Leave it to Mayor de Blasio to look at a bad law that wasn't working and conclude the answer is to make it even worse.
Two years ago, the City Council passed a so-called living-wage bill — overriding then-Mayor Michael Bloomberg's veto and waiting out his subsequent lawsuit. The law requires any project receiving $1 million or more in public subsidies to pay its workers above-market wages.
The idea is to mandate wage increases to make it more affordable for low-wage workers and their families to live in this city. The reality is that when you do this via government decree, you make low-skilled workers more expensive to hire — and an already high-priced city even more expensive to live in.
That's because the cost of those higher wages has to be paid somehow, usually either by reducing the amount of work for employees or by raising prices for customers.
Since Bill de Blasio can't repeal the laws of economics, he has now simply amplified the problem.
The council had approved wage minimums of $10 per hour for businesses that provide benefits and $11.50 per hour for those that have no benefits. Under the mayor's new executive order, minimum wages have now been jacked up to $11.50 per hour and $13.13 per hour, respectively.
He's also widened the net. Even businesses merely renting space in a subsidized building — whether they received a subsidy or not — are now on the hook for the higher wages.
Furthermore, where the original law aimed to protect businesses from frivolous lawsuits, de Blasio's executive order practically invites them. That's no small thing in a city where trial lawyers already file about 50 wage-related suits a month.
Worse, the mayor's executive order may not be legal. Even city Comptroller Scott Stringer — in principle, a supporter of the law — claims the order removes his office's responsibility to oversee living-wage regulations.
Moreover, under current law, Albany is supposed to have the final say on basic wages. De Blasio's action, particularly since he acted without City Council involvement, may open the city to lawsuits from affected businesses.
So with the stroke of a pen the mayor invites the potential for fewer jobs, higher prices — and increased litigation against private businesses and the city.
Even the handful of people who will now earn more per hour will likely find the extra cash eaten up by the higher costs they will pay as consumers.
Anyone really believe a mayor can make his city more affordable simply by decreeing what businesses have to pay their employees?
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