Raising the Minimum Wage for Working Men and Women in California and the Rest of America

5 Tycoons Who Want to Close the Wealth Gap

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As the middle class struggles to make gains and President Barack Obama strives to shine a spotlight on the issue of income inequality, an unlikely constituency is looking for ways to close the nation’s growing wealth gap: A handful of top U.S. business tycoons.

These advocates point to notions of fairness and admit to twinges of guilt, but the core concern driving all of them — left, right and libertarian — is a belief that the economy doesn’t function efficiently when the wealth gap is wide. They are proposing solutions that range from pressuring fellow entrepreneurs to pay workers more to simply giving their money back to the government to redistribute.

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UNZ: THE REPUBLICAN WHO FAVORS A RAISE

Not all members of the super-rich taking up the issue of inequality are progressives. Ron Unz, a Silicon Valley millionaire and registered Republican who once ran for California governor, is advocating the highest minimum wage in the country for his home state. Unz rose to fame when he spearheaded a 1998 ballot proposal that dismantled California’s bilingual education system. He later became publisher of The American Conservative, a libertarian-leaning magazine.

Lately, he has become obsessed with the idea that a wage hike is the best way to advance the conservative ideal of reducing dependence on government programs. Frustrated with the gridlock in Congress, Unz is pouring his own money into a November ballot measure that would increase the minimum wage in California to $12 an hour in 2016.

At that level, he said in an interview with The Associated Press, “every full-time worker would be earning almost exactly $25,000 and every full-time worker couple $50,000. Under normal family circumstances, those income levels are sufficiently above the poverty threshold that households would lose their eligibility for a substantial fraction of the various social welfare payments they currently receive, including earned-income tax credit checks, food stamps and housing subsidies.”

Unz, whose fortune comes from founding Wall Street Analytics Inc., argues that by not paying a living wage, companies are forcing the government to subsidize them through massive welfare spending. An advocate for the free market, Unz opposes any kind of subsidy. The wage proposal has led him to work with strange bedfellows, including Ralph Nader, the consumer advocate and former independent presidential candidate, and progressive economist James Galbraith.

Unz, 52, trained as a theoretical physicist, has an IQ of 214 and has written scholarly papers on the Spartan naval empire. His political rivals and allies alike have made much of his nerdy demeanor. But his unorthodox background seems to have given him the confidence to go against the conventional wisdom of his party.

“The thing that’s really shocking is that the Republican response to the problem is to call for increased welfare spending. From a free-market perspective, businesses should compete without subsidies,” Unz said. “If they can’t compete, then maybe they should go out of business.”

• Category: Campaign, National, Notable • Tags: Hannah Dreier