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CBO: Minimum Wage Hike Costs 500,000 jobs

A plan backed by President Obama to increase the minimum hourly wage from $7.25 to $10.10 would cost the United States 500,000 jobs in just two and a half years, according to the Congressional Budget Office.

The CBO, which earlier this month released the startling finding that 2.5 million workers would scale back their hours or stop working because of Obamacare, is proving once again that it is a repository of reliable data while the White House is a suppository of useless information.

Writing just six days ago in blog post on the White House website, Council of Economic Advisors Chairman Jason Furman claimed raising the minimum wage would have a negligible impact on jobs.

Finally, as one recent review of minimum wage research published since 2000 concluded, “The weight of that evidence points to little or no employment response to modest increases in the minimum wage.”

Furman neglected to mention that the Center for Economic Policy Research, which performed the “review,” is a left-wing think tank which last year released a study showing that if people would only work less it would cool global warming.

So Furman did some damage control blogging today, emphasizing that “16.5 million people making less than $10.10 per hour would get a raise if the minimum wage is increased.”

Okay. So maybe those who lose their jobs can move in with them.

Furman’s first blog post was followed by a scurrilous weekly address Saturday by President Obama, who was in full class warfare, truth-bending mode:

While those at the top are doing better than ever, average wages have barely budged.  Too many Americans are working harder than ever just to get by, let alone get ahead.  And that’s been true since long before the recession hit.

That’s why we’ve got to build an economy that works for everybody, not just a fortunate few.

A fortunate few? Fortunate to have had the good sense to work their asses off.

An overwhelming majority of Americans support raising a minimum wage that’s worth about 20% less than when Ronald Reagan took office.

This one really caused me to reach for the smelling salts. Or some Fiji Water – on the advice of the first lady – anything to keep me passing out from the shock and awe of Obama’s dishonesty.

Obama tries to invoke Reagan, suggesting Republicans should support him. But notice what he actually said . . . when Ronald Reagan took office.

WHO HAD JUST BEEN PRESIDENT WHEN REAGAN TOOK OFFICE? AND HOW WERE THINGS GOING UNDER JIMMY CARTER?

Sorry, drank a little too much water.

Obama is actually making a favorable mention of Jimmy Carter’s economic policy. I guess it makes sense when you think about it.

Under Reagan, the minimum wage remained at the same dollar value – declining steadily in real terms – while the economy boomed.

This next one made me laugh so hard I nearly detached my gall bladder. I’m serious.

It will give more businesses more customers with more money to spend – and that means growing the economy for everyone.

Now let’s think about this. Because, really, Obama doesn’t seem to understand who PAYS the increased minimum wage. He thinks it just magically materializes, or comes from rich people who have stashed stolen millions on their golf bags.

IT’S PAID BY BUSINESSES. So the money paid by businesses comes back to them in spending from the people they gave the money to. THE SAME MONEY. And that’s supposed to help businesses?

Does spitting in the wind add to your reservoir of saliva?

The opponents of raising folks’ wages have deployed the same old arguments for years, and time and again, they’ve been proven wrong.

In fact, increases in the minimum wage have coincided with three of the last four recessions, including the hikes in 2007, 2008, and 2009 that accompanied the current slowdown.

Here, just to torture you, is Obama’s commentary on the minimum wage. Hold onto your gall bladder.

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39 Responses to CBO: Minimum Wage Hike Costs 500,000 jobs

    • Republican conservatives need to get a pair and stop being wimps. The idiocy of Obama needs to be ridiculed severely. We will gladly support someone with half the nads of a Ronald Reagan. Where the hell is he! I am personally sick of RINOS, they are just professional politicians. And please, whoever steps up, take away the freakin teleprompter. If you are not smart enough to speak from your heart don’t bore us with your reading skills.

      • Yes, Please send us a conservative with the courage to challenge the continual bs coming from the WH! Man or woman, just someone with conviction, courage, inteligence and the ability to lead. This current admin is taking us down a path with a known destination.

  1. Obama’s ideological communism paired with total ignorance of basic economics and the content of the Constitution of the United States is a grievously dangerous combination for this country. There could be little worse, unless he were a racist, too. Oh. Wait.

  2. Instead of paying someone $10.00 to flip a burger…I have a suggestion. Start projects thoughout America. Pay someone $10.00 or more to build a bridge (Old Bridge!)
    Only American Citizens
    Buy materials only from American Company’s.
    Levee repairs thoughout America is another project.
    These types of things will bring buisness to the restaurants, building supplies in that area.
    Only company’s that are keeping their money here and being taxed will be able to bid for the job.
    This type of project planning could at least start the ball rolling in bringing things back here to America.
    Anything and Everything we buy is from another Country.

      • Thanks for the clip.
        Have you noticed the cloths sizes are different.
        For instance: Last week I had to buy simple black pants.
        I will leave out my height and weight, but when I pulled my size pants off the rack, The pants leg was several inches two long.
        I stopped going to certain stores for just grass cutting attire to do my yard, because if you put the shirt in the dryer it shrinks to a kid size.

