Sunday, April 24, 2016

Lefty Logic:UC Berkeley Touts $15 Minimum Wage Law, Then Fires Hundreds Of Workers After It Becomes Active

A week after California Gov. Jerry Brown signed the state’s $15 minimum wage boost into law, UC Berkeley Chancellor Nicholas Dirks sent a memo to employees announcing that 500 jobs were getting cut, reports Investor's Business Daily.

IBD continues:
Last year, University of California President Janet Napolitano announced plans to boost its minimum wage to $15 at the start of next school year, independent of the state law. Since UC Berkeley was already in financial trouble — it ran a $109 million deficit last year and is projecting a deficit of $150 million this year — number crunchers there had to have factored in the higher mandated wage when making their layoff decisions.

Those workers might want to have a chat with the folks at UC Berkeley’s Center for Labor Research, who just days before Brown signed the wage-hike bill released a study touting the minimum wage as a boon to low-income household breadwinners.

After that report came out, Ken Jacobs, chairman of the UC Berkeley center, told the Los Angeles Times, “This is a very big deal for low-wage workers in California, for their families and for their children.”...
But why is anyone surprised about jobs cuts following a wage hike? It’s one of the most basic laws of economics. Any high school kid taking Econ 101 can explain it:  If you raise the price of something, demand goes down.

(HT Daniel McAdams)


  1. Ah, but a few will not get fired, will get paid more, and will stick around to vote for the politicians responsible. The rest were losers who should move to another state, anyway.

  2. Audio engineers often use what's called a 'gate' to eliminate unwanted background noise. Any sound that doesn't reach a certain volume threshold gets dropped from the track. People think minimum wage laws act like an amplifier, making quiet sounds louder, but it really works like a gate: the quiet sounds get dropped.

  3. It's probably a lot of jobs that college students held. I had a minimum wage job in the library where I went to school. No way they hire me or the other 3 or 4 students I worked with at $15 dollars an hour.