Lessons from Broome County
October 4 , 2005
RBA Editorial

The Broome County case is the clearest example yet of the issues in play with Living Wage ordinances. The bill would have wreaked havoc on Broome’s economy with little or no actual benefits to the working poor. The only victors would have been the national Living Wage movement and their union sponsors, who could put another checkmark on their blackboard.

Because so many workers in the county rely on food stamps and other government services, the bill, as opponents of Living Wage ordinances have always contended, would actually harm those people’s economic standing.

The bill, as drafted, would have cost businesses in the county $7 million, which in turn would lead to higher prices, layoffs and companies leaving the county altogether. The County Executive had put aside $200,000 for the Living Wage, but when she found that it would cost the county budget $1.6 million she backed off of her support.

This means the legislature would have had to raise taxes, which in turn would further hurt businesses and the economy as a whole. The ripple effects of the Living Wage bill could have sent Broome County into a recession.

According to legislator Michael Schafer, the majority of Living Wage activists in the county appeared to be on a blind crusade, with little or no consideration of the economic impact of the bill. This is consistent with the RBA’s research into the issue, which finds that the Living Wage movement is simply a political tool of major unions.

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• "Living Wage" Defeated in Broome County

• Living Wage Bill Passes in Albany Without Opposition

• Lessons from Broome County - RBA editorial