Published: Saturday, March 2 2013 12:00 a.m. MST
Giving the Earned Income Tax Credit instead of a wage increase works much like
illegal immigration. Cheap labor subsidized by the taxpayer. Let's take away the retirement of federal workers and send them three
cases of chili each year instead.
Farm jobs and household labor still exist, have not been taken over by modern
technology, and are not covered by standard minimum wage rules. The
fact that you don't know this (or willfully misrepresent the facts
concerning it) invalidates the entirety of your column. You either
lack knowledge of the situation or your point does not stand on facts.
Mr. Bennett trots out the usual objections to raising the minimum wage, but his
argument does not survive the application of simple reality.In terms
of real purchasing power, today's minimum wage is far below any minimum
wage of the past 60 years. Case in point, my first minimum wage job in 1970 at
$1.60 per hour had the equivalent buying power of $9.50 per hour in today's
dollars. The business that paid me that wage in 1970 is still going strong. If
it paid the equivalent of $9.50 per hour then, it'll survive just fine
paying its entry level employees $9 per hour today.Moreover, several
states in the nation today already have minimum wages established well above the
federal minimum, and yet there is _no_ correlation between their higher minimum
wages and the health of their economies. In fact, the unemployment rates in
states with higher minimum wages is below the national average.There
is simply no rational basis for permitting employers to pay wages that are so
low that they ensure that their employees will live in poverty.
If you are a person who is working for minimum wages, you had better be a
teenager or and unskilled worker at an entry level job. If you do not have
marketable job skills, what were you doing when you should have been developing
them? All higher minimum wage laws do is decrease the number of entry level jobs
and increase unemployment for teenagers.
"Why not make raise the minimum wage to $20 an hour?"This is
the standard conservative argument, but many economists tell us that SMALL
increases in the minimum wage is neither inflationary or job killing. SMALL
increases draw more young and poor people into the work force because the
slightly higher pay becomes an incentive to work.You would think
that conservatives would embrace an idea which encourages people to work!
Minimum wage is the best way to hurt poor people. Why not just make it $100 per
hour. That way everyone could be rich. In fact, every time the minimum wage is
raised, unemployment goes up. It does the opposite of helping people. It just
makes uninformed people think Obama is doing something for them.
The EITC creates people who don't owe federal income tax--that 47% of
Americans much maligned by Republicans.It is ironic that Mr. Bennett
would propose increasing it.
Sorry, Senator, but most other economic studies show no loss of jobs, and a mild
stimulative effect. I do agree that we need to do more in areas of rural
It should be noted that there is sharp disagreement among labor economists on
whether raising the minimum wage actually results in decreased employment among
the poor. The quality of Wikipedia articles varies in general, but on the topic
of the minimum wage, there is an excellent review of the extensive research and
literature on the subject, from different viewpoints.The interesting
question is why have labor economists gone from (in 1978) 90% supporting the
idea that minimum wage increases hurt the poor to roughly an even split pro
& against increasing the minimum in a survey in 2013 (with a clear trend
line toward less certainty among economists about minimum wage effects and
greater support of the idea that increasing the minimum wage does NOT impact
employment significantly)?Based on the rigorous analysis done by
economists Krueger and Card, and subsequent challenges and confirmations of
their research, it's simply not a cut & dried truth that increasing the
minimum wage negatively impacts employment.The data doesn't
clearly support what should be a clear supply & demand truism. Possible
explanations include as the minimum wage rises, there is less turnover among
low-end employees, and thus greater productivity.
yawnThe same old arguments of failed economics, the likes of which,
led us to the horrific economic situation we are in today.How many
more times do we need to hear that more money to richies=more jobs for us and
that less money for richies=less jobs for us? How many more times does this need
to be debunked?Over the past few years many businesses and CEOs have
seen record profits. So where are the jobs?If tax cuts and record
profits (at the top) meant more jobs for the rest of us bums, then why was this
past decade so pathetic in job creation?Repubs? Where are you?!Even Bruce Bartlett, former Reagan cabinet member and once big time
promoter of these voodoo economics, admits that they were wrong. Time for America to wake up and take its country back from the rich, corrupt,
and selfish. We're being robbed of our wealth and democracy.
Raising the minimum wage will do two things: Send jobs overseas and raise the
unemployment rate for the American work force. The minimum wage... any wage is
not the business of government.I can't believe the abject
stupidity of some of our politicians (actually, most politicians).
