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DC Mayor vetoes “super minimum" wage

District of Colombia mayor Vincent Gray has vetoed a city council resolution which would force Wal-Mart – but not other companies – to pay double the minimum wage. Wal-Mart had threatened to cancel construction of 3 new stores, which would have added hundreds of DC area jobs, after being singled out for discriminatory wage controls. http://www.washingtonpost.com/local...4d7310-077d-11e3-a07f-49ddc7417125_story.html

At issue is the concept of “living wage” – whether unskilled workers who lack a high school diploma – have a legal expectation to be paid as well – or better than – than graduates and those with higher skills. And whether some entry level positions are inherently “training/skill building” related (burger flipper, stockboy) and never intended to support a middle class family.

Large corporations have responded to such local political threats by cancelling store construction outright – as Wal-Mart did . Or accelerating development of automation to eliminate unskilled jobs where the cost of workers falls below the value those workers provide. McDonalds, for example, is already testing “self order” iPad style devices to replace cash register operators and drive thru attendants.

ObamaCare has speeded this trend, leading to a shorter workweek and loss of wages/benefits as companies figure out that they cannot raise prices fast enough to cover political mandates to thtey treat marginal workers the same or better than those who are diligent and show up on time ready to work.

Previous examples of workplace automation abound, such as ATMs which can dispense cash around the clock at a fraction of the cost of a human teller; auto plant robots that weld and paint without coming to work intoxicated; and tractors/combines which displaced millions of unskilled farm laborers, helping to usher in affordable food for the middle class and poor. Luddites used to smash hand operated looms in order to force a return to hand made clothing. Today politicians smash building plans.

Ironically, local politicians are targeting retailers for tax revenue and voting booth mojo at the same time as “big box” stores are under pressure from web competitors. Online sites evidently can ship items from rural Midwest warehouses far more cheaply than traditional employers can construct stores in high cost, high tax, and high wage urban areas. The cry used to be that local stores were being out-competed by Wal Mart. Now politicians are killing even those opportunities, and apparently are willing to see such jobs be flow “overseas” to other states.

It remains to be seen whether the DC city council will be able to overrule Mayor Gray’s veto, and ensure the loss of hundreds of new jobs inside the district. But since the council has effectively blocked school reform despite dropout rates approaching 60% and public edication cost per pupil over $30,000 (about the same as tuition at Harvard, sans room and board) actual residents of DC have a right to be concerned that their own elected officials “don’t get it”.
 
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