Posted on 02/25/2014 8:18:03 AM PST by John Semmens
The Obama Administration battled back against the Congressional Budget Office finding that boosting the minimum wage would cost the economy about 500,000 jobs.
In a “tweet” sent out to his followers, the President wrote “The notion that raising the price of labor will cause employers to purchase less of it is an out-dated misconception. Our research shows it will create 140,000 jobs.”
Jason Furman, Chairman of the President’s Council of Economic Advisers explained that “the biggest disincentive for getting a job is low wages. Right now with the minimum wage at only $7.25 per hour it makes more sense for people to go on welfare than go to work. We estimate that raising the minimum to $10.10 will inspire as many as 140,000 of these so-called ‘slackers’ to accept jobs they previously scorned.”
“With additional 140,000 persons receiving these higher wages we will pump over $30 billion into the economy, thus making the increase self-financing,” Furman contended. “Better paid workers will buy more stuff. This will lead to higher sales and profits for businesses. It’s a win-win situation for everyone.”
Asked why businesses would have to be compelled to pay higher wages if his theories are correct, Furman suggested that “the people running businesses may not be sophisticated enough to grasp the big picture. From their short-sighted and self-centered perspective, they think that holding down costs is prudent and efficient. They can’t comprehend the seemingly nonsensical reality that paying more for something is the path to greater efficiency at the collective level. Thus, we must force them to do what’s best for themselves and everyone else.”
William Dunkelberg, small business, entrepreneurship and consumer behavior specialist for Forbes magazine, called the President’s and Furman’s contentions “ludicrous and utterly inane. If it is to survive a business must hold its costs below its revenues. If we raise the cost of labor it creates a need for businesses to reduce their use of this input. The inevitable outcome is that fewer jobs will be offered.”
Sarcasm is only funny when it is not also reality.
Yeah, in China !!
This makes perfect sense ... if you’re a Marxist.
I guess gravity is out of date too.
Somehow those 140k jobs are going to pump $30 billion into the economy. So a job that pays roughly $20k per year is going to generate $214,286 per job.
Must be some kind of Obama math.
Exactly. This site used to be funny, but now it is the news.
I’ll have to disagree with you here as this is not news and it is not satire — it is in fact what the Obamabots actually believe or say they believe.
I there anybody left in the country that believes the statistics put out by the White House Propoganda Machine?
Increasing the price of something increases the demand for it.
RIIIiiight.
Dammit, John. You do that to me all the time!
OK. Let’s raise the minimum wage to $10 Million/Hour and we’ll all go to work!
Agreed. But don’t expect John Semens to stop posting his brand of craptire which is borne out of the inability to write anything original.
With additional 140,000 persons receiving these higher wages we will pump over $30 billion
The math doesn’t work, except in satire land and zeroville....
That one looks real too.
Cant find where those arguments differ from Dems.
that is pretty much it.
What often happens is that employers must then raise the wages of those above minimum wage. If the bus boys get a raise, then so must the other kitchen help, cooks, etc.
These people are dumber than rocks.
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