It’s one thing for business leaders to sit out policy debates, but it’s quite another for them to argue for policies that will harm long-term shareholder interests.
Yet that’s what we’re witnessing today with the likes of Amazon’s Jeff Bezos supporting raising the corporate tax rate and a federal $15 minimum wage. The minimum wage hike advocacy is pure corporate cronyism. The hike won’t affect Amazon, which already pays a minimum wage of $15 per hour. Rather, it will impose new costs on Amazon’s competitors while harming the job prospects of the youngest, least-experienced, and least-skilled workers.
To observe what happens when CEOs lobby for corporate welfare, we need only examine New Zealand pre-1984.
Written by: Nicholas Kerr, LSPI Adjunct Scholar