Why Governor Ehrlich Should Veto the Increase in Maryland's Minimum Wage: Weak Argument Number Five
In a previous blog post, we discussed four prominent arguments offered by those who oppose an increase in the minimum wage. We missed one.
The website of the Maryland Chamber of Commerce offers this statement as point number 1 why Governor Ehrlich should veto legislation that would increase Maryland’s minimum wage from $5.15 per hour to $6.15 per hour:
"Wages should be set by the competitive free market, not by the state government."
Yep, a principled statement to let the market work. We could understand that position (we would disagree with it, but we could understand it) IF it wasn’t so transparently flaunted in other cases.
We watched many of those same "free market" proponents successfully lobby for a wide range of tax breaks this year. Why were tax breaks needed? They argued that state intervention was needed to help support some business sectors.
As a result, this year the General Assembly passed a bill that extended tax credits to companies that spend money on research and development. Another tax credit will allow individuals and corporations to claim a credit on their taxes of up to 50 percent of their investment in bio-technology companies. A third bill allows a tax credit for up to 50 percent of the wages paid relating to film production.
These were popular bills and were passed overwhelmingly.
But, where was that principled argument for letting the market work free from intervention from state government?
Maryland's bill to increase the minimum wage to $6.15 per hour isn't so outrageous. Nearly 40 percent of people in the U.S. live in states that have minimum wages higher than $5.15 per hour. And, even if Maryland increases the minimum wage all the way up to $6.15 per hour–just how can someone at that income level make rent?
Link to our previous blog post on the minimum wage: Debunking the Myths About the Minimum Wage
The website of the Maryland Chamber of Commerce offers this statement as point number 1 why Governor Ehrlich should veto legislation that would increase Maryland’s minimum wage from $5.15 per hour to $6.15 per hour:
"Wages should be set by the competitive free market, not by the state government."
Yep, a principled statement to let the market work. We could understand that position (we would disagree with it, but we could understand it) IF it wasn’t so transparently flaunted in other cases.
We watched many of those same "free market" proponents successfully lobby for a wide range of tax breaks this year. Why were tax breaks needed? They argued that state intervention was needed to help support some business sectors.
As a result, this year the General Assembly passed a bill that extended tax credits to companies that spend money on research and development. Another tax credit will allow individuals and corporations to claim a credit on their taxes of up to 50 percent of their investment in bio-technology companies. A third bill allows a tax credit for up to 50 percent of the wages paid relating to film production.
These were popular bills and were passed overwhelmingly.
But, where was that principled argument for letting the market work free from intervention from state government?
Maryland's bill to increase the minimum wage to $6.15 per hour isn't so outrageous. Nearly 40 percent of people in the U.S. live in states that have minimum wages higher than $5.15 per hour. And, even if Maryland increases the minimum wage all the way up to $6.15 per hour–just how can someone at that income level make rent?
Link to our previous blog post on the minimum wage: Debunking the Myths About the Minimum Wage
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