Schultz: No way will raising the minimum wage hurt small businesses

posted at 3:21 pm on February 14, 2013 by Erika Johnsen

Ah, but of course — despite the overwhelming evidence that minimum wage laws are a disservice both to those they’re specifically targeted to help as well as the larger economy in general, how could those wretched humanity-hating Republicans possibly oppose anything so simple and innocuous as President Obama’s proposed minimum wage hike?

Well, Boehner, Ryan, and Rubio, they have publicly rejected President Obama’s proposal, and they’re now spouting out the same old lies that we heard six years ago: That it’s gonna’ cost jobs and it’s gonna’ hurt small business. It’s just another example of Republicans denying the facts. So let’s get this whole straight, folks: Several academic studies have found that increasing minimum wage had no significant effect on employment levels in this country. Bottom line: It doesn’t kill jobs, and it won’t kill small businesses. … By raising the minimum wage, we directly address the growing levels of income inequality in this country by giving people a chance to lift themselves out of poverty and join the middle class, which is the mission — a rising tide lifts all boats. By opposing this, Republicans are just showing us once again just who exactly who they stand for.

Facts? Okay, I’ve got your academic studies right here:

The economic effects of minimum wage increases have been studied dozens and dozens of times in the past few decades. Different studies come to different conclusions, of course. But economists David Neumark and William Wascher, after conducting an exhaustive literature review, conclude that “among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries.”

They continue: “The studies that focus on the least-skilled groups that are likely most directly affected by minimum wage increases provide relatively overwhelming evidence of stronger disemployment effects for these groups.”

And the 47 million low-income Americans that Schultz misleadingly cites — would a higher minimum wage do anything to help rise the tide that raises all boats?

Economists Joseph Sabia and Richard Burkhauser find that a small minority of workers who would benefit from a minimum wage increase – around ten percent – live in poor households. The White House itself states that workers who would benefit from a minimum wage increase bring home less than half of their household’s total wage and salary income.

In other words, the workers who will benefit from an increase are secondary and tertiary earners – think more of teenagers with summer jobs, of spouses earning some income on the side, or of elderly grandparents earning some retirement income, and less of primary breadwinners. In fact, Professors Sabia and Burkhauser find that around two-thirds of minimum wage workers live in households with incomes more than twice the poverty line.

President Obama and his useful lefty minions are, as ever, trying to perpetuate the old-and-tired depiction of Republicans protecting their nefarious corporate buddies’ miserly interests and ill-begotten profits that they then hoard in their unproductive fat-cat offshore bank accounts, but as President Obama has showcased time and again, he has no problem with big business. He loves big business. Many of the rules and regulations his administration have proposed are nothing short of a help to big business, as they are more equipped with the resources to deal with these compliance costs that squeeze the smaller businesses with which they compete. And increasing the cost of hiring, a.k.a. killing jobs, is somehow supposed to help out these small businesses as well as the people who work for minimum wage? Dream on.


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Ed Schultz…he knows nothing.

HumpBot Salvation on February 14, 2013 at 3:24 PM

Ed must have extra structural support in his skull, otherwise the vacuum would collapse his cranium.

mchristian on February 14, 2013 at 3:24 PM

Few remember but the very first bill passed by the newly Dem controlled Congress in Jan 2007 was to raise the minimum wage. Whats the teen unemployment rate now? Black teens? If you have a family of 4 and make minimum wage, you made some very bad decisions in your life.

Bevan on February 14, 2013 at 3:25 PM

liberals have no idea of the real world. Run a business for a few years and let me know if you still feel that way.

phatfawzi on February 14, 2013 at 3:25 PM

A Liberal…always an employee, never an employer

Bevan on February 14, 2013 at 3:26 PM

Who? Come on now, nobody cares what anyone on that network says.

Flapjackmaka on February 14, 2013 at 3:26 PM

Facts? Okay, I’ve got your academic studies right here:

See also Sowell, Thomas.

rbj on February 14, 2013 at 3:27 PM

If a minimum wage doesn’t hurt business why not make the minimum wage $20 an hour? Or $50 an hour?

clearbluesky on February 14, 2013 at 3:27 PM

Increasing the minimum wage is a fantastic way to create jobs… in China

HarryBackside on February 14, 2013 at 3:27 PM

As always with Schultz: Look for the union label.

Bitter Clinger on February 14, 2013 at 3:28 PM

Tell you what would really help low-income workers: getting gas prices and food prices back to where they were when Obama took office.

rockmom on February 14, 2013 at 3:30 PM

Ed is a pretty good example of why the MW should stay where it is.
He is not worth a dime more.

Jabberwock on February 14, 2013 at 3:30 PM

Coming from a guy who never ran as much as a kids lemonade stand…..

