Rather than waiting for the new California $15 state minimum wage law to be phased in over five years, UC Berkeley decided to accelerate its own minimum wage to $15, starting this coming September (2016).
Naturally the Progressives celebrated. Shortly after making that decision, the administration announced the layoff of 500 workers, as the school now has a $150 million deficit to contend with.
Can someone explain to me how a organization bleeding a $150 million annual deficit planned to pay for a 50% minimum wage increase? Do they teach Economics 101 at Berkeley?
Sadly, the answer is that like all colleges, Berkeley has an Economic Department. They have very expensive and self-important Econ professors. But they don’t teach common sense economics. Far from it.
“Common sense” may… Read More