Discussion about this post

User's avatar
JakeH's avatar

Re upping the minimum wage for tipped servers to the standard minimum wage, I read the Sun-Times article, and I was struck by the fact that nobody addresses the apparent unfairness of the proposal. Why are servers entitled to higher minimum compensation than most everybody else? By the same token, why should employers in this sort of business (a notoriously challenging one) be required to guaranty a higher minimum than employers in other businesses? It seems to me that servers should be guaranteed the same minimum *total* compensation as, say, warehouse workers or nursing home caregivers, including whatever tips they take home.

Don't get me wrong. I think that every adult who is working full-time should take home -- at least -- enough to live on in their area and, I'd go further, live on with modest comfort and an ability to save. People will disagree about what that means, but we're probably not there. I look at the *median* wage in various places and think, gosh, I wouldn't want to make much below that.

Most economists will tell you that the minimum wage is a questionable way to achieve that end. Very simple supply and demand graphs -- the stuff of Econ 101 textbooks -- suggest that price floors of any type (including minimum wages) can be expected to produce surpluses (meaning greater supply than demand, meaning fewer employed servers, i.e. at least some unemployment). I'm aware of real-world studies that dispute traditional theory on this point and, if the minimum wage does not far outstrip market equilibrium, the overall effect is negligible anyway. Still, I think most economists prefer mechanisms like the earned income tax credit, the worthy but confusingly named program that puts money in recipients' pocket even above any tax liability -- a sort of government top-off for the working poor. My hunch, though I haven't studied it much, is that our EITC should probably be more generous than it is.

But I'm perfectly willing to concede that the pro-minimum-wage side of that argument is right. I still don't see why that minimum wage should be, in effect, higher for some workers than others. The basic rationale for a lower minimum wage for tipped servers makes sense to me. Because of customary practice in this particular area, they routinely get much of their compensation through tips rather than wages. To the extent they don't, the employer should be obliged to make up the difference, but I struggle to see the argument for requiring more than that.

The sentiments quoted in the Sun-Times article are a little scary in that they betray a startling lack of inclination to think systematically and make coherent arguments about policy. Government policy is all about thinking systematically about the big picture. The guiding principle on display here is, rather, the feels in the room. We hear about how young people need a living wage. But why do young servers have a greater need than other young workers? We hear specious appeals to racial equity, as though people of color don't work in warehouses or nursing homes or as security guards or cleaners or retail workers or grocery store workers, and so on.

What am I missing?

Expand full comment
Peter Zackrison's avatar

I think we need to call out this NASCAR race mess. Road closures are already causing problems and it is only going to get worse. Hope we have few medical emergencies and fires in the area while this event clogs stuff up and slows emergency vehicles from doing their job.

The race pricing eliminates a lot of Chicago folks from watching. This event is for rich people. I think the race itself will be dangerous both to the drivers and audience. Can the temporary barriers really protect folks when two cars crash at 120 miles an hour and the debris flips over into the crowd?

I expect the noise pollution as well as the air pollution will be bad.

There may be some participation in the first year as something “new”; but will year 2 and 3 likely draw big crowds - I doubt it.

Finally once the event is completed, will the roads be damaged and will NASCAR make repairs or will taxpayer money be used?

This is a lose-lose deal for the people of Chicago. It may go down as another really bad deal in Chicago along with red light cameras, the Daley parking deal and Soldier Field renovation.

Expand full comment
20 more comments...

No posts