U.S. minimum wage hike a stimulus to economy: report

U.S. minimum wage hike a stimulus to economy: report

www.reuters.com

NEW YORK (Reuters) - A higher U.S. minimum wage is providing a cushion to the economy when it is most needed, according to a report released on Thursday.

The Economic Policy Institute, a liberal think-tank based in Washington, said recent rises in the minimum wage have acted as a "stealth stimulus," preventing the worst recession in generations from spiraling out of control.

The study found that the bottom-rung pay increases will boost spending by $4.9 billion.

(visit the link for the full news article)

You know in the scheme of things... No, no it didnt.

The EPI study found the July 2007 minimum wage hike benefited over 700,000 families and added $1.7 billion in additional spending over the following year.

A July 2008 increase benefited over 1.3 million families and added $3.1 billion in additional spending over the following year, the EPI analysts added.

3.1 billion you say? Sorry pal, when the government spends nearly 3 Trillion a year it doesnt help.

Then lets add inflation to that equation.
No, no it doesnt help.

www.reuters.com
(visit the link for the full news article)

If artificially raising the minimum wage is good and actually works, let's give the nation a minimum wage of $500/hour.

Now, we can all quickly pay off our homes, buy new cars, go on vacations . . .

And a loaf of bread will be $50.

This is a group of idiots, doing idiotic things.

What???

Is there some gas seeping up from the ground in DC? Does this gas make everyone lose their mind? Go stupid?

[edit on 28-5-2009 by dooper]

I agree with you on that, Tentickles. What is it - $7.00 an hour? Not even close to a living wage but OK for teenage pocket money I suppose. Too bad there are no jobs for middle class adults.
When they say it benefited 700,000 or 1.3 million families one wonders what they mean. What do they mean...benefited?

Minimum wage hasn't been correctly adjusted to meet our ever growing fiat Dollar's inflation since it's inception.

If anything this is admittance to our upcoming inflation problems and debasing of the dollar.

Proverbial tossing of a bone so to speak.

They never take into account the number of people who lose their jobs, or have their hours cut because of the raise. You don't raise the cost of doing business without business doing something to lower costs. Why have 10 workers making minimum wage when 7 can do the same job? Or...we will keep all 10 but instead of getting 40 hours a week we will cut you to 32.

The Economic Policy Institute, a liberal think-tank based in Washington

Sorry but I got to this point and stopped reading....there was no reason to go any further.

[edit on 28-5-2009 by RRconservative]

reply to post by Tentickles


Benefited only 700,000 families, probably those that work in places like wal-mart, because with the unemployment rate right now and almost 7 million people with not jobs this 7 million are benefiting from nothing but unemployment benefits.

I love how they take data and twisted to make look good.

It does not really help at all! Maybe the people to an extent, but what bout the business owners?

Take this, my boyfriend manages a local restaraunt. When minimum wage went up this past time, the owner couldn't afford to pay everyone the new minumum wage, so he raised the meal prices (some would have just cut employees, and that in itself is just as bad). Business has since slowed down. No one wants to pay $6 bucks for a cheeseburger and fries when McDonalds across the street has it for half that price.

The corporations will be fine, but it's people with their own businesses who will have to raise prices, subsequently lose businesss, cut employees and cut costs. These are the people Obama is "supposed to be protecting," so he better act fast.

I'm dreading what will happen to his restaraunt after July.

[edit on 28-5-2009 by Heatburger]

reply to post by Tentickles


Liberal think tank? What a crock!

Raising minimum wage is guaranteed UNEMPLOYMENT program for our youth who need employment not so much high wages since they live at home.

These liberals never think that the result will be less hiring, more layoffs.

The federal minimum wage was first set in 1938. Before 1938, we had two major financial meltdowns that were very similar to our current situation: the Great Depression which began in 1929; and the Long Depression which began in 1873. The Long Depression saw unemployment peak at roughly 14%. The Great Depression peaked at 25% unemployment, but that was primarily due to the Dust Bowl crippling the agricultural sector. Furthermore, the Great Depression didn't reach this unemployment peak until 1933 -- four years into the recession. At 17 months in, they were only at about 11% unemployment.

What are we at now? Well, when unemployment is measured the way it was then, we're already above 20%, as shown by this chart:



Even the .gov's official broad estimate, the U-6, places unemployment above 15%.

