Raising Virginia's Minimum Wage?

Tim Kaine has joined Jim Webb and others in calling for an increase in the minimum wage.

The state might raise its own minimum wage if the federal government does not increase the national minimum wage from $5.15 an hour. "If the federal government doesn't, I think there is a role for the state to consider it," Kaine said.

Free Enterprise Watch opposes Virginia raising it's minimum wage above the federal level for several reasons. First, it's bad economics. Last year, only 2.5 percent of all hourly-paid workers in the United States were paid at or below the federal minimum wage. Entry-level workers who begin their careers at the minimum wage typically experience the fastest growth of all hourly-paid workers in the United States were paid at or below the federal minimum wage.

When minimum wage workers receive a statutorily-mandated raise, hourly employees making $7, $8 and $9 will also demand wage increases. This puts significant stress and strain on businesses, particularly small business owners.

Second, if Virginia were to raise the minimum wage above the federal level, it would serve as a disincentive for businesses to grow and stay in the Commonwealth. Some of our neighbors, including West Virginia and Maryland have higher hourly minimum wages than the federal rate.

Free Enterprise Watch believes it is in our shared interest to keep Virginia's minimum wage on an equal footing with the national level as it would sustain our economic advantages in attracting and retaining businesses, which in turn create jobs and grow the economy.

Milton Friedman, R.I.P.

“Underlying most arguments against the free market is a lack of belief in freedom itself.”
--- Milton Friedman

Free Enterprise Watch mourns the passing of one of the intellectual giants of the 20th century, Milton Friedman. As the public face of the “Chicago School” of economics, Mr. Friedman believed government’s role was to stabilize money supply and then get out of the way. He was a tireless supporter of deregulation, low tax burdens and free trade.

The Wall Street Journal has an excellent summary of his life and economic philosophy. See here and here.

Our friends over at National Review said it best: “With [Milton Friedman’s] death on Wednesday, at the age of 94, liberty has lost a great friend and champion.” R.I.P.

Ted Kennedy's Regs Will Hurt Virginia

Today the Richmond Times-Dispatch reports that Senator Kennedy plans to seek federal regulation of tobacco products. Kennedy believes, “Empowering the Food and Drug Administration to regulate tobacco products is long overdue.”

New federal tobacco regulation will hurt Virginia’s strong economy. While semiconductor production recently past cigarettes as the top manufactured export, cigarettes and soybeans remain Virginia’s largest cash crops. Tobacco pumps more than $161 million a year into the Commonwealth and we are the nation’s 4th largest tobacco producing state. Virginia’s tobacco cultivation has helped other industries in the state. For example, the Port of Hampton Roads exports more tobacco and tobacco products than any other port in America.

Government regulations place handcuffs on our market. As Attorney General Bob McDonnell said when announcing Virginia’s Regulatory Reform Commission, “Regulations affect our lives every day. . . . And excessive and burdensome regulation can be seen in increased costs borne by consumers.”

Experts believe that our tobacco production will improve with the growing economy. “[Virginia’s cigarette] exports could rebound as the price of U.S.-grown tobacco drops,” according to Darryl Jayson, vice president of the Tobacco Merchants Association.

However, there is a direct correlation between government regulation and consumer prices. As industry regulation increases, manufacturers bear greater compliance costs and they in turn pass those costs to the customers.

If Ted Kennedy gets his way, Washington bureaucrats will win and Virginians suffer the consequences.

Kaine Insults House of Delegates Members

This video footage is of a recent speech by Tim Kaine introducing House of Delegates Democratic Caucus Chairman Brian Moran to the crowd. Is this what Mr. Kaine means when he speaks of bipartisanship?

Big Labor's Buddy: Jim Webb

Yesterday, Senator-elect Jim Webb said this of his first days in Washington: "I look forward to joining Senator Schumer very soon in voting to increase the minimum wage," he said. Earlier, we have earlier discussed why this is bad policy.

Labor unions spent an unprecedented amount of money in this year's midterm elections. The AFL-CIO alone spent $40 million to influence the election and through grassroots outreach, contacted 13.4 million voters. Along with Tennessee, Virginia was one of the state's in the crosshairs of labor.

Now comes payback time. The labor bosses want an anti-business agenda pushed through the Congress. Jimmy Hoffa - President of the Teamsters - wrote a post-election Op-Ed attacking free trade agreements like NAFTA, calling for an increase in the minimum wage and universal-socialized healthcare.

And how does Virginia's new junior senator respond?: At his victory rally, he said:

"I am indebted to you and I will not forget my loyalties," Webb told a crowd of about 400 cheering supporters in a plaza near Arlington's courthouse.

And just today, Senator-elect Webb heeded Mr. Hoffa's call for protectionism:

In the age of globalization and outsourcing, and with a vast underground labor pool from illegal immigration, the average American worker is seeing a different life and a troubling future.

