MY PIECE IN PACIFIC MAGAZINE WHICH HITS IS NOW HITTING THE STREETS...feel free to add your 2cents. WAGE WARS By Radio and TV Personality, Craig Sewing California and San Diego are already losing jobs to states like Texas due to high taxation, and the new pending discussion around minimum wage increases could be yet another reason for companies to locate elsewhere. Most compassionate people (myself included) agree that seeing lower income earners earn more as a good thing, however if you dig a layer deeper, the unintended consequences of even more government regulation proves to be just good politics, not good policy. As it stands, Texas Gov. Rick Perry is running commercials on San Diego airwaves encouraging our businesses to move to Texas where there is less taxation and more free market opportunity. As much as you might hate the player, it’s the game California is losing. Toyota had no problem moving thousands of jobs to the Lone Star state, and others are following. Could you imagine if Gov. Jerry Brown were to run commercials in Texas encouraging business to move to California? That’s somewhat of a laughable thought. Minimum wage has recently positioned itself front and center here in San Diego with the new law that will eventually increase the minimum pay scale to $11.50 per hour. Meanwhile, fast food workers continue to picket for $15 an hour. On Aug. 8, San Diego Mayor Kevin Falconer vetoed the legislation requiring the increase, but the issue is still a major hot topic that will likely come down to the voter. So the question is: How will you vote? That’s up to you, but before you let your heart strings get pulled too hard, let’s analyze the reality of the legislation. The easy way to react to this is out of compassion, and hoping for a better life for those a little less fortunate on the pay scale. However, you have to ask, does this really solve the problem? Recent studies show that a minimum wage increase would cause one in six employers to either move jobs elsewhere, or lay off workers. Here’s another potential downfall. Imagine that a high school student working in a fast food joint is now required by the government to be paid $12 an hour by his employer. Another worker at this same company, who had more responsibility and was already making $12 an hour, will then suggest he gets a pay raise to $14 an hour – and this continues on up the ladder. Ultimately, the business owner will be forced to lay off the individual receiving a pay raise due to the increase in minimum wage. This will put more work on the backs of others, and will potentially increase prices for the consumers, causing you and me to experience inflation. I consider myself a consumer advocate for all income levels, so my knee jerk reaction is that anyone with a heart would like to see those on lower levels receive a higher pay rate. However, the same government that warrants a 7 percent approval rating on performance, is the same government that society would like to get bigger, and more in control of the free market? The simple reality is for every action, there is a free market reaction, and unfortunately the government does not have a true pulse of it. While it might make for good political points to help out the average Joe, it certainly warrants more discussion before creating laws. I believe the divisive political tactic is a simple one designed to generate votes by pulling on heart strings, not aimed for real results. The truth is we need better paying jobs, and more of them. How do you create that? You free up the good businesses of San Diego to do more of it. You do not create laws just for the sake of creating laws. That’s my opinion, and I only get to vote once. I would love to hear yours! Visit me online at craigsewing. I share agreements and disagreements on my radio show – that’s the whole point of learning how to come together as a society, rather than what you see happening in politics where the goal is to divide and conquer. Craig Sewing is a San Diego talk show host who covers important issues and the local impact they make. His television show, “The American Dream,” which airs on Saturdays at 10 a.m. on Cox or Time Warner channel 4, involves discussions and panels with prominent San Diegans who aren’t scared to voice their opinions. His radio program is broadcast nightly on KCBQ-AM 1170 at 6 p.m. and craigsewing. Sewing’s guests include politicians, financial experts and real estate professionals, some of whom are highlighted in the following pages
Posted on: Wed, 03 Sep 2014 15:53:18 +0000