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Thread: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

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    CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    'Increasing the U.S. minimum wage may lift some workers out of poverty while leading to as many as 1 million job losses, according to a report from the Congressional Budget Office.

    The report was seized on by House Speaker John Boehner, an Ohio Republican who opposes President Barack Obama’s call to increase the minimum wage to $10.10. The federal minimum wage is currently $7.25 an hour.

    ...A change in employment probably would range from a “very slight reduction” to a decrease of 1 million jobs, CBO said. Some workers would lose their jobs as companies look to offset the change by reducing payrolls, according to the report.'



    CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs - Bloomberg

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    I swear, these Democrats have a third-grade understanding of economics.

    Fewer workers will be asked to do more work. Companies budget for employee overhead, and profit margins are set according to risk. Those numbers will not change.

    The only result of this will be higher unemployment. Way to go, nimrods.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by Erod View Post
    I swear, these Democrats have a third-grade understanding of economics.

    Fewer workers will be asked to do more work. Companies budget for employee overhead, and profit margins are set according to risk. Those numbers will not change.

    The only result of this will be higher unemployment. Way to go, nimrods.
    More money in the working man's pocket means he'll spend more at Wal-Mart. More money going back into the economy means happier businesses.
    Give a man a fish and he can eat for a day. Teach a man to fish and he can sit in a boat, drinking beer all day while you fool around with his Woman.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by HenryChinaski View Post
    More money in the working man's pocket means he'll spend more at Wal-Mart. More money going back into the economy means happier businesses.
    It's about percentages though. If the price level (i.e. the Consumer Price Index) increases by a factor similar to what minimum wage goes up, then there is no net benefit.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    This argument has been going on for decades. If the right had their way most would be making a dollar a day. Henry Ford was right on the money.
    Last edited by HenryChinaski; 02-18-14 at 05:50 PM.
    Give a man a fish and he can eat for a day. Teach a man to fish and he can sit in a boat, drinking beer all day while you fool around with his Woman.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by Erod View Post
    I swear, these Democrats have a third-grade understanding of economics.

    Fewer workers will be asked to do more work. Companies budget for employee overhead, and profit margins are set according to risk. Those numbers will not change.

    The only result of this will be higher unemployment. Way to go, nimrods.
    Quote Originally Posted by HenryChinaski View Post
    More money in the working man's pocket means he'll spend more at Wal-Mart. More money going back into the economy means happier businesses.
    Quote Originally Posted by Gipper View Post
    It's about percentages though. If the price level (i.e. the Consumer Price Index) increases by a factor similar to what minimum wage goes up, then there is no net benefit.
    Everybody is right.

    Workers who earn more spend more, and spending more drives demand which drives companies to hire more to produce more goods. And its also equally true that when the cost of labor increases that companies seek to hire less individuals to reduce costs, which can lead to unemployment. There's a happy medium in between where you maximize employment, assuming that is your goal since max employment may not mean the same as max production or max profit.

    Then you consider that some companies that hire lots of minimum wage workers may not be the kind of companies where minimum wage earners frequency spend their earning, these companies will always be hurt by increases in minimum wages. This includes a lot of high end retail which may sell expensive furniture or clothing but rely on minimum wage or low wage workers to do the warehousing, floor management, check-out, etc in the retail space itself. Then you have other companies like Wal-Mart and fast food which has a massive amount of minimum wage labor AND are places where minimum wage workers frequently spend money but still may not benefit from a minimum wage increase depending on whether economists think those folks will spend those extra dollars in their stores in addition to people they do not employ also spending their earnings at their store. Its not enough for your employee to buy your product, you've also got to get other folks who you don't employ to purchase your goods as well if you want to turn a profit.

    So there's no happy medium whatsoever, different wage levels benefit different people and different companies differently.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by HenryChinaski View Post
    More money in the working man's pocket means he'll spend more at Wal-Mart. More money going back into the economy means happier businesses.
    No, actually it means more money in Wal-Mart and their off-shore suppliers pockets.
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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by HenryChinaski View Post
    This argument has been going on for decades. If the right had their way most would be making a dollar a day. Henry Ford was right on the money.
    And if he left had their way, no one would be rich, and the government would control everything.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by HenryChinaski View Post
    More money in the working man's pocket means he'll spend more at Wal-Mart. More money going back into the economy means happier businesses.
    He'll spend more at Wal-mart, but take home the same merchandise. Cost goes up, prices go up, too. It's already happening as grocery prices are taking off.

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    Re: CBO Says Minimum-Wage Rise May Ease Poverty, Cost Jobs

    Quote Originally Posted by HenryChinaski View Post
    This argument has been going on for decades. If the right had their way most would be making a dollar a day. Henry Ford was right on the money.
    No, it is a question of supply and demand. Currently supply is higher than demand so wages are low. When the reverse is true wages increase. It has nothing at all to do with politics.

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