Minimum wage politics
Monday, Dec 1, 2014 - Posted by Rich Miller
* Crain’s…
Mayor Rahm Emanuel is moving to jump-start his proposal to raise Chicago’s minimum wage to $13 an hour, fearing that the Illinois General Assembly may be about to pre-empt the city’s ability to do so.
The mayor has called a special City Council meeting for Tuesday, Dec. 2, to vote on his proposed ordinance. The council’s Committee on Workforce Development and Audit will consider the plan a day earlier. Approval is expected even though some aldermen are urging an even higher figure of $15 an hour.
“We have decided to proceed [this] week because of the possibility that there may be an attempt to pre-empt the Chicago ordinance,” said Kelley Quinn, the mayor’s spokeswoman. “Taking this step first is the best way to prevent that from happening.”
The move comes as Mr. Emanuel, who has had trouble connecting with some low-income or minority voters, runs for re-election on Feb. 24.
Under the mayor’s proposal, the wage increase would be phased in, starting roughly seven months from now. It would hit $10 an hour by July 1 and $11 within three years. Thereafter, it would go up $1 per year to eventually reach $13 an hour.
* Sun-Times…
City officials hope to pass an ordinance that, in part, mirrors a state bill sponsored by Sen. Kimberly Lightford (D- Maywood).
By 2017, both the city and state would move to $11.
But in Chicago, in 2018, the wage would go up $1 — to end up in 2019 at $13, city officials said.
Lightford said she’s confident her bill will pass in Springfield next week.
But she wasn’t sure Friday what Chicago’s ordinance will mean if her bill passes and is signed by Gov. Pat Quinn.
“I just don’t know if the city can say … we can move ours higher and the state can’t do anything about it,” Lightford said.
* 19th Ward Ald. Matt O’Shea is not happy with the idea…
You don’t need a Nobel Prize in economics to realize a higher minimum wage on the Chicago side of the city limits will drive businesses to the suburbs. A downtown clothing outlet with a captive and affluent customer base might be able to survive employee costs that are 30 to 50 percent higher than a similar store in a far-away suburban mall, but what about a store that operates in a neighborhood on the city’s border? Just like the downtown store, that neighborhood business would have to raise prices to pay its work force a higher Chicago wage. But unlike downtown, the neighborhood store’s customer-base would have plenty of lower-priced options in nearby suburbs, some of which could be reached by literally walking across the street. As such, if we raise the Chicago minimum wage higher than neighboring municipalities, we should be prepared to watch businesses and millions of dollars in tax revenue cross the street, too.
Numbers I’ve seen show that 20 percent of the city’s businesses are clustered around the city’s edges.
* Meanwhile, speaking of hizzoner’s reelection…
Mayor Rahm Emanuel has received $400,000 in political donations that he was able to keep only because the state’s campaign contribution limits were eliminated through the actions of an obscure candidate who threatened to run, but didn’t.
The contribution limits were lifted for everyone in the Chicago mayoral race last month after frequent local candidate William J. Kelly filed paperwork in October showing he gave his own campaign $100,000. Under state law, once a candidate in a local race contributes $100,000 to his or her own campaign within one year of an election, the state contribution caps no longer apply.
But Kelly didn’t file the necessary petition signatures by Monday’s deadline to appear on the ballot. Nonetheless, the lifting of the campaign limits remains in place.
* And…
With City Hall as a backdrop, Cook County Clerk David Orr stood with mayoral contender Jesus “Chuy” Garcia on Sunday and anointed him as the progressive alternative to Mayor Rahm Emanuel and his top-down style.
He “is humble, which is unusual for a politician,” Orr said when he was asked why Garcia — who is also a Cook County commissioner — would be a better mayor than Emanuel. He’s “someone who will listen to people, someone who understands.”
Then Orr tweaked the mayor, who has an enormous fundraising advantage over Garcia but who Chicagoans have expressed dissatisfaction with in public opinion polls.
“The mayor, with millions, has a hard time getting signatures on his petitions. Chuy Garcia in three weeks time, spending no money — all volunteers — got 60-some thousand,” Orr said. “In another week, they probably would have gotten 90,000.”
…Adding… Related…
* Minimum wage poses predicament for service agencies
* Sam Toia: Restaurateurs want Illinois minimum wage increase that’s fair and reasonable
- Not Rich - Monday, Dec 1, 14 @ 11:28 am:
I agree with the Ald. O’Shea..short sighted again by the Mayor.. this move will hurt minority teen hiring..
