Minimum wage hike would kill a half-million jobs: CBO

The 10.10 minimum wage debate continues with some interesting economic views from the Congressional Budget Office.

Their recent report says 500,000 jobs could be in jeopardy.

Perhaps a higher universal minimum wage will kill jobs at some levels and in some industries while "helping" other industries?

I wonder if the political agenda to raise to 10.10 is taking into consideration any "justified" *Sacrifices*.

The "Social" impact may be good, but the "Economic" impact might take unwilling *Prisoners*.

Raising the minimum wage to $10.10 will cut about a half-million jobs out of the economy by 2016, according to a new Congressional Budget Office report Tuesday that could deal a major blow to Democrats’ chief domestic agenda item this year.

A majority of low-wage workers would see their pay rise thanks to the increase and would be substantially better off, including many who would be lifted above the poverty line. But a minority would also lose jobs as businesses choose to invest elsewhere, the CBO said in its analysis of a proposal very similar to the one congressional Democrats have offered.

“Once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent,” the nonpartisan scorekeepers said, adding that there is substantial uncertainty and the loss could be anywhere from “very slight” to as much as 1 million jobs.

Minimum wage hike would kill a half-million jobs: CBO

Is Somebody Lighting a Fuse?

or are they Cutting a Sizzling Fuse?

reply to post by xuenchen


I want my $3 an hour raise for doing nothing also then!

This minimum wage crap needs to stop, IMO of course! People don't realize that will make the cost of your #2 at Mikky D's go to $12 instead of $5.....More than jobs will be lost, you will see companies folding like paper because nobody wants to eat/shop there anymore because of the huge price increases to cover these amounts...

If you want more money in your minimum wage job.....QUIT and go get an education to get a better job....But that is me talking here, someone who doesn't make anywhere near minimum wage, probably why actually also....

reply to post by xuenchen


When the unemployment rate raises a percent or two under the Obama administration, you say it's nothing. However, when and idea gets presented that would improve the lives of countless Americans and act as a stimulus to businesses, you suddenly act like .3 percent is the end of the world.

Not to mention, the trickle up piece of the puzzle is highly underestimated when looking at the long-term effects it will have on creating new jobs.

Hey, raising the minimum wage up over ten bucks an hour is necessary so all the college grads working at Subway and other burger joints can make enough to start paying back their student loans. Just saying.

businesses here in America hire people to do a job to keep their business going. if they could cut payroll, and still get the job done with less workers, they will do it. a business is always looking for ways to cut labor costs, regardless of the minimum wage. management has goals that they must meet or they get fired, corporate execs have goals that their shareholders and board of directors expect them to meet or they too get fired. small business owners will work their own ass off, before they hire someone to help. corporations have moved manufacturing from china to Vietnam just to save a few dimes an hour in labor costs.

reply to post by Chrisfishenstein


What about the people who do have the education, but can not find a job because they either do not exist or if they do, they want a minimum of 2 years PAID experience.

We had to move to another state for my husband to find work. We can't just pack up again so I can find work, and abandoned his job, despite so many on ATS saying to do just that.

As it stands right now, I can't afford to go back to school, I already owe enough in student loans and my husband makes too much for financial assistance but there isn't enough left over to pay for me to go back to school on top of the fact that his job requires continuing education.

Cuervo
reply to post by xuenchen

 

When the unemployment rate raises a percent or two under the Obama administration, you say it's nothing. However, when and idea gets presented that would improve the lives of countless Americans and act as a stimulus to businesses, you suddenly act like .3 percent is the end of the world.

Not to mention, the trickle up piece of the puzzle is highly underestimated when looking at the long-term effects it will have on creating new jobs.

Maybe you can actually *Explain* any "Benefits" in detail Real detail ?

You act like I am at fault.

I didn't indicate any bias in the OP did I ?

