The Great Inequality Debate
CBO Minimum Wage Study Rebukes Party of Science
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  • bigfire

    But it makes the backers feel good. That’s got to be more important than the half of million unemployed who are liberated from having to work.

    • Thirdsyphon

      I think it would be closer to 250,000 unemployed. . nobody’s making ends meet on just *one* of those jobs.

  • Guest

    I think this is a selective reading of the CBO’s conclusions. The full list of bullet points is below, so you can make up your own mind:

    Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $2 billion.
    Real income would increase, on net, by $5 billion for families whose income will be below the poverty threshold under current law, boosting their average family income by about 3 percent and moving about 900,000 people, on net, above the poverty threshold (out of the roughly 45 million people who are projected to be below that threshold under current law).
    Families whose income would have been between one and three times the poverty threshold would receive, on net, $12 billion in additional real income. About $2 billion, on net, would go to families whose income would have been between three and six times the poverty threshold.
    Real income would decrease, on net, by $17 billion for families whose income would otherwise have been six times the poverty threshold or more, lowering their average family income by 0.4 percent.

  • Evan Seitchik

    I think this is a selective reading of the CBO’s conclusions. Their full list of bullet points is below, so you can make up your own mind:

    — Once the increases and decreases in income for all workers are taken into account, overall real income would rise by $2 billion.

    — Real income would increase, on net, by $5 billion for families whose income will be below the poverty threshold under current law, boosting their average family income by about 3 percent and moving about 900,000 people, on net, above the poverty threshold (out of the roughly 45 million people who are projected to be below that threshold under current law).

    — Families whose income would have been between one and three times the poverty threshold would receive, on net, $12 billion in additional real income. About $2 billion, on net, would go to families whose income would have been between three and six times the poverty threshold.

    — Real income would decrease, on net, by $17 billion for families whose income would otherwise have been six times the poverty threshold or more, lowering their average family income by 0.4 percent.

    • El Gringo

      You are missing a bullet point that says real income will only increase for those employees who aren’t laid off following the wage increase.

  • rheddles

    The Republicans would be smart to get behind raising the minimum wage to $15.

  • Vadim Pashkov

    Did they include robotization in the calculation of future unemployment?

  • JesseJ

    My concern with a National Minimum Wage hike is that I’ve heard many Union Contracts are tied to minimum wage. Is this true?

    If it is, then such an increase also increases Union wages…which I am not against when folks are able to evaluate whether such an increase is affordable in a weak economy for so many, many American families.

    Does anyone know about this? Is it true?

    • f1b0nacc1

      Yes, it is true…and more importantly a huge chunk of the so-called ‘prevailing wage’ rule-setting (think: Davis-Bacon) is tied to it as well.
      That is the whole point of this move by Obama, et. al….a stealth giveaway to his labor allies at the expense of the rest of us.

  • Ghosts of Benghazi

    Brilliant. Obama is going for pure job kill across the board…….

  • Boritz

    Democrat1: We need a 10 percent increase in revenues.
    Democrat2: Let’s raise the tax rate 10 percent.
    Democrat1: Splendid idea!

  • ddh

    The president’s economic adviser Jason Furman said today that it would be reasonable to expect that the impact of raising the minimum wage on employment would be zero. If demand for labor is unaffected by the wage, then no employer would ever decide that paying $10.10 is too much for a task that he or she thinks is worth only $7.50. If you like your minimum wage job, you can keep your minimum wage job–no one will ever take it away from you.

  • Anthony

    Switzerland doesn’t have a minimum wage, and unemployment has tended to be low there over time. That said, Switzerland has an excellent welfare state, so low wage workers have less to fear than their counterparts in America.

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