– Happy 4th tomorrow. I won’t be posting anything. Maybe Goldy or someone else will.
– The creative commute contest seems like a hoot.
– More maps should be adjusted for sobriety.
by Carl Ballard — ,
– Happy 4th tomorrow. I won’t be posting anything. Maybe Goldy or someone else will.
– The creative commute contest seems like a hoot.
– More maps should be adjusted for sobriety.
by Goldy — ,
They’re fucking insane, that’s what:
Two years ago Kansas embarked on a remarkable fiscal experiment: It sharply slashed income taxes without any clear idea of what would replace the lost revenue. Sam Brownback, the governor, proposed the legislation — in percentage terms, the largest tax cut in one year any state has ever enacted — in close consultation with the economist Arthur Laffer. And Mr. Brownback predicted that the cuts would jump-start an economic boom — “Look out, Texas,” he proclaimed.
But Kansas isn’t booming — in fact, its economy is lagging both neighboring states and America as a whole. Meanwhile, the state’s budget has plunged deep into deficit, provoking a Moody’s downgrade of its debt.
There’s an important lesson here — but it’s not what you think. Yes, the Kansas debacle shows that tax cuts don’t have magical powers, but we already knew that. The real lesson from Kansas is the enduring power of bad ideas, as long as those ideas serve the interests of the right people.
As Albert Einstein is often credited with saying: “The definition of insanity is doing the same thing over and over again, but expecting different results.” This bit of supply-side orthodoxy has already been tried again and again, and with disastrous fiscal results (for example, the massive deficits that resulted from the Bush tax cuts). Meanwhile the opposite strategy—the Clinton tax hikes—were followed by the longest economic expansion in US history, along with several years of budget surpluses.
Some might argue that Seattle is embarking on a remarkable experiment too, but that’s not entirely true. Washington State has long had one of the highest minimum wages in the nation, yet our economy has outperformed both neighboring states and the nation as a whole. In fact, last year Seattle was the fastest-growing big city in America. As Nick Hanauer recently wrote in Politico: “Fifteen dollars isn’t a risky untried policy for us. It’s doubling down on the strategy that’s already allowing our city to kick your city’s ass.”
Unfortunately, Seattle’s demand-side strategy just isn’t perceived to serve the direct interests of “the right people” (you know, the rich and powerful). So whatever the results here, it’s hard to see the people of Kansas following our lead.
by Goldy — ,
In an effort to repeal Seattle’s historic $15 minimum wage, business-backed Forward Seattle has been gathering signatures for a referendum to put the ordinance on the November ballot. And how are they persuading Seattleites to sign their petition? By lying:
In the audio above, recorded June 27 outside the Target in Northgate, the signature gatherer can clearly be heard telling potential signers that Seattle’s $15 an hour minimum wage “hasn’t been legalized yet,” that the city council “didn’t officially vote on it,” and that the petition “raises it to $15 an hour.”
These are lies. In fact, the petition is for a referendum that would entirely repeal Seattle’s $15 an hour minimum wage, and replace it with nothing. That is what the businesses behind Forward Seattle have resorted to: paying signature gatherers to lie to voters about their referendum.
And it’s not just one rogue signature gatherer. Over the weekend I was forwarded this audio from an unrelated source, a compilation of various signature gatherers telling various lies about their petition. Potential signers are told that “they’re going to get to $15, just not so fast,” that “this is not to eliminate it,” and that the petition will “incrementally raise it to $15, not all at once.”
If I lied about Forward Seattle and the shameless lying liars who back it, they could sue me for defamation. But it is perfectly legal for them to hire people to lie about their referendum. Still, if these businesses are so willing to lie to me about their referendum, why should I trust them to tell me the truth about their goods and services? Politics aside, I won’t willingly do business with people I don’t trust, and so I will never spend my money at these businesses again.
by Goldy — ,
While the Twitterverse remains obsessed with the US Supreme Court’s awful ruling in the Hobby Lobby case—that closely held corporations can exempt themselves from the Affordable Care Act’s contraception requirements on religious grounds—a potentially more impactful decision isn’t getting nearly as much attention.