    • One problem with these construction projects that most people may not know is that when a company arrives to build a bridge, oil well, etc., they bring in their own labor. No local hires.

      It benefits the economy because the out of staters spend money on hotels, restaurants, and sometimes prostitutes, but it’s not the same as a local job that pays a salary into a local home.

  3. Hey kids, I finally figured out what I was doing wrong losing the “You’re Posting to Fast” comments…..

    I was closing (x) the Fast message when I should have been back paging (<-). Hope this helps some one else! Julie may have explained it better than I did, but it works! Message is saved!!

    • Denise — I am not very bright. I never xed out of too fast. I always backed. And when everyone was commenting on it, I wasn’t quick enough to get what the problem was. And now quick enough to let you guys know either.

      But hooray for you. Now people who had problems can get out.

      Now if we could just do something about moderation jail … bail is getting higher and higher. :)

  4. The economic arguments against raising minimum wage are old as dirt.

    But somehow when King Barry raises it, it’s a brilliant new economic problem solver. This guy and everyone who supports him is whacked.

    Same old . Same old. Same old.

    And every single day. Chinese water torture.

    I honestly think there is nothing this man knows. He is a veritable blank slate that other people write on, pull a string, and he regurgitates it back. He does not know what he is talking about. Ever.

    Clever as a fox maybe. As deceitful as the devil perhaps. And lies like a rug.

    But just plain dumb as a box of rocks when it comes to how anything works.

  5. Sorry, Keith….can’t listen to him. He sounds loonier than a box of fruit loop, both in tone and content.

    He doesn’t understand that MW increases result either in higher unemployment or higher inflation
    He doesn’t understand percentages – he is talking about a 40% increase, for pete’s sake.

    The minimum wage in 2008 just before the financial collapse was 5.85. Low skilled workers were thrown out in the streets and stopped looking until the recovery began in early 2009. By that time, the MW had been raised 25% to 7.25 – knocking the wage floor out for the unskilled and the youth market. Teen unemployment skyrocketed.

    Now he wants to raise MW 40%! Unbelievable!
    .
    1. Higher unemployment as companies scale back to reduce expenses.
    2. Higher costs to consumers as companies raise prices to cover the higher wages they have to pay
    3. Companies closing their doors because they can’t scale back or raise prices.

    More poverty, more unemployment. And more revenue flowing out of the country from the underground economy, illegal aliens, who will still be depressing wages for Americans.

      • The unemployment rate among 18-30 year old unskilled people is over 25%. Raising the minimum wage will allow these people to continue spending more quality time with their families and bond with their children. They can continue to enjoy their freedom not being a slave to work and pursue their entrepreneurial spirit. All while enjoying the benefits of free healthcare, extended unemployment benefits, free food and phones. Is this a great country or what!

    • He doesn’t care about the harm. I’m sure he knows about it, don’t you think? Besides, those who make the minimum wage are exhilarated about the prospect.

  6. My first glance at the Olympics. And within 5 minutes I hear “Amazing that these two girls should even be here …. considering their backgrounds, their very tough childhoods….”

    I’m out. This crap is everywhere.

    What about — Yes, in America you can do and be whoever you want to be with hard work, etc etc.

    • Our President speaks with forked tongue.
      reprinted from the:
      The public policy blog of the American Enterprise Institute

      Obama opposes raising minimum wage in American Samoa due to its harmful effects, will he do the same for the U.S.?
      Mark J. Perry | July 30, 2012, 3:57 pm
      Both of these events took place last Thursday:

      1. PAGO PAGO, American Samoa — “President Obama has signed into law legislation to freeze American Samoa’s minimum wage until 2015. The president signed the bill Thursday, which delays a 50-cent increase that would have gone into effect in September.

      Minimum wage in American Samoa varies from $4.18 to $5.59 per hour, depending on the industry. The Fair Minimum Wage Act of 2007 provided for annual 50-cents per hour increases until the rate matched the rest of the U.S., where the minimum pay is $7.25 per hour.

      Employers and a government financial report have suggested automatic increases were harming the U.S. territory’s economy.”

  7. There’s no end to his so-called solutions to help our country. He’s sinking us deeper and deeper. Then the news about more and more regulations. I hate to see what our country will be like by the time he’s through. And what are the Republican members of Congress doing to stop this tyrant?

  8. OT / US, Mexico Mull Relaxing Border for Trusted Travelers

    We are one step closer to open borders. Obama will be in Mexico tomorrow to discuss the proposed North American Trusted Traveler Program with Mexican Prez, and Canada’s PM.
    If successful, ‘trusted’ business executives and ‘other’ trusted travelers will be able to cross our border without any problemos.
    Has anyone heard a peep about this Agreement? Or is it another sneak attack on our sovereignty.
    Just curious. Does Congress have to approve Nafta Agreements or will the dictator just use his pen?

    http://www.washingtontimes.com/news/2014/feb/18/us-mexico-relax-border-trusted-business-travelers/#ixzz2tiLi9lWH

    • Since when have business travelers, or anyone for that matter, encountered any trouble going TO Mexico?
      It’s the travel from Mexico to the US that’s the problem. What we call our secure border is one great big joke, but the Port of Entry does slow things down for legitimate travelers.

