Democrat Economic Leadership

[rubato]

http://finance.yahoo.com/news/Minimum-w ... et=&ccode=
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"...
About 20% of American adults who have jobs are earning only $10.65 an hour or less, according to Osterman's analysis. Even at 40 hours a week, that amounts to less than $22,314, the poverty level for a family of four.

The federal minimum wage currently stands at $7.25 an hour (18 states set their own rates above the federal level, maxing out at $8.67 an hour in Washington State). But increases have not kept up with inflation. When adjusted for inflation, the highest federal minimum wage was in 1968, when it was the equivalent of $10.38 in today's dollars.

Osterman, who has written a new book called "Good Jobs America," said gradually raising the federal minimum wage to something close to that level over the next few years would be an important first step to helping the working poor climb out of poverty, while injecting more money into the economy.

Poverty's home: The suburbs

"If you give someone making $15,000 a year a $3,000 increase, that's going to make a tremendous difference in their life," he said.

With a greater percentage of the nation's income going to corporate profits than ever before, Osterman argues that businesses can afford a higher minimum wage.

"There needs to be standards in the job market," he said. "If the object is simply to minimize costs, we can use slaves again."
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yrs,
rubato

[dgs49]

Rube, are you really this economically clueless? What you have quoted (apparently in total agreement) is total nonsense.

"About 20% of American adults who have jobs are earning only $10.65 an hour or less." Does this include 18 year old high school seniors?

And how many of these unfortunates are even purporting to support a family of four on those wages (and nothing else)? Approximately zero, I suspect.

Again, the writer makes the preposterous statement that, "...raising the federal minimum wage to something close to that level over the next few years would be an important first step to helping the working poor climb out of poverty, while injecting more money into the economy."

Even DEMOCRATS understand that raising the minimum wage costs JOBS. Those who continue working benefit, and a large number of those currently earning MW will be let go. The "studies" that appear to prove otherwise are invariably focused in cities where the de facto minimum wage is higher than the legal minimum wage.

And how - HOW - does taking money out of one person's pocket (employer or consumer) and putting it into someone else's pocket, "...inject more money into the economy"? This is a totally ridiculous statement that destroys any credibility that the author might otherwise have.

Again, rube, the real question is: "IF IT'S SUCH A GOOD IDEA, WHY HASN'T CONGRESS RAISED THE MW TO $25/HR?" They had the votes to do it for the first two years of the Obama debacle.

Democrats: Dumber than a sack of rocks when it comes to econ.

[quaddriver]

As has been pointed out, and Rube has not addressed, the last time the min wage was raised, 2 MILLION min wage jobs were lost almost immediately, but so far permanently.

Exactly where is this money being 'injected into the economy'?

[rubato]

"...

Even DEMOCRATS understand that raising the minimum wage costs JOBS. ... "

All of the evidence proves the opposite of that.

Raising the minimum wage does not reduce jobs except in your fantasy land.

And you have still not said why the rest of society should subsidize employers who pay less than the cost of their employees.


yrs,
rubato

[rubato]

But, because I care about the facts even if you don't:

Only 7.6% of the workforce are between 16 and 19 years old. Quite a large whack less than 20% Yes? You understand facts? yes? And some of them make a lot more than $10/hour like our friend's son who gets closer to $20/hour with higher-level skills. So that the fraction of that 20% who you can dismiss as younger is actually quite small. And since in conservative states a lot of teenagers have children (stupid parents breed stupid children!) there are a lot of them who do have families to support.


http://www.bls.gov/opub/mlr/2001/11/art2full.pdf

yrs,
rubato