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Debate Over Minimum Wage
Hike Is Obscured By Myths

Investor´s Business Daily, by David R. Henderson

Original Article

Posted By:Desert Fox, 1/10/2014 7:06:14 PM

Most people who earn the minimum wage or slightly more are the only earners in their households and therefore are poor, right? And so, if the federal government or state governments raise the minimum wage, that will be a nicely targeted way of helping poor people, right? Well, no. Wrong on both counts. Most workers earning at or close to the minimum wage are not the sole earners in a household, and most of them are not in poor households. For those two reasons, raising the minimum wage is not a targeted way to help poor people. That´s the finding of a study by

      


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Reply 1 - Posted by: ranger06, 1/10/2014 7:43:45 PM     (No. 9687513)

I don´t understand why you would not just use the earned income credit as a more targeted approach? Not saying we need to - but why is no one talking about that?

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Reply 2 - Posted by: dman, 1/10/2014 8:12:48 PM     (No. 9687527)

The economy is a feedback mechanism. It tends to "compensate" for paradigm changes. Rising wages lead to rising prices. Household income gains due to working spouses led to dramatically higher housing and medical costs. Prices adjust to what the market will bear. Gains happen, but they are rarely what was advertised.

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Reply 3 - Posted by: ColonialAmerican1623, 1/10/2014 8:53:02 PM     (No. 9687554)

It would be safe to say Henderson has never worked for minimum wage.

In some states many of the jobs are minimum wage if you do not have a higher education. Jobs aimed at young people who eventually age. Now those jobs are part time jobs thanks to Zippy. I don´t buy the part about workers making minimum wage not living alone either.

Shouldn´t the challenge be better education leading to better income ?

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Reply 4 - Posted by: Nevadadad46, 1/10/2014 9:03:04 PM     (No. 9687561)

Wife and I go to breakfast every morning- coffee and a snack- we go mostly to fast food joints- they are not crowded at the hour we go. Almost (if not all) all the employees are min-wage earners. Of the sever or eight "joints" we go to, we have yet to encounter a single person who is not a Spanish sepaker- some have no ability to say a single word in English. These are your minimum wage recipients. I would guess confidently, but a very few of these "earners" are here legally. In some places we watch them hand out free food to the "earners" going to their "landscape" jobs. Quite often, they are exceptionally rude to us, sneering, wiping their faces, paying no attention when we order, etc. We are now the foreigners.

These are the very people our Republicans and Democrats seek to give raises to and tax breaks and unearned income to. Every one of them has a SS # (no id required now- or did you know that already)and will ultimately collect SS.

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Reply 5 - Posted by: saguni, 1/10/2014 9:31:28 PM     (No. 9687577)

Poster #3: I don´t buy the part about workers making minimum wage not living alone either.

FTA: • A whopping 63.2% of workers who would gain were second, or even third, earners living in households with incomes equal to twice the poverty line or more.

I have recently seen other articles in which the roughly 2/3 minimum wage workers are described as "16 to 25 years old" so that would be people in their "first" job, many of whom get a raise after 90 days if they show up on time and do a good job, although probably a large percentage show up whenever and "work" only when watched. Even among those 18 to 25, they may have one or more roommates with the same inadequate income, and possibly inadequate drive to earn a better living.

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Reply 6 - Posted by: Libertygal, 1/11/2014 4:37:10 PM     (No. 9688524)

Why are we still evading the real truth behind the curtain?

I won´t let it rest that an increase in minimym wage is a backdoor raise for Union employees, who have a written-in non-negotiable guaranteed raise in their contracts for a 5-8% raise for every .75 cents increase in minimum wage. Particularly SEIU.

Over 82% of Union workers are government employess. Less than 2% make minimum wage, most under the age of 25.

The truth needs to come out. Look who is organizing the Walmart strikes, who is non-union, to begin with. The shadow organizers, the SEIU, that´s who.


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