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Entrepreneur: Boost Calif. wages to $12-an-hour

Published on NewsOK Modified: January 12, 2014 at 3:01 am •  Published: January 12, 2014
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LOS ANGELES (AP) — Democrats across the nation are eager to make increasing the minimum wage a defining campaign issue in 2014, but in California a proposal to boost the pay rate to $12 an hour is coming from a different point on the political compass.

Ron Unz, a Silicon Valley multimillionaire and registered Republican who once ran for governor and, briefly, U.S. Senate, wants state voters to endorse the wage jump that he predicts would nourish the economy and lift low-paid workers from dependency on food stamps and other assistance bankrolled by taxpayers.

A push for bigger paychecks for workers at the lower rungs of the economic ladder is typically associated with Democrats — President Barack Obama is supporting a bill in Congress that would elevate the $7.25 federal minimum to over $10 an hour.

But entrepreneur Unz, 52, is a former publisher of The American Conservative magazine with a history of against-the-grain political activism that includes pushing a 1998 ballot proposal that dismantled California's bilingual education system, an idea he later championed in Colorado and other states.

Two decades ago, as a 32-year-old, the theoretical-physicist-turned-software-developer tried to unseat then-Gov. Pete Wilson, a fellow Republican. After a long break on the political sidelines, Unz's reappearance has startled members of both major parties, and his proposal — if it goes to voters in November — could unsettle races from governor to Congress.

"He is a wild card in the deck of California politics," said Bill Whalen, a research fellow at Stanford University's Hoover Institution and former Wilson speech writer.

Republican National Committee member Shawn Steel praised Unz for his 1998 initiative, which abolished most bilingual education programs for students who speak little, if any, English and replaced them with English-only instruction. But Steel predicted a jump in the minimum wage would eliminate jobs, penalizing young people who often hold them.

Unz "is an innovator, he's extremely bright and he's a lone wolf," Steel said.

To Unz, who's spoken out over the years on issues as varied as campaign finance to IQ and race, the proposal simply makes sense. As drafted, it would increase the minimum wage in two steps — to $10 an hour in 2015, and $12 the following year, which would be the highest among states at current levels.

His push comes as Seattle's new mayor, Democrat Ed Murray, has said he wants workers there to earn a minimum of $15 an hour, and after fast-food workers staged nationwide rallies calling for higher income.

Unz says taxpayers for too long have been subsidizing low-wage paying businesses, since the government pays for food stamps and other programs those workers often need to get by. He posits that the increase — at $12-an-hour, up from the current $8 — would lift millions of Californians out of poverty, drive up income and sales tax revenue and save taxpayers billions of dollars, since those workers would no longer qualify for many welfare benefits.

He dismisses the notion that countless jobs would evaporate, noting that most of the state's lower-wage jobs are in agriculture and the service sector, which can't be easily automated or transported elsewhere. He believes higher wages would make the jobs more attractive to U.S. residents, curtailing a lure for illegal immigration.

For California, among the world's 10 largest economies in 2012, the jump "would be a gigantic economic stimulus package," Unz said in an interview. He hopes its passage in the nation's most populous state would have a ripple effect, prompting other states to increases wages.

Unz is an unusual figure in California's largely left-of-center political culture, untethered to traditional party apparatus, libertarian in his leanings and wealthy enough to make potential rivals nervous.

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