Opposite Day on February 14, 2013 at 3:30 PM

Increasing the minimum wage wouldn’t raise people out of poverty, because the cost of goods and services would have to increase to pay the higher wages. Minimum wage workers might have more money, but they wouldn’t have more wealth.

HarryBackside on February 14, 2013 at 3:30 PM

Union wages are tied to the minimum wage, so the membership gets a hefty increase, too. And the union bosses can raise dues as well without much ire from the workers.

It is known that companies will lay off workers or cut hours. With a smaller staff, those remaining will have to work harder and/or faster to make up the differences. I forget the current minimum, but I think a mandated raise will be another $1.50 an hour per worker. Wouldn’t it be nice if everyone could get a $1.50 an hour raise?

Nah–it couldn’t possibly cause problems, could it? /

I guess Shultz is too ‘intellectual’ to understand basics of math and economics.

Liam on February 14, 2013 at 3:31 PM

“Several academic studies have found”

Well….there is it!

Opposite Day on February 14, 2013 at 3:32 PM

Ed Schultz works for a small business, based on his ratings. Pay him $9.99/hour and see if it hurts his small business.

Christien on February 14, 2013 at 3:32 PM

Only idiots tune in to know nothing Schultz.

birdwatcher on February 14, 2013 at 3:33 PM

so why not raise the minimum wage to $18 per hour…

equanimous on February 14, 2013 at 3:33 PM

http://www.youtube.com/watch?v=a5-TplqUUiU

Opposite Day on February 14, 2013 at 3:33 PM

Increasing the minimum wage wouldn’t raise people out of poverty, because the cost of goods and services would have to increase to pay the higher wages. Minimum wage workers might have more money, but they wouldn’t have more wealth.

HarryBackside on February 14, 2013 at 3:30 PM

Yep. A bigger paycheck and less to buy with it.

Bitter Clinger on February 14, 2013 at 3:33 PM

so why not raise the minimum wage to $18 per hour…

equanimous on February 14, 2013 at 3:33 PM

Why not raise it to $100 and then there would be no more poor.

LoganSix on February 14, 2013 at 3:37 PM

Well, Boehner, Ryan, and Rubio, they have publicly rejected President Obama’s proposal, and they’re now spouting out the same old lies that we heard six years ago: That it’s gonna’ cost jobs and it’s gonna’ hurt small business.

Hey, Ed. Compare unemployment 6 years ago to where it’s at today. Then look at how many people are having so much trouble finding jobs that they’re dropping out of the workforce altogether. You sure you still wanna put any stock in those “academic studies” of yours?

Doughboy on February 14, 2013 at 3:37 PM

This is a good example of the economic illiteracy that plagues our political debates. Virtually any mainstream economist will agree that there is a price to be paid for any action the government takes in the economy. It’s a question of equity vs efficiency. The disagreement (should) lies in the middle somewhere. How much economic efficiency are we willing to sacrifice in order to have certain services from the government? Every policy debate should center around that question.

Schultz is trying to call that a false choice and that we can have our cake and eat it too. He’s wrong, of course, otherwise I’d be out there agitating for a $1000/hr minimum wage.

LukeinNE on February 14, 2013 at 3:37 PM

How are those Ivy League graduates with Ethnic/Gender Studies degrees supposed to survive on $7.25 per hour?

MichaelGabriel on February 14, 2013 at 3:39 PM

It’s been proven time and again that raising the minimum wage not only hurts businesses but minorities, the poor and unskilled. It also raises prices.

Facts mean nothing to the left.

29Victor on February 14, 2013 at 3:39 PM

If a minimum wage doesn’t hurt business why not make the minimum wage $20 an hour? Or $50 an hour?

clearbluesky on February 14, 2013 at 3:27 PM

so why not raise the minimum wage to $18 per hour…

equanimous on February 14, 2013 at 3:33 PM
Why not raise it to $100 and then there would be no more poor.

LoganSix on February 14, 2013 at 3:37 PM

Ah. The problem there is that it would expose the scam for what it is!

We all knew that anyway.

freedomfirst on February 14, 2013 at 3:39 PM

If the government really wanted to be ‘fair’, it would mandate all people with jobs get a pay hike equal to the minimum wage increase.

Liam on February 14, 2013 at 3:41 PM

Yeah, the minimum wage was always a hallmark of what the middle class was earning. Riiiight! Let’s lift those boats.

HiJack on February 14, 2013 at 3:43 PM

Schultz: No way will tyranny hurt America!

MTF on February 14, 2013 at 3:43 PM

A rising tide lifts all boats.

Where does the water come from? Dems apparently think money is as plentiful as the oceans.

tdarrington on February 14, 2013 at 3:43 PM

The goal of socialism is communism.

Vladimir Lenin

Machismo on February 14, 2013 at 3:43 PM

Minimum wage increases do not hurt business huh?