  9. Free Ice Cream Everyone! Barry is the icecream truck driver that toots his horn and plays the tunes to attract all the wide eyed “folks” to his
    “Free Ice Cream” truck. He has nothing more to suggest than giveaways and freebees. We are paying for all that free icecream and so will our children and their children until this bozo, and his band of idiots, are challenged in a meaningful way. I wonder what my employers response would be when I demand a 40% increase.

  10. We have the most men of working age sitting at home as any time in history (WSJ). A friend back east has one son at home trying to get a lawyer job–there are none. Her other son is a barista in Madison, Wisc. They did everything “right”–college, grades, etc. and their Mom is like me–always with the ideas, try this try that. Nada.

  11. Although this ruling only applies to federal contractors, it is the same Communist ideology, pitting workers against employers and leading us towards the collectivist notion that no matter how uneducated or unskilled one is, the government needs to step in to assure you a “living wage”. Of course when there are no jobs to provide the government mandated living wage, the revolution is that much closer to being a reality and that is the hope and change Obama is working towards.

  12. Which “High Crime” or “Misdemeanor” would you have him charged with?

    Or are you one of those (all too common, sadly!) Americans who imagines the US Constitution applies to Americans who are not on US soil? (Please go try to execute your “Second Amendment right” by walking down the street in Paris, France, carrying a handgun…they will simply blow your head off, no questions asked!)

    I am quite certain that you are blissfully unaware of this, but what you are REALLY saying by calling for Obama’s impeachment is that YOU (on your own) are smarter than all 280-odd Republicans in Congress combined, which is ridiculous!

    fails to quote the part of the report that says almost 1 million Americans will be lifted over the poverty line with a wage hike. Seems there is political fodder for both parties.

    One of the facts that you seem to have overlooked is that while a higher minimum might reduce the labor force by about a half-million, it would bring another million-plus families over the poverty line — and increase other wages up the line. The result would be an overall boost to the economy through increased spending. This actually is a very favorable report for the progressive position.

    What this report doesn’t calculate is all of the people that will never get the chance to enter the job market at all because the absurd minimum wage law has slammed the ‘entry level’ door shut in their face. Minimum wage jobs exist as a way to get a work ethic and some experience in the real world. They don’t exist for you to make a career of. In reality, less than 10% of Americans make minimum wage. They are suppose to be a starting point. Not the goal…..

    racist republicans will never stop lying about obama.

    First, they LIED about Obama’s religion.

    Then, they LIED about him consorting with terrorists,

    Then, republicans LIED about Obama’s place of birth,

    Then, republicans LIED about Obama being the cause of the
    economic misery of the country instead of blaming bush and
    themselves,

    Then, republicans LIED about obamacare after republicans
    were properly bribed by insurance company lobbyists,

    Then, repukes got tired of banging their concrete heads

    against their racist wailing walls, so now

    repukes are wailing and whining about Hillary Clinton.

    Hey, I do not like obama either since he is not really representing

    true Democrats. But the garbage repukes have got zero to help

    this country when their entire mantra is tax cuts for the rich, tax

    cuts for the rich, tax cuts for the rich and more wars.

    Also, I’m not sure what the hell jimmy up there is on about. Believe me, Obama is not even remotely leftist. I KNOW an actual Marxist/socialist/communist, and I can assure you that our “vision” looks absolutely nothing like the Obama administration.

    As a socialist myself, I think he’s NOT a socialist and NOT a Communist.

    True, he’s trying to regulate capitalism a little bit, and push the US into having a more “socialist” (and affordable & effective) approach to health care insurance, like almost every other rich capitalist society.

    He’s also a “liberal” as opposed to conservative or libertarian capitalist, in that he’s proposing (at least on paper) to reduce the growing levels of income inequality in the US. Some fairly rich capitalists actually endorse this goal — (a) partly because they’re afraid that when too many Americans are poor, there will be a backlash against “economic globalization” that could interfere with the plans of transnational corporations to treat the entire world as a single market, and
    (b) partly because they fear that when economic inquality becomes too grotesque in a modern society, this will feed “extremist” movements of both left and right — a socialist or populist-leaning left, and a half-populist, half racist and anti-Semitic right.

    Obama also leans to “liberal” as opposed to “conservative” capitalist policies in his stance on global climate change. Like every other sane capitalist in the world — but unlike the CEOs of the fossil fuel companies, who have excellent reasons for denying scientific reality — Obama apparently does want the US to take some significant steps to tackle “global warming.”

    This doesn’t make him a socialist, a Communist, a traitor or a Muslim; it just means he’s paying attention. And that he doesn’t look forward to the US facing more destructive floods from tropical storms like Sandy, a few years ago, and Hurricane Katrina in 2005.