- anon - Monday, Dec 1, 14 @ 11:30 am:
It seems Mr. Kelly did Rahm a big favor.
- Anonymous - Monday, Dec 1, 14 @ 11:32 am:
David Orr: “Based upon my 7 days as Mayor…”
- fair and balanced - Monday, Dec 1, 14 @ 11:33 am:
thank you William j. Kelly!
I am sure the democrat Chicago machine thanks you as well!
- William j Kelly - Monday, Dec 1, 14 @ 11:34 am:
In regards to the caps, Rahm already had all the money he needed to run for mayor, the caps were only hampering challengers. Now that the caps are off, if challengers fail to take advantage that’s on them. Your welcome.
- admin - Monday, Dec 1, 14 @ 11:34 am:
Funny! To my recollection, Rahm wasn’t having any trouble raising millions of dollars and bundling contributions before the caps were off. Now that the caps are off, it is up to Chuy and Fioretti to find a few committed donors who are willing to get rid of Rahm. Either they can raise the dough or they can’t. The media has done a terrible job reporting on the Chicago mayor’s race and picking their pet candidates. Even with Kelly, they ignored him until he donated the $100K.
- Dan Johnson - Monday, Dec 1, 14 @ 11:36 am:
Alderman O’Shea’s point is fair but the remedy is to advocate for a higher minimum wage in the adjacent suburbs, as higher wages generate more prosperity while lower wages do not.
- admin - Monday, Dec 1, 14 @ 11:36 am:
@anon @fairandbalanced you can try to rewrite history all you want. Are you saying that Rahm wasn’t raising millions or bundling contributions before the caps were blown? Is it your contention that Chuy and Garcia could have caught up to Rahm with the caps on? Your attempted rewrite of history is pathetic. Are you being paid by Rahm?
- Wordslinger - Monday, Dec 1, 14 @ 11:37 am:
Ald. O’Shea doesn’t need a Nobel Prize in Economic to understand that only 2.4 percent of American workers make the minimum wage or that Chicago’s much higher sales taxes should be a bigger concern for border wards.
The cost of labor is just one of many factors in the cost of doing business and setting price. You can find efficiencies and savings in other factors. That’s how business works.
On the other hand, a sales tax adds an arbitrary cost to the total cost of doing business and setting price. In Chicago, that arbitrary cost is significantly higher than the suburbs and cannot be mitigated.
The baronial City Council system itself, where you have to kiss the ring, or worse, of the aldermen in order to operate a business in ward boundaries is the most anti-competitive factor in the city.
- admin - Monday, Dec 1, 14 @ 11:39 am:
HEADLINE FROM JULY 2014: Rahm superpac raises $1 million in 10 days. FYI this was before the caps were blown. http://www.chicagobusiness.com/article/20140702/BLOGS02/140709968/pro-emanuel-super-pac-raises-1-million-in-just-10-days
- admin - Monday, Dec 1, 14 @ 11:40 am:
$ 1millon for Rahm in one day - again back in July. http://articles.chicagotribune.com/2014-07-02/news/chi-emanuel-super-pac-gets-nearly-1-million-in-one-day-20140702_1_michael-sacks-grosvenor-capital-management-world-business-chicago
- admin - Monday, Dec 1, 14 @ 11:41 am:
How Rahm evaded campaign limits through bundling. http://www.nbcchicago.com/blogs/ward-room/Rahm-Emanuel-Bill-Clinton-Chicago-Fundraiser–258120971.html
- William j Kelly - Monday, Dec 1, 14 @ 11:44 am:
Admin, your hired! I will pay you exactly $ 100,000 dollars, keep it up!
- AlabamaShake - Monday, Dec 1, 14 @ 11:44 am:
**HEADLINE FROM JULY 2014: Rahm superpac raises $1 million in 10 days. FYI this was before the caps were blown.**
You do know the difference between a Super PAC and Rahm’s PAC, right?
- Not Rich - Monday, Dec 1, 14 @ 11:48 am:
You need all that money when you are running for Mayor and you do not have a base of support..
- Knome Sane - Monday, Dec 1, 14 @ 11:48 am:
If you look at the rules for posting here, you will see Rich’s edict about “sock puppetry” being forbidden.