Most people who don't work for a "liberal think-tank" would tend to agree that our unprecedentedly crappy unemployment rates (which are covered up by the government and MSM) are due, at least in part, to the wage floors which cause a contraction of the job market. Why pay somebody $7.00 an hour to fill a cup with soda when you can just move the soda machine in front of the counter and let customers fill their own cups?

And yes, conservative think-tanks publish equally retarded studies.


[edit on 28-5-2009 by theWCH]

reply to post by Tentickles

The Economic Policy Institute, a liberal think-tank based in Washington, said recent rises in the minimum wage have acted as a "stealth stimulus," preventing the worst recession in generations from spiraling out of control.

The text in bold says it all. A "liberal think tank". Boy that’s an oxymoron from a bunch of liberal morons. It really amazes me just how stupid liberals really are. If they would actually study economics and think for themselves for once instead of waiting for academia and politicians to dole out their thoughts for them they might actually sound intelligent.

Those of us who have run a business know what a crook of bull crap propaganda this is!

Has it really come to this?

It is a fundamental and simple economic fact that an increase in minimum wages will result in an increase in unemployment. More to the point, any artificial wage floor reduces the number of people employed.

Are the 'economists' today really this stupid? As someone with an economics degree I am truly stunned by the collective stupidity that seems to have affected almost all economics professionals.

I dont know about minimum wages but overall wages have not kept up with inflation. People are making the same money now than they were 15 years ago. Congress still finds a way to keep raising their wages though...hmmm....

Are the 'economists' today really this stupid? As someone with an economics degree I am truly stunned by the collective stupidity that seems to have affected almost all economics professionals.

reply to post by zvezdar


You're painting a pretty broad picture there! You mean "are all LIBERAL enonomists this stupid? And of course the answer is YES.

Enonomists as a group, are usually the only ones on campus, in the educational field that tend to be conservative and realistic in their politics. (The rest of acedemia is in lala land). Most economists I know, for instance, didn't go for the Obama baloney this past ellection and don't condone what he and Congress is doing in their spending spree and socialization of America.

Let me put it this way. How could a real economist support Obama's program? Nothing in it makes any sense according to accepted economic theory!

Does econ make people conservative? The answer is yes because acedemics tend to be overly adealistic and economics is based on realism so students tend to come down to earth in their politics after studying economics.

reply to post by plumranch


The ironic thing about this post is the fact that "libertarian" economists came out in droves to vote for Obama (many of whom have never bothered to vote, in the previous elections), because the alternative was so much more retarded.

NWO theorists must be having a field-day!


[edit on 29-5-2009 by theWCH]

Originally posted by plumranch


You're painting a pretty broad picture there! You mean "are all LIBERAL enonomists this stupid? And of course the answer is YES.

Enonomists as a group, are usually the only ones on campus, in the educational field that tend to be conservative and realistic in their politics. (The rest of acedemia is in lala land). Most economists I know, for instance, didn't go for the Obama baloney this past ellection and don't condone what he and Congress is doing in their spending spree and socialization of America.

Let me put it this way. How could a real economist support Obama's program? Nothing in it makes any sense according to accepted economic theory!

Does econ make people conservative? The answer is yes because acedemics tend to be overly adealistic and economics is based on realism so students tend to come down to earth in their politics after studying economics.

While I would love to agree with you, i've dealt with numerous economists in the corporate world (some of them very senior) and most are just as clueless about what is happening as the "liberal" economists you are referring to. The real problem is that most economists these days are taught by 'liberals' in universities and so all end up thinking along the same lines. This seems to have affected a number of older economists as well, as most of them seem to be similar.

I feel that i didnt truly learn about economics until I left university and was exposed to ideas that were outside the realm of Keynsian economic theory that I had been taught. However, this happened because i did not enter into a career involving the practice of economics (it was a second degree for me, and not my main career path). Those I know who found economic career paths didnt expand their learning beyond the school of economics they were exposed to in university. It seems to me that university closes minds rather than opens them.

Repeal NAFTA!

Why in the heck aren't politicians protecting American workers? Why? They don't give a damn...all they look at are numbers. They don't know how hard the people are hurting.

I am so sick and tired of how all of us have been cheated and lied to...but worst of all is the fact that many of you will accept being cheated and lied to.

Where is the common sense in this country? Has everyone become this stupid? We are better than this!!!