AUSTIN, TX – Texas Public Policy Foundation issued the following statement on the City of Dallas’s approval this week of a proposal to require city contractors and subcontractors to pay workers a minimum wage of $10.37 per hour, which is a $3.12 increase over the federal minimum wage of $7.25 per hour.
“Artificially increasing city wages is misguided policy,” said Allegra Hill, Policy Analyst in the Center for Local Governance at the Texas Public Policy Foundation. “This is a prime example of how the good intentions of government can lead to bad results for taxpayers and the economy. When government mandates wage increases, taxpayers pay more for goods and services and potential employees who might have otherwise obtained employment get priced out of the labor market.”
“Dallas is already awash in red ink with $6.1 billion in total debt according to the Texas Bond Review Board,” said Dr. Vance Ginn, Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation. “Raising the wage based on the whims of government planners and not on market forces is expected to cost $12 million more per year burdening taxpayers with the expectation of higher taxes and less economic opportunity. Considering this artificial raise will likely not be met with an associated increase in the quality of services provided, taxpayers, contractors, and subcontractors would best be served by pay being determined by the merits of their work.”
For more information or to request an interview with Dr. Ginn or Ms. Hill, please contact Caroline Espinosa at [email protected] or 512-472-2700.
Dr. Vance Ginn is an economist for the Center for Fiscal Policy at the Texas Public Policy Foundation.
Allegra Hill is a policy analyst with the Center for Local Governance at the Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.