Again, by 5-4 vote split purely on ideological grounds, the court has ruled that home health care workers in Illinois have a First Amendment right to refuse to pay “agency fees” (you know, dues) to the union that represents them. There is little analysis so far online, and I haven’t had time to more than skim the decision, let alone wrap my mind around it, but the conclusion of Justice Elana Kagan’s dissenting opinion (pdf) is probably instructive:
For many decades, Americans have debated the pros and cons of right-to-work laws and fair-share requirements. All across the country and continuing to the present day, citizens have engaged in passionate argument about the issue and have made disparate policy choices. The petitioners in this case asked this Court to end that discussion for the entire public sector, by overruling Abood and thus imposing a right-to-work regime for all government employees. The good news out of this case is clear: The majority declined that radical request. The Court did not, as the petitioners wanted, deprive every state and local government, in the management of their employees and programs, of the tool that many have thought neces- sary and appropriate to make collective bargaining work.
The bad news is just as simple: The majority robbed Illinois of that choice in administering its in-home care program.
Just like in Hobby Lobby, newspaper ledes will likely describe Harris v. Quinn as a “narrow” opinion. It did not overturn Abood, and thus apparently did not drive the final nail into the coffin of organized labor by extending “right to work” rules to all public employee unions. But it also did not extend Abood’s protections to home health care workers in Illinois. And that could potentially have an enormous political impact here in Washington State.
By far the most influential and successful union in Washington in recent years has been SEIU Healthcare 775NW, which organized and represents the state’s 40,000 in-home health care workers. It was SEIU 775 that largely funded the organizing efforts behind Seattle’s fast food strikes and SeaTac’s $15 minimum wage initiative. It was SEIU 775 president David Rolf who co-chaired the mayor’s Income Inequality Advisory Committee, and played a major role in pushing through our new minimum wage law. Other locals may grumble at the assertion, but it is fair to say that SEIU 775 has been the most powerful and effective union in the state.
But if the court’s ruling in Harris v. Quinn extends to Washington State, then SEIU 775 may have just been largely defunded, and the state’s in-home health care workers left without effective representation.
Because that’s how “right to work” works. If workers are given the right to opt out of paying union dues, narrow self-interest dictates that many of them will become freeloaders, benefitting from union contracts without bearing any of the cost of negotiating them. I mean, if you’re struggling to make ends meet on $12 an hour, what are you going to pay first—your electric bill or your union dues? And without the majority of the workers paying their dues, unions wither away into political insignificance, lacking the funds to effectively organize, advertise, or make political contributions. As the union grows politically weaker, its ability to collectively bargain on behalf of its members weakens too. And as the union becomes a less effective negotiator, fewer and fewer members choose to pay their dues.
It is that sort of death spiral that has made it nearly impossible to unionize in “right to work” states.
I’ve asked SEIU 775 for comment and was told that they are still “analyzing the decision.”
Maybe organized labor largely dodged a bullet in Harris v. Quinn. This time. Maybe. But clearly some of our nation’s lowest paid and most vulnerable workers did not. And if this ruling applies to in-home health care workers in Washington the same way it applies to in-home health care workers in Illinois, then it may end up having an enormous impact on local politics, largely defunding what has been the most powerful and effective union in the state.
UPDATE: SEIU 775 spokesperson Jackson Holtz offers the following defiant response: “Home health care workers in Washington will continue to stand with low wage workers throughout the state and around the country in our fight to lift workers out of poverty. Today’s Supreme Court decision will in no way change that.”
Holtz emphasizes that this is “a long and complicated opinion,” and that Washington’s in-home health care system is very, very different from the program and Illinois. “We have a far more robust collective bargaining model through which workers have won benefits,” says Holtz, like health insurance, mandatory training, and certification, as opposed to just wages. “The distinctions between the two programs are too innumerable to go through.”
In other words, their lawyers are still trying to figure out what this all means.
