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Piece Meal Reform

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In discussing the Maryland Fair Share health care law or the Chicago retail wage law, a lot of liberals tsk, tsk the idea that it only applies to a limited number of businesses.  The New York Times today bemoans the "fractured" nature of reforms represented by the Chicago bill,

Yet almost all social reforms have been enacted piece meal, including the original minimum wage law (more on the flip):

In fact, the original Depression-era 1938 Fair Labor Standards Act applied only to certain large manufacturing and other firms involved in a limited definition of interstate commerce.  It would take decades for it to be extended to retail, local transit, construction, health care, and a range of other services.

But since we are talking about "large retail", the 1961 amendments to the Fair Labor Standards Act begins:

An Act To amend the Fair Labor Standards Act of 1938, as amended, to proride coverage for employees of large enterprises engaged in retail trade or service..

Note the emphasis on "large" and "retail."  The 1961  act only extended the minimum wage to retail employees in large retail stores, much like the Chicago bill approved by that city council.   It was only a number of  years later that employees in smaller retail stores along with a range of other industries were covered by the federal minimum wage.  (See here for the evolution of coverage under the Act).

For many political reasons, most social reforms are not enacted all at once.  Quite reasonably, governments experiment, seeing if regulations applied to one industry segment, especially larger employers most able to absorb higher costs, are successful.   

It is a perverse corporate trick to demand complete across-the-board regulation all at once as the condition for even experimenting with a reform.   In fact, all industries aren't alike, so differential regulation often is needed.  In fact, industries regularly go to government asking for exemptions from various regulations or for various tax breaks based on that exact argument.   So while businesses regularly demands differential regulation to relax taxes or regulations, they claim "discrimination" when they are subjected to higher tax or regulatory responsibilities. 

What is shocking is that so many liberals buy into this trick.   The courts never have.  In fact, in the New Deal case, West Coast Hotel v. Parrish, that marked the Supreme Court backing off from striking down economic regulation, the court explicitly upheld selective regulation, saying :

The legislature “is free to recognize degrees of harm and it may confine its restrictions to those classes of cases where the need is deemed to be clearest.” If “the law presumably hits the evil where it is most felt, it is not to be overthrown because there are other instances to which it might  have been applied.”

More recently, the Ninth Circuit Court of Appeals upheld a Berkeley ordinance that created a higher wage just for businesses in a special tourist zone in its marina, citing West Coast Hotel and saying that judicial concern for equal protection is based on concern for “vulnerable” persons and that “a number of large businesses that occupy and profit from prime real estate can hardly be considered vulnerable.”  Quoting other Supreme Court precendents, the Court noted:

‘[R]eform maytake one step at a time, addressing itself to the phase of the problem which seems most acute to the legislative mind. The legislature may select one phase of one field and apply a remedy there, neglecting the others.’ ” Id. (quoting Williamson v. Lee Optical of Okla., Inc., 348 U.S. 483, 489 (1955))
Those who worry about "singling out" Wal-Mart or retail businesses or any subset of firms for initial reforms are fundamentally ignoring the whole history of progressive legislative change.  It has inevitably been an incremental, piece-meal endeavor.   The comprehensive laws people celebrate today are the product of decades of incremental amendments based on original piecemeal reforms.So celebrate the Chicago ordinance to raise wages for employees at large retailers.  Yes, it's a piecemeal reform but that is the rock on which cathedrals of broader change are built.  Liberals should remember their own history in understanding that basic fact. 

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I often applaud local, incremental gains. They're appropriate in building consensus, as with gay unions or, for that matter, whenever workers organize. They're appropriate in locating points of light in bleak times, as in 1938, as the New Deal piece by piece took us away from the Gilded Age. They're appropriate in demanding immediate enforcement of federal laws that already apply to all Americans, as with state joint suits on the environment under the ruinous rule of Bush's EPA.

I think none of those apply to health care, and every time we do not demand university health care, we compromise and we lose. There is public consensus, and we cannot accept waiting another 35 years. Nor are the incremental gains so striking as for Fair Practices. when most large businesses already provide the little health care America affords. Also, incremental gains in federal legislation do not necessarily parallel gains based on the laws or constitutions of the states. State laws are not helping us remove the shame of the GOP Congress on the minimum wage or health care.

At best, it puts pressure on a few test cases, like WalMart, and at best they'll get so angry that they join the demand to transfer the burden to government. But that's not parallel to Fair Practices, which forced businesses get to bear a burden they very much should bear. To return to unions again, I love it when you organize another sector, but I hate it when you relish a gain and turn your back on me. I love it when you alter the private sector, but I hate it when you forget

John

http://www.haberarts.com/

Let's not forget all the legislation that is worded in such a way that it benefits only a specific firm. Most commonly this ends up giving the firm a special tax break or so words a request for proposals that only one company meets the requirement when the contract is awarded.

Whenever something progressive is proposed the business community trots out various Libertarian nostrums about "fairness". Just more smoke.

--- Policies not Politics
Daily Landscape

Let's not forget, too, that the problem with the minimum wage already is a consequence of waiting, of what those dollars mean today.

John 

http://www.haberarts.com/

Crablaw WeeklyMorally, is an employer as an employer more responsible for offering health insurance as part of an overall comp package than is society as a whole?

In other words, why does Jack's health insurance needs become a valid lien against Wal-Mart's when his other insurance needs (auto, home, renter's, etc.) do not?

Why is the employment relationship the appropriate one on which to base health policy? Isn't the Canadian or Australian or French system fairer?

I do not like Wal-Mart for other reasons (inc. its union busting practices) but it is not clear to me morally that an employee becomes entitled to health insurance upon employment at the employer's dime. Perhaps I am taking the narrow view, but it seems to me that all of us - meaning me, you and everyone rich and poor alike - are responsible for the health needs of the poor. I say this as a Marylander whose son gets medical assistance.

Republicans fight the "Every Man for Himself and Every Woman for Your Husband" revolution incrementally as well.

So instead of giving us a couple hundred Paris Hiltons all at once with this Estate Tax nonsense, they give us only a couple dozen each year.

I guess that makes it more palatable, somehow.

-- 

-- All successful revolutions are the kicking in of a rotten door. (John Kenneth Galbraith) --

hmmmmmmmmm

I tend to agree with you about the Wal-Mart health care law, because it's something new and different, that could well end up serving as a model.

But at the same time, I think that Living Wage laws are pretty pointless, since they affect very few workers. Minimum wages are hardly new, so there's little point in thinking of them as a demonstration program. Instead, they're worthless symbolic victories, absorbing energy & resources that could have been better spent to achieve real victories.


So Chicago wants to see new big box stores built just over the border in the suburbs. This is no doubt a great victory for the suburban tax and jobs base.

The sons of the prophet are noble and bold,
and quite unaccustomed to fear.
But the bravest by far in the ranks of the Shah
was Abdul Abulbul Amir

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