Minimum Wage as Politics

Democrats looking to make gains in the 2014 gubernatorial elections are using a possible minimum wage increase as a way to win support among voters….

Democrats across the political spectrum have lobbied for a higher minimum wage this year, after Obama got the ball rolling on the issue by calling for an increase in his February budget speech. Since then, union-organized demonstrations in front of profitable mega-chains such as Wal-Mart and McDonald’s have kept it in the public eye.

Senate Democrats have also pushed for a minimum wage increase going into 2014.  Their proposal would raise the minimum wage by 40%.

Of course there’s union involvement.  Aside from the Democrats being union meal tickets, increasing minimum wages protects union jobs—and so union leaders’ jobs—at the expense of the unemployed, those looking for a first job or for high school or college money, those looking for a second income, and the poor, who would gladly take the lower pay but who are priced out of the labor market by increased minimum wage.

We’ve already seen how that works.

Never mind the racist origin of minimum wage laws, instigated by FDR specifically to stem the tide of southern blacks moving north to take jobs at lower pay than white unions (blacks weren’t allowed in those unions, remember) wanted, and so taking jobs at the expense of those white union members.

Never mind that most of those unemployed and underemployed who will be priced out of the next round of hiring by these elevated minimum wages are the already vastly underemployed and underemployed black and Hispanic teenagers, black and Hispanic moms trying to work a family’s second job.  Regardless of current intent, the disparate impact of minimum wage laws is clear.  Where’s Eric Holder when we need him?

Nevertheless, Danny Kanner, Democratic Governors Association Communications Director had this to say:

The defining issue in every single one of these races is who is fighting for the middle class.

Yeah.  Never mind any of those poor, who’d like to get a job and work their way into the middle class.  Typical Progressive, playing politics, and with that play, ignoring the least among us.

Last Week’s Jobs Report

The headline is that the jobless rate fell in November to 7.0% from October’s 7.3%, and the participation in the labor force (the number of Americans working at some capacity or looking for work) rose in November to 155,294,000 from October’s 154,839,000.

However, the headline ignores the fact that the Democrats’ government shutdown for much of October led to a large number of Federal employees being furloughed (some 450,000 were out of work for the duration), which both contributed to October’s rise in unemployment and that lowered number in labor force participation.  Comparing November’s data with September’s, the month immediately preceding that shutdown, provides a much more useful comparison.  In September, the unemployment number was 7.2%; the November still seems a significant drop.  However, September’s labor force participation was 155,559,000 Americans: that force had shrunk by 265 thousand Americans by the end of November.  The lower participation contributed significantly to the headline unemployment rate “drop.”

Another Failure of Modern Liberalism

Illinois has a deeply bankrupt pension system—it’s in the hole by $100 billion: a state is in the hole by $100 billion, not a nation—a pension system that’s the worst off in the country.

Their solution?  A bill just passed that in total is claimed to save $160 billion over 30 years and fully fund the systems by 2044.  That’s a bit over $5 billion a year on that $100 billion arrearage.  And it naively, if not cynically, assumes that future state legislatures won’t change the thing for all of those 30 years.

Some specifics, with my comments: the bill

  • pushes back the retirement age for workers ages 45 and younger, on a sliding scale

Why a scale?  20 years to a nominal retirement at 65 is plenty of time for workers to adjust plans.

  • replaces annual 3% cost-of-living increases for retirees with a system that provides the increases on a portion of benefits, based on seniority

Why freeze the COL?  If there’s to be one, why not tie it to inflation?  Today’s inflation is in the neighborhood of 2%-2.5%. Larger COLs aren’t necessary.

  • gives some workers the option of freezing their pension and starting a 401(k)-style defined contribution plan

Why only some?  Why not move them all to 401(k) type plans?  The private sector recognized the usefulness of such plans decades ago, and they make the workers more responsible for their own futures, instead of having government usurp that responsibility.

  • has workers contributing 1% less to their own retirement

So workers will become even less responsible for their own futures than they were.  Oh, wait—those plans….

Don’t expect this to have any effect on Illinois’ failed system other than to allow it to get worse.

Union Leadership Greed in Illinois

Details of a plan reached last week appear to show [Illinois] state legislative leaders are attempting to solve Illinois’ $100 billion pension crisis in part by changing workers’ retirement age, reducing automatic pension increases, and limiting their collective-bargaining privileges.

Public union leadership disagrees with this, though, and they’re turning on that Democratic Party leadership.  These union leaders consider carefully selected and targeted Democrats to be “persuadable,” and these unionists are going to do some “persuading.”

Never mind that the plan will save roughly $160 billion over 30 years, according to Governor Pat Quinn (D) and the leaders of the Democrat-controlled State Assembly.

Illinois’ public sector union leaders object to their unions paying their fair share.  They have theirs, and to Hell with anyone else, to Hell with the fact that Illinois is bankrupt in every way but the filing.  Pay up, suckers.

Mendacious Public “Service” Unions

The American Federation of State, County, and Municipal Employees Local 1028, which represents 1,300 employees of the Will County, IL, government, has taken its members out on strike.

The county offered to pay 90% of their health insurance costs along with a 14.5% pay increase.  This isn’t enough, though.  Anders Lindall, spokesman for AFSCME, objected: the pay raise is too little, and the 10% the union employees must pay for their health insurance is “double their current premiums.”

It’s “not fair.”

Cry me a river.