Raising minimum wage would ease poverty but cost some jobs
February 18th, 2014
03:28 PM ET
5 months ago

Raising minimum wage would ease poverty but cost some jobs

New York (CNNMoney) - Raising the federal minimum wage would boost the incomes of most low-wage workers but result in job loss for some, according to an analysis released Tuesday.

The Congressional Budget Office estimates that gradually raising the minimum wage to $10.10 an hour would reduce total employment by about 500,000 workers, or 0.3% of the workforce.

FULL STORY
soundoff (42 Responses)
  1. Thomas

    We need a cast system like India or China .

    How else can we compete ?

    February 18, 2014 03:32 pm at 3:32 pm |
  2. Gurgyl

    Do not but anything till they raise minimum wage. Yes, it is long over-due. Bring Manufacture back, including call-center jobs. These idiots talk as if they did not cost jobs now ?

    February 18, 2014 03:33 pm at 3:33 pm |
  3. Tommy G

    The Congressional Budget Office estimates that gradually raising the minimum wage to $10.10 an hour would reduce total employment by about 500,000 workers, or 0.3% of the workforce.
    --

    OK, queue up the leftist flat earth crowd to form the usual attacks. And BTW CBO, throwing 500,000 out of a job does not ease THEIR poverty!!

    I say again, all the Democrats and left know how to do is take and destroy.

    February 18, 2014 03:35 pm at 3:35 pm |
  4. ThinkAgain

    It's funny to read the comments off the "Full Story" link above: you can immediately tell most didn't read the article and are more than happy to copy-paste Fox talking points.

    Here are the salient points:

    – The move however, would be a boost for most low-wage workers. The CBO estimates about 16.5 million low-wage workers would see higher earnings once the full $10.10 wage was implemented in 2016, which Democrats have been calling for.

    – What's more, the increase would lift an estimated 900,000 workers out of poverty.

    – In addition, the CBO said, some workers who are already earning a little more than $10.10 would also see a raise.
    So, too, would some higher-wage workers, who "would owe their jobs and increased earnings to the heightened demand" for their products or services, the report said.

    – In other words, higher wages means more spending money for low-paid workers.

    Yes, some jobs would be lost – but if low-paid workers have more money to spend, that will create demand for products and services.

    And while the article does say, "The CBO also said there is a good chance the job loss could be much less - or could reach as high as 1 million jobs." I'm thinking the job loss would be less and the length of unemployment less, due to this increased demand.

    February 18, 2014 03:36 pm at 3:36 pm |
  5. salty dog

    Doesn't sound like the jobs lost will be worth worrying about. Why can't they just work for what the gop says their worth and be happy, you don't need to eat everyday.

    February 18, 2014 03:40 pm at 3:40 pm |
  6. salty dog

    Jobs killer alert.... how is apple and Walmart going to survive? Are you suggesting their CEO take a pay cut, they barely make it on eight figure salaries. Can't you people just not eat, or want heat, and next thing you know they'll want healthcare, where does it end?

    February 18, 2014 03:43 pm at 3:43 pm |
  7. salty dog

    Leftist flat earth crowd, wow, your a bit confused, tell me about the lefts war on women and minorities again, go slow, I'm a Democrat.

    February 18, 2014 03:46 pm at 3:46 pm |
  8. ThinkAgain

    Check out the cartoon, the one rich guy, to see how the GOP feels about wages in this country.

    February 18, 2014 03:48 pm at 3:48 pm |
  9. The Real Tom Paine

    The conservative approach on wages and employment has always been cut hours for people, as opposed to having people fully employed. They prefer to have millions on the economic margins as opposed to people being able to spend more, thus generating more demand and MORE JOBS. In an wonderful example of irony, Tom G and the rightie Greek Chorus are talking about 500,00 people being out of work as a big deal: if they were federal workers, they would be congratulating themselves on having saved money. The plain truth is that a better paid workforce is one that spends more, and if they spend more, there is more demand: if there is more demand, you need to hire more people, who in tern spend more: get it? Not that hard, people

    February 18, 2014 03:52 pm at 3:52 pm |
  10. salty dog

    Were waiting for your earth shattering proclamations regarding the rights of the poor, and women. Explain the opportunity they offer them, or would you like me to, there isn't any, period.

    February 18, 2014 03:54 pm at 3:54 pm |
  11. The Republican Party Is Dead To Me

    As long as people vote against their own self interest, and cow-tow to the wealthy, jobs will be lost. Regardless of what you believe, the ones that own it, will always come out on top. You want to make a living. They don't really care if you live or not, as long as they get theirs.

