Increase Minimum Wage, Increase Poverty


Nope.

Increases in the cost of labor cause commensurate increases in the cost of goods and services eliminating the value of the increase in pay.

Increases in the cost of labor cause businesses to reduce the amount of labor they use. This increases unemployment.

No employee is worth paying more than his labor can profitably produce. Unskilled young people often cannot produce enough for increases in minimum wage. Youth unemployment increases.

Artificial increases in the cost of labor cause increases in the cost of goods and services. Retired people living on savings use savings faster or are forced to cut back reducing standards of living.

You cannot create wealth by increasing minimum wage. An increase in minimum wage during a period of weak employment numbers will absolutely, positively increase poverty in America.

Obama doesn’t care, however. The idea of an increase in wages appeals to the economic illiterates in his base and that is all that matters.

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15 Responses to Increase Minimum Wage, Increase Poverty

  1. Uke says:

    It appeals to economic illiterates AND his union base.

  2. R.D. Walker says:

    You know those little Styrofoam balls people put on their car antennas to help them find their cars in crowded lots? Yeah, those things are great. I think every car should have them.

    That statement is identical to this one…

    You know what is great? Getting a pay raise. In fact, getting a pay raise is so great, I think every worker should get one.

    Identical.

  3. TaterSalad says:

    Either these left wing morons do not understand Econ 101 that everyone usually gets in high school or they want the country to fail on purpose! Are they actually that stupid?

  4. Eddie Willers says:

    Proof that liberal thought happens in a vacuum, the vacuum existing between their ears. It is amazing how they believe that their policies haven’t any consequences.

  5. Doc says:

    There is a method (for him & th’ gubmint) to his madness. I he increases the min. wage, he’ll increase revenue (I.R.S.) on th’ backs of those workers.

  6. Tony says:

    A $9 national minimum wage. But why $9 dollars? If raising the minimum wage is the solution why not make it $50 an hour? Because Obama knows $9 is enough. Enough to buy his party the vote while excusing them from devising methods of educating, motivating and raising the performance standards and expectations that lift people out of poverty. $9 is enough to buy the vote while excusing politicians from devising solutions.

  7. James says:

    These voters are so stupid.
    They vote for people who hurt them.

  8. Uke says:

    We’ve gotta remember that the pols know what’s up in raising minimum wage. They know it doesn’t make sense economically, but they also know it buys easy votes. There are far more low info voters and union members (the two groups this sort of rhetoric targets) than business owners.

    • Uke says:

      In fact, given the state of our education and our resultant “informed populace,” I’m absolutely positive that for every one voter they lose due to spouting such rhetoric, they gain two from the Honey Boo Boo crowd.

      It’s a fair bargain in their eyes.

  9. RJ says:

    economic muggle or voltemort intentional destuction?

    I’m going with voltemort, there’s got to be at least one person who has his ear that knows the consequences of this foolishness.

    • R.D. Walker says:

      These guys will happily trade a dollar of cost for a penny of benefit if the penny of benefit falls in their pockets.

  10. R.D. Walker says:

    By the way, Obama said that a person working minimum wage would make $14,400 a year and that is below the poverty line. He doesn’t include the Earned Income Tax credit that would bump this person to about $19,000. He doesn’t include the food stamps, housing allowance, free school lunches and so forth that would bump this person into the upper 20s.

    He also doesn’t include that there could be another worker in the household making minimum wage (or more) bumping the household income to the low 40s which about average for the US.

    In other words, he is full of shit anyway.

  11. Dennis Habern says:

    Has anyone ever noticed that the U.S. did not incur the problems

    that the U.S. is involved in, until this half-assed Black, closet,

    un-American, Communist Muslim was catapulted on to the

    international politcal scene? Therefore, this conundrum has been

    brewings for decades, but under the direction of the Moron’s

    boyfriend, George Soros and his wealthy patronage, (the are not

    elitists in any sense of the word, but traitors) are on a mission to

    destroy the U.S. economy and capitalism as we know it, using

    their version of “THE NEW WORLD ORDER,” to eleminate the

    world’s basic freedoms, in acordance with George Orewell’s 1949

    novel, “1984,” where “BIG BROTHER IS WATCHING YOU,” if you

    follow. It is not clear what their exact war-cry maintains, for

    without capitalism, Communism is the only other choice, if you

    follow and the policies of the New Word Order where everyone

    becomes a slave in accordance with the old version of Russian

    Communism that endured until 1989. Now, the Moron that currently

    takes up space in the White House has taken up the challenge of

    reinforcing Communism through the policies of Saul Alinsky, the

    author of “RULES FOR RADICALS,” and his old college

    professors, Cloward and Piven, from which this half-assed Black

    Moron draws from on a daily basis. Keep the masses confused,

    but soon, me thinks, the masses will arise to emulate “THE

    FRENCH REVOLUTION OF 1789,” and rightfully so, getting rid

    of this self-proposed dictator and his boyfriend, George Soros

    and his ilk and eliminating the threat of the Muslim terrorists by

    first closing our borders, if you follow, and then eliminating every

    terrorist cell involved in the destruction of the U.S.

  12. notamobster says:

    Dennis – Is there any way we can get you to type your comments in the normal format, with paragraphs, single-line spacing & whatnot?

    Also, you instantly discredit YOURSELF by the inference that Obama’s blackness has anything to do with his moron status. It makes you look stupid and feeds the narrative that anyone who opposes Obama is a racist. If I don’t say what needs saying, it makes me look stupid by association. I don’t enjoy looking stupid.

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