May 2, 2014
Debates over whether to increase the minimum wage are raging in
cities across the country – San Diego among them.
Randy Dotinga, Morning Report scribe and Voice of San Diego
contributor since 2009, has been covering the issue locally. He
joined VOSD Radio hosts Scott Lewis and Caty Green on this week's
podcast to talk about the ripple effects of minimum wage hikes, as
well as the arguments for and against such a move.
Below are some of the takeaways from Dotinga's interview.
We can learn from other cities that have already bumped up
wages.
"From what I understand, from reading coverage
of SeaTac's situation, is that the minimum wage is in effect and
hasn't had that much of a real impact in terms of people losing
jobs, of businesses freaking out and leaving ... It is in effect,
and businesses have not had huge layoffs. I think one of the things
people don't realize about minimum wage is that a lot of these
businesses are not going to leave town. They're not going to have a
higher minimum wage and say, 'Well, I'm going to go to El Cajon,'
because they're service industries that serve San Diegans."
But what's a reasonable figure?
"Based on a report by the Center for Policy
Initiatives, which is a left-leaning progressive organization ...
you need to make about $28,000 a year for a single person. And they
say that's basically the lowest that you can make as a single adult
in San Diego and survive – have a one-bedroom apartment, pay (for)
transportation and food and those kinds of things. But no
entertainment, and no donations to Voice of San Diego. They aren't
included as part of this minimum lifestyle, so I do question this
proposal."
For some, this boils down to social justice versus social
engineering.
"This is basically an issue of social justice
versus social engineering, depending whether you are a liberal or a
conservative. If you’re a liberal you see this as social justice,
and it allows poor people to increase their income and have a kind
of lifestyle that all Americans deserve. But if you’re a
conservative, you see it as social engineering, as income
redistribution, taking income from richer people and giving it to
the poor. And I think economists see it in that same light,
depending on what kind of economist you are. If you think it’s
better to push income downward then you're going to be in favor of
it, and the opposite you'll be against it."