag: pay

Minimally Mugged By Reality

Post author By CS Admin
Post date June 28, 2017
2 Comments on Minimally Mugged By Reality

minimum wage, business, pay, workers, fallacy, profit, Bernie Sanders

It should shock no one: forcing businesses to pay steep minimum wages ends up pushing some businesses out … of business. Yesterday I looked at what minimum wage laws can do to low-skilled workers. Today, consider the employers. When we make it harder to turn a profit, it becomes harder to profit. Businesses that can’t at least break even close their doors.

Many business owners are inclined to promote, politically, politicians who in turn support minimum wage hikes. Do they change their minds when mugged by reality? Alas, the trauma alone won’t convert a person to principled allegiance to free markets.

I was reminded of this fact by a story about business owners in Minneapolis who stress their Sandernista credentials.

“I’m a bleeding-heart liberal and I’m a big Bernie Sanders supporter,” says businesswoman Jane Elias, an art store owner. “But this whole flat-out, $15, one-size-fits all is just wrong.” Another victim, restaurant owner Heather Bray, says she’s a “proud, proud progressive.” But: “The arithmetic doesn’t work. People will not continue to go to budget-conscious restaurants when they’re no longer budget-conscious.”

So … arbitrary minimum-wage demands don’t add up in light of the demands of running their businesses under their particular circumstances. Well, no disagreement here. But take it further, please. Keep doing the math. The bottom line is that everybody, not just you — and always, not just sometimes — has the right to make his own decisions about his own life and property.

And profit by it.

This is Common Sense. I’m Paul Jacob.

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Tags Bernie Sanders, business, fallacy, minimum wage, pay, profit, workers

Accountability folly free trade & free markets general freedom initiative, referendum, and recall nannyism national politics & policies property rights responsibility too much government

Minimum Shock

minimum wage, closure, restaurant, business, prohibition, wages, pay, Berkeley, San Francisco

“Three restaurants vacated the Bay this week, with Berkeley’s Bistro Liaison getting the most attention,” the San Francisco edition of Eater informs us. “It’s a bittersweet exit for the owners, who plan to start new careers.”

The week in question was in February. But this was not an isolated event. Sixty-four Bay-area restaurants and fast food joints closed their doors this last winter.

That is a lot of closures.

Why?

Every eatery has a different story, but the entry December 17* provides a big clue: minimum wage hikes.

Citizens should hardly be surprised. They got what they asked for. The minimum wage went up to $13.00 per hour last July, and will go up another two bucks next year. And this was the result of a citizen initiative. “On November 4, 2014, San Francisco voters passed Proposition J, raising the minimum wage to $15.00 by 2018,” the City Office of Labor Standards and Enforcement tells us.

And the thing about minimum wage laws is that they do not — either by magic or by law — directly raise any wages. They, by law and quite directly, prohibit wage contracts below the minimum established.

Businesses then react, struggling to accommodate the newly imposed costs. Sometimes they keep all their employees and economize on other inputs, but often they must re-arrange hours and workers and whole production schemes.

If hemmed in elsewhere, they just go out of business.

Just as one should expect, according to the law of supply and demand.**

Citizens might wish to reconsider. That is, initiate a measure to repeal a previously successful initiative … that gave us this unsuccessful policy.

This is Common Sense. I’m Paul Jacob.

* The entry reads thusly: “OAKLAND — alaMar Kitchen and Bar as you know it is shuttering on December 17, but will reopen in the new year with a fast casual format. The owner points to minimum wage raises and the cost of doing business in the Bay Area as the reasons cited for the closure/change.”

** It is often said that businesses just “raise prices” and “pass along the costs” to consumers in general, but, for reasons of supply and demand, they cannot do this without decreasing sales and thus revenue.

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Tags Berkeley, business, closure, minimum wage, pay, prohibition, restaurant, San Francisco, wages

Accountability government transparency incumbents local leaders national politics & policies responsibility

A+ in Arrogance

Rep. Markwayne Mullin, Oklahoma, salary, congressional, pay, representation, representative

The folks in Congress represent ‘We, the People’ … well, theoretically, at least. They’re supposed to work for us. We are their bosses. We pay their salary.

But not U.S. Rep. Markwayne Mullin, the third-term Republican from the rural Second District of Oklahoma. At two recent town hall meetings, the former professional mixed martial arts fighter responded to comments that the people pay his salary and health insurance with a sort of verbal karate-chop.*

“You say you pay for me to do this. Bullcrap,” he aggressively retorted. “I pay for myself. I paid enough taxes before I got there and continue to through my company to pay my own salary. This is a service. No one here pays me to go.”

