The price of living

Later this year, it appears that the Bloomington's city council will take another step in progressive government reform by thrusting its fingers into the pies of the Bloomington market by proposing a "living wage" for our fine city.\nThis ordinance would affect companies that, according to the Indianapolis Star, "do business with the city" -- contractors, city employees and businesses that receive tax abatements or other city subsidies (not-for-profits like Middle Way House).\nWhat does it do? The idea is that it takes the federal "minimum wage" and with a little verbal slighting, turns it into a "living wage" which would give $10 per hour to employees who receive health care benefits or $11.50 per hour to those who do not.\nNoble, noble indeed.\nBut we have to wonder exactly how such a pipe dream can go off without a hitch. Surely, we can't oppose paying working families more money, but will businesses go for it?\nThe market is a strange and mysterious thing. But one aspect that we've grown pretty fond of is that Adam Smith's economic "invisible hand" doesn't like to be pushed around. Our federal minimum wage already has tight-fisted companies fleeing to areas where they're free to pay workers a much scantier salary. How can we imagine that raising the wage will bring investors to Bloomington to do business and pay workers more? \nFurthermore, when it comes to keeping workers on payroll, are we to assume that all employees will magically enjoy pay raises and not feel the brunt of that burden on the worksite? Even if we want to fool ourselves into thinking that all workers will actually keep their jobs, it seems unlikely that their list of duties will remain at their bare minimum. For employers, more pay will most likely necessitate "more output" if they are to maintain their fiscal bearings.\nFinally, what of our not-for-profit organizations who benefit from city aid? Granted, they operate mostly on a volunteer basis, but can those administrative and staff employees -- who undoubtedly deserve a raise for their socially conscious work -- stretch their organizations' already paper-thin budgets?\nUnfortunately, it seems the best answer truly isn't the most workable answer. Hopefully, our cynical view of the market is just that: cynical at best. Anything our city can do for the people who keep its wheels turning is worth pursuing. But as Chris Schrader, legislative liaison for the South Central Indiana Human Resources Association suggested to The Indianapolis Star, perhaps denying tax breaks to businesses that do not pay decent wages could be supported without a mandated "living wage."\nForcing the market to compete using Schrader's method seems to be the way we've become the world's leading economic power. If it ain't broke, don't fix it.