This will be the first of two posts tonight. Since the subjects are different and deserve special mention, I'll do two for the price of one.
Got a letter from Governor Ehrlich today and it was very interesting. If you look back and read my April 15 entry (named, appropriately, "Letter to the guv"), you'll find that I wrote Governor Ehrlich regarding two things: urging a veto of the Fair Share Health Act and a veto of a bill raising the minimum wage. I also made a comment about state lands, but wasn't expecting any comment on that.
Well, I got it back and it was solely about the minimum wage. Guess I should have expected a form letter, think that's what I got:
Dear Mr. Swartz:
Thank you for contacting me regarding my veto of House Bill 391 - Labor and Employment - Minimum Wage - Increase. I appreciate the opportunity to respond to you regarding this important matter.
First, raising the minimum wage in Maryland without raising the federal minimum wage is a bad decision that elevates politics over economics and ultimately hurts the people it claims to help. Raising the minimum wage harms most severely those government should help the most - the least skilled and least educated in our workforce. In fact, more than half of minimum wage workers nationally are of high school or college age, and minimum wage jobs for them are a means by which to enter the labor market and acquire skills necessary for career advancement.
Employers have few options to recover the increased costs imposed by government. They can either pass along these new costs to consumers or they can cut their costs by firing their employees. Given our close proximity to Pennsylvania, Virginia, and West Virginia, all of which still follow the federal wage rate, the State of Maryland would be at a competitive disadvantage when competing to attract and retain businesses. Likewise, Maryland employers would have higher labor costs than neighboring states and would be at a significant competitive disadvantage when competing for new business.
This may most adversely affect small businesses, which often can only afford to pay their employees the minimum wage (or slightly above it) in order to stay in business. These Maryland small businesses do not have the resources to absorb yet another government mandate, and since their customers would be free to choose products from cheaper competitors located in neighboring states they will most likely have to fire employees to stay afloat.
Second, for the first time in Maryland history, the Legislative Branch is seeking to sever Maryland's minimum wage from the federal minimum wage. This action sets a dangerous precedent that disrupts the marketplace as businesses face the uncertainty of whether Congress, the Maryland General Assembly, or both will enact the next wage increase, or tackle any other business issue, such as mandating minimum spending on health care.
I believe that each working person deserves an appropriate wage that reflects his or her work, skill level, and productivity. Accordingly, I believe employment and education provide the necessary foundation for future success in life. Raising the minimum wage reduces employment opportunities for those who need it most, thereby limiting an individual's training, experience, and skills.
Thank you again for your letter. If I may be of further assistance on this or any other matter, please do not hesitate to contact me.
Very truly yours,
Robert L. Ehrlich, Jr.
Governor
Actually, when I reread it again (as I type it), he (or whoever actually wrote the letter) made some pretty compelling (if standard) arguments. I did like the dig at "mandating minimum spending on health care."
The thing that I would point out to Governor Ehrlich is that, since you don't want "yet another government mandate", let's propose that we eliminate more of them! I can think of one that annoys me every time I go to a ballgame: somebody's bright idea to spend money on a billboard, buttons on the employees, and a program ad to "strike out tobacco." Now I don't smoke and I have asthma. If they don't allow smoking, that's cool. But why spend that money to discourage smoking, especially since it's the sale of tobacco that helps tax revenues in Maryland?
Anyway, I appreciate that he wrote me back. Nice to know they take a moment to listen to the citzens.