I am not an economist but wouldn't a minimum wage hike also cause the cost of living to go up this making the wage hike pointless for those who get it and life worse for those who don't get a raise.

xuenchen

Cuervo
reply to post by xuenchen

 

When the unemployment rate raises a percent or two under the Obama administration, you say it's nothing. However, when and idea gets presented that would improve the lives of countless Americans and act as a stimulus to businesses, you suddenly act like .3 percent is the end of the world.

Not to mention, the trickle up piece of the puzzle is highly underestimated when looking at the long-term effects it will have on creating new jobs.

Maybe you can actually *Explain* any "Benefits" in detail Real detail ?

You act like I am at fault.

I didn't indicate any bias in the OP did I ?

The benefits are obvious. We've stagnated as an economy. This inevitably happens when the poverty encompasses enough of a population. The majority of Americans cannot afford very many (if any at all) luxuries so then we stop producing them. When we stop producing them, we lose jobs and outsource. Try to find something in your house "made in America"... it's tough. The reason is because there aren't enough people who can afford these products at a fair price so we have other nations do it whose economies look like ours if we keep expanding our lower class.

Creating a stimulus from the bottom up will ensure that it all goes back into the economy and then those businesses can invest. The businesses it will hurt are the fast food chains, the large department store chains, and any other chain that is currently stifling growth for small businesses. Those stores will be less inclined to offer small business-killing prices and people will start shopping locally at private businesses because the cost difference won't be enough to dissuade them. Small businesses will see an incredible new viability they've never seen before and the increased revenue will outpace the increased cost of labor. Heck, maybe we can transition some of those generous hand-outs we give to large corporations into the hands of small business while we're at it.

As far as you being neutral about this... c'mon. Who are you kidding here?

calstorm
reply to post by Chrisfishenstein

 

What about the people who do have the education, but can not find a job because they either do not exist or if they do, they want a minimum of 2 years PAID experience.

We had to move to another state for my husband to find work. We can't just pack up again so I can find work, and abandoned his job, despite so many on ATS saying to do just that.

As it stands right now, I can't afford to go back to school, I already owe enough in student loans and my husband makes too much for financial assistance but there isn't enough left over to pay for me to go back to school on top of the fact that his job requires continuing education.

That is not true. There are multiple government loans for high student loans currently it is insane! My wife and I make over $120,000 a year and she has $130,000 in student loans from medical school....We just recently (6 months ago) signed up for a Sallie Mae loan through the government to lower our student loan payments from $1,200 a month to $400...It is an income based loan....Now they offer 10 year payoffs, etc for certain individuals....Look into it!

Now onto the job market....There are TONS of jobs available, you can't wait for the job to come up making $30-$40 an hour based on experience! Take an entry level job in your profession and work your way up like the rest of us do that WANT to work and know we can do it all over again with another company!

People all want handouts or have a certain dollar amount in their eyes of what they are worth, think of it from an employer perspective....They want motivated people who are willing to start from scratch and work their way up the ladder. If it doesn't work, then take your own advice and freaking move again! There are jobs available, you just have to be willing to find them and also willing to work for your family! I am not saying you aren't one of them, but don't complain about not finding work when there are tons of jobs out there....Maybe not where you are at currently, but they are out there! Go to job fairs, career link, unemployment offices, etc....There are options to help you find jobs that are free also...Best of luck on your hunt!

Hopefully you look into the income based loans!

reply to post by xuenchen


Well of course it would, you can't raise minimum wage on small businesses, that's why they raise prices. I'm not saying McDonalds is small by any means, but for example sake, if you raise minimum wage to 10.10 then every burger has to go up .40 cents or more which only actually hurts the middle class. Now introducing the $2 menu.

To make a real difference how bout they lower the cost of materials to these companies, oh we can't do that we want to make a profit also. It's a dog chasing his tail scenario at all times.

They should raise all middle class wages by 20%, leave minimum wage where its at. They have ample opportunity and enough government programs to get to the middle class.

I am not advocating that living off the current minimum wage is possible in any way. It's hard enough to live off a 40K a year salary after taxes, and life expenses, throw children on top of that and it makes me wonder how anyone makes ends meet, but guess what we all do because Humans ENDURE!!!