Mullin’s taxpayer-funded PR professional, Amy Lawrence, was nice enough to explain the prickly, arrogant ranting of her boss, noting that, “Like all business owners, Congressman Mullin pays his taxes, which contribute to congressional salaries.”

Which means — yes sirree! — that of course his constituents pay his salary, when they also “contribute” their taxes. The fact that Rep. Mullin pays taxes, too, doesn’t change that fact.

And, though Mullin claims being a member of Congress is not how he makes “his living,” he does, nonetheless, deposit into his bank account a not inconsequential $174,000 a year in congressional salary.

Moreover, as a member of Congress, Mullin also gets to flout the Obamacare law with a special health insurance deal.

A town hall set for Tahlequah was canceled … for security reasons.

This is Common Sense. I’m Paul Jacob.

* His comments in Jay, Oklahoma, are available here; his Okemah comments, here. An entire hour video of his Okemah remarks are here (the portion about his pay begins at 24:48).

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Tags congressional, oklahoma, pay, Rep. Markwayne Mullin, representation, representative, salary

ideological culture nannyism national politics & policies

Paid/Unpaid Labor Gap

wage gap, gender gap, women's rights, pay

The “gender pay gap” is a big deal for some folks, who worry about women earning less than men.

Democrats, for example, often talk as if the issue were about women doing the same jobs as men but getting paid less. But that’s not what the stats about wage differences by sex (that women earn, in America, 78 percent of what men earn) actually track.

Women en masse tend to earn less because it just so happens that women, in general, work in the paid labor market fewer days and hours (often taking more time off to birth and raise children) — as well as choose lower-paying careers — than men.

It’s about time and productivity. And the choices we make.

Melinda Gates is concerned about something similar to this “wage gap.” She is interested in task dissimilarities between men and women. She’s not a nut about the subject, though. In her contribution to the annual letter of the Bill and Melinda Gates Foundation, she notes that America is the most equal regarding a statistical paid/unpaid “gender gap.” Women work more time in unpaid labor elsewhere, globally (including Europe) than do men elsewhere, globally.

Funny, I’ve never heard any “We’re No. 1” chants, congratulating Americans on the tiniest gender gap on the planet.

Certainly, we don’t need a new program to help women catch up with men … but for all to be equally free to catch up with their own dreams. Around the world workers need more innovation and, well, free-market capitalism — to free women (and men) from drudgery.

This is Common Sense. I’m Paul Jacob.

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Tags equal rights, equality, gender, pay, pay gap, woman

Accountability general freedom government transparency local leaders porkbarrel politics tax policy term limits

The Reign of Trickery

Arkansas State Senator, Jon Woods, tricks, deceive, elections, Common Sense

Arkansas State Sen. Jon Woods’s reign of trickery is ending. As reported Monday, he has chosen not to seek another term in the legislature.

It’s ironic. Woods defrauded Arkansas voters with a deceptively worded 2014 ballot measure. His successful scam weakening term limits allows him to stay in the Senate for 16 years, instead of just eight. But now, angry voters won’t allow Woods another term.

At least, that sure appears to be the case.

If voters in next year’s March primary could possibly be as uninformed about Woods’s record as they were about last November’s Issue 3, he would have gotten away with it. But Woods has made enemies: term limits supporters and Conduit for Action, a group sharply critical of him for gutting the Arkansas Ethics Commission, to identify two. He not unreasonably fears they would communicate with his constituents.

In effect, “tell on him.”

Fool the voters once, shame on Woods. Fool the voters twice … well … ’tain’t going to happen. That’s not to say the sly schemer didn’t have another unethical, underhanded, anti-democratic trick up his sleeve. Of course he did.

“I’ve had serious conversations with my family about leaving … since April,” Woods told reporters. Yet, the incumbent didn’t bother to announce publicly that he was vacating the seat until the November weekend before a Monday filing deadline.

Seeking to pick his replacement, Woods informed insiders of his intentions, while leaving the rest of his district in the dark until it was too late.

Luckily, Justice of the Peace Sharon Lloyd, had already stepped up to challenge Woods — and his insider political games.

This is Common Sense. I’m Paul Jacob.

P.S. Circumventing meaningful elections to provide a leg-up to a crony by waiting until the last moment to announce a retirement, as Sen. Woods did, happens far too often. It’s another good argument for term limits.

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