Part of SeaTac’s minimum wage measure struck

Reproduced here for fair use and discussion purposes. My comments in bold.

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I found this interesting, not because of the arguments for or against increasing the minimum wage, per se (I discuss that in more detail here), but because the city of SeaTac is a perfect test case to see in a microcosm how the minimum wage increase affects unemployment and wages.

However, the main reason for the post today is to take a look at the actual figures involved. First, the population of SeaTac is 27,667 in 2012. The national labor participation rate is 58.6%. The minimum wage affects 4.7% of workers nationally.  Interestingly, the great bulk of these workers are 16-19 years old:

So, let's calculate: 27,667 * .586 =  16,213 total workers in the city of SeaTac. 16,213 * .047 equals 762. Therefore, this law, for all the hype about the poor and how they need our help, affects just 762 people. Imagine that.

I t occurs to me that people who make more than the $9.15 an hour but less than $15 will also be affected. I was unable to determine how many people that might be. But in any case, what we have here is a symbolic issue that helps very few people. 

What doesn't seem to be well understood is that the economy is not a closed system. A change made in one place, even under the auspices of "compassion," will have unintended effects elsewhere. The Left tends to ignore or poo-poo these effects, because once again, they're "helping people."

For the Left, this is how government is run, symbolically, so that the people can be manipulated. Good intentions are sufficient, and those who disagree with their methods or point out their bad results are deemed to be in favor of suffering, hunger, and poverty. 

So what results can we expect from SeaTac raising the minimum wage? As we have noted, a relative few people actually affected by this change, but it sends a message about what SeaTac thinks about its business climate. This will have a chilling effect, an effect that will not be apparent to the casual observer, or to those who are inclined to doctrinaire leftism. 

I think the situation will be marked by what will not be seen. That is, the businesses that decide not to locate there. The jobs that will not be created. The entrepreneurs that will not start businesses. It's difficult to quantify things that will not happen.

That being said, some things can be predicted. One, it will be difficult for a teenager to land his first job. Two, it is likely that the unemployment rate in SeaTac, currently higher than the Washington rate, will remain higher. Three, the cost of goods and services will increase.

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SEATTLE (AP) — A King County Superior Judge struck down the voter-approved $15 an hour minimum wage for the vast majority of workers the measure aimed to help.



Judge Andrea Darvas’ ruling on Friday said the recently-approved measure applies to about 1,600 hotel and parking lot workers in the city of SeaTac, but that the city initiative does not have authority over 4,700 employees and contractors working within Seattle-Tacoma International Airport, which is operated by the Port of Seattle.

Darvas said the state Legislature has given municipalities like the Port of Seattle “exclusive jurisdiction” over their operations.

“The Washington State Legislature has clearly and unequivocally stated its intent that municipalities other than the Port of Seattle may not exercise any jurisdiction or control over SeaTac Airport operations, or the laws and rules governing those operations,” she wrote in her ruling.

Proponents of the measure say they will file an expedited appeal to the state Supreme Court, as expected.

In November, voters in the city of SeaTac narrowly approved the labor-backed measure, which would require a $15 minimum wage, a handful of paid sick days and other standards to around 6,300 workers at the airport and related industries, like hotels and rental car companies.

“While we appreciate the judge’s affirmation of parts of SeaTac Proposition 1, the voters approved the entire ordinance, not just parts of it. People working at the airport need paid sick days, tip protection, job security and a $15 (an) hour wage to support their families,” Heather Weiner, spokeswoman for Yes For SeaTac said in a statement.

The challenge to the newly approved measure is led by Alaska Airlines Group and other businesses.