LA City Council Halts Discussion of Minimum Wage Exemption Pushed by Labor Unions

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This is from The Daily Signal.

The unions will get their exemption and once they unionize all of the shops then they demand fifteen dollars and hour or more.

The unions will use strikes and intimidation to get the wage increase they want. 

The Los Angeles City Council isn’t currently planning to further discuss a proposal exempting union members from the southern California city’s new minimum wage, despite the proposal having the backing of labor unions.

A spokesperson for Council Member Curren Price, chairman of the Economic Development Committee, told The Daily Signal the union exemption isn’t moving forward and there are no plans to revive the discussion surrounding collective bargaining agreements.

The Los Angeles City Council’s Economic Development Committee discussed a proposal Tuesday that would carve out an exemption for unionized workers from the new $15 an hour minimum wage, which would be phased in by 2020.

The proposal was spearheaded by Rusty Hicks, executive treasurer-secretary of the Los Angeles County Federation of Labor, AFL-CIO, and was first floated last year. However, the potential exemption quickly became the subject of much scrutiny, and the measure was temporarily tabled.

The Los Angeles County Federation of Labor, AFL-CIO, did not respond to requests for comment.

Following news that the city council was expected to address the exemption once again, labor experts not only criticized unions’ push for such an exemption, but highlighted how the exemption elevated the needs of organized labor over the needs of the workers represented by the unions.

“If there is an exemption, I don’t see how that benefits the workers,” Ed Ring, president of the California Policy Institute, told The Daily Signal. “This is to the advantage of the companies and the unions.

“The companies are coerced to making the practical decision to unionize, because it’s in the corporate interest to lower their wages,” he continued. “It’s in their interest to unionize, but it’s more difficult to see how it’s in the interest of the workers.”

The Los Angeles County Federation of Labor, AFL-CIO, represents 300 local unions in Los Angeles County. It, alongside other labor unions like the Service Employees International Union (SEIU), emerged as the most vocal in support of a $15 an hour minimum wage. Organized labor also vehemently opposed offering exemptions to specific businesses like restaurants.

As Los Angeles inched closer to passing its ordinance raising its minimum wage to $15 an hour, however, Hicks began pushing for an exemption to the wage hike for businesses with unionized workforces.

In a previous statement, Hicks said that an exemption was needed as a way to preserve collective bargaining agreements and allow companies and unions to negotiate a wage below that required under the law in exchange for other benefits.

“This provision gives the parties the option, the freedom, to negotiate that agreement, and that is a good thing,” he said.

Ring with the California Policy Center said that there is validity to Hicks’ argument of wanting to allow workers to secure other benefits in exchange for a wage lower than $15 an hour. However, he stressed that passing an exemption for union members would have given businesses an incentive to push for unionization.

“The reasons why the unions would want an exemption is because if you have an exemption for unions, then … [it gives] labor intensive businesses that have a lot of low-wage workers … an incentive to unionize because if they unionize, they might be able to lower their labor rates by 10 to 15 percent more,” he said.

“It’s hard to look at that without considering it to be a very cynical move on the part of the unions,” Ring continued.

Because many cities, Los Angeles included, are phasing in $15 an hour minimum wages over a span of several years, the impacts such a wage hike will have on businesses and the workforce aren’t known. However, small businesses across the state of California are already bracing themselves for the impacts higher labor costs will have on their bottom lines.

California Gov. Jerry Brown, a Democrat, signed a bill into law last week raising the state minimum wage to $15 an hour in 2022—two years after Los Angeles’ wage hike will take effect.

Because businesses are anticipating higher labor costs, James Sherk, a research fellow in labor economics at The Heritage Foundation, said an exemption for unionized workers makes unions appear to be the more enticing—and cheaper—option for businesses.

“It’s a way to make the unions more attractive to the employer,” Sherk told The Daily Signal. “[Unions] can say, ‘You don’t have to worry about raising your costs, we can help you crack your wage costs.’”

“It’s very effective in the short term,” he continued. “The risk is that it’s cynical and makes them look like calculating hypocrites. It undermines public support for unions.”

While Hicks’ proposed amendment earned him criticism from the business community, he’s also seen pushback from fellow labor leaders.

Dave Regan, president of SEIU-United Healthcare Workers West, spoke out against the pursuit of exemptions from minimum wage hikes.

“I just think unions should not be in the business of carving out lower wage standards for ourselves,” he told the Los Angeles Times. “We don’t help ourselves with anybody—with our members or with the public—by defending the indefensible.”

While the Los Angeles City Council debated the exemption for union members, other cities that raised their minimum wages above state and federal levels included such carve-outs.