One thing that seems certain is that today’s ruling will surely spark similar lawsuits here in Washington State, attempting to widen the crack provided by Justice Alito’s opinion in an effort to further erode the few legal protections still afforded organized labor.
by Carl Ballard — ,
– This has been going around, but here’s the list of places opposing the minimum wage increase.
– It would be very nice indeed to have an Eyman initiative free year at the polls.
– Happy first day of the South Park Bridge reopening.
– It was a bit of a surprise how quick Podlodowski’s tenure was.
– Every time gas prices go up, Republicans pass imaginary legislation.
by Darryl — ,
Thom: The Good, The Bad, and The Very, Very Ugly.
Stephen gets batshit serious about migrant kids.
Sam Seder: Rick Perry visions of being Jewish.
Ed: Gov. Bobby Jindal calls for a rebellion with a hostile takeover of Washington.
Young Turks: Here’s the Republican scandal machine in 10 easy steps.
Liberal Viewer: FAUX News, “Girls more likely to have hateful little minds” ???
ONN: The Onion Week in Review.
The Return of the Neocon and Wingnut War Criminals:
Dark Snow 2014: Why we are here.
Young Turks: FAUX News’s Soccerghazi!!!!!!11!1!!
David Pakman: Looney Toon Rick Santorum says Christians should fight war against gay marriage.
Thom: GOP is the pro-death party.
Daily Show: College sexual assault.
Some historical iced tea for the 4th.
Young Turks: Michele Bachmann’s latest insanity turns Neil Cavuto reasonable?!?
Sam Seder: Election fraud is real, and rich white Republicans are doing it.
Thom and Pap: Gov. Walker’s (R-WI) “Criminal Scheme”.
Sam Seder: Christie builds another bridge to jail.
White House: West Wing Week.
Young Turks: California’s historic vote to get money out of politics.
WaPo: 44 years of Charles Rangel, in one minute.
David Pakman: Benghazi has become an epic Republican embarrassment.
Boehner’s Silly Lawsuit:
Liberal Viewer: Is ISIS the #1 threat to the U.S.?
Factivists: The GOP’s Immigration Inaction.
Ed: Herman Cain thinks Obama voters are “stupid”.
Bill Mahar’s guest draws comparison between Teabaggers and Nazis.
Supremes Greenlight Harassment at Abortion Clinics:
Young Turks: Syria hands over their chemical weapons…THANKS OBAMA!
Last week’s Friday Night Multimedia Extravaganza can be found here.
by Goldy — ,
We all know Seattle area rents are going through the roof. There’s no surprise there. But what really jumped out at me from the latest statistics was this:
Apartments in Seattle’s Ballard neighborhood saw the biggest increase in rents. The average asking rent was 12.3 percent higher over the quarter, rising to $1,628.
But Ballard also had a vacancy rate of 8.6 percent, the highest in Seattle. And when new apartments that just opened are included, the vacancy rate shoots up to 18 percent.
The apartment boom in Ballard has led to a doubling of the inventory over the past six years, said Tom Cain, head of Apartment Insights Washington. When the units now being built are complete, Ballard’s inventory will have quadrupled.
New units rent for a premium, and they’re part of what’s driving up market rents, Cain said.
Listen to the free market folks and you’d think the solution to Seattle’s worsening affordable housing crisis is simple: get out of the way of developers and let them build more units faster! And that somewhat makes sense. Supply and demand and all that. And yet the neighborhood with highest vacancy rate and one of the biggest booms in new construction, is also the neighborhood with the fastest rising rents. How does that work?
The problem is that the market incentivizes developers to focus on meeting the demand of high-end renters to the detriment of middle and low income households. The cost of borrowing and the cost of land remains the same no matter what you choose to build. Given these and other fixed costs, there’s just more profit to squeeze out of any given lot by catering to the highest end of the market the neighborhood will support. And so that’s what developers tend to do.
Thus if we rely on the market to address affordability in Seattle, it will necessarily constrain the growth in luxury housing prices first, before saturation at the high end of the market ultimately forces developers to target their product further down the income scale.
