Comments on: A poor solution http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/ Wed, 30 Jul 2014 19:10:25 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: zotdoc http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-322 Wed, 20 Feb 2013 17:52:50 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-322 I started working before the minmum wage laws were enacted and each time it rose from the initial 1.15, the purchasing power of a dollar fell. The whole idea of any minimum wage is a job killer, an inflation stimulator and now that there is a global economy it will accelrate the jobs being sent overseas. If it were such a good idea why not set the minimum wage at 1000.00 per hour and then we would all be rich – right?

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By: JL4 http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-321 Wed, 20 Feb 2013 16:11:08 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-321 @DonaCollins – nice post. The people I see working at the Home Center stores, grocery stores, Walmart, Target, McDonalds…they aren’t college kids for the most part.

I’m not economist, but isn’t it odd that the author, and Republicans, are quick to say the Earned Income Credit is an effective way to pull people out of poverty. Are they saying that a refund check from the government for $650.00 (if they’re lucky) is enough to do that? If only that’s all it would take.

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By: gerontion http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-320 Tue, 19 Feb 2013 21:55:12 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-320 I’m sure it must be fun to give the patina of academic authority to political positions that in practice amount to saying “I’ve got no idea what to do here, but the liberals must be wrong,” but surely it’s getting to you, Reihan. Is there some way to turn tax cuts into jobs? No? That doesn’t really work? I guess that’s it for conservative proposals, but who cares about the poor lazies anyhow.

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By: DonaCollins http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-317 Mon, 18 Feb 2013 21:43:54 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-317 I’m curious as to the number of people who are working part-time jobs at minimum wage because they were laid off or unemployed before and haven’t been able to find full-time work in their areas of expertise again.

And, of those earning more than “minimum wage or less” – what are the graded increases in value. How many workers are only earning $.25/hr more than minimum wage; $.50 more?

They’re still underemployed. And how many people currently working for rates between today’s minimum wage and the proposed minimum wage are collecting any sort of welfare benefit to pad their income? Will those people be able to come off of those programs if they earn more, or is it not enough?

I’d like to see a LOT more research.

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By: Acetracy http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-316 Sun, 17 Feb 2013 14:56:30 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-316 What is completely missing in this article and the comments above is the very basic fact that most workers in the restaurant trade, agriculture, and other low-skilled jobs are working often up to 60 to 80 hours a week just to survive. Do the math yourself and try to figure out how you would survive making that kind of income, esp. after payroll taxes and sales taxes.

Additionally, these jobs rarely if ever offer any benefits, such as health care or even unemployment insurance. The working poor are probably some of the hardest working people in AMerica yet have no benefit from the riches of this country: higher education, health care, retirement. These workers also live in constant hear of losing their jobs which are often seasonal.

The result is often an underground economy where these workers are paid off the official payroll, denying them social security benefits, unemployment benefits and any kind of job security. It is the equivalent of 21st century slave labor.

The academics who use their models and statistics to shoot down the idea of a $2/hr wage increase and the conservatives who consider these workers lazy and expendable should try picking vegetables, washing dishes, cleaning homes, digging ditches and other manual labor for $7.50/hr. I think their outlook of this “sub-class” of America would change very quickly.

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By: QuietThinker http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-315 Sun, 17 Feb 2013 13:45:54 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-315 The author raises many excellent points. I think raising labor force participation is key. Unfortunately, government fiat cannot raise the economic value of an individual’s labor, and so a number of folks will be priced out of the market. On the other hand, there are ways to eliminate barriers to labor force participation beyond the cash subsidy type programs the author mentions. Low end workers are often fired for not showing up or being tardy. Health and transportation are two big barriers here. I would put the highest priority on expenditures for healthcare and public transportation to eliminate those barriers to participation.

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By: AZreb http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-314 Sun, 17 Feb 2013 12:56:08 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-314 “….assuming no job losses….” – this is the big question that has no answer yet.

Remember – to “assume” can make an “ass” of you and “me”! No one knows yet that the results of Obamacare will be when it goes into full bloom in January of 2014. The program for those with pre-existing conditions has already run out of funding.

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By: Mac29 http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-312 Sat, 16 Feb 2013 18:14:55 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-312 Excuse me mn-man, the recession is not Obama’s, it was born under Bush and the republicans and their almost complete defunding of regulatory bodies but sired by both parties.
I submit Usagadfly is spot on and while I am someone who thinks this proposition is a reach and unnecessary (while the last increase was overdue), as a reader of economics I have to say JamesChirico’s post is compelling.

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By: JamesChirico http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-311 Sat, 16 Feb 2013 12:00:13 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-311 What a stupid article in the extreme. On nearly every point the author is wrong. The low skilled jobs that are left in this country are the ones that can’t be outsourced. There will be no contraction of employment. In fact in WA raising the rate has seen business income rise 11% last year with higher employment because of increased demand. The economists used have a deep bias toward business profits and low labor costs, their studies are slanted and bogus. Business does not want benefits paid is the reason for part timers. With high unemployment they can get people to work part time. WalMart the largest private employer in the country has workers average $9.15. To use a figure at min. wage should not be used, a figure on how many will see an increase will be used. The teen employment of 22.5% is not real, nor how many in households above poverty. Common sense tells you too many Americans don’t make enough to pays the bills. Raising the rate will help millions of households, will increase consumer demand, will have little impact on sales as business recoups the additional cost. People will shop at WalMart, will buy their fast food, will have the cleaning lady prim up the office. With more than 3/4 of the people at min. wage as adults, 25% of the working populace below 9.25/hour, this is a much needed boost. There is no problem with investment supply seeing 2 trillion sitting on balance sheets. There is a problem with demand, no sane businessman expands without a market. Increasing min. wage most certainly will increase demand. People at that income level will spend that money into the economy.

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By: JL4 http://blogs.reuters.com/reihan-salam/2013/02/15/a-poor-solution/#comment-310 Fri, 15 Feb 2013 23:11:12 +0000 http://blogs.reuters.com/reihan-salam/?p=143#comment-310 Additionally, the author’s comment restates, in a circuitous way, the age-old, nonsensical justification for paying women less than men:

“Of course, many of these workers [who earn minimum wage] live with their parents and are generally not the sole source of support for themselves or their families.”

Is it better to take the Earned Income Credit and have the taxpayers pick up the slack than for companies to pay a decent wage?

GRRR

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