Follow us on facebook


Democrats In D.C. Push To Repeal $15 Wage Law Voters Just Approved

Economics: “Fight for $15” is the rallying cry for most Democrats these days. But soon after Washington, D.C., voters approved a hike in tipped wages to $15, Democrats on the city council moved to repeal it. That’s what happens when ideology crashes into reality.

X

On Tuesday, 7 of the 13 members of Washington’s city council sponsored a bill to jettison the wage hike for tipped workers that 56% of D.C. voters had approved by a ballot initiative less than a month before.

Under Initiative 77, the workers would see their minimum wage climb from the current $3.89 an hour to $15 an hour by 2026, erasing the difference between tipped and nontipped workers.

Keep in mind that D.C. is about as heavily Democratic as you can get. It went for Hillary Clinton by a 91%-4% margin.

But the D.C. council members came to understand what economists — and D.C. restaurant workers themselves — already know. Sharp increases in the minimum wage will cost lost hours, lost jobs and lost income. (The unemployment rate is over 9% in D.C.’s poorer wards.)

Not only would the wage hike pretty much eliminate tips — why tip when the waiter is already making as much as everyone else? — it would almost certainly make workers who keep their jobs worse off financially, since they’d have to pay taxes on every dollar of income.

The problem with the D.C. council’s move isn’t that it’s trying to overturn the will of the people, but that it isn’t applying its newfound understanding of economics more widely.

This month, the minimum wage for nontipped workers in D.C. jumped from $12.50 to $13.25 an hour. It will reach $15 an hour in just two years, and then go up every year after that at the rate of inflation.

This wage mandate, just like the one the council is trying to repeal, will also end up hurting the very people it’s supposed to help.

That’s not speculation. It’s what happened in Seattle, which four years ago decided to gradually hike the city’s minimum to $15. Researchers from the University of Washington found that the average low-wage worker lost $125 a month as the mandate took effect and employers cut back on hours and jobs.

Other parts of the country are catching on as evidence rolls in of the job-killing side effect of these mandated wage hikes. The mayor of heavily Democratic Baltimore vetoed a minimum-wage bill last year. The city council in Flagstaff, Ariz., decided to scrap the planned hike to $12, and cap it at $10.50.

“Fight for $15” makes a good bumper sticker. But as Democrats are finding out first hand, it makes bad public policy.

YOU MIGHT ALSO LIKE:

Income Tax Revenues Are Up 9% This Year — Are Tax Cuts Paying For Themselves?

The U.S.’ Colorblind Jobs Boom Under Trump Continues

80% Marginal Tax Rates? The Dark Side Of Welfare 

Source link

No comments.

Leave a Reply