Yes, rents of older housing stock rise more slowly than rents of new, and all this expensive new housing will eventually be old. But as these units age, unless their rents increase more slowly than growth in median income, these apartments will never become more affordable.
Affordability is not just a product of how much we build, but of what we build. And private developers simply aren’t focused on meeting the demand for low and middle income housing.
Yes, the city should always strive to make the permitting process faster, cheaper, and more efficient. And we certainly need to let go of our nimbyist fetish with building heights. Seattle must become a taller, denser city. But simply getting out of the way of developers won’t solve our problem. If we can’t find a way to effectively incentivize developers to meet the demand for low and middle income housing, then the city is going to have to find a way to tap into its own access to capital markets to build more low and middle income housing itself.
by Goldy — ,
The family of a man who drowned a year ago in the swimming pool at the Quality Inn & Suites Seattle Center has filed a wrongful-death suit against the owners of the hotel, claiming poor maintenance made the water unusually murky and contributed to a botched rescue operation by firefighters.
[…] The hotel operators, Seattle Hospitality Inc., last Friday filed a third-party complaint seeking to draw the city of Seattle into the suit as a second defendant, claiming the Seattle Fire Department failed to conduct an adequate water rescue and didn’t find Deboch in the pool after firefighters were summoned to the hotel.
Except it’s hard to perform an adequate water rescue when the water is so filthy that you can’t see the victim.
[…] Seattle firefighters arrived within 2½ minutes of the call, according to Fire Department records. They searched the pool using a rescue hook and thermal-imaging camera but found no sign of Deboch.
A Fire Department report states that firefighters “believed they were visually able to confirm that no victim was in the pool” and thought they could see the pool’s bottom.
A civilian also got in the pool to search for Deboch, but no firefighters entered the water, according to the report.
I worked three summers as a lifeguard (i.e. pool boy) at swimming pools at four different residential apartment buildings in Philadelphia, and I can tell you that we would’ve been fired had we allowed the water to get anywhere near that sort of condition. We checked chlorine and pH levels throughout the day, and would clear swimmers out of the pool if the chemicals ever got out of whack. Murkiness wasn’t even an option.
“There were more than a dozen people allowed back in the pool to swim,” Micah LeBank, the attorney representing Deboch’s family, said in an interview this week. “The hotel let people get back into that murky water and swim around, unable to see the body.”
That’s disgusting.
When Deboch still wasn’t found, his friends searched the pool again.
Tom Fleming, a 51-year-old off-duty firefighter vacationing at the hotel, joined in the search and cleared the pool of swimmers, according to the Fire Department report.
The Seattle Times reported last year that after about a 10-minute search Fleming felt something in the center of the deep end of the pool. He asked the hotel to turn off the pump and was able to pull up Deboch’s body.
“You could not see him until you got him 18 inches to the surface,” Fleming told The Times last year. “I was fishing around and even though he was at the very bottom, he was not always in the same spot. Finding a victim in a pool in that condition is like trying to find a needle in a haystack.”
Granted, water clarity at indoor pools is more difficult to maintain due to the lack of natural oxidation from sunlight, but that’s no excuse. The hotel was clearly negligent.* And their effort to make taxpayers liable by pulling the fire department into the lawsuit is offensive.
Given the time that had already elapsed, firefighters might have been able to pull the victim from the pool without permanent neurological damage, had they been able to immediately locate the body. But the cloudy water made a timely rescue—about a 10 minute window—all but impossible. From the facts presented in the press, there is no question that improper pool maintenance impeded firefighters’ ability to do their job.
Swimming pools are potential public health hazards, both due to the drowning risk and the spread of disease causing organisms like Cryptosporidium, Giardia, and E. coli. That’s why they’re so heavily regulated. So if a hotel is going to seek a competitive edge by offering guests the amenity of an indoor pool, then the hotel has both a moral and legal obligation to properly secure and maintain it.
The hotel should settle with the victim’s family and leave Seattle taxpayers out of it.
