February 18th, 2014
03:28 PM ET
9 years 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.
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I wonder who asked for the report. What "facts" that were presented to be analyzed can make a major difference in the end result. The CBO analysis of the Ryan Plan was a perfect example of this.
-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.
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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.
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Yes, and the vaunted conservative response to things beyond your control? " If you're not rich, its your fault". "Conservative compassion" never extends beyond the blinders they put on themselves. Never. Its always about maligning, belittling and ridiculing people, and getting a tax break for making a paltry donation.
Hey, let's just lower minimum wage or get rid of it. we'll have everyone employed and if their jobs don't pay enough, why, we can just have them live in corporate housing on a corporate campus and eat the food provided by the corporation and only have babies when the corporation can afford it and only get educations if it's necessary for the corporation's operations and never mind those barbed-wire fences...that's to keep out all the people who are itching to get in on such a sweet sweet deal!
" It is tough enough trying to start up a business and be profitable and survive right now"
Oh give it a rest. If you can't figure out how to start a business that includes paying people a living wage as part of its business plan then you haven't built the better mouse trap and your widgets suck and don't belong on the market.
-Sniffit
Hey, let's just lower minimum wage or get rid of it. we'll have everyone employed and if their jobs don't pay enough, why, we can just have them live in corporate housing on a corporate campus and eat the food provided by the corporation and only have babies when the corporation can afford it and only get educations if it's necessary for the corporation's operations and never mind those barbed-wire fences...that's to keep out all the people who are itching to get in on such a sweet sweet deal!
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Yes, remember folks, be thankful for the company: they own you. Just like the old company towns in PA, where everything you bought was through the company stores and deducted from your pay. Ah, for the heady days of the 1890s! Just remember, the important thing is no nasty government to get in your way: you have the company instead! A person who makes a lot more than you decides your fate! Isn't that delightful?
So, no discussion or analysis from CBO on just how short term the job losses would be as the massive influx of demand catches up in the economy? What a joke.
"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."
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Given that corporate heads in the US make (on average) 475 times the rate of their lowest paid F/T workers (where in Germany for example the figure is 11 X), I find it funny you cannot comprehend that perhaps the corporate greed heads couldn't "get by" on merely making 474 X, or heavens, 400X the rate of their lowest employees in exchange for raising the minimum a buck or two.
As far as our corporate leaders skills and pay- well if they can't run their business and pay people livable wages, they aren't too bright (or moral) are they? As far as attracting these folks- well as the rate of pay discrepancy is greatest in the U.S., they really don't have anywhere to go do they?
"we've seen this very same compassionate lefty response with people that lost their healthcare policies. they were junk, no good,
They were junk and no good. The DATA proves it. Have a problem with the data? Never fear! Reality has a complaint line now! Please dial 1-800-DELUDED and let reality know what you think of its terribly inconvenient feedback.
Sniffit – "...If you can't figure out how to start a business..."
Generally 50 to 70 percent of small businesses fail within the first 18 months. Small differences in cost of operations make a big difference in survival.
Years back, I had 2 different businesses (years apart) where my workers sometimes made more than I did. Not much fun. Sometimes due to the economy, sometimes other factors.
No doubt, that would never happen to you.
The GOP SLIMEBALLS have said the same exact thing the last 2or3times the minimum wage WAS RAISED with NO Such effect. Just more GOP lies and misinformation . Vote these GOP BUMS OUT in November!!!!!!!!
"Some" jobs? No inflation?
Cool. Let's not be stingy then. Let's raise the minimum wage to $1,000,000 an hour. I mean, what could possibly go wrong?
Moron lefties in here... The minimum wage was NEVER meant to be a "living wage"! It was a starting wage for people just entering the work force, aka teenagers, inexperienced people with virtually no skills. But the problem is now that lefties have wrecked the school system and we have millions of idiots graduating that cannot read or do simple math.
They do not go to college so we have a large number of people who have no skills worth paying for. And the Democrats answer is to reward them for their failure and lack of education by just keep raising the minimum wage.
What will happen is that businesses will just eventually do away with these jobs all together because they will be priced out of existence.. They will disappear or they will become automated, just as you now see large numbers of self checkout areas in stores where you once saw people running cash registers.
Democrats have no clue. The answer to a "living wage" is to stop people from dropping out and to get them to take education seriously.
@rs, and I find it funny that you begrudge people who have succeeded. I have an idea, let's all sit around and gripe about successful people who just possibly might be responsible for a lot of other people having decent jobs, but they make more money than we (in our infinite wisdom) think they should. Maybe we should insist on mediocre CEO's so that our private sector can better emulate our public sector, which has proven to be a magnet for underperforming leaches. You know, spread the wealth, pun intended.
rs – "Given that corporate heads in the US make (on average) 475 times the rate of their lowest paid F/T workers (where in Germany for example the figure is 11 X), I find it funny you cannot comprehend that perhaps the corporate greed heads couldn't "get by" on merely making 474 X, or heavens, 400X the rate of their lowest employees in exchange for raising the minimum a buck or two."
In some majic kingdom that would work, but in Corporate America they will take those 1 and 2 dollar raises times number of workers, multiply THAT by 475 for their new pay check increase. And the cost of goods will go up, not the amount of the minimum wage increase, but that plus all the other pay increases from bottom to top plus 10 to 20 percent corporate profit.
And that cost increase, in bread, gas, coffee, whatever, will most affect the low-wage earner.
If I had a workable solution, I'd offer it. Since, as you point out, other countries have a more reasonable ratio from worker to management, maybe we should boycott American companies. Or, let's start with the one with the highest paid CEO, etc. Totally stop buying their product. If its Exon, GE, Walmart, whatever. Single out one company and go for it.
Just an idea.
Sniffit
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"we've seen this very same compassionate lefty response with people that lost their healthcare policies. they were junk, no good,
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They were junk and no good.
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Right because they didn't have maternity coverage for the elderly and drug and alcohol treatment for Mormons, etc. The real reason they were no good was because they weren't costly enough to help subsidize the healthcare policies of others.
Sniffit
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" It is tough enough trying to start up a business and be profitable and survive right now"
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Oh give it a rest. If you can't figure out how to start a business that includes paying people a living wage as part of its business plan then you haven't built the better mouse trap and your widgets suck and don't belong on the market.
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Wow... all of the compassionate lefties are out today! Thanks for letting us all know how you truly feel about the largest employer in the country, small business. Screw you all, the lefties in their infinite wisdumb know what business is worthy of being born. Just don't even bother trying if you can't pay afford to pay enough to satisfy their salary and regulation demands.
Now you know why the clueless wonder in the White House has failed for 5 years, with 3 more to follow. He went to the Sniffit School of Business Failure.
It's election time again and the democrats are doing what they do best, spend other peoples money. Leave it to CNN to spend a thousand words to gloss over the facts about what it really means in losing 500000 jobs to the economy and to real people. When the minimum wage goes up, the people who worked hard to learn skills at their job for a year or so to earn a raise will have to be paid more to keep them. In turn, the folks higher up will also need to get higher wages....and on and on.
The best anti poverty program is to allow the free market private sector to create JOBS !!!!! GOVERNMENT'S CANNOT CREAT PROSPERITY !!!!!