Diana Furchtgott-Roth, a fellow at the Manhattan Institute, a columnist for RealClearMarkets.com and a senior fellow at the Hudson Institute, where she directs the Center for Employment Policy writes in the Daily News why the city and the state can not afford such a plan.

“Many Americans are intent on saving money, making every penny count. But in New York City, which faces a predicted operating deficit of $2.8 billion this fiscal year, wasting taxpayer money remains the local sport.

New York City is currently considering legislation that will mandate a “living wage” for jobs connected to any new development projects that benefit from city subsidies.

Under the proposed law, shopping centers or other projects that receive direct subsidies or tax breaks would be required to pay workers $11.50 an hour or $10 an hour plus health benefits…

It makes no sense for the government to award contracts to the high bidder, not the low one. That upside-down logic smacks of waste and corruption. And it means that we’d be taking money out of the pockets of strapped taxpayers, many of whom earn less than the “living wage,” so that a select group of unionized workers can make more.

In a city that already has dozens of ways of redistributing the wealth - and tons of burdens on businesses - do we really need one more?

If we let the living wage bill pass, the effects will be predictable. Development will stall because it will cost more both to build shopping centers and to run them. Businesses will be inclined simply to flee the city rather than worry about meeting the higher standard. Taxpayers would grouse at yet another weight on their shoulders.”

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