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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Skywatcher who wrote (807)	6/16/2005 4:29:13 PM
From: TimF	Read Replies (1) \| Respond to of 541674

The information I get from these two links ncpa.org dol.gov would seem to indicate that the LA "living wage" applies only to city contractors. If that is the case it would be less harmful than trying to make the same wage the minimum for everyone, probably much less harmful. Whether or not it work "VERY WELL" is a matter of opinion. Certainly it works well for those who's wages are increased by it (both those who get the minimum who would get less without the law, and anyone who has a contract that specifies pay a certain amount or percentage above the minimum). OTOH even though it applies only to city contractors in a relatively wealthy city it could still price some people out of a contracting job, and cause them to either not work, or work for less than they would get without this minimum. The law wouldn't work so well for them, or for people who have to pay more taxes to cover the higher wage costs for city contractors. I imagine city employees like it, at least those who work in areas that possibly could be contracted out, because it raises the costs for contracting the job out and thus increases the city employees job security. Part of the problem in evaluating how well it works is that you are comparing both unknown factors. No one really knows how many people would have been getting less money or getting more, if the "living wage" law was reduced, and since the exact difference in wage rates for the contractors is unknown, the exact cost to the city and its taxpayers is also unknown. Anyone can take slanted assumptions, plug them in, and "prove" that it works well or that it has a horrible effect. Tim