* My former editors at The Stranger never would have allowed me to use such direct language, for fear that the use of such a legalistic term like “negligence” might leave the paper vulnerable to a defamation suit. But my own personal experience as a former pool maintenance professional leaves zero question in my mind that it is negligent to allow guests into water so cloudy that they could swim for three hours without noticing the dead body at the bottom of the pool. And as a blogger, I feel that it would be negligent of me to shy away from bluntly speaking the truth.
by Goldy — ,
After 37 years, longtime Ballard staple Louie’s Cuisine of China is closing, and I blame Seattle’s $15 an hour minimum wage! Although probably, its closure had something more to do with this:
The property was sold last month for $2.49 million, property records show.
In fact, restaurants and other businesses close all the time, and for all kinds of reasons:
Louie’s expected closure comes three months after the landmark Frontier Room, around since 1954, closed in Belltown. Last year the legendary Alki Tavern closed, and Funhouse music club was closed in 2012 to make way for a seven-story building near Seattle Center. Claire’s Pantry, a Lake City staple since 1974, closed in February 2013, and Piecora’s Pizza on Capitol Hill closed in April after 33 years.
In March 2010, the first restaurant in the Red Robin chain closed in Seattle’s Eastlake neighborhood.
Brace yourselves. In the coming years we’re going to hear all kinds of stories about businesses closing because they can’t afford to pay Seattle’s minimum wage. If $15 was already in effect, we’d be hearing it about some of the businesses above. But correlation is not causation, so you can cast all these anecdotes aside.
It will take a decade or more to truly suss out the impact of Seattle’s minimum wage by comparing local economic trends to both historical data, and to economic trends in other locations. But that won’t stop the scare stories from coming.
by Carl Ballard — ,
– Designing Streets for Safety [h/t]
– I’m not sure if Sawant would have voted against Kathleen O’Toole if she was the deciding vote (maybe, but it wasn’t the vote she needed to take). But it’s nice to know there will still be some pull to the left on police issues.
– Why does anyone still listen to Donald Trump?
– World Bicycle Relief Red-Bell 100
– I think the HA comment threads are worth at least two or three leaf boats.
by Goldy — ,
I suppose I’ve had a hard time articulating exactly why I’m so irritated at the way Uber, Lyft, and Sidecar have been allowed to bully their way into the Seattle market. But fortunately, economist Dean Baker does a much better job:
If Uber and Lyft force a re-examination and modernization of taxi regulation in San Francisco and elsewhere, they will have provided a valuable public service. However it can’t possibly make sense to have a stringent set of regulations for traditional cabs, while allowing Uber and Lyft to ignore them just because customers order these services on the Internet.
If we go the route of ending the requirement that taxies need medallions, there is also the question of what we do about the sunk costs for people like my cab driver, who is currently out $250,000 from buying a medallion. On the current path, these medallion owners will just be out of luck. Their life savings will be made worthless by young kids who are better at evading regulations than immigrant cab drivers; so much for the American Dream.
It is worth considering this issue in light of the larger issue of the growing inequality we have seen over the last three decades. Uber, like Amazon, has allowed a small number of people to become extremely rich by evading regulations and/or taxes that apply to their middle class competitors. Amazon and other Internet-based retailers have used their tax advantage to put tens of thousands brick and mortar stores out of business.
This is a pretty simple story. In a country where rules are enforced or not enforced to benefit the rich and screw the middle class, you will have increasing inequality and a middle class that is seeing few of the benefits of economic growth.
What we are witnessing is a giant transfer of wealth from tens of thousands of mostly middle class medallion owners nationwide into the pockets of a handful of clever, law-evading entrepreneurs and their venture capitalists. Uber’s gambit that local governments would not crack down on its illegal operations has paid off handsomely—it now enjoys an implicit market capitalization of $17 billion.
“This is not supposed to happen in a market economy,” says Baker:
To encourage efficiency, we would want a proper set of regulations and taxes and have them apply equally to everyone. The point is to encourage people to make profits by providing better products or lower cost services, not to get rich by finding clever ways to evade regulations.
