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Tom Del Beccaro on Jobs

 

 


$15 mandated wages results in lower employment

California Democrats passed a statewide minimum wage increase. Next up, a bill mandating increased overtime pay for workers.

Perhaps a minimum wage of $15 won't terribly affect San Francisco. But in a place where unemployment already is so high, like Mendota, or Huron or other Central Valley towns like them where unemployment is above 20%, higher mandated wages will directly result in even lower employment. You see, the more something costs, the less of it is acquired. That basic law of economics applies to cars and jobs alike.

The same day they voted to raise the minimum wage, five Democratic lawmakers received big campaign checks from the SEIU, the group that pressured lawmakers for the wage bill. Why would the government union do that? That's easy--the minimum wage boost will result in $3.6 billion a year in increased wages for the public employee union workers--none of whom will lose their jobs because they are immune from market forces.

Source: Forbes Magazine OpEd on 2016 California Senate race , Jan 14, 2015

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