That’s immediately what I thought of when my better half told me about this stupid article in Investor’s Business Daily about the minimum wage and UC Berkeley.
See, folks at Berkeley touted the $15/hr minimum wage as a good thing, and then UC laid off a bunch of people. Coincidence? The good people at Irritable Bowel Disease think not!
Except, few at UC gets paid the minimum wage. And the $15/hr minimum wage has not taken effect and won’t take effect for years. And the reason for the job cuts are the highly strained budget situation at the UCs, a problem that is hardly new.
You could make an argument that a $15/hr minimum will strain the economy, resulting in lower tax revenue, resulting in less state money, resulting in layoffs at the UC’s. I guess. Quite a lot of moving parts in that story, though.
Smells like bullshit.
Edit: UCB does have its own minimum wage, higher than the California minimum. It has been $14/hr since 10/2015 and will be $15/hr starting in 2017. (http://www.mercurynews.com/business/ci_28522491/uc-system-will-raise-minimum-wage-15-an)
Another edit: Chancellor Dirks claim the 500 job cuts would save $50M/yr. That implies an average hourly cost of $50/hr. Even if 1/2 that goes to overhead and benefits, those would be $25/hr jobs, not near the minimum. In reality, the jobs probably had a range of salaries, and one can imagine some were near the $15 mark, but it is not possible that all or even most of them were.