Such provisions serve private purposes, at the expense of public purposes. But living wage ordinances are by far the most inappropriate. Despite the jobs and opportunities that minimum wage laws destroy, at least minimum wage laws do not single out a particular class of worker for higher compensation than others. The principle of a minimum wage is that all employees shall be paid no less that a statutorily established amount. The principle of a living wage ordinance is that some employees shall be paid no less than a statutory amount, which is more than other employees are paid.
Savings occur in all factors of production.
Finally, it must be recognized that there is much more to competitive contracting savings than labor savings. Because management in the competitive market is faced with the potential for financial failure, there is an incentive to obtain more from virtually all factors of production. The already superior to market severance packages and pension benefits earned by such employees must, of course, be granted.