"Billionaire Koch Brother Says Eliminating The Minimum Wage Will Help The Poor"
A conservative mogul worth $43 billion says he knows the secret to helping poor people. According to Charles Koch, the U.S. needs to get rid of the minimum wage, which he counts as a major obstacle to economic growth.
On Wednesday, the Charles Koch Foundation launched a $200,000 media campaign in Wichita, Kansas, with a hint of expanding it elsewhere. It is the Kochs’ biggest media buy since they promised to do more to “persuade politicians” after suffering losses in the 2012 election.
In an interview with the Wichita Eagle published Tuesday, Koch said that the minimum wage is one policy he is working against:
We want to do a better job of raising up the disadvantaged and the poorest in this country, rather than saying ‘Oh, we’re just fine now.’ We’re not saying that at all. What we’re saying is, we need to analyze all these additional policies, these subsidies, this cronyism, this avalanche of regulations, all these things that are creating a culture of dependency. And like permitting, to start a business, in many cities, to drive a taxicab, to become a hairdresser. Anything that people with limited capital can do to raise themselves up, they keep throwing obstacles in their way. And so we’ve got to clear those out. Or the minimum wage. Or anything that reduces the mobility of labor.
The Kansas ad does not specifically mention the minimum wage, but it does claim that Americans earning $34,000 a year should count themselves as lucky, because that puts them in the top 1 percent of the world. “That is the power of economic freedom,” the ad concluded. Meanwhile, Charles and David Koch are the ones comfortably in the 1 percent, with a net worth of about 1 million times that figure. Watch the ad:
The ad cites a report from the Koch-funded Fraser Institute showing that “The United States used to be a world leader in economic freedom but our ranking fell. And it’s projected to decline even further.” (That same Fraser report interestingly ranks Hong Kong, Singapore, New Zealand, Switzerland, and Chile ahead of the U.S. Those places all have government-run health care, which the Kochs adamantly oppose.)
In the U.S., economic inequality has grown rapidly, and the lagging minimum wage is in large part to blame. Some states have moved to address the growing gap between what people earn and the rising cost of living, but nationally the minimum wage has barely moved in decades. Little to no evidence exists to support Koch’s claim that the minimum wage impedes companies or causes them to fire employees. In fact, raising the minimum wage to $9 would pump up to $48 billion into the economy by the next year and ease the income gap for 15 million low-wage workers.
Koch maintained his and his brother’s political efforts are not for their own benefit, but for the country’s greater good. “All the other large companies, or the great majority of them, are promoting some kind of special cronyism where they’re undermining economic freedom.” Although he deems low-wage workers part of a “culture of dependency” on the government, Koch Industries is on the receiving end of oil subsidies, government contracts, and bailouts.