There’s much more to Baker’s piece, and you really should read the whole thing.
by Goldy — ,
The best thing about the Seattle Times hiring Erik Smith, is that finally there’s somebody on the paper’s editorial board with the courage to give a voice to Seattle’s downtrodden business community:
A rare voice on minimum wage
Howard Behar, former president of Starbucks, explains why he supports a referendum campaign that would send Seattle’s minimum-wage ordinance to the ballot.
That’s Smith’s column and kicker. Really. Because there is nothing rarer in American politics than the voice of a rich white guy.
Seattle’s business community didn’t put up much of a fight when the City Council passed its highest-in-the-country $15 minimum-wage ordinance this month — at least not the united opposition that might be expected in a city of lesser size.
Um, there’s a difference between not putting up much of a fight, and losing. And they didn’t completely lose, either. No, Seattle’s business community didn’t win a permanent tip credit or “total compensation”, or the lower $12 minimum wage for which many business leaders belatedly fought. But they did get what amounts to an eleven-year phase-in before all Seattle workers will earn the inflation-adjusted equivalent of about $14.50 an hour in cash take-home pay in the year 2025.
But at long last, Howard Behar has had it with that talk of “sticking it to the man.”
“First of all, it’s not just the man anymore,” he says. “It’s the man and the woman. But is that what we think this is about? We’re trying to get somebody?”
Well then, he should stop watching re-runs of The Mod Squad, because I’m not sure I’ve heard anybody actually use that phrase since the early 1970s. I mean, I love “the man” as an apt metaphor for the way society actual works, but then, I’m old. I’m over fifty. “Sticking it to the man” is about as much a part of modern American parlance as “groovy” or “the cat’s pajamas.”
And no, $15 was not about “trying to get somebody.” It was about trying to get somebody a living wage. The rhetorical focus was always on the plight of the working poor. That’s why fast food workers became the symbol of the movement.
If anyone is the man, it is Behar. He is the former president of Starbucks, the Seattle-based coffeehouse chain with more than 20,000 outlets worldwide. Though Starbucks is one of the world’s most recognizable brand names, it was not vilified during the campaign by union organizers and political activists in the same way as favorite corporate targets McDonald’s and Wal-Mart.
So wait. Behar is “the man”…? And nobody talked about “sticking it” to him…? Now I’m just confused.
The company prides itself on the fact that it pays a bit more than the current minimum wage, provides health insurance for its employees and recently implemented a college tuition benefit.
Starbucks baristas average less than $9 an hour nationwide, only 42 percent of employees are actually covered by Starbucks’ health insurance (less than Walmart!), and it turns out the company’s much ballyhooed tuition benefit program isn’t all that much of a benefit. Starbucks is far from the worst company in the world to work for, but it isn’t a charity.
Yet, with a corporate headquarters about a mile from Seattle City Hall, the company is affected by the raised minimum wage as clearly as the smallest espresso hut along Highway 99.
And your point is… what? Starbucks should get a volume discount?
In criticizing the Seattle plan, Behar is not speaking for the chain he helped build from 28 stores before his retirement as president in 2007 — his only direct financial interest in Starbucks is the one share of stock he keeps framed on the wall.
No, he’s speaking for his class. I’m no Marxist, but this is clearly a class struggle. And as multi-billionaire investor Warren Buffett famously said: “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”
A lifetime spent in business tells him the Seattle plan will hurt the low-wage earners it aims to help by raising the cost of living, and driving light manufacturing and distribution jobs beyond the city limits.
Ah, he’s just looking out for the little people. God bless him.
But while I don’t dismiss Behar’s business acumen, there just isn’t any data to support the claim that minimum wage hikes—even massive ones—have a substantial impact on employment.
That is why he is a major contributor to Forward Seattle, the organization gathering signatures to place a referendum on the November ballot to undo the ordinance. Behar agrees the wage should rise, but says the city ought to phase it in over a much longer period of time, perhaps at twice the rate of inflation until $15 is reached, for businesses of all sizes, uniformly.