If the premise is correct then one could raise the minimum wage to 50.00 per hour and it would still hold true. It doesn’t of course therefore there is no debate, the premise is simply incorrect.

Meat Fighter on February 14, 2013 at 3:45 PM

Raising the minimum wage allows unions to demand wage hikes. This is a never-ending cycle of escalating the costs of all goods and of breaking the backs of businesses.

Unskilled workers and young workers are cut out of the opportunity to learn fundamental work habits, for they will be the first laid off when a business looks at its bottom line.

onlineanalyst on February 14, 2013 at 3:45 PM

Why have wages? Just mail everybody a check for one million dollars on Jan 1.

tdarrington on February 14, 2013 at 3:45 PM

After all these years he still knows Nothing, I Know Nothing…….

D-fusit on February 14, 2013 at 3:46 PM

I say, “Let it burn!” Raise it to $15 and see what happens, I mean if 9 is good then 15 has to be better and you get a win from all the stupid vunables…and you can then blame the Zero in Charge because you did what he wanted and then some, but still failed, so it must be his fault.

rgranger on February 14, 2013 at 3:46 PM

The same old story of liberals and the simple Math challenge…

mnjg on February 14, 2013 at 3:46 PM

Dang, sorry, looks like I am a triplicate idiot as my idea was posted, didn’t see it in the quick scan – sorry!

rgranger on February 14, 2013 at 3:47 PM

Ed Schultz…he knows nothing.

HumpBot Salvation on February 14, 2013 at 3:24 PM

Ed Schultz… proof that ranch dressing is a hallucinogen.

Chuck Schick on February 14, 2013 at 3:47 PM

The other point that all liberals ignore is the welfare system in this country adds to the incomes of low wage workers. If a family is making the minimum wage, they will also be receiving housing subsidies, food subsidies, medical subsidies, etc. In other words, Schulz and Obama want the uninformed voter to believe that a minimum wage worker providing for a family is living and paying for all of their food, shelter, etc for $14K per year. In reality, we have a welfare system in this country to protect that worker and it supplements that worker’s income.

Ironically, if the minimum wage was raised to the point where it actually brought families out of poverty (which would have to be much more than $9 per hour), these same families might begin to no longer qualify for subsidies and would have to pay more and more out of their personal paychecks for things like groceries and housing (of course I realize that ending these subsidies would require even higher wages b/c the program qualifications are above the federal poverty line).

Conservative in NOVA on February 14, 2013 at 3:49 PM

so why not raise the minimum wage to $18 per hour…

equanimous on February 14, 2013 at 3:33 PM

Why not raise it tojust give everyone $100/hr for 40 hours a week and then have Barry proclaim that there would be are no more poor.

Just cut to the chase.

hawkeye54 on February 14, 2013 at 3:50 PM

and you can then blame the Zero in Charge because you did what he wanted and then some, but still failed, so it must be his fault.

Nope! Still Repubs fault. If Bush hadn’t put us in such a bad spot initially and if Repubs had done it exactly the way O wanted, it would have worked.

tdarrington on February 14, 2013 at 3:50 PM

Unskilled workers and young workers are cut out of the opportunity to learn fundamental work habits, for they will be the first laid off when a business looks at its bottom line.

onlineanalyst on February 14, 2013 at 3:45 PM

Yep. The minimum wage laws have been especially harmful to young black males who should be entering the workforce, as Walter Williams has been explaining for decades.

visions on February 14, 2013 at 3:51 PM

The goal of socialism is communism.
Vladimir Lenin

Machismo on February 14, 2013 at 3:43 PM

Communism is only the violent aspect of socialism…

When socialists run of the producers money through taxation and can no longer be able support their Welfare state they will have two options:

Option 1: Leave power and run away…

Option 2: Try to take by force all the assets and properties of the producers… eliminate all free speech… eliminate the opposition through killing and imprisonment… and make 99.9% of the population equally poor… Now it is called communism…

mnjg on February 14, 2013 at 3:51 PM

Hey, Ed, raising the minimum wage won’t really hurt small businesses. It’ll just hurt their employees, who get laid off, and people looking for jobs, who will not be able to get them.

Don’t take my word for it. Here’s The Ferret on the subject:

“The actions of labor unions can have effects similar to those of minimum wages, leading to structural unemployment.”

– Macroeconomics, 2nd ed., by Paul Krugman and Robin Wells, Worth Publishers, 2009 (page 210)

“Stanford University economist Paul Krugman, however, said raising the minimum wage and lowering barriers to union organization would carry a trade-off — increased unemployment.”