Re: "Raising minimum wage won't help poor"Of course it
won't. It wasn't even intended to. This
Washington-mandated move was motivated by the same leftist political motives as
the sequester, gun-rights battles, demands for tax increases, the federal
takeover of American healthcare, leftist environmental and land-use scams, the
destruction of our national defense capability, and the co-optation of American
academe.That motive -- admitted last week by unashamed NC Democrat
apparatchiks -- is "evisceration" of any opposition to socialization and
perpetual leftist control of America and its economy.
So a minimum wage increase will do nothing for poverty but an earned income
credit will? Was it not just last fall that every republican was crying that
Romney was right and half of Americans were government leeches?Why
don't republicans admit that in capitalism there will always be poor
people? Why do they not also admit they do not want or have a plan to help
people move up? What have they proposed to move people out of poverty?
The problem with the Earned Income Tax Credit is that it is too little and may
be too late. But it is a step in the right direction. In order to
make any head way in the path toward civilization, along with the idea of equal
justice for all, we must find a better way to redistribute the wealth created by
the people for the people to the people. History is full of
examples of nations and societies that toppled when the weight of the wealth and
privilege gets too heavy at the top. America will be no different. The real solution is to eliminate unemployment. The EITC is only a tiny baby
step toward the goal of full employment and a balanced redistribution of the
life force of a stable society. But it is a start.
As I'm sure Senator Bennett knows, there are studies on both sides of the
question of the effect of minimum wage laws on employment. Mr. Saltsman is a
conservative who works for a business supported think tank. Not surprisingly, he
supports a point of view. There is nothing wrong with that, and nothing wrong
with Senator Bennett adopting that view in an opinion piece. But no one should
come away thinking the question is clear-cut, as Mr. Saltsman and Senator
Liberal Larry: Increasing the minimum wage, pushed by liberals, is in reality
just more contempt heaped upon those who can't get anything better.
Increasing the minimum wage only tells those who get those jobs that
'paternalistic' government is looking out for them because they just
can't figure it out by themselves. What a poor way to raise a child.
Liberals, where is your faith in your own child's ability to succeed
without you giving them your contemptable mimimum wage jobs (contemptable to
them, not to those who believe any job is worth having, no matter what it pays)?
What kind of thinking is this? Did you not teach your child anything but
'daddy will take care of you?' If this isn't the grampa claus
mentality I don't know what is! Come on, teach your child to live in the
real world and go to work to improve his/her life! It makes them better
citizens, parents, and children. The problem we have today is not the children,
its the parents of the children who are teaching them.
@Shaun:"Was it not just last fall that every republican was crying
that Romney was right and half of Americans were government leeches?"Republicans were crying because it handed the Dems a powerful talking
point. But Romney spoke the truth. He forgot that, in a campaign with Dems,
you need to avoid the truth at all costs and tell the people what they wanna
hear. That's what Obama did. And that's what got him elected.
Examples? 'I'm for abortion, illegal immigration, open borders,
amnesty, same-sex marriage...'"Why don't republicans
admit that in capitalism there will always be poor people?"Again, you can't speak the truth or you'll never win an election
because 'low information' people vote. And there's more and more
of them as the years go by. And they flock to the Democrat party.@Ultra Bob:"In order to make any head way in the path toward
civilization, along with the idea of equal justice for all, we must find a
better way to redistribute the wealth..."Try socialism. It
worked... for awhile."The real solution is to eliminate
unemployment."Obama is trying... by having his governmnet hire
more government workers.
@wrz: The term "low information voters" is a little
disparaging, don't you think? After all, you apparently don't realize
that there are fewer government employees now than there were before President
Obama took office, and only marginally more federal employees. But I would never
call you a "low information voter".
If we drop minimum to $2 per hour who would it help? Not the people making the
wage, that's for sure.
Are more minimum wage jobs with small business or big corporations? If it is the
former, not sure how raising minimum wage is going to help employment. These
small businesses are struggling right now. Either they will have to lay off
workers or they will have to raise prices to consumers or some combination of
both. If it is the latter, then of course more can be done on this matter.
Teenage unemployment is as high as I've ever personally seen it. I'm
not sure how raising the minimum wage is going to help that. I think it would
make most businesses (big, medium and especially small) less inclined to hire
DeseretNews.com encourages a civil dialogue among its readers. We welcome your thoughtful comments.— About comments