San Francisco, Chicago, and San Jose, Calif., all included exemptions for union members in ordinances raising their minimum wages.



LA Raises Minimum Wage to $15… Employers Respond Immediately With THIS

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This is from Joe For America.

How many  people will go to zero dollars per hour thanks to this wage hike?

This sums up the whole leftist minimum wage hike scam.

“The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.'” Ronald Reagan

The Los Angeles City Council decided to raise the minimum wage last week.  In LA asking “Would you like fries with that?” will net you $15 bucks an hour.  That’s about $30,000 a year for a full time job.

Plus, of course, your health care thanks to Barack Obama and the Democrats who passed ObamaCare without a single Republican vote.

Needless to say, Democrats are projecting a boom in the economy thanks to low income people having more cash in their pockets.  Except they may be in for a big surprise.

The expected hike in the minimum wage may be holding down hiring a bit among local firms, said Ken Tiratira, chief operating officer of the Employers Group, one of BizFed’s 135 member organizations. The survey found that while 66 percent of companies expect business conditions to improve this year, only 40 percent of business owners plan to hire additional employees.

Still, 59 percent of business owners surveyed said they plan to make capital investments, much of that in new technology designed to further automate the workplace. That’s up from 46 percent who said they planned such investments at this time last year.



“That’s the biggest surprise,” said BizFed Chief Executive Tracy Rafter. “It shows a desire to invest in new technology and equipment to make businesses less reliant on human capital – to grow the business with fewer people.

So 66% of businesses see improvement this year and only 40% are thinking about hiring new employees.  And 59% are planning on investing in automation technology.

The other day, The Wall Street Journal detailed how Lowe’s will start to roll out robotic shopping assistants at a California store in November. Robots doing customer service? This is another example of how technology and automation are changing the workplace and, over time, the composition of the workforce.

Low-skill jobs such as fast food prep workers and personal care aides are booming, as they have been since the Great Recession. But a new analysis fromUSA TODAY using EMSI data and other sources indicates that 70% of low-skill positions have a high risk of being automated in 10 to 20 years, compared to 46% of mid-skill jobs and 8% of high-skill jobs.

In 1979 the UAW had 1.5 million members in the auto industry.  Today they have 400,000 members, and that number is driven by expansion into areas like higher education and casinos.  Certainly some of the drop was due to companies like Toyota, Nissan, and BMW expanding manufacturing in the US and doing it in non-union regions like the South.  But a major component of that drop is the elimination of high-skill jobs like painting, assembly, and welding.



If industry can automate painting and welding, automating order taking and fry cooking is a breeze.  It was the cost of labor and benefits that led to the robotic industry and it’s getting ready for a boom now.

And while we’re at it, those businesses are also concerned about the amount of red tape and regulation.

But as ObamaCare kicks in lowered health insurance cost will offset the increased minimum wage, right?

Another major concern is healthcare: 65 percent of business owners surveyed said they expect higher healthcare costs as employer mandates under the federal Affordable Care Act kicks in later this year. Owners said they plan either to reduce employee hours or to increase employee copays to offset higher costs.

Good job Democrats.  40 hours per week at $9 per hour is $360 per week.  29 hours per week at $15 per hour is $435 per week and no benefits.

The most likely result of this meddling by people who’ve never had to make a payroll is that the people they’re most trying to “help” will be the ones who are hit the hardest.  People who are worth about $9 per hour are going to find out that the “minimum wage” isn’t $15 per hour, it’s $0.

The ‘Fight for $15’ Suffers A Setback As McDonald’s Flirts With Automation

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This is from The Daily Caller.

While many, including polititcans advocating for a hike in the minimum wage.

The union thugs are demanding $15.00 per hour for fast food workers.

I have copied a comment from a post on this subject that is a great comment.


I still want to know where the outcry is for $15/hr for the military personnel… sigh. Old NFO



The “Fight for $15” movement to increase the hourly pay of fast food workers to $15 per hour has gained a lot of momentum in the past year. Led by unions, who seek to expand into the fast food industry, and progressive activist groups, there have been protests nationwide demanding fast food chains raise the starting pay of employees to more than double the minimum wage. That fight may be on the verge of backfiring.

Conservatives have long warned that raising the minimum wage would harm businesses, cost low-skilled workers jobs and lead to automation to replace many of them. Unions and progressives, on the other hand, swore fast food chains could easily afford the inflated labor cost without much of a price increase.