– Training touted to close widening wage gap – Milwaukee Journal Sentinel, page 8A – 6 February 1996

Resist We Much on February 14, 2013 at 3:53 PM

Lefties always cite income inequities, but they fail to understand that those are related to the inequity of the value of the employees’ contributions to the business or the product.

onlineanalyst on February 14, 2013 at 3:53 PM

Understand; the full-time minimum wage job will all but disappear at the end of this year, thanks to Obamacare. They will ALL be replaced by part-timers to avoid both the massive healthcare cost increases AND the penalties for not giving insurance. This will DEVASTATE the lower income folks.

michaelo on February 14, 2013 at 3:53 PM

hese same families might begin to no longer qualify for subsidies and would have to pay more and more out of their personal paychecks for things like groceries and housing (of course I realize that ending these subsidies would require even higher wages b/c the program qualifications are above the federal poverty line).

No, 6 months after the Min wage increase, the progs will whine that people making minimum wage are living in poverty and cant afford groceries for the chiiiiildrun, therefore the qualifying limits need to be increased.

tdarrington on February 14, 2013 at 3:54 PM

What would happen if Obama and his communists force minimum wages hikes. Small businesses will be badly damaged and more people will be out of jobs and the economy will collapse. Is it a bad thing to our side from a political point of view?… I do not think so…

mnjg on February 14, 2013 at 3:55 PM

The minimum wage for Federal workers should be $400 an hour.

Because they are the wealth creation engine of AmeriKKKa.

CorporatePiggy on February 14, 2013 at 3:56 PM

By raising the minimum wage, we directly address the growing levels of income inequality in this country by giving people a chance to lift themselves out of poverty and join the middle class, which is the mission — a rising tide lifts all boats. By opposing this, Republicans are just showing us once again just who exactly who they stand for.

People can only raise themselves out of poverty by hard work and perseverance. The governemt cannot do it. You, the fat blobbish dunce cannot do it, the ridiculous assertion of raising the minimum wage will not do it. Only someone who wants to raise themselves out of poverty will.

The only thing the minimum wage does is ensure fewer jobs and higher prices.

darwin on February 14, 2013 at 4:00 PM

Is it a bad thing to our side from a political point of view?… I do not think so…

mnjg on February 14, 2013 at 3:55 PM

I think so. When the economy collapses, the people will be looking for someone with a plan to save them. Guess who already has a plan? Hint: He is also the one nudging the economy closer to the cliff?

tdarrington on February 14, 2013 at 4:00 PM

By raising the minimum wage, we directly address the growing levels of income inequality in this country

So elevating Burger King fry cooks from $14k a year to $18k a year directly addresses the income inequality between them and the seven-digit executive board of the company? That’s some fancy mathifyin’ right there.

The Schaef on February 14, 2013 at 4:00 PM

Nothing like getting advice on free market capitalism from an avowed socialist.

Tater Salad on February 14, 2013 at 4:01 PM

There is no way those self employed small business owners could afford to pay themselves $9.00/hour!

moo on February 14, 2013 at 4:02 PM

“Ed” must mean “educationally deficient” since only a total idiot would actually believe what he is saying.

EdmundBurke247 on February 14, 2013 at 4:02 PM

Someone should ask Ed the talking horse if raising the minimum wage will not hurt small business then why doesnt obama make it $15.00 and not 9 or even higher? Answer: because it will hurt small business.

mtonepa on February 14, 2013 at 4:02 PM

Democrats really don’t want to fix anything or improve people’s lives. If they did that, they would be out of a job. Or out of a racket.

birdwatcher on February 14, 2013 at 4:02 PM

What are the chances of the fat blobs head exploding on air?

He’s come close on several occassions. I don’t think it would take much to push his fat head to critical mass.

darwin on February 14, 2013 at 4:02 PM

I guess Shultz is too ‘intellectual’ to understand basics of math and economics.

Liam on February 14, 2013 at 3:31 PM

This…

Union paychecks are tied to the ‘minimum wage’…

… If it goes up, so does union salaries, which increase dues, which are turned into Democrat campaign contributions, which feed Obowma’s never ending campaign.

But did you see Marco Rubio take that sip of water…?

… Oh Boy!

Seven Percent Solution on February 14, 2013 at 4:02 PM

If earning $10/hour puts me in the middle class, then the middle class is not what I thought it was.

Reality check: MINIMUM wage is the amount less skilled workers, eg. high school students and temporary labor, are supposed to earn. It is NOT intended to be sufficient to support a grown adult in a decent lifestyle while supporting his or her family.

LASue on February 14, 2013 at 4:02 PM

growing levels of income inequality in this country

We really should address the growing levels of “get paid to sit on your ass all day” inequality. Too many people receive taxpayer money just to exist. They don’t look for work, they just exist and scam all day while everyone else works.

darwin on February 14, 2013 at 4:04 PM

Disabled cruise ship moving again. Too bad the same can not be said of the formerly great USA.

birdwatcher on February 14, 2013 at 4:04 PM

This is a perfect example of the left. No matter how much you compromise, or how much they get … they always, always, always, always want more more more.

