Obama for dummies, Raising miminum wage hurts employment and consumers, Businesses don’t pay for increase, Employees and consumers pay, Higher unemployment and prices
“Tonight, let’s declare that, in the wealthiest nation on earth, no one who works fulltime should have to live in poverty — and raise the federal minimum wage to $9 an hour.”…Barack Obama
“The truth is, raising the minimum wage could be just about the worst thing he could do for the jobs market. We are already 7 million jobs in the hole, 7 million fewer jobs than when the President took office. Raising the minimum wage means employers whose businesses are struggling will simply get rid of jobs. They will cut workers. According to the Heritage Foundation, the last minimum wage increase eliminated 300,000 jobs”…Gerri Willis Fox News
Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
The following, as Rush Limbaugh would say, is designed to educate low information voters.
Just as businesses do not pay taxes, they do not pay for minimum wage increases. Employees and consumers do.
Company A has 10 college student employees receiving the minimum wage. With an increase, they are forced to let one employee go.
Company B, a taxi service in a small city, serves primarily people without cars. They have twenty drivers receiving minimum wage but they also receive tips. With a minimum wage increase the company is forced to cut back on hours and raise prices. The impact on lower income people is higher fares and reduced availability.
Company C is growing. They need to hire several employees. They start them at minimum wage but give performance raises after 6 months. With the minimum wage increase they are forced to review their hiring plans. The higher minimum wage coupled with increased health care costs will delay hiring plans.
Company D, a cable provider, uses many minimum wage employees. They are the only game in town so they raise prices. People complain but still want cable.
From Fox Business February 13, 2013.
“The truth is, raising the minimum wage could be just about the worst thing he could do for the jobs market. We are already 7 million jobs in the hole, 7 million fewer jobs than when the President took office. Raising the minimum wage means employers whose businesses are struggling will simply get rid of jobs. They will cut workers. According to the Heritage Foundation, the last minimum wage increase eliminated 300,000 jobs,
For a president who says he won’t sleep until everybody who wants a job has one, get some NoDoz because there are going to be some sleepless nights.
There are unintended consequences of a higher wage policy, but there is also the fact that the President inaccurately depicts the people on minimum wage. If you surmised from the President’s description that minimum wage workers were single mothers balancing a job at McDonald’s and caring for her children, you’d be wrong. Most minimum wage workers aren’t adults but people 25 years of age and under, and 60% work part-time.
The true picture of the typical minimum wage worker is a high school or college student with a part-time job, balancing work with the demands of an academic life. Do they deserve a 14% pay hike?
According to the Heritage Foundation, people who are paid minimum wage typically live in households with incomes two or more times over the official poverty level. Non-economists refer to them as mom and dad.
Here’s what the President doesn’t understand that you probably do: minimum wage jobs are training positions. The employer contributes every bit as much to the worker in terms of training teaching job skills, good work habits, how to meet expectations, as the worker does. That’s why these folks aren’t getting top dollar. They are newbies.
The job market is full of people performing at different levels and they all don’t get paid the same amount of money! That is fair, right and good.
Oh, and by the way, two-thirds of minimum wage workers don’t earn minimum wage after a year. They get a raise!”
From Citizen Wells April 3, 2012.
“What about taxes?
First, the corporate tax rate in the US is near or at the top in the world.
US oil companies pay enormous amounts of taxes. How does this compare to one of Obama’s pay to play buddies GE? Check this out for yourself.
Here is the really important point about raising taxes on oil companies and other companies.
Companies (corporations, LLC’s, partnerships, sole proprietors) do not paytaxes!
Consumers pay for the tax increases.
Taxes are part of the cost of doing business.
A tax increase to a company results in some combination of the following:
Product and service price increases.
Employee and hours cutbacks.