Ken Berwitz
Did you know that Berkeley, California is considering raising the minimum wage there to $19 an hour over the next five or so years? That\’s not a typo either. $19 an hour.
Personally I hope they do it. I\’ll tell you why just a bit further on.
Even in progressive Berkeley, the $19 proposal is proving controversial.Avowedly liberal business owners express concern about their livelihood, whilealso aspiring to provide their workers with a living wage.
The proposal, whichwas developed by Berkeley\’s labor commission, would increase the city\’s minimumwage to $13 an hour in 2016, after which it would rise incrementally to $19 anhour in 2020. That hourly rate would place Berkeley at the forefront when it comesto minimum wage hikes, putting it far ahead of the $15 per hour wage that\’s nowthe centerpiece of a labor activist movement, the Fight for $15.
Advocates for a higherminimum wage in Berkeley point to the difficulties of living on low pay in thecity, which lies to the east of San Francisco and is grappling with thesocioeconomic changes affecting the region. An influx of wealthy tech workersis widening the income gap and pushing rents and real estate prices sky-high,with the typical one-bedroom apartment renting for more than $2,800 per month,according to RentJungle. That\’s a jump of about 75 percent in the past sixyears.
“My mission ishow can I fight and win a small measure of justice for the struggling familiesin Berkeley who are trying to make do on a minimum wage and working three orfour jobs and trying to feed their kids,” said Kriss Worthington, aprogressive member of the Berkeley city council. “The cost of living hasgone through the roof.”
This story is not meant to be humorous. But I must be honest and admit I\’m finding it hard not to be amused by the fact that, apparently, high-paid techies – who, more often than not, are on the left side of the political spectrum – have gentrified Berkeley to the point that its long-time citizens can\’t afford to live there….
….and Berkeley\’s “answer” is to maximize prospects for the city\’s small business to go bankrupt.
Suppose the Berkeley labor commission gets its way, and the minimum wage rises to $13 next year, then to $19 over the next few years – far more than that of neighboring cities.
Assuming there is no change in sales levels, how do you suppose the local businesses will make out then? How will they pay the same number of employees and stay open? How will they pay even a lesser number of employees and stay open?
And now let\’s get real and assume sales will not stay the same – since the next town over has businesses with significantly lower labor costs, and therefore can charge less money for the same goods/services offered in Berkeley while still making a good living.
Do the geniuses running Berkeley think residents won\’t drive a couple of miles to get the same goods/services at lower prices?
What will they do to stop it? Put up roadblocks? Pass another law that forces people to shop locally regardless of the prices, then check residents\’ car trunks as they enter the city to make sure they\’re not bringing in contraband?
Oh, and then there is the issue of young people who are trying to get jobs – maybe flexible-hours jobs at fast food restaurants, maybe summer jobs. How many Berkeley young people do you figure to be hired at $19 an hour? Why would you pay an inexperienced kid a “living wage” when you can get an adult instead?
To me, this is another classic example of leftward PC lunacy run wild.
So why am I rooting for it to be approved and implemented?
Very simple: because if I\’m wrong, it shows that this wage scale works and will become a model for the rest of the country – which is all to the good.
And if I\’m right, it shows that this wage scale does not work and will become a model for the rest of the country – which is all to the good….for everyone else. Except Berkeley, of course. But that\’s fair enough, since Berkeley will have visited this disaster on itself.
If the city of Berkeley wants to make itself a guinea pig for a $19 minimum wage, I say go right ahead. Then let Berkeleyites enjoy the benefits if it works or suffer the consequences if it does not.
I\’ll let you know how things play out.