The left never stops so you might as well dig in your heels and just say no.

darwin on February 14, 2013 at 4:06 PM

Raising the minimum wage is also a way to get more money from the people through the higher taxes they would have to pay. If the worker gets some overtime, he could easily end up in the next bracket, to maybe come home with less than if he worked just forty hours. That happened to a lot of us under Carter.

Liam on February 14, 2013 at 4:07 PM

Ed Schultz

I swear. He has an uncanny resemblence to someone.

Did Ed’s mom have a fling with old man Gore?

Just sayin……….

BacaDog on February 14, 2013 at 4:08 PM

I don’t mind morons like Schultz so much.

But I do mind that they revel in their ignorance and stupidity.

LegendHasIt on February 14, 2013 at 4:08 PM

If a minimum wage doesn’t hurt business why not make the minimum wage $20 an hour?

clearbluesky on February 14, 2013 at 3:27 PM

This was actually one of the proposals from the OWS crowd early on. They also wanted unemployment to be $20/hour. I said I would quit my job in a heartbeat if they did that – I only work 8 hours a day, five days a week, but I’m unemployed 24/7! Woohoo! Windfall!

The real problem with morons like Schultz is that they truly don’t understand that the money to pay the wage has to come from somewhere. They think that meat comes from that windowed room in the market, corn grows in a can, and that businesses literally “make” money. The idea of the company having limited resources and having to make decisions on where to spend those limited resources is totally foreign to him and his ilk. I really do fail to understand how these folk continue to breathe without a coach whispering in their ear, “in… out… in… out… in….”

GWB on February 14, 2013 at 4:09 PM

But I do mind that they revel in their ignorance and stupidity.

LegendHasIt on February 14, 2013 at 4:08 PM

They revel because they’re too stupid to know they’re stupid.

darwin on February 14, 2013 at 4:10 PM

They don’t look for work, they just exist and scam all day while everyone else works.

darwin on February 14, 2013 at 4:04 PM

Even more messed up is all the people sitting on their asses all day at work pretending to work, yet still getting paid.

Christien on February 14, 2013 at 4:12 PM

By the way, notice how, now that Rubio is emerging into the national spotlight, he’s being lumped in with “Boehner and Ryan” in the same way that Ryan got lumped in initially with Boehner, and McCain with W.

Not only was nobody talking about Rubio this time six months ago, but that was about the same time as the RNC, when MSNBC was cutting away from minority speakers on the schedule to talk about how the GOP was just a bunch of old white guys. So they were deliberately avoiding him.

Now they are bringing up his name specifically to link him to other people they are conditioning you to loathe, to neuter him before he has a chance to make his own impression.

See also: WaterGate. No, literally, Water… Gate.

The Schaef on February 14, 2013 at 4:13 PM

First of all this only would affect a very small percentage of jobs and they are an even smaller percentage of total employment cost thus prices would not raise that much.

Secondly the buying power of those making minimum wage has already eroded greatly since 2008. Food, transportation and clothing all cost far more and these cost are mostly what they pay for housing cost is also up for them.

Thirdly everyone is saying people will lose jobs because of this but no one says what job could actually be lost. WallMart will have to pay more but they can not fire anyone same with most minimum wage jobs. About the only job I could think of would be a Nanny perhaps some parents would stay home if the cost was higher. A good think IMHO.

All fighting against this minor increase in the minimum wage does is make the GOP seem out of touch with the poor.

Steveangell on February 14, 2013 at 4:15 PM

The real problem with morons like Schultz is that they truly don’t understand that the money to pay the wage has to come from somewhere. They think that meat comes from that windowed room in the market, corn grows in a can, and that businesses literally “make” money. The idea of the company having limited resources and having to make decisions on where to spend those limited resources is totally foreign to him and his ilk. I really do fail to understand how these folk continue to breathe without a coach whispering in their ear, “in… out… in… out… in….”

GWB on February 14, 2013 at 4:09 PM

Communists think that business owners must pay more from their profits to the workers all in the name of fairness and income equality but of course they are too dumb to understand that once the business owners go below a certain threshold of profit they are going to fire some of their employees, or cut their benefits, or increase prices on the consumers, or all of the above… For certain they are not going to hire anyone new….

mnjg on February 14, 2013 at 4:17 PM

1) The way to raise wages is to reduce unemployment to as close to 0 as possible. Competition for workers increases wages.

2) Raising the minumum wage affects: people who make less than the new wage and the prices on all the things we buy that are made, sold or carried by people making minimum wage. Minimum wage workers will lose their jobs and everybody pays more for many things.

3) This is the liberals way of getting back at states like Texas and South Carolina where they have low costs of living because they have low wages. The low wages are fine because things cost less. However, force the minimum wage up and the prog commies can slow those recoveries too.