Why is it that I have a strong belief that “admin” and “William j Kelly” are one and the same? While I cannot prove it, I will go to my grave believing it.
- admin - Monday, Dec 1, 14 @ 11:49 am:
@alabamaShake - don’t be silly. Read the bundling article. Rahm had millions in his own committee and millions more in the PAC so the rewriting of history is just silly. Grow up.
- admin - Monday, Dec 1, 14 @ 11:50 am:
Now that the caps are off it is up to Chuy and Fioretti to convince a few big donors they can beat Rahm. If they can’t do that, it’s on them. Much easier than raising small donations from a lot of donors.
- admin - Monday, Dec 1, 14 @ 11:52 am:
@Knome sane is insane. Rich can see that on his end for himself but I will tell you what I don’t like. BS from the real sock puppets like yourself on this site.
- Gooner - Monday, Dec 1, 14 @ 11:53 am:
“Even with Kelly, they ignored him until he donated the $100K”
Given that Kelly made no apparent effort to get on the ballot, it looks like the media made the right choice. Everybody knew Kelly is, at best, a clown. He was never going to be a serious candidate. Why cover him?
- Knome Sane (now known as "The Real Sock Puppet" - Monday, Dec 1, 14 @ 11:55 am:
Notice to all Cap Fax Blog Readers: From here on out, Knome Sane will be known as The Real Sock Puppet. Thank you admin William j Kelly, for my new handle!
- AlabamaShake - Monday, Dec 1, 14 @ 11:56 am:
**@alabamaShake - don’t be silly. Read the bundling article. Rahm had millions in his own committee and millions more in the PAC so the rewriting of history is just silly. Grow up.**
I’m well aware of how bundling works. I’m also well aware that there is a difference between a Super PAC and an individual’s PAC.
- Aldyth - Monday, Dec 1, 14 @ 11:56 am:
Non profits will be decimated by this kind of increase, especially when the state doesn’t increase funding to cover this kind of minimum wage. Agencies are already operating on a slim margin. The only way to give this kind of a raise would be to cut other staff and use their salaries to fund it. In many cases, this will reduce staff to service recipient ratios below legally mandated requirements, to say nothing of reducing the quality of services. Watch out for unintended consequences.
- Gooner - Monday, Dec 1, 14 @ 11:58 am:
Knome Sane,
I had the same thought.
It is odd that one always follows the other. “Admin” seems like the angrier version of Kelly.
Is Kelly posting from two different devices?
- AlabamaShake - Monday, Dec 1, 14 @ 11:58 am:
A relevant article in the conversation about how non-profits are impacted by a minimum wage increase:
http://articles.chicagotribune.com/2012-06-21/news/ct-met-non-profit-executive-pay-20120621_1_nonprofits-ceos-limit
- Dan Johnson - Monday, Dec 1, 14 @ 12:01 pm:
For non-profits who worry about covering the additional labor costs (a) we should really set up a state health insurance pool to provide cheaper health insurance for non-profit employees and (b) hopefully this increased income among low-income workers will reduce the caseload on non-profit agencies. But non-profits shouldn’t be built on a poverty-wage workforce any more than for-profit companies like Wal-Mart.
- Knome Sane (now known as "The Real Sock Puppet") - Monday, Dec 1, 14 @ 12:01 pm:
@Gooner
=Is Kelly posting from two different devices?=
That’s what I suspect. But in a short while, admin William j Kelly will find a third device and change his faux handle to something else.
- William j Kelly - Monday, Dec 1, 14 @ 12:02 pm:
I think goonerer and knome sane are really Rahm!
- Gooner - Monday, Dec 1, 14 @ 12:02 pm:
Sam Toia raised an interesting point.
If Chicago wages are higher, does that mean that suburbanite are going to be more likely to come to Chicago for jobs? Does that create extra competition for out of work Chicago residents?
Some of Sam’s arguments are a bit ridiculous (a bar is going to move to the suburbs based on a small increase in cost of labor? Come on) but that’s a point that really needs further review.
- Gooner - Monday, Dec 1, 14 @ 12:10 pm:
Interesting that Kelly keeps posting here though.
You would think he would be better off working as an intern to Eloise Gerson so that he can learn how to get on a ballot and win a race. Maybe she’d be willing to give him some tips as to how the pros do it.
