Ah, but American politics make for strange bedfellows. That font of conservative reckoning, that bastion of traditionalist thinking--the Washington, D.C., City Council--might overturn the people's wishes and keep the minimum wage in that district from going up for tipped workers.
The ultra-conservative House Freedom Caucus gives its blessings. And we're not kidding.
One never knows, do one?
The voters in (what the founders called) the Federal City decided last month, on a 56 percent percent vote, to increase wages for tipped workers so that those workers would earn what other workers receive. It was called Initiative 77, and millions were spent in the election fight. Now that the rule is on the books and the restaurant industry is looking down the barrel of the consequences, seven of the city council's 13 members have co-introduced legislation to overturn Initiative 77, which the council can do in the district.
Tipped workers at restaurants in D.C. can get as little as $3.89 an hour now. But, like all tipped workers, they can make that up with good service and diners who understand the rules. Under the initiative, restaurant and bar owners are supposed to gradually increase the salaried pay until everybody makes at least $15 an hour by 2025.
Restaurant owners, however, argue that their cost of doing business will go up. But not only that: They say that diners will soon stop tipping altogether, thinking that waitresses and bartenders are making good money now.
Hear a council member for the district, one Jack Evans (Very-D), as he explains his position, and reality:
"Initiative 77 is something I believe will be very harmful to our restaurants and, more importantly, our restaurant workers." Which is basically Econ 101.
Call it the rule of good intentions, which leads to you-know-where: Higher minimum wages push people, especially young people, out of the workplace.
Teens and younger adults tend to have the jobs that pay minimum wage. Think of the high school kid at the pizza joint. Or the 22-year-old waitress who wants to (1) get a regular paycheck and (2) gain experience for the next, better-paying job. But it's exactly those kinds of people who might be pushed out of the job market if the minimum wage goes up too high. Why? Because employers might have to cut the number of workers if payroll expenses jump.
Economists will tell you that when the minimum wage goes up, black teens are hurt the worst. (What else is new?) And in D.C., there are a lot of unemployed black youths.
Those who think about these things say a lot of crime among young people, especially in the cities, can be blamed partly on high unemployment. So why exacerbate the problem?
Of course, the policymakers and Deep Thinkers who proposed this $15 an hour won't be hurt much. They have jobs.
For best example, take Diana Ramirez, spokeswoman for some outfit called One Fair Wage DC: "It would be deeply undemocratic for [the] council to overturn the will of the people. D.C. voters don't like it when Republicans in Congress do it, and we trust council will not stoop to that level. In our pre-election poll, over 80 percent of D.C. voters said they would be concerned if council overturned their vote. The people are watching. Council must set any sour grapes aside and push ahead."
Speaking of Republicans, two members of the House Freedom Caucus--Mark Meadows of North Carolina and Gary Palmer of Alabama--gave their approval to the city council. They moved last week to block Initiative 77, too.
City council members have told those Republicans, in so many words, please don't help.
Imagine, if you're a Washington D.C., city council member, having to explain your being on the same side as (shudder) Republicans! It's as if Republican members of Congress also understand that Initiative 77 will eat away at thin profit margins in the service industries, possibly force layoffs, and obviously raise prices for everybody who eats or drinks in Washington, D.C.
Supporters of Initiative 77, however, say it's only fair. Having a two-tiered pay system isn't equitable. Wage theft is a problem. And something about how this measure will work against sexual harassment. How a higher minimum wage works against sexual harassment hasn't been explained. Must be some theory, though.
What's not theory: When a business' expenses go up, owners look for ways to cut them.
Besides, if it is the Lord's work to make the minimum wage $15 an hour, why not raise it to $30 or $40? Because this is what's known as inflation--a hidden tax that destroys the value of our currency. And a $30 minimum wage would probably throw twice as many people out of work in the service industries.
But fear not. Somebody will propose that $30 minimum wage soon enough. Just let the $15 catch on first.
Editorial on 07/17/2018