4) All this wage stuff should be locally controlled, not federal. Once again, this is progs trying to keep people from moving their business from their overtaxed, $12/hour minimum wage “utopia” cities like San Jose to places with low taxes and market wages. Do it at the federal level so there’s no place to escape their policies.

PastorJon on February 14, 2013 at 4:19 PM

Get ready to pay more for yer big mac, folks.

Bob's Kid on February 14, 2013 at 4:19 PM

First of all this only would affect a very small percentage of jobs and they are an even smaller percentage of total employment cost thus prices would not raise that much.

Steveangell on February 14, 2013 at 4:15 PM

When minimum wage goes up everything goes up in price … everything.

That’s why people who make minimum wage can never get ahead of anything. They’re always exactly where they were before the wage increase.

darwin on February 14, 2013 at 4:22 PM

yeah, raising hourly labor costs by 24% + the associated taxes won’t have any impact said the guy that has never done a lick of math

DanMan on February 14, 2013 at 4:23 PM

This really isn’t that difficult a concept.

In today’s economic environment, with high unemployment and burdensome taxes and the prospects of countless new taxes on the horizon; small business owners are struggling to stay afloat.

With a wage increase in these conditions, there are only three decisions:

1 – Pay the increased salary and see if I can stay in business.
2 – Shut the doors and go out of business.
3 – Cut staff and keep the doors open.

As a small business owner, if I have to deal with a mandatory pay increase for my staff and it becomes a decision of keeping the doors open so I can support MY family, or going out of business, I will cut staff and expect those who remain to pick up the slack. (Every place I’ve worked, when you get a pay raise, you are expected to increase performance.)

This means that there will be additional people going onto the unemployment rolls and being more careful about their spending, both of which have a negative impact on the economy. A wage increase does no real good if people lose their jobs over it. Of course, the government can declare that no business can layoff or fire anyone (Who’s John Galt?).

Don’t get me wrong, everyone should have a living wage, and they probably would if the government quit meddling. In the current environment, a minimum wage increase benefits only one person, President Obama…he’s still campaigning. This is just hastening the inevitable. People are going to have to become “predator, victim, or survivor”. –> http://www.amazon.com/dp/B0096FQOQO/

xmanvietnam on February 14, 2013 at 4:23 PM

these are jobs for teenagers, and they don’t need a raise. but under new Obama norm these have become careers for people.

burserker on February 14, 2013 at 4:23 PM

All fighting against this minor increase in the minimum wage…

Steveangell on February 14, 2013 at 4:15 PM

The Federal minimum wage right now is $7.25 an hour. Obama’s demand raises it by $1.75 an hour, or $70 a week for a full-time employee. If a place has ten such workers, that’s $700 more a week from the employer, or around $36,500 a year.

That is not chump change, except maybe to a Congresscritter.

Liam on February 14, 2013 at 4:25 PM

does is make the GOP seem out of touch with the poor.

Steveangell on February 14, 2013 at 4:15 PM

And that’s the whole point, isn’t it.

tdarrington on February 14, 2013 at 4:32 PM

Increasing the minimum wage is a fantastic way to create jobs… in China

HarryBackside on February 14, 2013 at 3:27 PM

+1

SparkPlug on February 14, 2013 at 4:32 PM

Don’t even need to get in the weeds on this. I’m a small business owner, and from such position I can say yes, it would hurt small businesses.

More to the point, I analyzed this yesterday using gov’t figures and gov’t website inflation calculators and in brief summary:
in constant 2012 dollars, minimum wage has gone up 27.64% from 2007-2012
in constant 2012 dollars, the mean family income has dropped 15.11% from 2007-2012 (gov’t reports 8.24% but doesn’t use constant dollars in their calculation)
Now Obama wants to give a 24% pay raise to the people who have already had a nearly 28% pay raise over the last 5 years and wants the people who have had a 15% pay cut to pay for that raise. Schultz thinks that’s a grand idea!

WTF? Way to fix the economy fascists, er, lefties, er Obama-ites!

deepdiver on February 14, 2013 at 4:33 PM

The Federal minimum wage right now is $7.25 an hour. Obama’s demand raises it by $1.75 an hour, or $70 a week for a full-time employee. If a place has ten such workers, that’s $700 more a week from the employer, or around $36,500 a year.

That is not chump change, except maybe to a Congresscritter.

Liam on February 14, 2013 at 4:25 PM

But wage is only part of the price of hiring an employee. For some smaller business it cost more than $7.25 / hour in addition to the wage.

Raising the wage will actually lower Government entitlement payments perhaps more so than taxing employers a similar amount. Obama has already increased the cost of employment more than this increase through everything else he is doing.

I see no real benefit of fighting this battle. Fight Obama on his other increases in employment cost. Fighting this just alienates the poor against the GOP for no good reason. This raise over four years is just not that much.

