Fl, Gov.Scott in Ca. attempting to poach jobs by "dissing" higher minimum wage
Florida Governor Rick Scott is here in California trying to persuade companies to pack up and head for Florida, arguing that California's recent minimum wage hike (to $15 by 2022) makes Florida more appealing (its minimum is $8.05 an hour). “My goal, one-hundred percent, is to get individuals and companies to move to Florida,” Scott said in an interview. “By raising the minimum wage in California, 700,000 people are going to lose their jobs, there are a lot of opportunities for companies to prosper in Florida and compete here and that’s what I’m going after.”
Baloney.
1. Studies show that a higher minimum enables people to spend more money, offsetting any negative job effect of more expensive labor.
2. Industries most sensitive to higher wages (retail stores and restaurants) are least likely to move.
3. A low minimum in Florida requires taxpayers there to pay more to keep low-wage workers out of poverty.
4. California continues to attract jobs despite already-higher wages and substantially higher taxes than Florida. According to census data, over the past two decades more people have moved from Florida to California than the other way around, because of better opportunities in California.
4. California is creating a higher percentage of good jobs on the cutting edge of the economy (high-tech, venture capital, entertainment) than any other state, due to its first-rate system of higher education, superb climate, and talent base.
So Governor Scott, go ahead and try to persuade Californians to move to Florida. You won’t get far.
What do you think?
(on my Facebook page) by Robert Reich
Florida Governor Rick Scott is here in California trying to persuade companies to pack up and head for Florida, arguing that California's recent minimum wage hike (to $15 by 2022) makes Florida more appealing (its minimum is $8.05 an hour). “My goal, one-hundred percent, is to get individuals and companies to move to Florida,” Scott said in an interview. “By raising the minimum wage in California, 700,000 people are going to lose their jobs, there are a lot of opportunities for companies to prosper in Florida and compete here and that’s what I’m going after.”
Baloney.
1. Studies show that a higher minimum enables people to spend more money, offsetting any negative job effect of more expensive labor.
2. Industries most sensitive to higher wages (retail stores and restaurants) are least likely to move.
3. A low minimum in Florida requires taxpayers there to pay more to keep low-wage workers out of poverty.
4. California continues to attract jobs despite already-higher wages and substantially higher taxes than Florida. According to census data, over the past two decades more people have moved from Florida to California than the other way around, because of better opportunities in California.
4. California is creating a higher percentage of good jobs on the cutting edge of the economy (high-tech, venture capital, entertainment) than any other state, due to its first-rate system of higher education, superb climate, and talent base.
So Governor Scott, go ahead and try to persuade Californians to move to Florida. You won’t get far.
What do you think?
(on my Facebook page) by Robert Reich