Free Enterprise Watch's Issue Advocacy Campaign Successful in 50th H.O.D. race!!

Free Enterprise Watch's issue advocacy campaign successfully educated Virginians about business issues and the candidates vying for the 50th House of Delegates seat. Jackson Miller and Jeanette Rishell held vastly different positions on the merits of our free market system and the best ways to preserve our economic prosperity. FEW's educational literature and candidate survey informed citizens of Manassas, Prince William and Manassas Park about how their candidates would represent them in Richmond. We would like to thank Jackson Miller for his commitment to our shared principles and congratulate him on a successful campaign. Ms. Rishell's troubling comments to Virginia FREE concerned members of the business community, and our efforts helped bring her positions to light.

Free Enterprise Watch is the advocate and the voice for Virginia businessmen and women who want to meet the challenges of our dynamic global economy. We will work with those who support pro-business policies and fight to keep Virginia the number one place in America to do business.

Increasing the Minimum Wage: Bad for Business and Consumers

Just like our Right-to-Work law, Virginia's minimum wage rate is another reason why so many businesses invest in (or relocate to) our Commonwealth.Today's Wall Street Journal illustrates some of the economic challenges that have resulted from Oregon's 2002 raise in the minimum wage:

Some businesses say they have avoided expanding in Oregon because labor costs have risen, the sort of change in behavior at the margin that foes of a minimum wage worry about.

At Petite Provence eatery in Portland, co-owner Didier Blanc says the minimum wage, while paid only to servers, has had an "aftershock effect," forcing him to raise wages for all employees. While servers earn the minimum, bakers and cooks earn between $9 and $12 an hour. The costs are passed on to customers.

"After it goes up, everybody at $9 an hour and above will want some kind of raise," says Mr. Blanc. "We have to pass it on in our prices because it goes straight to our bottom line."

"It's important to take care of people in minimum-wage jobs, but what's missed is the impact on the economy and job creation," [another Portland business owner] says. "It's not feasible to hire 10 people, so I'm just going to hire seven." He says labor costs scotched plans to open a restaurant in Bend, Ore., a tourist hotspot.

Miller Proves His Mettle

Free Enterprise Watch recently surveyed the candidates for Virginia's House of Delegates 50th District race. Jackson Miller's responses showed his committment to promoting economic opportunity for Virginia's vibrant business community. Jeanette Rishell did not respond to our survey and repeated calls to her office went unreturned. Free Enterprise Watch has launched an issue advocacy campaign in the 50th House District to educate Virginians on Ms. Rishell's record.


Please visit our media center to view the survey and our press release.

Webb Finally Takes a Stand on Issues – Joins Weed in Siding with Labor Unions

On Halloween, U.S. Senate Candidate Jim Webb offered his support to the striking workers at Danville's Goodyear plant. These are the same union members who were "yelling and gesturing" at replacement workers and necessitated police involvement.

Mr. Webb said:

"You'll get two things out of me if you support me -- you're going to need a voice, not only in Congress, but somebody who will sit down and try to speak reasonably with the companies."

The Richmond Times-Dispatch reported, "Webb enjoys the support of organized labor and picked up the endorsement of the steelworkers this summer."

Webb isn't the only politician to visit the striking union workers. Congressional candidate Al Weed has made multiple trips to visit the picketers.

"Everybody should want to stand with them," Weed said Tuesday, adding the union members were fighting for the rights of all working people when they went out on strike.

These union groups fight against Right-to-Work laws, oppose free trade and maliciously target successful businesses. Because of Virginia's strong Right-to-Work law and other pro-business policies, companies want to move their operations to Virginia.

You can tell a lot about a man by who his friends are, and Mr. Webb and Mr. Weed's friends support policies that will choke Virginia's vibrant business climate.

$10,000 Here, $10,000 There

The most recent report of the Virginia Public Access Project (VPAP) shows that Governor Kaine's political action committee, Moving Virginia Forward PAC, received $10,000 from Virginia's AFL-CIO on October 27, 2006. Tim Kaine received more than $1.55 million from organized labor in his campaign for governor. Governor Kaine created a cabinet level position for the former president of the AFL-CIO Daniel LeBlanc to advise him on workforce issues.

How much influence do pro-union sympathizers have in Richmond? As the governor recently said "Because of who he is and his unique experiences and skills, this might be the place where he can make the biggest mark of anywhere in state government, and I think we both have a good feeling about that opportunity."

Organized labor is talking to a lot of folks - not just the governor. In 2006 - a non-election year for Virginia public officials - big labor has contributed more than $325,000 to the coffers of anti-business officials and organizations.

Keep checking in with Free Enterprise Watch to learn about the latest developments with labor's historic influence in Virginia.