So let’s do the math. Assuming our current annual inflation rate of about 1.75 percent (and that may be on the high side), it would take 14 years—not until the year 2028—before workers finally earned $15 an hour. But by then, $15 would only be worth about $11.78 in 2014 dollars. So in real dollars, Behar is proposing a $2.46 an hour raise phased in over a decade and a half.
Behar’s voice is important because so few in Seattle’s big-business circles have been willing to say a word. In smaller cities, small business dominates the Rotary clubs and the chambers. The silence from many Seattle-based business organizations reflects the fact that this is a regional headquarters city for so many large corporations. Some shrug — they pay more than minimum wage — and by taking a stand in Seattle they could bring picket lines elsewhere in the country.
You’re kidding, right? Twelve of the 21 non-elected members of Mayor Ed Murray’s Income Inequality Committee represented business, including the Seattle Chamber of Commerce, the Seattle Hotel Association, Nucor Steel, and Space Needle owner/hotelier Howard Wright. Alaska Airlines and the car rental, lodging, and restaurant industry spent a record $227 per vote in their failed attempt to defeat SeaTac’s $15 minimum wage initiative at the polls! The International Franchise Association is spending $1,000 an hour to file ridiculous lawsuits in an effort to bully other cities from moving forward. You call that silence?
“Business leaders are scared to death,” Behar says. “Because you know in today’s world what happens when they speak up? They are accused of being greedy, they are accused of not caring about people.”
Oh, boo fucking hoo! Workers are scared to death of being fired for attempting to unionize, but Behar is scared that some people might say he’s mean? Talk about asymmetry.
Behar calls the Seattle plan unjust and immoral — some reasons familiar, others not.
“Unjust and immoral?” You mean like paying somebody a poverty wage? You mean like the service industry practice of denying workers more than 29.5 hours a week so that they don’t qualify for benefits? You mean like the wage and tip theft that is rampant in the industry?
The Seattle plan will require big companies, chains and franchisees to raise wages faster than mom-and-pop operations, the idea being that big corporations can afford it. Franchisees are, of course, small-business owners themselves, a fact the Seattle ordinance ignores. And Behar notes that in a chain, each store is considered a stand-alone business and each is expected to turn a profit.
So, either Seattle chain outlets will raise prices in Seattle, just like mom-and-pop stores will — or, perhaps worse, they might allow that store in Cincinnati to subsidize the one in Seattle, and keep prices low until shakier independent merchants close their doors.
My god, when will America wake up to the holocaust that is befalling our nation’s persecuted big businesses? If only they had unlimited financial resources to buy high priced lobbyists, expensive advertising, and credulous editorial boards to defend their interests.
And, while the proposition was sold with the idea of reducing income inequality, the shock on the local economy will mean higher prices for things bought locally — buying power of a higher minimum wage is reduced.
So first we’re told we’re supposed to heed Behar’s warnings due to his “lifetime spent in business,” and then he throws this incredible piece of economic bullshit at us? Does he think we’re stupid?
If labor was the only cost of doing business, this argument might largely hold true. But of course, it’s not. Labor is about a third of the cost of a Big Mac. So if the entire cost of raising the minimum wage were passed on to McDonald’s consumers (and it won’t be), you’re looking at about a 19 percent price hike over the same period of time McDonald’s workers see their wages rise 56 percent.
Low-wage workers clearly come out ahead. And that’s just with burgers. The inflationary pressure won’t be zero, but big monthly expenses like electricity, utilities, cable, phone, and of course housing will see little direct impact from a hike in the minimum wage.
Behar says a proposition with such a dramatic effect on the city ought to bypass a council where special-interest groups hold sway. “The idea this got a fair hearing is garbage. Labor was going out the back door and business was sitting in the lobby.”
Again… you’re fucking kidding me, right? Is he really making the argument that corporate money doesn’t have enough influence in politics? That if Behar were still president of Starbucks, the mayor and every council member save Socialist Kshama Sawant wouldn’t take his phone call in New York minute?
The vilification of big business to promote an unworkable economic ideal hits him in the gut: “If we are a just society, we treat everybody the same.”
