Posted on 03/08/2013 7:03:42 AM PST by SeekAndFind
President Obama’s proposal to increase the minimum wage and the health insurance employer mandate will combine to destroy job opportunities for young, unskilled workers in cities and towns across the country.
The minimum wage, currently set at $7.25 an hour, will jump to $9 an hour and be indexed going forward if the president gets his way. The Affordable Care Act (ObamaCare) is already the law of the land and its effects are being felt right now, even though the employer mandate doesn’t go into effect until next January.
With respect to the new health law, the Congressional Budget Office estimates the cost of the minimum benefit package that everyone will be required to have will be $4,750 for individuals and $12,250 for families. That translates into a minimum health benefit of $2.28 an hour for full time single workers and about $3 an hour for someone working 30 hour a week. For family coverage, the cost is $5.89 an hour for a 40-hour-a week employee and $7.85 an hour for a 30-hour-a-week employee.
These are not small changes. They can double the cost of labor in some cases.
The law does not specify how much of the premium must be paid by the employer versus the employee — other than a government requirement that the employee’s share cannot exceed 9.5% of wages for low- and moderate-income workers and an industry rule of thumb that employers must pick up at least 50% of the tab. But the economic effects are the same, regardless of who writes the checks.
Employers have four ways to reduce burden: (1) the mandate doesn’t apply to firms with fewer than 50 workers, (2) the mandate doesn’t apply to employees who work fewer than 30 hours, (3) the employer doesn’t have to offer or subsidize family
(Excerpt) Read more at forbes.com ...
More welfare recipients and dependence on government. Isn’t that the plan?
Of all the bone-headed ideas this is the worst.
Bring back US jobs now, but whatever you do, do not make them more expensive.
That is idiocy.
There are some big companies that support Obamacare and support increasing the minimum wage.
If you look into their operations, you’ll find that in general, it is companies that pay more than the minimum wage, and who already offer employee health plans at about the minimum needed for Obamacare.
So, they support these programs, because these programs will damage their smaller competitors.
Big business almost always supports regulation, because while it drives up their costs, it is more manageable for them, and puts huge barriers up to newcomers into their market.
I will not argue the increase in the minimum wage is a good idea.
I can argue however that the view from the desk in the oval office there must be a substantial increase in the minimum wage and all union contract wages. There must be an across the board rise in all wages ans salaries.
In spite of the current denials, the only way to pay off the debt is to inflate it away. In a period of high unemployment and a buyers market for labor, increasing the wages is not possible. If a raise is demanded, there is someone willing and able to work for less.
However as prices rise, the strain becomes unbearable. The demands for increase must be met to compensate for ever increasing prices. Food and fuel don’t count in the CPI, but when going to buy groceries, both are intensely felt to be increasingly painful.
The way to increase all wages is to force another minimum wage increase. That will be coupled with the already loud union demands to force a general though lagging and perhaps ragged across the board increase.
A marginal increase in wages produces a marginal increase in taxes. Although those at the bottom will continue no taxes, those above will experience an increase on the marginal increase in pay.
The message has been telegraphed since December when the talk of new union contracts and increase minimum wage began.
The real inflation can not takeoff until the lagging wage inflation becomes painful enough to force the minimum wage increase. Once started and tied to the inflation, it will zoom.
the higher the costs of employing people, the less people will be employed
more and more layoffs
less and less new jobs created
more and more people on the dole
obvious to all
so it must be intended
Don't be so sure. You have to understand that leftists do not comprehend free markets, only artificially concocted and centrally managed economies that function just swell in their fantasies. I know it's hard to believe that anyone without malice could propound as they do, but it's equally possible an intellectual disability could be to blame.
This economic model and its results are congruent either way and you'd have to get inside their minds to really know, and who wants to go there?
The only people that will get stuck is those on a fixed income or those with accumulated savings.
Inflation is how the government robs the people.
>>>Inflation is how the government robs the people.
Amen.
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