Steveangell on February 14, 2013 at 4:33 PM

I say do it! Trash the place. HeIIfire make $25.00 an hour! Watch it crash.

Bmore on February 14, 2013 at 4:34 PM

All fighting against this minor increase in the minimum wage does is make the GOP seem out of touch with the poor.

Steveangell on February 14, 2013 at 4:15 PM

$1.75/or on top of $7.25/ hour is a 24.14% increase. Where does “minor” end and significant take over? Think of the couple with 15 minimum wage workers working a nice sunny day at their carwash. What about the fast food franchisee with three locations employing 20 minimum wagers out of 45 workers? 24% ain’t chump change.

This is in every sector of retail you can imagine. When thse folks quite their businesses it begins to show up as empty corners and strip centers. Empty buildings generate no taxes. And on and on and on.

DanMan on February 14, 2013 at 4:35 PM

Steveangell on February 14, 2013 at 4:33 PM

Steve, you forget the MO of progressives. What they ask for is not what they really want. We can raise the minimum wage up to $10/hr today, and tomorrow the progs will start right back with the “don’t earn a living wage” line.

They will also chant for an increase in entitlements because, “while the increase in min wage was a good start, we need to do more.”

tdarrington on February 14, 2013 at 4:39 PM

in constant 2012 dollars, minimum wage has gone up 27.64% from 2007-2012
in constant 2012 dollars, the mean family income has dropped 15.11% from 2007-2012 (gov’t reports 8.24% but doesn’t use constant dollars in their calculation)
Now Obama wants to give a 24% pay raise to the people who have already had a nearly 28% pay raise over the last 5 years and wants the people who have had a 15% pay cut to pay for that raise. Schultz thinks that’s a grand idea!

WTF? Way to fix the economy fascists, er, lefties, er Obama-ites!

deepdiver on February 14, 2013 at 4:33 PM

Cherry picked numbers.

Inflation has destroyed their income increase. Real inflation not the fake numbers the Government puts out. Food has gone up more than 24% in those five years gas more than 100%. This is a large chunk of what these low income people buy.

Take a longer period of time and minimum wage has not kept up with inflation.

Steveangell on February 14, 2013 at 4:39 PM

aswer the question Steve, what’s the limit?

DanMan on February 14, 2013 at 4:41 PM

18 states have higher than national minimum wages.

California, Nevada, Arizona, New Mexico, Colorado, Illinois, Ohio, Michigan, Maine, Washington, Oregon, New Hampshire, Massachusetts, Rhode Island, Alaska, and Montana.

Bolded states below have higher than national minimum wages:

According to CBPP, the average income of the top 5% of households was 13.3 times the average income of the bottom fifth in the following states:

1. Arizona
2. New Mexico
3. California
4. Georgia
5. New York (ratio exceeded 15.0)

The top 10 states – Greatest Income Inequality Between the Top and the Bottom, Late-2000s:

1. New Mexico
2. Arizona
3. California
4. Georgia
5. New York
6. Louisiana
7. Texas
8. Massachusetts
9. Illinois
10. Mississippi

States where the ratio of average income for richest 20% of families to the poorest 20% of families, 2008-2010, exceeded 8.0:

1. California
2. Arizona
3. Colorado
4. New Mexico
5. Massachusetts
6. Rhode Island
7. Connecticut
8. New Jersey
9. New York
10. Virginia
11. Georgia
12. Florida
13. Mississippi
14. Illinois
15. Louisiana
16. Oklahoma
17. Texas

States where the ratio of average income for richest 20% of families to the poorest 20% of families, 2008-2010, was between 7.0 and 8.0:

1. Washington
2. Nevada
3. North Dakota
4. Kansas
5. Missouri
6. Michigan
7. Indiana
8. Kentucky
9. Tennessee
10. Alabama
11. South Carolina
12. North Carolina
13. Maryland
14. Pennsylvania

States where the ratio of average income for richest 20% of families to the poorest 20% of families, 2008-2010, was below 7.0:

1. Utah
2. West Virginia
3. Vermont
4. Idaho
5. Hawaii
6. Alaska
7. Wyoming
8. South Dakota
9. Nebraska
10. Wisconsin
11. Minnesota
12. Iowa
13. Montana
14. Ohio
15. Oregon
16. Maryland
17. Arkansas
18. New Hampshire
19. Maine

Between the late 1970s and mid-2000s, incomes of the bottom fifth of households didn’t grow by more than 27% in any of these states, and in one state — Michigan – they actually fell.

Greatest Increases in Income Inequality Between the Top and the Middle, Late 1970s to Mid-2000s:

1. Connecticut
2. California
3. Oklahoma
4. New York
5. New Mexico
6. Illinois
7. Oregon
8. Texas
9. Massachusetts
10. Rhode Island

Resist We Much on February 14, 2013 at 4:41 PM

Steveangell on February 14, 2013 at 4:15 PM

Speaking of reveling in it.

