By RANDY DALY
Ballot Measure Number 1, an act increasing the minimum wage in Alaska, does not get much discussion, which may lead to it passing, and that would be a bad thing for Alaska.
As an Alaskan business owner, I know firsthand that increasing expenses without an increase in value to the consumer leads to price increases for customers. Alaskans have experienced a 20% increase in consumer prices over the last four years.
Ballot measure 1 is a poorly timed bad idea. But hey, don’t take my word for it, there are many wiser and well qualified folks like Thomas Sowell, Tim Harford, and Charles Wheelan who all agree:
Thomas Sowell, the famous economist and author of Wealth, Poverty and Politics, opposes raising the minimum wage because he argues that it leads to higher unemployment, especially for low-skilled workers. According to Sowell, minimum wage increases make it more costly for businesses to hire employees, which often leads them to reduce hiring, cut hours, or even lay off workers.
These policies can be especially detrimental to young and minority job seekers, as they may find fewer entry-level opportunities. Sowell suggests that market-based wages are more effective in promoting economic growth and improving overall employment rates.
Tim Harford, who wrote The Undercover Economist, opposes raising the minimum wage due to concerns about job loss and economic inefficiency. He argues that minimum wage increases often result in reduced employment opportunities, particularly for young and low-skilled workers. Harford emphasizes that wage floors interfere with market dynamics by distorting the natural balance between supply and demand for labor. This interference can lead businesses to cut back on hiring or to replace workers with automation.
Harford contends that such policies can ultimately harm the individuals they aim to help, as they reduce overall economic efficiency and job availability.
Charles Wheelan, author of Naked Economics, argues that raising the minimum wage can have unintended consequences that may harm those it aims to help. Wheelan believes that if the minimum wage is set above a worker’s marginal productivity (the value they bring to their job), businesses might respond by cutting jobs or automating roles to reduce labor costs. He also emphasizes that wage hikes can lead to fewer entry-level opportunities, which are crucial for unskilled workers to gain experience.
Instead, he suggests focusing on policies that enhance worker skills and productivity, addressing poverty more effectively without risking job losses.
Sowell, Harford, Wheelen, and I agree, increasing wage without increasing economic output, measured in quality, quantity, speed, or a combination of these things, creates higher prices, reduces economic efficiency and risks job loss.
These guys know what they are talking about. You might say they wrote the book on it.
Ballot measure 1 is a poorly timed bad idea. Vote no on Ballot Measure 1.
Thomas R. “Randy” Daly is originally from Tok and now lives in Kenai. A graduate of East Anchorage High School and University of Alaska Anchorage, he is a former Marine, E Company 4th Recon., 4th Mar. Div., Elmendorf AFB; Communications Chief, Airborne, SCUBA, WSSI; Founder / Owner HiSpeed Gear! Inc.; former owner of a statewide business equipment dealership founded in 1998; former producer of Tom Randell Daly’s Show on KWHQ FM / Host on Sound Off KSRM AM; founder of Randy’s Garage, car sharing service founded in 2020; past president, Alaska Film Group; past president, Rotary Club of Kenai / Paul Harris Fellow; past president, Kenai Peninsula Economic Development District Board; married to his high school sweetheart and is the father of two.
After we saw who was supporting #1 and opposing #2, we believe doing the opposite is the best for us and the state.
I believe it was Thomas Sowell that said something to the effect that the real minimum wage is $0.00/hr. Increases in government mandated minimum wage will increase the number of unemployed earning the real minimum wage of 0 dollars per hour.
No on 1, Yes on 2. I need no convincing. 😉
Many are deaf to logic. Mandating wages by the government with the notion of propping up society has so many negatives and no legitimate positives. In the end, you pay, businesses become burdened, some businesses close, first time training jobs become scare, for others, hours are cut and robot replacement is expedited. You think mandatory wages is helpful but it is not. Don’t be part of the Totalitarian State, vote No to increase minimum wage. Vote No on 1…. and Yes on 2.
If anyone can name a single product or service that will not go up in price because of a minimum wage hike, I might consider voting for it.
One single product or service.
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Anyone?
Anyone???
Uhhh….just look at prices in commiefornia.
Over 10,000 fast food jobs lost already in commiefornia from their increase to $20 per hour.
It’s basic economics. The mandatory increase in wages for the employer are passed onto the consumer by raising the cost on their products. Why would the business eat that cost?
John, none of what you posted is true. There was no net loss of jobs. LA Times – Column: The latest info on California’s $20 minimum wage for fast-food workers — higher pay, no job losses and minimal price hikes. October 10, 2024. Author Michael Hiltzik. So instead of spouting off about “basic economics” maybe you should try to tell the truth. Just because your nominee for President lies every other sentence doesn’t mean you need to follow suit. Try to do better.
Words matter. Notice that you say “…no net loss of jobs.” The operative word is “net.”
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If a fast food joint decides to cut all workers to part time, they essentially turn one job into two. Two employees doing what a single one did the day before. And, other employers did the same. No net loss of jobs, because what was once a single job is now two, paying half as much a week.
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It is equally interesting how that column (hint: A column means it is opinion, not fact) does not actually say where the jobs were lost, gained or not moved.
A fast food worker could have lost their job, and started driving DoorDash. Is the pay the same? Are the benefits the same? Is it equivalent? But, it is a job.
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There are so many unanswered questions it is ridiculous. This column is proof that on 10/10/24 the LA Times published a column, nothing more.
John stated 10,000 jobs were lost. Pulled it out of the thinnest of air. And now you are going to word salad a response.
John was citing a number that appeared in a Wall Street Journal article, a Washington Times article, and numerous other places. Yes, John did not specifically call out the source, but it is easy to locate numerous places where 10,000 is cited.