Now comes word that McDonalds’, the largest player in the fast food industry, revenues are down significantly. A 5 percent decline in quarterly revenues led to a 30 percent decline in profits. A doubling of labor costs would only exacerbate this and lead to massive layoffs.

In addition to demands from labor for a higher starting wage, the National Labor Relations Board in July ruled fast food companies are responsible for the labor practices of their franchisees. That ruling makes the prospect of unionization of the industry a larger possibility and places additional pressure on the future of the industry.

As such, McDonald’s is looking to the future, a future with fewer employees.

The Wall Street Journal reports, “The McDonald’s earnings report on Tuesday gave a hint at how the fast-food chain really plans to respond to its wage and profit pressure—automate.”

Further, the Journals says:

By the third quarter of next year, McDonald’s plans to introduce new technology in some markets “to make it easier for customers to order and pay for food digitally and to give people the ability to customize their orders,” reports the Journal. Mr. Thompson, the CEO, said Tuesday that customers “want to personalize their meals” and “to enjoy eating in a contemporary, inviting atmosphere. And they want choices in how they order, choices in what they order and how they’re served.”


Customization and choices are what consumers want, but humans already do offer that. What the machines offer is the additional stability of a known and stable cost.

As the “Fight for $15” gears up for future fights and the NLRB helps it gain steam, economic realities and market forces may be letting the air out of their tires.


My Response to ‘Native American’ Elizabeth Warren and her ’11 Commandments of Progressivism’

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This is from Godfather Politics.


Crazy leftists want Massachusetts Senator Elizabeth Warren to run for president in 2016. She’s described as a “liberal superstar.” Many are dumping Hillary for Warren. It could be the battle of the sexless in 2016. What were the people of Massachusetts thinking? She’s not only a plague on Massachusetts, but she’s a plague on the nation since she has a vote.

Speaking at Netroots Nation, a convention for liberal bloggers and activists, Elizabeth Warren outlined her “11 Commandments of Progressivism.” My brief commentary follows:

1. We believe that Wall Street needs stronger rules and tougher enforcement, and we’re willing to fight for it.

There is no single entity called Wall Street. What we really need are stronger rules and tougher enforcement on Washington that bails out faltering companies and banks. Washington spends money it does not have. Elected officials like Warren steal from the working class so they can give it to non-workers who will continue to vote to keep politicians like Warren power. There is an unhealthy relationship between government and business that only the free market can fix.

2. We believe in science, and that means that we have a responsibility to protect this Earth.

Actually, Progressives don’t believe in science or they wouldn’t support same-sex sexuality (the biology and anatomy are all wrong), evolution (something from nothing), and the skewed and manipulated numbers that go into fabricating the crisis of Global Warming, Climate Change, and now Climate Chaos. Furthermore, if Progressives truly believed in science, they would engage critics of Global Warming in debate. Instead, the claim is made that “the debate is over.” Progressives don’t want debate because there’s too much money in a global “crisis” like global warming.

3. We believe that the Internet shouldn’t be rigged to benefit big corporations, and that means real net neutrality.

Governments should keep their hands off the internet. Once any type of control is given, there is no end to it. Progressives will end up controlling the oversight committees that make the laws and turn the internet into a State-run media congolmerate. Those supporting net neutrality tell us that it would not be directed by the government; that it would make the internet more free and open. Don’t you believe it. If a liberal like Elizabeth Warren is behind it, it must be a bad idea for freedom. The internet is doing just fine. Businesses are created every day. The little guy can be up and running in a day. See “Killing Net Neutrality Helps Underdogs Succeed.”

4. We believe that no one should work full-time and still live in poverty, and that means raising the minimum wage.

Calls for raising the minimum wage are ongoing. Once again, the government should get out of telling companies what they should pay. They are already burdened with paying the employer’s side of Social Security and Medicare and unemployment compensation tax. This says nothing about insurance, rent, upkeep, training, inventory costs, etc. Raising the minimum wage will force some employers to let employees go because of increased costs. The extra work will be passed on to the more experienced retained employees.

5. We believe that fast-food workers deserve a livable wage, and that means that when they take to the picket line, we are proud to fight alongside them.

Liberal policies already control the marketplace. Who will define a “livable wage”? The government will. There will be no end to what a livable wage might include: a certain size house; so much for food each month; a clothing allowance; paid vacations; transportation; education, birth control, etc. The most inexperienced workers will be shut out because of hiring expenses. The less qualified will find it harder to get a job. Teen unemployment will rise. “[M]inimum-wage legislation discriminates against teenage black males. This has been known by economists since at least the mid-1950s. The statistical evidence on this was overwhelming.” Walter Williams argues: “‘How does someone who is part of a group that is discriminated against find a way to prove to somebody doing the discriminating that his assessment is incorrect?’ It was really this question: ‘How do undesirables break through the discrimination against them?’”