First of all, perhaps some people vilify big business leaders as “greedy” and “not caring about people” because capital-as-victim narratives like this make them come off as greedy and not caring about people? Just a thought.
Second, if Behar is really advocating for a “just society,” one in which we “treat everybody the same,” perhaps he should start with reforming Washington State’s most regressive tax system in nation? This is a system in which the bottom 20 percent of earners (you know, Starbucks baristas) pay 16.9 percent of their income in state and local taxes, whereas the wealthiest 1 percent (you know, Howard Behar) pay only 2.8 percent.
Does this sound like a just society in which we treat everybody the same? Of course not. And yet Behar has chosen to use his voice to champion the moneyed interests that benefit most from the status quo.
In a city where no one has spoken for big business on the issue, Behar does seem to be the man.
No one except all the big businesses I mentioned, and of course, the Seattle Times editorial board. Relentlessly. But nice attempt at an emotional bookend, Erik.
by Carl Ballard — ,
– Will the Supreme Court Ignore the Evidence? Facts vs. Beliefs in the Hobby Lobby Case
– The Spokesman-Review should probably do a better job of getting pictures.
– Let’s Build The Ballard Spur!
– I honestly couldn’t have told you who was the Seattle School District Superintendent, but now he might be leaving.
– My Real Change vendor keeps asking me to go to his church, but this is neat too.
by Goldy — ,
Remember how opponents warned that a $15 minimum wage would surely cost the city thousands of jobs, hurting the exact same low-wage workers the ordinance was intended to help? Well, in Seattle’s booming hospitality industry, not so much:
The former Red Lion Hotel in downtown Seattle sold Thursday for $130.7 million, or nearly $410,000 a room, the highest price ever paid in the metro area, according to hotel experts.
But the record price for the 319-room hotel, now known as Motif Seattle, could quickly be surpassed by the pending sale of the 120-room Hotel 1000: Two groups are buying it for $63 million or about $525,000 a room, according to a report this week in The Wall Street Journal, which didn’t identify its sources.
“It is the highest price paid (per key) ever for a hotel in Washington state,” said Chris Burdett, senior vice president of CBRE Hotels in Seattle, which was not involved in the transaction.
The record-price deals for downtown Seattle hotels are the latest good news for a surging hotel market that’s kicked off a wave of new construction. Downtown Seattle has roughly 12,000 hotel rooms; the construction of R.C. Hedreen’s mega-convention hotel and smaller hotels could add another 3,000 rooms to the inventory.
Wait. I thought the $15 minimum wage was supposed to destroy capitalism as we know it. And yet in the immediate wake of its passage, investors continue to sink hundreds of millions of dollars into an industry that is one of the city’s largest employers of low-wage workers. I’m so confused!
And it’s not just here in Seattle. Just weeks after SeaTac voters passed their $15 minimum wage, Cedarbrook Lodge, one of the initiative’s most vocal opponents, announced a $16 million 67-room expansion. It’s like the industry’s mouth is saying one thing while its money is saying something entirely else. Weird.
I can only conclude one of two things. Either paying hotel housekeepers and other low-wage workers $15 an hour won’t squeeze all the profits out of Seattle’s labor-intensive hotel industry, or all the smart capitalists investing hundreds of millions of dollars into our soon-to-be-living-wage hotel industry are in fact incredibly stupid.
by Goldy — ,
SOURCE: US THRILLRIDES
Finally, I can move back to Philadelphia!
PHL Local Gaming — one of the five contenders for that ever elusive casino license in Philadelphia — has announced a potential new feature for its LoSo Entertainment Center: a 615-foot-tall Skyspire with rooftop restaurant and observation deck, both of which would be reached by gondola. The tower would be designed to look much like Seattle’s Space Needle, though it would be 10 feet taller (take that, Seattle!).
Except for the casino part, it sounds great.* Though personally, rather than the Skyspire, I would opt for the Polercoaster, which instead of those stupid gondolas would wrap the tower with a 615-foot vertical roller coaster!
* Note: Not really.