Category: Economy
Level: Local
This article concerns policies that affect individuals and
families.
This article discusses the decision of the Austin city
council to set stricter standards for economic incentive deals to companies
doing business in Austin.
My views:
I am very happy that the city council has decided that all
employees who work for companies receiving economic incentives to move to
Austin must receive at least $11/hour. Some business groups are worried that
this will cause businesses to choose other cities to move to, but since the
living wage requirement is coupled with a bigger tax discount it may not deter
them. There are caveats for the living wage – companies that hire ex-convicts
or other groups of people that are historically difficult to employ may not
have to pay them $11/hour. In addition, skilled laborers such as electricians
may have to be paid a “prevailing wage” which is set by the federal government
and may be as much as $25/hour or more. Companies would also have to hire from
within Austin – 75% of new fulltime jobs would have to be filled by Austin
residents.
All in all, these new restrictions signal a change in attitude,
deciding to make economic incentives a privilege for companies and requiring
them to meet certain standards. This is excellent. The Austin economy is
booming and it is a desirable location for many kinds of business. We want the
businesses that move here to improve the quality of life for city residents, to
create quality job opportunities, and make sure that the economic benefits go
towards the city residents, not the incoming corporations.
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