Chicago Rules Bring Business Departures

I had written about Chicago's imposition of new rules requiring that certain businesses pay living wages, which would equal about $10 per hour back on July 26.

Well, it turns out that I got it just right. Businesses are going to do the only prudent thing for their business operations. They're going to go elsewhere. As Don Surber notes,

UPI reports that Target is pulling out of a city-subsidized project because of that $10 law.

The city ponied up $23 million for a 32-acre shopping mall with Target as the anchor store. The local councilwoman said, “I‘m depressed. I need sales tax revenue and jobs. How do I pull my community out of the slump that it‘s in? How do we get a rebirth? Sales tax revenue. That‘s how.”

The law of unintended consequences in action. That and the fact that not a single politician in Chicago appeared to understand basic economics.

If enough of the Chicago politicians learn from this, they might have time to reverse their decision to impose the living wage on these businesses.However, it will not likely bring back Target. And one has to wonder where that $23 million will come from now that there isn't the tax revenue coming in to reimburse taxpayers for their politicians' largesse. They're going to be stuck with the bill, along with higher unemployment, and fewer jobs.