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Jennifer Medina reports at the NYT that the the city council of nation’s second-largest city voted by a 14-1 margin to increase its minimum wage to $15 an hour by 2020, in what is perhaps the most significant victory so far in the national push to raise the minimum wage. Several other cities, including San Francisco, Seattle and Oakland, Calif., have already approved increases, and dozens more are considering doing the same.
In 2014, a number of Republican-leaning states like Alaska and South Dakota also raised their state-level minimum wage by referendum. The impact is likely to be particularly strong in Los Angeles, where, according to some estimates, more than 40 percent of the city’s work force earns less than $15 an hour. “The proposal will bring wages up in a way we haven’t seen since the 1960s," says Michael Reich. "There’s a sense spreading that this is the new norm, especially in areas that have high costs of housing.”
It's important to remember that the minimum wage hike comes at a significant direct cost to business — well over a $1 billion a year, according to the mayor's analysis — and it would be foolish to pretend that it won't lead to some job losses and business closures. Critics say the increase will turn the city into a “wage island,” pushing businesses away into nearby places where they can pay employees less. “They are asking businesses to foot the bill on a social experiment that they would never do on their own employees,” says Stuart Waldman, president of the Valley Industry and Commerce Association, a trade group that represents companies and other organizations in Southern California. “A lot of businesses aren’t going to make it. It’s great that this is an increase for some employees, but the sad truth is that a lot of employees are going to lose their jobs.”
(Score: 2) by kaszz on Wednesday May 20 2015, @03:09PM
It perhaps will start a chain of people moving to better houses?
(Score: 1) by anubi on Thursday May 21 2015, @12:41AM
Ever studied a "four cycle" engine? Intake, compression, (ignition)/power, exhaust?
I have noted over the years, real estate does this same thing. I have seen over and over a cycle of "smart money" buying and selling real estate right in concert with the banking people sliding the money-creation valving back and forth, and its like watching a steam engine run.
From what I see, the "smart money" is now selling out to the millionare-hopefuls, goaded on by late-night TV infomercials and "free seminars" on house flipping. I have noted that every time right before the crash, "the system" routes resources to fund TV heads to waggle back and forth to goad people into buying real estate for the purpose of flipping houses for a quick profit. After the current crop of speculators has signed on, "the system" will slide the "money valve" to the other position by hiking the Federal Funds rate and deliberately crashing the system, leaving those who listened to the TV advisors with heavy debt services and no way to make good on it, so then the banks repossess the whole shebang, then the smart money quietly buys up the distressed property. This will go on for about three years - until the ones who could not hang in are wiped out, then the cycle repeats and the "smart money" again sells to the real estate speculator goaded on by the next round of TV advertising and "free seminars".
There is a fly in the ointment this time is that with the job exporting going on, fewer and fewer people have excesses of money to invest in this scheme.
So the special interest groups are now trying their best to have the government mandate someone pay - but one can't get blood out of a turnip - even with a Congressional mandate.
The last round was financed with funny loans - so many people got burned on that one its gonna be hard to do that again. So, it looks like they are going to try to force employers to finance this one. It won't work though, because employers are also facing economic hardship and given a rising tide of expenses, there comes a time when the business just stops, just like an engine will stop if losses to internal friction overcome the energy it can produce. Look how many perfectly good highly trained people are currently unemployed. Anybody who has ever driven a manual transmission car understands how to load an engine. We have seen several nations stall out their production centers. Italy comes to mind. Placing severe taxes on anyone caught trying to do something will only insure nobody does anything.
Right now, we have been able to fund a level of government which has generated such a quagmire of paperwork and monitoring capabilities that its going to be very hard for the little guy to operate. From what I can tell, it looks like my government is doing all in its power to force us into the servitude of mega-corporations or find some medical disability to qualify us for government coupons.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]