The corporations have won sadly

The argument for minimum wage works both ways; People don't want to employ because they genuinely can't afford to pay another person the national standard, yet need the help of another person. And on the other side you have big billion pound multi-national corporations paying the majority of their staff minimum wage...

Small companies can't hire people because of the national standard (Which would in turn allow people to get experience faster than currently) and then you have bigger companies taking advantage of the national standard by making multi-billion pound profits yet paying minimum wage to the majority of their staff.

In my personal opinion I think minimum wage shouldn't be set at a national standard, I believe that the annual profit of a company should determine how much their minimum wage should be set at.

I'm all for people with good education/knowledge about their chosen career getting some big money, but #ing over the little man every time just to get big profits that sit in the bank doing # all, is disgusting and needs to be changed asap.

If raising the minimum wage does not have a negative impact on employment or the economy, then why isn't the minimum wage 50.00 / hour?

reply to post by xuenchen


The problem is that low wage jobs are used as a tax payers sponsor to big corporation thru aid. The aid makes the corporations able to create extreme profits by keeping the wages at an unreasonable low level. Create a law that if someone works at this places and get help the help gets billed to the companies who are paying to low wages so that the citizens of US do not have to sponsor profit while companies moves the cost to the government. This is a gross miss handling of anything that can be called supply and demand economics by the corporations. And no you cannot increase the price anymore since people already are having less money to buy the products. It is a downward spiral as trickle up economics is.

reply to post by n00bUK

In my personal opinion I think minimum wage shouldn't be set at a national standard, I believe that the annual profit of a company should determine how much their minimum wage should be set at.

I have to disagree.....The large super power companies would take all talent that is out there and small business would be left with bums....I just think it would be better to raise ALL pay, to keep up with the large increases in everything recently! Price of gas tripled in the last 10 years and money hasn't moved....Groceries have went up 5 to 6 times in the same timeframe and money hasn't went up for employees....Cost of living actually does cost more, hence the name! Everyone should be required by law to increase employees pay a certain percentage (not included in your raises!!!!) to keep up with cost of living increases...

reply to post by xuenchen


THE ONLY REASON JOBS WILL BE LOST IS BECAUSE CORPORATIONS ARE TOO GREEDY AND WOULD RATHER "layoff" WORKERS THEN HAVE TO PAY THEM ALL $10.10.

These businesses can afford to pay workers that wage and still turn a profit. The thing is they are saying that as a scare tactic in order to make the average american not want it. Thats why they are saying that. It was said to scare the upper middle class, not the lower or the ones in poverty.

In all reality though, raising the minimum wage WILL MOST CERTAINLY help stimulate the economy because more people will have a few extra bucks to spend at these corporately owned businesses.

In the end you could do no wrong buy raising minimun wage to match that of inflation..... Nothing more or Less then that.
This is a prime example of *insert epic voice here* Capitalism Gone Wrong. (dont people need to spend money to make capitalism work? just food for thought)

reply to post by snypwsd


Corporations and businesses like money, correct?

And if raising the minimum wage created a boost for the economy, that'd mean more money for businesses and corporations, correct?

So you have to ask yourself why they don't boost the minimum wage. Surely it'd give them more money.

Only it doesn't. If it did, they'd have already done it and not waited for government to come in and screw everything up.

reply to post by xuenchen


I think a pretty convincing case could be made that this Democrat administration is focused on killing jobs. Amnesty, min wage increase, obamacare, unemployement benefits for 2 years, record # of people on disability. I say go ahead, raise the min wage to whatever the hell they want. Then let Democrats own the disaster. Dems running for office are already distancing themselves from the Obamacare miserable failure.

It's a waste of time to try to believe there is some logic in the economics, etc. It's all pure greed. But I wonder how many of these low paid workers spend their money on the company product. I can't believe anyone does actually.

$10/hr will hurt 'the economy'?

$16,000/hr however is completely acceptable

There's an elephant in this thread.