This is another example of things I just don’t understand why it’s so hard of a concept to grasp. It boggles my mind.
So, the CBO has come out with a report on the possible impacts of hiking the minimum wage. And, as usual, they word things, apparently, (because the news organizations haven’t provided the actual report) in such an abhorrent manner people can take away what they want from the report.
Here’s how Reuters has it …….
(Reuters) – Raising the U.S. minimum wage would lead to the loss of about half a million jobs by late 2016 but lift almost a million Americans out of poverty, the Congressional Budget Office forecast in a report on Tuesday that reignited debate over one of President Barack Obama’s top priorities this year.
Buoyed by polls showing three-quarters of Americans in favor of a minimum wage hike, Obama and his fellow Democrats advocate raising the minimum hourly wage to $10.10 from the current $7.25 in a move to boost the stagnant wages of millions of low-income workers……….
They quickly seized on one of the findings in the CBO report: that raising the minimum wage in three annual steps to $10.10 an hour would result in about 500,000 jobs being lost by late 2016.
“With unemployment Americans’ top concern, our focus should be creating, not destroying, jobs for those who need them most,” said Brendan Buck, a spokesman for House of Representatives Speaker John Boehner, a Republican.
But Democrats also found something to tout in the report, which found that a $10.10 minimum hourly wage would bring 900,000 people above the poverty threshold of $24,100 a year for a family of four. Some 300,000 people would be lifted out of poverty if the minimum wage were raised to $9 an hour in two annual steps, CBO said……
Yes, the old ‘costing jobs, but, raising people out of poverty’ trick. Imbeciles.
First of all, let’s do some quick math …… At 10.10 an hour a worker, 40 hours a week (as if minimum wage workers typically work 40 hours a week, they don’t, for the most part) and at 52 weeks a year (most don’t do that, either) then their income is still below the poverty level quoted by Reuters. It comes to $21008 per year. Again, in reality it’s much less than that. So, they’re not talking about single income people, but, two income providers to the household. But, if you have two minimum wage earners at 40 hrs a week for 52 weeks a year, then they’re already the poverty threshold at just over $30,000/yr. Of course, with two earners, for a family of four, you’re still mired in poverty because of the expenses of child care and what not, except you don’t get the fun freebies which accompanies staying under the poverty line. At any rate, this isn’t where I want to go with the topic. I just thought it important to point out.
The notion of raising people out of poverty by raising the minimum wage is so sophist and simplistic I can’t understand why any thinking person would babble such blatant idiocy. POVERTY IS REALATIVE!!!!!!!
Good heavens!!! It matters not one whit who much you make, but, rather what you can buy with how much you make. One thing we can absolutely know for sure. One thing which every one with an operating synapse should understand is that if and when (it’s a matter of when, really, not if) when the minimum wage is increased, we can be 100% certain that the referenced poverty level will be increased. There’s no ifs, ands, or buts, about it. iT’S HOW THE DETERMINE THE POVERTY LEVEL!!!!! Why? Because poverty is relative!!! This is why the poverty level in …. let’s say 2001 was $17,650 for the family of four. How bloody stupid does one have to be for someone not to be able to understand this?
It’s pretending that there’s some magical static line which denotes and delineates poverty from being okay. If I make $24,000 a year, then I’m stuck in poverty, but, if I make $24,101/yr, I’m okay? (that equates to a 5 cent/hr raise) How ignorantly stupid is that?
About the only thing more stupid than that notion is how some idiots believe hiking the minimum wage won’t cost jobs. Raising the cost of hiring people automatically has to jobs because we’ve raised the cost for the owners to do business. Not all businesses operate in the black so much that they can absorb a $3/hr cost per person hired. Unless the customers are willing to absorb the cost ( some will and some won’t depending upon the product) then those jobs are lost. This is yet another part of the equation which leftards don’t seem to understand. They look at the profits made by a company and make judgments on the bottom line rather than profit per worker, which is paramount for the employer. They don’t hire people for fun!!! They hire people because they believe that worker will provide or facilitate a value more than the cost of the employee. Once the threshold of the cost of the employee exceeding the value the employee brings, then that job is done. It’s over, there is no more job. What idiot tool doesn’t understand this. It isn’t about a livable wage, or even fairness, it’s about the worker providing value to the employee. It doesn’t matter what the poverty level for the day is, what matters is what the business can afford and the value the worker brings.
People constantly ask the wrong questions in regards to a problem. Does a stockboy or a cashier or any other minimum wage worker deserve a livable wage? Absolutely!!! They’re human beings all belonging to the brotherhood of man!!! They deserve as much as they can get!!! But, that doesn’t alter the reality of business or free enterprise. In fact, it’s antagonistic to it. It isn’t that anyone doesn’t wish success and prosperity for all. I certainly do. But, my wishing, or anyone’s wishing doesn’t alter reality.
Back in the day, I used to work in a factory, where we remanufactured semi-truck brakes. We did an excellent job! And, man!!! Could I pump them out!!!! I smoked!!! I would make it a point to bury the guy down the line in parts just so I could switch from the monotony and go help the guy I buried!!! (or the guy up the line if he was moving too slow.) We had a flat wage plus a production bonus for the plant! Each day I resolved to put out more than the previous. It was hard, labor intensive, and dirty! I’d come home covered in either soot or grease. Tired and worn, but, looking forward to tomorrow just to see how many I could push through!!!
I was naive. We exceeded the threshold. As it turns out, and much to my displeasure, the powers that be would sometimes do things to slow production…….. meetings were called in the middle of production ….. hours were jerked with …… our bonuses were drying up. It took me a while to figure it out. Our cost of production (wages are a large part of it) were causing the company try to lower costs. Why? Because once their prices of their product exceeded a certain level, the trucking companies would decide to simply buy new brakes instead fo remanufactured ones. It was just that simple. Eventually, the workers of Mexico priced us out of business, anyway, (thanks NAFTA!!) but, I was gone on to other things, by then.