Minimum wage and trust issues

Updated: Thursday, June 5, 2014
Minimum wage and trust issues story image
KALAMAZOO, Mich. (NEWSCHANNEL 3) - There were congratulations all around last week when the Michigan Senate, in an astonishing display of speed and bi-partisanship, passed a new minimum wage law.

Under the law, the minimum wage in Michigan will rise from the $7.40 it is now to $9.25 over the next four years.

Tonight in Tom’s Corner, Tom Van Howe says--all the celebrating aside--as the old saying goes, there are two things you really don’t want to see being made: sausage and legislation.


Excuse me for not joining the victory dance.

Its not so much that I don’t trust lawmakers--and I don’t.

It’s because I know this law is another example of how our lawmakers don’t trust you and me.

Most of you know what happened. But let me briefly explain anyway:

Our people in Washington were talking about a minimum wage hike--but with a million lobbyists saying it was better to keep people in poverty, that effort landed with a thud.

So, in Michigan, a grassroots petition drive began to amend the law to raise the minimum wage to $10.10.

There were some problems with it. Waiters and waitresses were included and that would have been a problem with our system of tipping for service.

But, nonetheless, it largely echoed what 70 percent of us thought anyway: it was time for a wage hike.

The petitions were signed by 320,000 people, and it seemed certain that the question would make it’s way to the November ballot where passage would be virtually assured.

But our Republican lawmakers were bothered by this. Not only would the law enrage some business owners and some wealthy backers, having an issue on the ballot that might rally Democratic voters just can’t be a good idea.

Its messy. Things might get out of hand.

So up jumps Senate Majority Leader Randy Richardville--Republicans have a majority in both houses so it ought not be necessary to point out Richardville is a Republican--with an idea.

No sense in risking anything with another pesky voter-driven effort; let's repeal the minimum wage law and replace it with a new one that falls short of what the voters might approve of. That way the petition, which seeks to amend the wage law, would be irrelevant, null and void, as cold and tasteless as a week old cup of coffee. You can’t amend a law that has been repealed.

And you know how long it took to get all that done? And did I mention that Democrats joined in, to make the repeal and replacement a bipartisan effort?

It took one day. I mean, there had to have been some groundwork that took a few hours, but when push came to shove--one day!

Remarkable what can be accomplished when you don’t trust voters and have to move fast.

Now the petition people are upset and say they may take their case to court...and I hope they do.

We’ll have to wait and see.

Republicans, meantime, are claiming victory. So are Democrats. So is the Governor who signed it into law almost immediately.

And that’s all fine. The only people left out in the cold are the people who pushed the envelope with a petition drive in the first place.

They get part of what they wanted, but their victory is about as exciting as twin beds.

Politicians here, there, and everywhere urge us to trust them. And then spend millions, even billions of dollars to convince us to vote for them.

It can only mean they don’t trust us, left to our own devices, to do the right thing.

In this corner...I’m Tom Van Howe.

Business News

Last Update on November 27, 2015 18:34 GMT


CHICAGO (AP) -- A protest march has begun in Chicago's Magnificent Mile shopping district, with the Rev. Jesse Jackson in the middle of a crowd that's shouting, "What do we want? Justice. When do we want it? Now!"

Several hundred demonstrators have gathered in the drizzling rain, many with umbrellas and plastic-wrapped signs.

They're protesting the fatal shooting of a black teenager by a white police officer last year. The recent release of a video showing the fatal shooting of 17-year-old Laquan McDonald has set off days of largely peaceful protests.

Protesters sought high visibility by taking the demonstrations to the city's main shopping area on what's traditionally one of the year's biggest shopping days.

An association representing hundreds of high-end retailers, hotels and restaurants in the district says it's confident authorities will maintain order for thousands of Black Friday shoppers. The Magnificent Mile Association represents 780 businesses on Chicago's North Michigan Avenue.


UNDATED (AP) -- "Black Friday" may no longer represent an early start on holiday shopping. For some, it may be too late.

One woman in Harrisburg, Pennsylvania, says her $200 budget today was the same as last year, but that it didn't buy as much because the best bargains were on Thanksgiving night.

Ashley Walton says the day for bargains is now "Black Thursday." She says she didn't go shopping on Thanksgiving because she was in what she calls a "turkey coma."

A Kmart shopper in Denver this morning had nearly the entire store to herself, and found it "sad." Susan Montoya said it's "no challenge" when no one else is shopping. She says people must have gone out yesterday or be shopping online.

Early numbers aren't out yet on how many shoppers headed to stores on Thanksgiving Day. The National Retail Federation expected about 30 million to shop on Thanksgiving, and 99.7 million on Black Friday.


BERLIN (AP) -- A closely-watched survey shows German consumers are losing confidence amid growing concerns of an economic slump.

The GfK research group said Friday its forward-looking consumer climate index dropped for the fourth month in a row to 9.3 points in December, from 9.4 in November.

GfK says consumers' willingness to buy rose, but that was offset by drops in both their income and economic expectations, partially linked to the growing number of asylum seekers pouring into the country.

Germany is set to receive more than 1 million refugees and other migrants this year and some 40 percent of consumers surveyed told GfK they believed unemployment would soon rise, most of them saying the newcomers would hurt the labor market.

GfK's monthly survey is based on some 2,000 consumer interviews.


BRUSSELS (AP) -- Greece and its creditors are close to sealing a deal on conditions that Athens must respect to obtain the next slice of rescue money.

The country has already received this week approval for a 2 billion euro loan, and is negotiating on more economic measures needed to get another 1 billion euros.

European Commission spokeswoman Mina Andreeva said Friday the sides have "agreed broadly the second set of milestones."

She said that when the details are ironed out "this of course would unlock the disbursement of the final one billion euros still available."

That would also allow for an important review of Greece's handling of its austerity program, which is required to secure international credit.

Andreeva said the implementation of pension reforms "is a key part of the first review."


GENEVA (AP) -- A Swiss court has convicted in absentia a former employee with international bank HSBC for economic espionage and sentenced him to five years in prison.

Herve Falciani -- seen by some as a crucial whistleblower -- had refused to travel from his native France to appear before the Swiss Federal Tribunal in Bellinzona in proceedings that began in October.

France does not extradite its own citizens and Falciani appears unlikely to serve the sentence.

Falciani was on trial for leaking bank data that led to a worldwide wave of tax evasion probes against prominent clients in France and elsewhere.

He was charged with illegally obtaining data, economic espionage, breach of business confidentiality and breach of bank secrecy while working at a Swiss HSBC subsidiary between 2006 and 2008.


Glitch causes bank customers to see billions in charges

HONOLULU (AP) -- A technical glitch meant some First Hawaiian Bank customers logged on to their accounts to find that they appeared to be billions, or sometimes more than a trillion dollars in the red.

KHON-TV reports that bank officials say the glitch was visible to customers who logged on to their accounts during a 20-minute window Wednesday. They say no actual customer information or balances were affected by the issue.

Customers who logged in at that time saw outstanding balances of at least $710 billion.

Kauai resident George White says when he saw the error all he could think was, "Well, my wife is going to kill me."

First Hawaii Bank said in a statement that the issue was resolved quickly and that the bank apologized to customers who were inconvenienced.

Washington Times