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A tip credit will go some way towards mitigating the harm that St. Paul’s leaders want to do to the city’s labor market

"The only restaurants that are going to be able to survive this (minimum wage hike without a tip credit) are big corporate chains. Small restaurants just can’t afford it" says Jennifer Schellenberg of Restaurant Workers of America. This echoes the findings of a report by the Citizens League earlier this year. They found that most of St. Paul's large employers, such as U.S. Bank and Wells Fargo, were already paying their staff at least $15 an hour. The people who would be hit hardest by the the city's politicians commanding its small business owners to increase their staff costs by up to...

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Minnesota’s ‘labor shortage’ offers the opportunity for higher wages

The economy we should want for Minnesota should be one of high investment driving rising wages. It is the economic model Germany had so much success with in the post-war decades. The state's supposed 'labor shortage' should not be cause for panic and the pursuit of a labor intensive, low investment, low wage economy. Instead, it represents an opportunity to be grasped for a better economic future. ...

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St. Paul: Think Before You Act on Minimum Wage

On Wednesday evening, St. Paul city leaders came to a wider consensus of their plans to raise the city's minimum wage to $15 an hour. Earlier last week, Citizens League sponsored by the St. Paul Foundation released a 446-page report confirming the minimum wage increase, having it indexed to inflation, and expected to be phased in over the next four to seven years....

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No support for minimum wage increase

We all want to see higher wages. They are the best way of guaranteeing a good standard of living. But, to be sustainable, they need to come from higher productivity, not the wave of some magic legislative wand. The policies that would encourage higher wages would focus on increasing the quality of labor, education, the quantity of capital it has to work with, investment, and the quality of the capital itself, innovation. These policies do not fit on a placard quite so easily as “$15 now!” But they do have the virtue of actually working....

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