Proposition 1 Is Nothing More than Wishful Thinking
Contributed by Lawrence D. Wood
Prop 1 was about three different issues. Usually, propositions encompass only one issue, project, law, whatever. Point is, they are limited in scope. Further, the only issue put to the public in advertising was sick leave. Neither mandated paid sick leave, a three tier raise and a forever inflation minimum wage increase into the indefinite future, nor the false issue of being forced to attend religious, union or political meetings called by an “employer” was ever advertised or clarified to the voter, excepting in the state’s voter pamphlet.
Further, the campaigns in support of Prop 1 and No on Prop 2 were paid for by Outside sourced “dark money” that RCV was supposed to prevent in the first place. Had this not been a presidential election of such import and controversy, I believe that Prop 1 would have gone down in flames. People would have seen that it was a hit on small business that will result in the growth of the welfare state. Small business will be very hard hit, because ours is a post 2020 COVID mandate Democrat over spending economy. Our economy is still in tatters from inflation resulting from ill thought-out economic policies. Employment is down, small businesses are still recovering, but too many have succumbed to the last four years of inflation. Prop 1 is a fool’s paradise.
A study published In the June 10, 2021 Harvard Business Review title “When a Higher Minimum Wage Leads to Lower Compensation” found that raising the minimum wage resulted in fewer hours worked per week, imposed work schedules that were variable as to day and number of hours worked, and had fewer benefits. There was a net loss off 11.6% in total compensation received for each dollar of increase in the minimum wage.
Federal regulations mandate that employees who work over 1,000 hours per year receive retirement benefits and those who work at least 30 hours a week receive health insurance benefits. As a result of this forced imposition of benefits upon the private sector, business has been forced to hire more part-time workers who have variable schedules to reduce the number of employees mandated to have retirement and insurance benefits. The trade-off in having more part-time workers is reduced productivity.
Only fools force costs upon companies without any consideration of the economic impact. The impending loss of business and jobs rests with those who voted with their feeeeelings rather than logic and common sense.
I realize that those who voted for Prop 1 felt good about themselves, and their hearts sympathized for the young single mom with the sick kid. As a business owner, as someone who has hired people, this proposition will force more small businesses to fail, and this issue and the minimum wage issue will increase unemployment further as young people seeking a work record to qualify for higher paying jobs will have fewer starting employment options. Further, Alaskans will have to compete with illegal aliens for available jobs.
In 2019, the Congressional Budget Office estimated that increasing the minimum wage to $15/hr nationally would benefit 17 million low wage workers, but also cut 1.3 million jobs. Jobs don’t grow on trees, they are dictated by demand, otherwise known as the market. Someone is going to pay the 5 days of sick leave, more than likely it will be the employee in reduced wages. Prop 1 targeted small businesses. In each instance where minimum wage has been forced upon a market, jobs and business have lost.
I am not certain why the third part was included in what started out to be a purely socialist ill-founded interference in employment and the economy. The idea that an employer can force employees to attend a meeting for purely political, union or religious motivations is untrue. An employee cannot suffer penalty for not attending. So, really, what is this about? The reason for this aspect of Prop 1 is not clearly stated, and the justifications given are simply chaff. The Legislature and the governor need to overturn Prop 1 ASAP. Prop 1 was a mistake, sold by deceptive advertising without a sound economic foundation or outcome.
Now that RCV has been rejected, we can get back to being a Republic. Therefore, Prop 1 needs to be re-examined in light of the economy and the potential impact upon one’s rights and corrected accordingly.