- admin - Monday, Dec 1, 14 @ 12:11 pm:
I think Gomer and AlabamaShake and Knome San (the Real Sock Puppet) are really Bruce Rauner. LOL
- Knome Sane (now known as "The Real Sock Puppet") - Monday, Dec 1, 14 @ 12:14 pm:
@Gooner =so that he can learn how to get on a ballot and win a race.=
LOL! I would suggest admin William j Kelly would be better served as an admin to Lar Daley or Ray “Spanky the Clown” Wardingly! A triumverate of “winners”!
- Chicago Bars - Monday, Dec 1, 14 @ 12:21 pm:
@Gooner No, a bar won’t move to the suburbs due to a big minimum wage boost. They just won’t open at all on marginal nights (i.e. every Monday and Tuesday from Jan - April) or the owners or managers will take more shifts from hourly employees.
Chicago only minimum wage hike not killing hospitality employment just eroding it further and as you noted, probably putting entry level jobs further out of reach of less skilled Chicago unemployed.
“Some of Sam’s arguments are a bit ridiculous (a bar is going to move to the suburbs based on a small increase in cost of labor? Come on) but that’s a point that really needs further review.”
- Formerpol - Monday, Dec 1, 14 @ 12:41 pm:
Liberals love generously spending other people’s money!
- Frank T. - Monday, Dec 1, 14 @ 12:42 pm:
– Wordslinger — Click on the link and “read the whole thing” as Rich would say. O’Shea brings up several of the points you make about other restrictions Chicago places on businesses. His point is the minimum wage issue is just another log on the fire.
- Cheryl44 - Monday, Dec 1, 14 @ 12:53 pm:
My guess is Rahm wants to pay teachers $13 an hour.
- Gooner - Monday, Dec 1, 14 @ 1:43 pm:
Formerpol,
That’s an interesting comment.
You realize, of course, that full time workers making minimum wage are on some form of welfare? Full time work (36 hours) at 50 weeks a year brings the employee to under $15,000 a year. That’s beneath poverty level, so all those people qualify for benefits.
In fact, since the companies are not paying the working wage, the rest of us have to pay the difference.
The taxpayers end up picking up the tab for the companies that refuse to pay a decent wage.
So you’ve got it backwards, FormerPol. Those low-paying employers are the ones with their hands out. The rest of us are tired of paying their employees.
- Wordslinger - Monday, Dec 1, 14 @ 2:05 pm:
Former Pol, if you’ll google the April 14, 2014, ” Forbes,” you’ll find an article on how taxpayers subsidize WalMart to the tune of $6.2 billion a year in public assistance such as SNAP, Medicaid and housing vouchers.
The fast-food industry is into the taxpayers for $7 billion a year, including $1.2 billion to McDonalds alone.
So, yeah, someone likes spending other people’s money.
But what would you expect from a Commie rag like “Forbes?”
- walker - Monday, Dec 1, 14 @ 3:46 pm:
===The baronial City Council system itself, where you have to kiss the ring, or worse, of the alderman in order to operate a business in the ward boundaries is the most anti-competitive factor in the city.===
Absolutely right, Word.
It has bad impacts in all kinds of other directions as well, especially on public trust in government.
- Yellow Dog Democrat - Monday, Dec 1, 14 @ 3:52 pm:
@Dan Johnson:
The first question you ask of any company that opposes the minimum wage - for profit or nonprofit - is “How much does your CEO make?”
There are legit concerns about the decline in the number of people you can employee in workforce training programs when you raise the wage.
- Waffle Fries - Monday, Dec 1, 14 @ 4:32 pm:
@Dan Johnson - your earlier comment about health insurance is valid and worth investigating - perhaps ways of reducing the burden of fringe benefits employers bear to hire employees?
Your comments don’t address the root issue for those organizations that only due business with the state of illinois to serve people.
The state is the only payer…if they don’t upwardly adjust reimbursements, how do you pay a higher minimum wage?
- Michael Westen - Monday, Dec 1, 14 @ 5:31 pm:
What a bar will really do to beat the minimum wage is pay cash under the table to people willing to work at a lower rate.
- Wordslinger - Monday, Dec 1, 14 @ 7:06 pm:
The obsession among some “economists” here that the least among us getting a bump will endanger the economy is surrreal.
You’re worried you might have to pay a buck and a dime off the dollar menu?
For crying out loud, read the Pew study. Your average minimum wage worker is a white woman over 25 pulling down some form of public assistance.
JHC, does that change your minds?