It carries the same weight as your citation.
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And, what about the questions I pose? Word salad? No response from Sebastian, I can only assume because you have no response. Questioning the information spoon fed to you is not your strong point.
“It began with some shoddy reporting at the Wall St. Journal, which seemed to unquestioningly reprint industry press releases. Even worse, the reporter involved is apparently unfamiliar with how Seasonal and Nonseasonal adjusted data works, making an embarrassing Economics 101 error that any freshman college student should have caught. The mistake then spread to the Hoover Institution, then a CA group called CABIA, the NY Post and, of course, Fox News.
The entire episode is reminiscent of what happened in Seattle a decade ago, which this site painstakingly debunked in great detail.” Oct. 7, 2024. The big picture at ritholtz.com. Barry Ritholtz – economic journalist. CBM – you won’t find him on Newsmax or OANN.
What makes you think I watch Newsmax or OANN? Newsmax is entertainment disguised as a current events opinion show. There is little to no actual news on that channel.
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Now, I was not defending John, I was making the statement that John was likely using news articles that were commonplace when the minimum wage hike happened in CA. And, like pretty much every human alive, because it did not directly impact him, he stopped following it.
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Much the same way some commenters on MRAK continue to claim disproven “facts” about one of our Presidential candidates this election year.
John, as long as you’re lecturing on “basic economics” please enlighten us on the effects of tariffs to the consumer. Can these lectures be applied for credit for a degree in economics at UAA or only at Prager?
Look at anyplace in California. Prices are ridiculous and people are losing jobs. Plus, everyone is leaving the state. No one can afford it there and trash is moving in.
Even if a lack of automation replacement were the result of such a mandate, of which it shall not be, hiring practices shall eschew the formally popular practice of hiring those that are in need of basic working and employment skills so as to further their own path within their employment journey from the most basic skills of showing up for work on time, participating within a team concentric setting, and learning how to be a self-starter, within an adult minded level of self-governance that makes that individual an asset, rather than a detriment, unto the operation as a whole.
Once the GOVERNMENTAL MANDATE of pay unto the most basic and beginning of employment, even without automation, businesses shall begin to seek out applicants that ALREADY have the most basic skills established within their application, or resume, meaning this.
ANY job shall be given unto not the beginner within their employment future, but unto the applicant that shows that they have already passed that point within their employment timeline, and given the nature of the job itself, those that have already worked most of their lives. Within other words, it shall be the retirees, or soon to be retirees that are about to collect their SS benefits, that have that lifetime of experience within the job market, or those that are looking for a part time job so as to supplement their income within an economy that seems to demand a second job due unto increased prices across the spectrum within the cost of living.
The kids, as I call them, although said term seems to reach upwards of 30 years old that still live with their parents, shall not have a chance, as they hold NO job experience to validate said ‘minimum’ wage unto business owners, nor the customers OF that business, that shall come to pay unnecessary higher prices without ANY increased value of product or a better priced product.
It is no simpler than that.
Anyone with a brain bigger than a Salamander knows to vote NO on Prop. 1.
SD … You forgot to inquire w/ Beltramie to get his opinion!!!
Down here, raising the minimum wage has lead to $7 quarter pounders and $3 fries. Nevertheless, workers have a need to pay rent and other living expenses. If employers would keep up with compensatory pay raises, I can see why a minimum pay raise isn’t necessary. Many business owners don’t however, and as a result, they have a revolving door of employees. So, the state feels a need to step in. I understand a need to raise wages to stay up with inflation.
Those people making those quarter pounders should be high school kids or those with temporary jobs. They are not meant to be a retirement plan, nor should they. It doesn’t have to support rent. Its getting very difficult to find entry level jobs because leftists can’t do math.
It’s mostly retired folks without a 401k. Just trying to buy medicine.
Are you assuming that a minimum wage job should be sufficient to pay the rent?
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Why is rent going up, anyway? Oh… could it be because the landlord is now paying $7 for a QP and $3 for fries? (Or equally inflated costs for food.) And, why did those costs go up? Oh…. a minimum wage hike. Or do you think the landlord, who is running his own business, should just take the financial hit? Should McD’s? If the business owner should just shut up and take the profit hit, then McD’s would not push a burger and fries to $10 to compensate. But, they do, and the landlord will raise rates as well.
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If we stopped pretending a minimum wage job is anything other than work experience for teenagers, and a second place for extra income, and stop raising the wage, the cost of everything else would not go up either.
Greg, do you understand that a “minimum wage” was never intended to be a living wage. It is meant for entry level positions, for young people to get experience at working a job, so you can accumulate skills and knowledge to move up to a skilled, better paying position.
It may have started that way but now……..
It may have started that way, but now, globalists/leftists/WEF etc… are all trying to make it into a “living wage” job because the price inflation caused will destroy an economy faster than almost any other method. Free people being able to take care of their own destiny is the opposite of what the Davos crowd wants to see. It does not lead to the “elites” ruling over the masses.
Raising minimum wage raise FICA contributions and Tax the earner pays. On the other hand if it is raised high enough no one would earn EIC. Earned income credit. The hidden pay equalizer. Equity and equality.
Mostly, fast food workers aren’t the typical high schoolers working weekends. Not anymore. It is the elderly, the 2nd job folks trying to make ends meet. Help wanted sign are everywhere. Young people don’t want to work. When I was 16, I worked one summer in a metal scrap yard so I could save up and buy a shotgun. Closest place to hell on earth for $2.25 an hour. People like to throw out words like leftist and globalist because they have a limited vocabulary. In reality, it’s about life
lessons, and lack of preparedness. Sometimes bad luck, or no luck at all. For old people it about working fast food, or sleeping on a park bench.
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