Raising the minimum wage — government workers get it first

By: Richard S. Davis
12:00 am
January 29, 2014

Seattle Times columnist Danny Westneat wonders if executive orders from Seattle Mayor Ed Murray and President Obama raising the minimum wage for government employees and employees of federal contractors may backfire.

It’s possible that giving huge pay hikes to some government workers will spark a prairie fire to get higher pay for all. But it could just as easily leave the taxpaying citizenry smoldering with resentment.

And he doubts Seattle voters are ready to swallow a $15 minimum wage in one fell swoop.

But chances of Seattle going to $15 an hour in one fell swoop, for everyone, seems remote ( and unwise).

The Seattle bump isn’t cheap: $1 million to raise wages before you factor in a possible ripple effect to preserve differentials for experience and education.

Rasmussen Reports finds that when asked which would do more to close the income gap in America, 59% choose less government involvement in the economy over more government action.

Maybe Bill Gates falls into that group? He recently told MSNBC,

“So you have to be a bit careful: If you raise the minimum wage, you’re encouraging labor substitution, and you’re going to go buy machines and automate things — or cause jobs to appear outside of that jurisdiction.

“And so within certain limits, you know, it does cause job destruction.”

State Sen. Michael Baumgartner thinks a lower minimum wage for teens might boost summer employment for them.

And, to underscore that the minimum wage is just a beginning, the state House of Representatives has passed on a party line vote, HB 1313, mandating paid sick leave.

 

Categories: Categories , Current Affairs , Economy , Employment Policy.