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
The ordinance would cost the city [Chicago] nearly $20 million per year. The city would spend more than 20% of this amount ($4.2 million) on the administrative costs of certification, monitoring, and enforcement of the ordinance. This $20 million cost would require a permanent tax increase on citizens of Chicago.
I believe employers should be aware that employees who earn under $10 an hour cannot lead an independent life. But I do not believe that government should dictate wages. We have seen this fail in Socialist and Communist countries. It will do irreparable harm.
By mandating an even higher minimum, the living wage prices even more people out of work. The people who push these cockamamie ideas never seem to ask why any employer would hire someone at $8.23 if that person's services are only valued in the marketplace at, say, $5.00.
Why, then, would [the Boston City Council] threaten to drive away businesses by signing on to a murky, unpredictable, and divisive ordinance that requires employers and their subcontractors to open their books, including wages, deductions, and fringe benefits, to all "applicable" city departments? The Internal Revenue Service and the state Department of Revenue are required to keep such information confidential. The city ordinance requires it to be made public, placing businesses at a competitive disadvantage.
Evidence
-
The Economic Impact of Local Living Wages
The Economic Policy Institute finds that the costs of living wage ordinances are often overestimated.
-
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.
