From The Heritage Foundtation and the Hoover Institution:
Labor
The Hidden Dangers of the “Living Wage”
by Richard A. Epstein
Hoover Institution
January 05, 2012
The great danger of the living wage proposal is that it need not be tied solely to grants received from the government. Under the Fair Wages bill, it will also be tied to permission for real estate development that is given by local planning authorities, as is likely to happen under New York City’s fair wages bill. At this point, it joins the long list of “exactions” that local authorities can attach to permissions to build. The wish lists are very large, and in some cases, the champions of the conditions would rather see the project go down in flames than be accepted without the conditions. Why? In part because unions have a strong anti-competitive urge to stop the development of new shopping centers that could compete with union dominated shops. And so the living wage, which starts out as a compassionate policy, ends up as a tool to suppress competition by non-union labor.
URL: www.hoover.org/publications/defining-ideas/article/103636
Labor
The Hidden Dangers of the “Living Wage”
by Richard A. Epstein
Hoover Institution
January 05, 2012
The great danger of the living wage proposal is that it need not be tied solely to grants received from the government. Under the Fair Wages bill, it will also be tied to permission for real estate development that is given by local planning authorities, as is likely to happen under New York City’s fair wages bill. At this point, it joins the long list of “exactions” that local authorities can attach to permissions to build. The wish lists are very large, and in some cases, the champions of the conditions would rather see the project go down in flames than be accepted without the conditions. Why? In part because unions have a strong anti-competitive urge to stop the development of new shopping centers that could compete with union dominated shops. And so the living wage, which starts out as a compassionate policy, ends up as a tool to suppress competition by non-union labor.
URL: www.hoover.org/publications/defining-ideas/article/103636
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