LegendHasIt on February 14, 2013 at 4:42 PM

Steveangell on February 14, 2013 at 4:33 PM

If you’re making minimum wage AND supporting yourself/family on it, which excludes the mass number of teenagers, second little extra income, etc. then you buy things the cheapest place you can. You eat off the McDonald’s dollar menu, you shop at the cheap grocery store.

So your pay goes up 24%, assuming you’re not one of the people let go to pay your coworkers the extra 24%. Now you go to the store for that $1.00 loaf of bread and it’s a $1.24. Maybe you have a car, and now the gas just went up $.50 to cover the extra cost of the cashiers. You go to McDonald’s and it’s now the $1.50 menu.

Get the point. These people aren’t going to vote GOP anyways, but we actually save them pain. We make it so that if they work hard and get promoted and get $9 on their own merits, the prices of things aren’t artificially inflated by a minimum wage increase. 90% of them will never understand that, but that’s not a reason to hurt them in the name of “appearing for the poor.” We’ll be demagogued like crazy anyways when we won’t boost welfare checks by 24% to compensate. . .

PastorJon on February 14, 2013 at 4:44 PM

Steve, you forget the MO of progressives. What they ask for is not what they really want. We can raise the minimum wage up to $10/hr today, and tomorrow the progs will start right back with the “don’t earn a living wage” line.

They will also chant for an increase in entitlements because, “while the increase in min wage was a good start, we need to do more.”

tdarrington on February 14, 2013 at 4:39 PM

Very true. They would vote for $20/hour in a heart beat. I would be against this at anything over $9. But at $9 it is just not worth fighting against. Bigger fish to fry.

I am much more concerned about the fact that a single mother can get $87,000 in benefits every year for hardly working at all. This is what we need to stop. I mean these employers are paying far more in taxes for this kind of waste than this increase in wages would cost.

Steveangell on February 14, 2013 at 4:45 PM

Can’t we just change the definition of ‘poor’ and ‘poverty level’ to get everyone into the middle class?

Spiders from Mars on February 14, 2013 at 4:47 PM

Steveangell on February 14, 2013 at 4:39 PM

Totally irrelevant! The point is that minimum wage relative to a constant adjusted figure has increased by 28% while average family income during the same time period relative to the same constant has decreased 15% and Obama wants those who have had a 15% pay cut to give a pay raise, for no performance based reason, to those who have had a 28% pay raise for no merit based reason.

deepdiver on February 14, 2013 at 4:49 PM

I see no real benefit of fighting this battle. Fight Obama on his other increases in employment cost. Fighting this just alienates the poor against the GOP for no good reason. This raise over four years is just not that much.

Steveangell on February 14, 2013 at 4:33 PM

Dunce. $1.50 more an hour for entry level employees will result in fewer entry level hires, except maybe in your own personal little cloud cuckoo world.

If you truly believe WalMart et al can’t fire people or not hire quite so many, you’ve obviously not worked or shopped in one lately.

You go ahead and abandon this hill and take up a position further back.

A Balrog of Morgoth on February 14, 2013 at 4:51 PM

Take a longer period of time and minimum wage has not kept up with inflation.

Steveangell on February 14, 2013 at 4:39 PM

You need to do some research.
Average minimum wage in 2012 adjusted dollars since 1938: $7.39 (using 28 data points based on significant changes in minimum wage amounts or legislation)

Minimum wage in 2010 in 2012 constant dollars: $2.40. Right at the historic average

Since 2010 minimum wage has lost 2% of its spending power to $7.25 (2012 dollars).

During that same period of time average family income has dropped 15%.

Minimum wage from historic average dropped 2%. Average family dropped 15%.

deepdiver on February 14, 2013 at 4:52 PM

Take a longer period of time and minimum wage has not kept up with inflation.

Steveangell on February 14, 2013 at 4:39 PM

No wages have. If they did since the 70s, we’d all be making $37 an hour or better. In the free market today, people have either not received raises at all, and sometime been forced to take pay cuts. But it’s a bad idea right now to add a 24% increase in costs all in one shot to a small business.

Not to try giving the Left any ideas, but if they forced a much smaller amount every year or two, it wouldn’t be such a hard hit. I don’t think it’s so much a matter of the final wage itself, but the fact that an increase of $1.75 an hour in this economy is almost Draconian (for lack of a better term at the moment).

Liam on February 14, 2013 at 4:52 PM

Schultz:

No way will raising the minimum wage will hurt small businesses

When last we checked in on Ed he was overheard saying to
the studio execs at MSNBC
“I’m going to torch this Effing place!!”

Ah good times….Say, does anyone know why HA
links to this Bowling Ball with teeth??

ToddPA on February 14, 2013 at 4:57 PM

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