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Jon Fleischman

Today’s Commentary: When Arnold supports mandate government wage hikes, I am forced to remember the importance of playing defense…

Talk about taking the wind out of my sails.  I came home on Sunday from the State GOP Convention all pumped up for the Fall elections.  The Governor’s speech was great, and really fired me up.
 
The Governor asked the audience, "What do we say to more government control?"
 
The audience answered with a resounding "NO!"
 
Well, by agreeing to hike the mandated wage that California businesses, large and small, must pay employees, the Governor has said a resounding "YES" to more government control.  And that is exactly what has happenned – as Arnold Scharzenegger, without the support of our GOP legislative caucuses, has cut a deal with legislative Democrats to impose more government control on all California employers.
 
His support for hiking the minimum wage (to the highest in the nation) strikes right at the heart of those who believe that the size and scope and regulatory authority of government is too vast, and that at risk is the liberty of all Californians.  This ‘deal’ will impose another job-killing mandate (and that IS what will happen) on employers.
 
Anthony Archie of the Pacific Research Institute said in a recent column:

"The most well known distortion is the higher unemployment that results from minimum-wage laws. Setting the minimum wage above the level where employers and employees would have mutually agreed on labor services forces employers to cut back on the number of hires. This has been empirically documented in a half-century’s worth of economic research, most notably in studies on the fast-food industry. Beyond unemployment, the labor market is distorted in other, more indirect ways."

And nobel prize winning economist Milton Friedman says about mandating wage increases on employers:

 "Minimum wage laws cost jobs. Employers cut out, or mechanize, jobs that are not worth the minimum rate to them. Worst affected are the inexperienced young people, those with poor skills, and minorities."

Back in December, I wrote this piece when the word started going around that the Governor might support a hike in the state’s mandated wage.  Almost six months later I wrote this commentary, so this has been an issue of much angst for me.
 
State Senator Bob Dutton, in a column he penned for this website, said about a hike in the minimum wage:

Nothing, however, about increasing the minimum wage is compassionate for those it is intended to help – the poor. In fact, study after study has shown that increasing the minimum wage will do nothing but harm those who the raise is intended to help. At the same time it levies higher costs on small business – the kind of business not generally represented by the California Chamber of Commerce – forcing them to either cut back on staff or employee hours, or pass the cost on to the consumer. 

**There is more – click the link**

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6 Responses to “Today’s Commentary: When Arnold supports mandate government wage hikes, I am forced to remember the importance of playing defense…”

  1. cahsfeedback@yahoo.com Says:

    I think it could be a good deal IF the Governor could get Democratic leaders to agree not to pursue another hike until at least after the 2010 elections. Whether we like it or not, the fact is that the minimum wage in California will go up. Even if Arnold refused to consider any hike, the Dems would have placed a much worse plan on the ballot.

    However, without assurances that the Dems will not come back next year and ask for an even bigger increase is reason to vote no on this compromise.

  2. gab200176@yahoo.com Says:

    I’m sure a lot of conservatives who drank from the well of team Arnold’s kool aid pitcher are experiencing quite a hangover right now from the convention. I guess from my point of view, if you expect the worse from Arnold as far as policy goes, you can’t get disappoited like Jon is right now. Let’s see…minimum wage hike, amnesty supporting, bond spending orgy, supports more regs on business to fight “global warming”, etc. Tell why again we’re supposed to vote for Arnold.

  3. alexburrolagop@yahoo.com Says:

    Just remember Allan, Angelides would be worse.

    Don’t ask me how, but he would be.

  4. irish_armada@yahoo.com Says:

    Sadly, it has come to supporting the lesser of two evils. While some of the Gov’s policies are misguided to say the least, I am more frightened of what this Legislature would pass with Angelides as Governor — signing every bill with a Dem’s name attached to it. Drivers licenses anybody?

  5. merco12345@aol.com Says:

    Angelides is sure God’s gift to Arnold!!!

  6. kenc@psyber.com Says:

    If Liberman can do it, why can’t Wesley?