Wednesday, January 18, 2017

Just when you thought MoCo Council couldn't get any more anti-business...$15 min. wage

The Montgomery County Council burnished the county's reputation as the most-hostile-to-business jurisdiction in the region yesterday, voting to raise the minimum wage to $15. That's the highest minimum wage in the D.C. Metro area, putting the already-moribund county in an even more disadvantageous job creation position.

In a county that is the only one in the region to experience a net loss in private sector jobs (3885, according to the U.S. Bureau of Labor Statistics)  - including the loss of 2141 retail jobs - since 2000,  local Dunkin' Donuts franchise operator Boris Lander has been a one-man job creation machine. In just the last few years, he has opened up so many locations in Montgomery County that I've lost count. The jobs these stores create are opportunities for those at the entry level of the job market, exactly the type of person the Council purports to care so deeply about.

Lander has become the point man for the business community's concern over the latest wage hike. He has put real numbers on the table, to quantify just what the negative impact a $15 wage will be on jobs. The Council ignored the data, and actually even boldly stated it was doing so.

One thing that really jumped out in the wage discussion, was that the Council is not conducting any legitimate research on the fiscal impacts of the laws it passes. It's left up to private business owners like Lander to take their time to produce such data - and then the Council simply dismisses the evidence.

Montgomery County started behind the 8 ball even before this Council passed two minimum wage increases. The high-tax jurisdiction hasn't attracted a single major corporate headquarters in two decades. Its wealthiest residents are fleeing in numbers so significant, their exit has cratered county revenues, and shuttered the vaunted "Rodeo Drive" retail strip in Chevy Chase.

But the impact of the previous wage hike has been explosive - and not in the way the Council promised. Many fast food restaurants I patronize all across Montgomery County - all of them except one - have radically slashed the number of employees. You'll often find one cook in the kitchen, and one or two cashiers out front (depending if there is a drive-thru) - and that's it. Some restaurants have even installed touch screen ordering systems.

It turns out the touted "success of Fight for $15" was a complete failure. And this is in a Montgomery County where restaurant growth has "slowed since 2012, and remains flat," according to Melvin Thompson of the Restaurant Association of Maryland (by comparison, Frederick's grew 5.4% and Fairfax's by 6% in 2015 alone).

The impact on us, the residents who patronize businesses here, has been even greater. Prices of Big Macs and fries have significantly increased. There's essentially no such thing as a Dollar Menu anymore at McDonald's. Not only have workers lost jobs, but those at the bottom have lost the ability to get a substantial amount of food for a low price (and if you feel the urge to make a snarky comment about those who get by on fast food, you're probably a paid Guy Friday for the $130K-salaried Whole Foods elites on the Council).

CEOs - and the relocation firms they contract with - are getting the latest headlines from Montgomery County, and the news is not good. Even though the new $15 wage doesn't target the kind of high-wage firms we should be convincing to move here, it is a strong indicator of MoCo's hostility to business. The Council's willingness to recklessly jump off the $15 cliff by itself in the region for purely-self-serving political reasons sends a clear message to businesses here and around the world - Montgomery County is closed for business.


  1. I feel like if I wanted to learn how to create the most boring, anti-business, anti-nightlife, anti-millenial, anti-development, traffic-choked, yet holier-than-thou bedroom community in the world, I could find no better a textbook example than MoCo. Can't wait til the day I can jump off this sinking ship.

  2. New format looks great!

  3. Agreed regarding new format. Thanks much for helping us keep tabs of the neighborhood and all of MoCo's shenanigans. I'm still amazed developers build anything new in the area, particular with MoCo's aggressive solicitation of bribes, err, proffers.