Posted on 01/10/2014 6:03:48 AM PST by Phillyred
It’s really, really cold as I write this. It’s the morning many of us were greeted by temperatures of 1 and 2 degrees. Staying out for more than five minutes would probably earn you a case of frostbite.
It’s been funny to read the comments of some I know on Facebook, who thought it would be so cold they’d have to cancel school, as if we don’t live in a time of heated public buildings and cars that start up easy, even in frigid weather.
That’s what counts as a major problem for many of us, that we might get really cold one or two days. News reports today were full of the ominous term “polar vortex,” an ominous pseudo scientific phrase that sounds like it might have had an origin in some Star Trek episode. It has all the requisite implications of impending doom that we get so much from news – especially news of the weather. But the cold will lift, and news will get back to what has become a pretty interesting and somewhat turbulent time in American politics. From a debate over gay marriage rights in the state of Utah, to how well or poor are the early days of the Affordable Health Care Act. These are serious issues that offer implications far larger than what size coat will I have to wear today. The most interesting of these policy debates for me is the proposal to boost the minimum wage, a debate that has predictably divided our government along party lines. Democrats, led by President Obama, favor a nearly $3 an hour increase in the current federal minimum of $7.25 to $10.10 an hour. Republicans claim that any government-mandated wage program will “kill jobs.” Pennsylvania’s minimum wage is also $7.25, with state arguments over increases falling along the very same party rationales.
Both sides have studies to back their positions. There are studies that have shown higher mandated wages lead to less hiring by small and large businesses. And there are studies that show the opposite. The problem proponents of raising the minimum wage identify is that the minimum wage has lost its effectiveness over time as it has not risen at the same rate as the costs of living. What originally worked as a way to stave off poverty no longer works. Despite what other studies might disagree about, most agree that a higher wage will in fact reduce poverty. According to Mike Konczal, a fellow at the Roosevelt Institute, who analyzed a number of papers by economists studying the issue in a recent article for the Washington Post’s Wonkblog, “A higher minimum wage will lead to a significant boost in incomes for the worst off in the bottom 30th percent of income, while having no impact on the median household.”
If Congress can agree that reducing poverty is a worthy goal, the path forward seems clear.
What will happen? Popular support seems to be on the side of a higher minimum wage. A recent Wall Street Journal/NBC News poll showed popular approval of raising the minimum wage is 63 percent. Many in government, however, have shown themselves to be fairly well insulated against acting on the basis of popular opinion. The idea is this: A minimum wage increase will not affect many middle class people, but it will absolutely make life better for the very poor, and it will not require government spending, just a government kick in the pants to businesses that continue to pay their employees the bare minimum.
No hope
It just screws the people making 12-15 dollars an hour.
...unless you are the one who gets laid off because your employer can’t afford it..
Bigger and better Nikes..........
This imbecile talks about “studies” on both sides. I’d love to see one that proves that raising the minimum wage increases employment among the poor. Must be the same study that says doubling the price of a case of beer increases sales.
Which brings in more money—working 40 hours at $7.25 or working 0 hours at $10?
Those people will now be shocked by the taxes removed from their pay. They will cry foul.
It sticks in my memory that the unions will make out like the frito bandito when (not if) the minimum wage is increased.
I remember reading that there are several long term contracts that get an automatic raise whenever the minimum wage is increased.
Employer mandated freebees always poll popular.
Mandated employer paid health care is too.
But there is no mandate that forces them to hire and employ MORE people.
What percentage of the population earn minimum wage? What percentage of the population ears the minimum wage and is between the ages of 21-64?
My guess is that the percentage is very small.
This statement is nonsense! It would be nice if the author supported his assertions. Given that the Democrats believe in a zero sum game, then paying more will result in fewer workers because the increase in pay will edge out others for many businesses. Why do they not talk about that effect?
Yes people who are able to keep their jobs and get a raise via a higher minimum wage will have an increase in income -- duh? Those dots are easy to connect.
But what about those who lose their jobs because a small business does not have an increase in payroll? What choices do they have? The Democrats will say those small businesses are crooks anyway, making too much profit exploiting the poor, so let them take a little less profit. As said by someone with zero experience in free enterprise, with zero understanding of basic economics, and unwilling to spell out their assumptions, data, and methodology.
Not yet.
Raising the minimum wage is all about big raises for the Commie unions that make many times the min wage!
They couldn’t give a crap less about the poor.
I worked as a union member for 34 years and never heard of it (except on F.R.) It would be helpful if you could cite a few examples with links to credible sources.
By the way, I'm 68 years old and have never in my life voted for a democrat.
Raise the minimum wage to $10 per hour and see how many people are laid off.
Of course raising the minimum wage isn’t the real to ‘help the poor’ isn’t really the object. It’s to pay off the unions for their support in the next election. Union contracts are tied to the minimum wage. If the minimum wage is raised, so are all the wages of the unions as well since they get ‘bumped up’ by the same amount.
If anything, to help the poor, the value of the dollar must be stabilized for a long period of time so that inflation does not eat up their savings and retirement funds.
Printing more money is the worst thing that they could do. Raising the minimum wage does nothing in the long run but destroy jobs and families.......................
Taxes caught my eye. When I was on minimum wage in 63, the scale was 1.25. INCOME Taxes started at Zero after a small deduction such that if you earned about 2K, your tax rate was 20%. There was no earned income tax credit. In other words, since there was no EITC and income taxes started at virtually zero, the REAL net minimum wage then was much lower than the 1.25 it is used to compare with todays minimum wage which not only is below the income tax threasholds and garners a tax credit to boot.
I currently make roughly $20 an hour (which, let’s be honest, isn’t a great amount any more) doing SKILLED labor in an apprenticeship program. Raising the minimum wage would mean that people like me, who actually have job experience and credentials are effectively worth less. It would also result in a wave of unemployment until inflation catches up with the change in value, at which point we’d be back to square one. It’s a pointless move that will only end in temporarily weakening the labor market.
BS. All it will do is increase inflation. In a matter of months, they'll be back where they started, and sadly, since wages haven't been keeping pace with inflation, the rest of workers will be injured by having higher costs at roughly the same pay.
lower welfare benefits to make minimum wage jobs more appealing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.