    February 18, 2014 04:01 pm at 4:01 pm |
  12. just asking

    salty dog
    Doesn't sound like the jobs lost will be worth worrying about. Why can't they just work for what the gop says their worth and be happy, you don't need to eat everyday.
    -–

    yeah, we've seen this very same compassionate lefty response with people that lost their healthcare policies. they were junk, no good, lefties know better what they need. and these people that lose their jobs, and other benefits, well they are just collateral damage for the greater lefty cause. as salty dog points out, eating is optional but don't worry you can go on food stamps and the government dole. jobs are just so over rated. the government dole is where you want to be.

    February 18, 2014 04:01 pm at 4:01 pm |
  13. Jeff Brown in Jersey

    Don't you realize that being poor and suffering builds character? Just ask Paul Ryan and Little Ayn Rand Paul!

    February 18, 2014 04:03 pm at 4:03 pm |
  14. Fair is Fair

    "The Congressional Budget Office estimates that gradually raising the minimum wage to $10.10 an hour would reduce total employment by about 500,000 workers, or 0.3% of the workforce."
    -------
    I don't believe it. Not for one minute.

    /sarcasm

    February 18, 2014 04:03 pm at 4:03 pm |
  15. yolanda

    @salty, while you're busy educating everyone why don't you tell us how many jobs would be created by paying the CEO's of WMT and AAPL what you deem a proper salary. Then explain to everyone how you are going to attract and retain the talent needed to run those businesses. Just maybe having competent leaders allows those (and many other) businesses to prosper, grow, and create more jobs....but then you would have one less thing to whinge about.

    February 18, 2014 04:04 pm at 4:04 pm |
  16. Donna

    Well one thing is for sure. Anybody thinking of trying to start a business better come up with more money too. It is tough enough trying to start up a business and be profitable and survive right now. Raising the minimum wage will also kill many small business ventures, some before they can even be tried. I wonder if the CBO evaluates that aspect of higher minimum wages?

    February 18, 2014 04:05 pm at 4:05 pm |
  17. Lolo

    The GOP/TP Klan just do not get it. If the people don't work or buy they won't have those millions of dollars to count each night. Such a ignorant party.

    February 18, 2014 04:06 pm at 4:06 pm |
  18. sonny chapman

    Do any Repubs. remember a guy named Henry Ford ? He built cars. He paid his workers enough in salary & his mgt. guys reasonable comp. so that he could sell his cars to the people who made them ! Or , how about the Goose that laid Golden Eggs. Dang ungrateful thing died of starvation when the owner cut back on feeding it to save on his food bill.

    February 18, 2014 04:15 pm at 4:15 pm |
  19. sonny chapman

    Hey Repubs., I've got a better idea; just Repeal the 13th Amendment.

    February 18, 2014 04:17 pm at 4:17 pm |
  20. T Howard

    Obama's organizing didn't prepare him to understand the economy. He doesn't have a clue. America wants real jobs .
    The welfare programs we have now do not lift or elevate America's workforce. The midterms are coming. Vote out anyone having anything to do with the Obama scourge.

    February 18, 2014 04:20 pm at 4:20 pm |
  21. The Democrat Solution - Pray You Will Not Be Collateral Damage

    Democrats believe we should raise the minimum wage to $50 an hour. So what if it costs millions and millions of jobs. It will cure poverty for a few. It will be a small price to pay.

    February 18, 2014 04:20 pm at 4:20 pm |
  22. Sniffit

    "Democrats believe we should raise the minimum wage to $50 an hour."

    Name one who argued that. Name ONE.

    February 18, 2014 04:26 pm at 4:26 pm |
  23. vic , nashville ,tn

    Cost of living is increasing , compare to last year milk, egg … price are up, property tax , homeowners insurance , electric bill are up
    Minimum wage must increase

    February 18, 2014 04:27 pm at 4:27 pm |
  24. rs

    yeah, we've seen this very same compassionate lefty response with people that lost their healthcare policies. they were junk, no good, lefties know better what they need. and these people that lose their jobs, and other benefits, well they are just collateral damage for the greater lefty cause. as salty dog points out, eating is optional but don't worry you can go on food stamps and the government dole. jobs are just so over rated. the government dole is where you want to be.
    _______________________________
    Big words representing the party that feels as long as there are ERs we don't need health care reform, or health insurance.

    February 18, 2014 04:28 pm at 4:28 pm |
  25. rs

    For all of you on the Right suddenly concerned about a nominal impact of raising the minimum wage a buck or two- so, you're the party of jobs, jobs, jobs. What's the solution? You lose if the answer is: give the rich a tax cut.

    February 18, 2014 04:30 pm at 4:30 pm |
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