The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Sunday, February 2, 2014

Give America A Raise!

Give America A Raise!  Why?

Situation-At-A-Glance
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The Atlantic via the Bureau of Labor Statistics

Who Might Get a Raise If Obama Boosts the Minimum Wage?


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Where do Minimum Wage earners work?


No surprise, people who earn minimum wage comprise a service industry sub-culture and economic underclass.  Basically, they serve us in some capacity. 
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The cost of certain life sustaining goods? The following graphic does not include clothing (for a family), utilities bills, and operating a motor vehicle. Those costs have also risen over time, and continue to rise. What do you think happens to the following graphic if the drought in California continues? Food costs will rise across the nation.

www.janethull.com 
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How do Americans feel about raising the Minimum Wage? 




Trend: Raising the Mimimum Wage

The American public is favorably disposed towards raising the Minimum Wage. We also know the American public favors background cheeks for gun purchases (91%), yet the GOP members of Congress swim to 'dance to a different drum." Yet voters have given the GOP a majority the US House of Representatives for many years to come, and I read the American public could give the GOP the US Senate.  
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A GOP/conservative argument raising the Minimum Wage

This past December 4th -8th, Reason-Rupe Poll, interviewed 1011 adults (mobile [506] and land-line [505] phones). The following questions represents the survey battery.
The federal minimum wage is $7.25 per hour. Do you favor or oppose raising the minimum wage to ten dollars and ten cents per hour? 
Do you think the federal government should set a minimum wage, or not? 
Do you think raising the minimum wage would (reduce) the number of jobs, (increase) the number of jobs, or have no impact on the number of jobs? 
What about if raising the minimum wage caused some employers to lay off workers or hire fewer workers? Would you favor or oppose raising the minimum wage? 
Do you view minimum wage jobs as (stepping-stones to help lower skilled or younger workers gain skills) or as (long-term positions for established workers to support their families)?
Reason Dot Com article excerpt


Americans like the idea of hiking the cost of labor, but only if it doesn't price workers out of jobs. 
 | December 13, 2013
Nearly three-fourths of Americans favor raising the minimum wage from $7.25 to $10.10 an hour, while 26 percent oppose according to the latest Reason-Rupe poll. However, support flips and 57 percent oppose a hike if raising the minimum wage causes some employers to lay off workers or hire fewer workers, while only 38 percent would still favor the move. Nevertheless, 58 percent do not believe raising the minimum wage will harm jobs and 39 percent believe it will. 
Assuming no cost to jobs, majorities of Democrats (88 percent), independents (70 percent), and Republicans (55 percent) favor raising the minimum wage. Self-identified libertarians are the only political group that opposes it (55 percent). Support declines with rising income and age, but majorities continue to support the proposal. Even a majority (53 percent) of tea partiers support raising the minimum wage, but they are twice as likely as non-tea partiers to oppose.
Any wonder the GOP continues to throw-out that tired and untrue rhetoric about "killing jobs?" It is like former RNC Chair Michael Steele's "comments about Rand Paul's use of Bill Clinton's foibles and exploits as a tool against his wife running for president. Steele said, "It resonates!"  Of course, it does among people who are inclined towards "the sky is falling" Chicken Little GOP mantra.

The argument about increasing job growth (short-term) or job killing from increasing the Minimum Wage is an argument that will go on forever. We are going to post a short excerpt and link to a Daily Beast piece that shows higher unemployment rates doesn't necessarily lead to higher unemployment.

Daily Beast  "What does an increase in the minimum wage do to the economy"
While rejecting every study with more conservative conclusions might be a reach, Obama isn’t the only one who thinks raising the wage is worth a negligible effect on the job market. The tide seems to be turning toward the left. Currently, 19 states and D.C. have set the minimum wage higher than the federal rate. New Jersey’s recent vote for a wage hike will go into effect next year and make it the 20th. 
A look at unemployment numbers in these states also suggests that those with higher minimum wages aren’t suffering disproportionately from low job numbers. The correlation between states’ minimum wage and unemployment is a low .3, meaning a high minimum wage doesn’t really affect the unemployment rate. Only eleven states with minimum wages over the federal rate had higher unemployment in October (the most recent data available) than the record low national average of 7.0.
131206-zadrozny-graph3
The BLS data used to compile this graphic shoots down
John Boehner's warning of raising the Minimum wage means fewer jobs.
Let's consider a perspective from an economist we consider, learned, progressive and more importantly "credible." 

The Center on Budget and Policy Priorities 


Why We Need a Stronger Minimum Wage


January 29, 2014 at 12:18 pm
Jared BernsteinPosted by:
Our last post noted that support for expanding the Earned Income Tax Credit (EITC) for childless workers — as President Obama recommended last night — is growing on both sides of the aisle.  Policymakers also should help low-wage workers by strengthening the minimum wage.
Today’s minimum wage is 22 percent below its late 1960s peak, after adjusting for inflation.  Raising it to the $10-an-hour range would help to offset some of the unfavorable trends facing low-wage workers, including stagnant or falling real wages, too little upward mobility, and inadequate bargaining power that leaves them solidly on the “have-not” side of the inequality divide.
The President last night announced an executive order to raise the minimum wage for workers on government contracts to $10.10, thereafter indexed to inflation.  That’s a good first step, as I explain here.
The increase is modeled on a proposal before Congress — the Fair Minimum Wage Act of 2013 (FMWA) — to raise the minimum wage from $7.25 to $10.10 in three annual increments and then index it to inflation.  If policymakers enact the FMWA soon, by 2016 the value of the minimum wage (adjusted for inflation) would be slightly above its late 1960s peak, as the graph shows.
The question of whether raising the minimum wage reduces employment for low-wage workers is one of the most extensively studied issues in empirical economics.  The weight of the evidence is that (1) for minimum wage levels in the range now being discussed, such impacts are small, and (2) minimum-wage increases of the size enacted in the past, and under the proposals now being discussed, are a net benefit to low-wage workers as a group.  Raising the minimum wage also would modestly lower poverty and help push back against rising inequality.
Some opponents of raising the minimum wage argue that it would primarily benefit teenagers working for extra money, but the large majority of those who would benefit are adults, most of them women.  Indeed, the average worker who would benefit brings home half of the family earnings.  This reflects the fact that the low-wage workforce has gotten older (and more educated) in recent decades.
In addition, though opponents often suggest that the EITC obviates the need for a minimum-wage increase, both a strong EITC and an adequate minimum wage are needed to ensure that work “pays” for those in low-wage jobs.  The two policies are complements, not alternatives.
To lift working families’ incomes to an adequate level through the minimum wage alone, policymakers would have to raise it far above its historical level — and to a level that could raise significant concern about the effect on jobs.
Similarly, if policymakers tried to do the job solely through refundable tax credits like the EITC, the cost to the government would be well beyond what they likely would countenance.  Also, low-income workers would get too large a share of their income once a year at tax time, rather than throughout the year in their paychecks.
Working together, however, a decent minimum wage and strong refundable credits can help low-wage workers make ends meet and ensure that those considering whether to work have a strong incentive to take a job.
I hear and read the arguments again raising the minimum  wage, but I offset that with what follows.

Yes you had to know I would offer a minute of conservative 'fear mongering' on raising the minimum wage! Linked.

And that video embodies the essence of those who rail about the downside of "Giving America a Raise."

Why do we have the following experiences if wages is just a dire issue for the nation?
File:Hourly Minimum Wages in Developed Economies, 2011.jpg


Average-CEO-to-worker-pay-ratio-at-largest-listed-firms-2012_chartbuilder

"Give America a Raise."

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