Liberals in California finally got what they wanted: a $15 an hour minimum wage statewide. It will be gradually increased annually, reaching $15 by 2022.
This should serve as a valuable real-world economics lesson on intentions vs. results.
The University of California at Berkeley has maintained a reputation as one of the nation’s most liberal colleges for decades now, and the students there are about to view the results of their activism in real time.
Via the SFGate
Financially troubled UC Berkeley will eliminate 500 staff jobs over two years to help balance its budget by 2019-20, The Chronicle has learned.Yes – even the University charging 40k a year for out of state tuition has to cut jobs in response to a $15 minimum wage. Chancellor Nicholas Dirks sent a memo to employees Monday informing them of the job reductions and said they will amount to “a modest reduction of 6 percent of our staff workforce.”…
An estimated $50 million will be saved by eliminating the jobs, Dirks said in the memo, which offered few details.
The news was greeted with anger by some labor union leaders, who criticized Berkeley and the entire UC for what they say is excessive spending on executive salaries at the expense of lower-paid workers.
So who will be losing their jobs?
The $15 minimum wage hike in California has sent financially troubled UC Berkeley into decision making mode, and “the people who clean buildings, who work in food services or health clinics,” says Todd Stenhouse, will be the ones without a job.
Stenhouse, a spokesman for the American Federation of StateChancellor, also said “There’s a very clear need for those front-line services. But the question is whether there really is a need to hemorrhage resources on executives.”
It isn’t professors losing their jobs, it’s those who we were told the minimum wage hike would help.
The Fight for Fifteen movement is stronger then ever, and at this rate, they’re going to put every liberal out of a job.
[Note: This post was authored by The Analytical Economist]