"Welcome to Hollywood, where dreams become real — and where logic, reason and Economics 101 become dreams.
Take the current battle over the minimum wage. In Los Angeles County, the minimum wage is $9 per hour.
Theater actors, however, can be paid as little as $7 a performance, and an actor can even work long rehearsal hours with no pay.
Three decades ago, L.A. County actors sued their union for an exception to union wages for theaters with 99 seats or fewer seats.
Why do these stage actors work for so little? They want to work. By working, they improve their skills, stay sharp and or perhaps have a chance to get spotted by an agent.
Some say simply having something to do is better than just sitting around and waiting for a casting agent to call.
Actors Equity, the national union, wants to change this. According to the New York Times: "The union, seizing a moment when organized labor is having some success pressuring low-wage employers to pay higher salaries, says many of this city's small theaters — which currently pay actors nothing for rehearsals, and stipends as low as $7 per (hour for) performances — should start paying California's minimum wage of $9 an hour."
But then a very Republican thing happened — 66% of the union members voted against a higher minimum wage.
Their rationale was simple: A higher minimum wage means fewer plays get performed. Fewer plays mean fewer opportunities for actors and therefore fewer opportunities to gain experience, stay in practice or get discovered.
But the union's national council ignored this advisory vote and ordered, with some exceptions, a $9 per hour minimum wage.
When it comes to their own lives, these actors understand the law of economics: Artificially raise the cost of a good — in this case the price of an actor in a stage play — and you reduce the demand for actors.
Last year, meanwhile, actor Kevin Spacey lobbied Maryland lawmakers to extend their tax credit program. He films his Netflix series, "House of Cards," in Maryland.
That state offers generous tax credits and relaxed union rules, so the Netflix series earned more money than would be the case if the show filmed in Hollywood.
In Maryland, a production company can claim a credit on its income taxes equivalent to 25% to 27% of the costs of their film or TV production. If the credit is larger than a company's tax liability, the company can receive a refund from the state."
Thursday, April 23, 2015
66% of the union members voted against a higher minimum wage (actors)
See Hollywood Loves Minimum Wage So Much, It Dodges It by LARRY ELDER.
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