Living Wage
Living wage ordinances typically set a wage above the federal minimum wage, but they only apply to businesses that service receive state contracts or recieve assisstance from the government. Living wage policies are meant to ensure that workers recieve enough income to secure basic amoynts of food shelter, transport, medical needs and other necessities.
Commentary
Cry Wolf Quotes
Living wage proposals are economically unfair because they change the basis on which our economy operates. Instead of allowing the market forces to determine pay, living wages put the interests of employees above all other consideration…and they base wages on what the worker wants instead of on the value of work performed.
The proposal couldn't be better calculated to drive business out of the city and encourage corruption.
The increased cost of labor is folded into a bid for a state contract that is then passed on to the state government (which is funded by taxpayers).
Most troubling, though, is the fact that the least skilled employees are those who are being most hurt by this ordinance. Voters in other areas considering an increase in the minimum wage must consider these unintended consequences that end up hurting those who the law is supposed to help.
Evidence
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The Economic Impact of Local Living Wages
The Economic Policy Institute finds that the costs of living wage ordinances are often overestimated.
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Examining the Evidence: The Impact of the Los Angeles Living Wage Ordinance on Workers and Employers
Los Angeles Alliance for a New Economy: The LA living wage ordinance brought a pay raise to 10,000 workers, most of whom were poor.
Backgrounders & Briefs
Living Wage Policy Brief: Stephanie Luce
Living wage ordinances have helped thousands of workers and tiresome cry wolf claims are wrong.
