I have been advocating for a long time that living wage in South Dakota, especially Sioux Falls should probably be nipping the heels of $20.00 per hour, imagine my surprise when this report came out;

This means that of the 50 states, (Puerto Rico and D.C. are not included) South Dakota is one which costs the least to survive in. But how does a $9.95 minimum wage match up to a $45,000 living wage?

Assuming a 40-hour work week, and 50 working weeks per year, a $9.95 wage comes to $19,900 per year. To match the living wage for South Dakota, the minimum wage would need to rise to $22.50/hour.

Our cost of living adjustments are also very high (notice housing);

While we have a governor who blabs about liberty and freedom and a mayor who decries ‘wage inflation’ you can tell the reality is that we lag very far behind and don’t look to their supposed leadership to help the situation. It’s time to start electing representation that wants to make changes instead of coddle the business elites, hospital industrial complex, and welfare developers.

While some may be surprised that I do not support it, it is for other reasons. It should be $18-20 an hour and it should take affect within two years with four 6-month steps. There should also be an automatic inflationary COLA every year.

If they pass a Federal $15 an hour minimum wage, it won’t take fully affect until 2025. What’s the point?!

There is also a lot of misinformation out there about how this will kill businesses and cause mass unemployment. Not the case, when states have raised their minimum wages they did see an initial hike in unemployment, but in low wage jobs, after a year they actually saw economic growth and the GDP in the state rising. Believe it or not, when you pay people more, they spend more, and it helps the economy. What an amazing concept!

You also need to understand that this only affects large businesses who participate in interstate and international commerce. Like Walmart or Amazon. Ma an Pa’s Ice Cream Parlor in Bumf’ck Indiana won’t have to pay those wages.

And now for the obvious reasons this is the right thing to do. The large corporations who can afford an $18 an hour minimum wage, CAN AFFORD THE WAGE. They make Billions while paying very little Federal income taxes then turnaround and expect the very taxpayers who do pay their taxes (us) to subsidize their low-wage workers in the form of Medicade, SNAP and and housing. It was once estimated that because of the low wages Walmart pays its workers, EACH store costs taxpayers $1 million a year in worker subsidies. Why not just pay workers a living wage?

The upside is a boon in economic growth because instead of the top 1% sitting on all the wealth in our country, the workers would be spending it!

I guess I have never understood the argument that we need to starve workers while the top 1% sit on loads of money they will never be able to spend. It’s NOT a socialistic concept, it’s just good economics.

Funny how these things happen;

B & G Milky Way franchise owner DiAnn Burwell said “I’m here from open to close, every day, making sure the stores run right. I do my own accounting, I do my own ordering, I do my scheduling,Ii do everything. If I could afford to have somebody do that for me, I would, so $8.50 an hour scared me to death.”

Dropping the minimum wage for teens under 18 a dollar, from $8.50 to $7.50 an hour, may help some small business owners like Burwell.

“DiAnn gave a big sigh, it eased the pressure off me somewhat,” Burwell said.

It seems the only thing she was worried about was her bottom line, which seems to be doing just fine two years later;

The franchisee, a Sioux Falls couple, will operate the new location along 41st Street just east of the Harmodon Park entrance, said Bruce Bettmeng, who owns B&G with his wife, Pam. The Bettmengs will own the land and building, and lease it to the franchisee. The couple isn’t ready to announce their ownership yet, Bettmeng said. The wife worked for him at the B&G on West 12th Street about a decade ago.

If there is any argument behind raising the minimum wage, it should be it’s GOOD for business. I find it hard to believe they can continue to sell this successful franchise if the franchise owners were struggling to pay employees.

As you can see by these numbers, there is wide support to increase the minimum wage in Sioux Falls. Councilor Anderson said in the Argus today that he doesn’t think the council should get involved in the matter, but as you can see in his own district it had 64% support. This tells me that if the council proposed a $10 citywide increase in the minimum wage, the only real blowback the council would get is from the Chamber and the business community. You never know though, businesses that already pay over that amount may come out promoting the measure.

Voting Results for Initiated Measure 18 November 4, 2014 within the City of Sioux Falls

Minnehaha County alone

Yes – 61%

No – 39%

Lincoln County alone

Yes – 54%

No – 47%

City of Sioux Falls (Minnehaha & Lincoln County combined)

Yes – 60%

No – 40%

Northeast District, City of Sioux Falls (Councilor Kenny Anderson’s District)

Yes – 64%

No – 36%

 

Commissioner Barth thinks so;

Under the Sioux Falls Charter Form of Government, the city can do anything not forbidden by state statute. Thus, Sioux Falls can and should raise the minimum wage within its municipal boundaries. There would be fewer families and kids depending on taxpayer and charitable assistance. Yes, it would cause a stir, but the free publicity would help send forth the word that “Sioux Falls has jobs” and that these jobs pay a living wage. Many employers are already paying $10 and up for entry-level-positions, so the effect on local employers would be minimal.

When Jeff first proposed this to me over a month ago, I kind of laughed to myself. But is it that far-fetched? I called Jeff the other day while driving past Mickey D’s? What did the marquee say? “Do you want to make $10 an hour?” WOW! Even the famous fast food joint is paying that as a starting wage in Sioux Falls. (for full disclosure I was making that much in 1989 at a McDonalds in Everett, WA as the summer night maintenance person – 25 years ago – and I got to wear some cool coveralls!).

It seems our city council has pulled up their boot straps lately. Wrangling in pool rates, a texting ban even free youth bus rides. Is it time for our legislative body to send a message to employers in this town? How about a message to Pierre? While we are quick to give away free things to the ‘poor kids’ how about giving them a ‘hand up’ instead.

I at least encourage the city council to look at the measure.