PA Budget-A Novel Approach
Posted by Martin C. Fox on February 19, 2017
Novel in several ways.
PA Governor Wolf wants to balance the state budget. Reduce spending here, increase spending there. Same for taxes. It will be interesting when we see what is finally underneath all the sliding shells. He wants to take a $200 million loan on the state fairground property. Now that is a novel way to reduce debt.
More novel is raising the minimum wage to generate more income tax. Here are some novel assumptions:
Employers are going to keep all the minimum wage employees that will suddenly cost 50% more to employ.
Hours per week will not drop.
The youngest, most inexperienced, poorest and most in need will be on an equal footing with more the educated and experienced who will be worth the 50% extra their employment will cost.
So how are employers to cover the added expense? Will the government Peter Pan like wave it’s magic bludgeon and everything will be better, blissfully ignoring all the economic facts of business life?
One hundred years ago progressives used the minimum wage to keep low skill European immigrants, willing to work long hours for low pay, from taking WASPS jobs. Immigrants weren’t worth the artificially high cost to employers. Today the economically ignorant want to use the same tactic to get the opposite result.
Be seeing you