6. We believe that students are entitled to get an education without being crushed by debt.

Entitled? Should I be forced to pay for the education of other people? No one forced these people to go into debt. No one has to go to college. There is no requirement that a college education has to be completed in four years. No one is forcing anybody to go to expensive schools. The case could be made that government money and cheap educational loans increases the cost of college.
7. We believe that after a lifetime of work, people are entitled to retire with dignity, and that means protecting Social Security, Medicare, and pensions.

Who will be made to pay for bankrupt pension programs? Should I be forced to pay? Our government enacted legislation that gave us Social Security and Medicare. They have grown in scope far beyond their initial implementation. Medicare is bankrupt. Warren’s solution is more taxes.

8. We believe — I can’t believe I have to say this in 2014 — we believe in equal pay for equal work.

There’s no such thing as “equal work.” All types of factors go into hiring and paying. If employees are not happy with what they are paid, they can (1) start their own business or (2) look for another job. I can’t believe I have to say this in 2014, but it’s no business of the government what an employee is paid.

9. We believe that equal means equal, and that’s true in marriage, it’s true in the workplace, it’s true in all of America.

Warren wants “equality” in everything. Forced equality leads to poverty. Equality before the law is the goal, but not equality in everything. There is no such attainable ideal unless we’re talking about Communism. But even with Communism, some people are more equal than others. There already equality in marriage. No one is stopping two people from getting married as long as they are of different sexes. The law has been equally applied. Changing the definition of marriage by claiming that people of the same sex can marry is not equality; it’s insanity.

10. We believe that immigration has made this country strong and vibrant, and that means reform.

This is one of her “commandments” that I and millions of others can agree with. The question is, however, what types of “reforms” do Progressives want?

11. And we believe that corporations are not people, that women have a right to their bodies. We will overturn Hobby Lobby and we will fight for it. We will fight for it!

Try owning and running a corporation without people. Corporations are owned by people, whether it’s one person or a group of people. Corporations are people. When Warren and her liberal thugs want to force their economic agenda on a corporation, who pays? People! Did people from Enron and WorldCom go to jail? Berrnie Ebbers of Worldcom was sentenced to twenty-five years in a federal prison. If corporations aren’t people, then why do they pay taxes, and why is Ebbers in prison?

One of the reasons the “corporations aren’t people” argument keeps coming up is because of the intrusive nature of government. Congress passed and the Supreme Court upheld the passage of the Affordable Care Act. Now the government has direct control over healthcare. As a result, for every question about the Act’s applicability and enforcement, the government must decide.

Warren and her ilk want to control every area of life, even unborn children by allowing women to kill them. They want to empower the State to force companies to pay for abortifacients that kill unborn babies. Women have a right to control their bodies, but they should not have the right to kill an unborn body that is not their body.

As has been reported over and over again, Hobby Lobby did not deny any woman anything. Warren wants power to force companies to pay for healthcare that she wants to define.

More could be said on all these topics. Elizabeth Warren is the new face of the Democrat Party.

One Picture Puts An End To Everything Dems Say About Walmart And The Minimum Wage

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This is from Independent Journal Review.

This is a classic reason to not have a minimum wage and allowing the free market to set the wages paid.


Liberals have long lamented the Walmart corporation and its supposed cruel treatment of its workers. They’ve also insisted that without a minimum wage, workers have no chance of earning a decent living.

But this one picture, snapped by a University of Michigan economist and reported by, is about to flip both arguments right on their heads.

wal mart jobs


North Dakota does not have a state minimum wage policy. Nor does the city of Williston, where this photo was taken. But a local Walmart proves that it takes care of its workers, and it doesn’t need a set wage to pay its employees well.

Employment policies like this – effectively, more business and less government – have paid off. In six of the past seven years, North Dakota has led the nationin personal income growth.

North Dakota’s policy is obviously working – and other states should sit up and take note.



The Minimum Wage Myth Debunked

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This is from Godfather Politics.

Sadly the low information voters will fall for the DemocRat propaganda.



If you believe what the Democrats and Unionists say about the minimum wage, nearly all Americans are making $7.25 per hour.

Nothing could be further from the truth.

Fortunately Republicans argue raising the minimum wage to $10.10 per hour arguing that it “would damage the nation’s fragile economic recovery. Several GOP lawmakers took note of fresh data released Wednesday indicating the economy grew at a sluggish 0.1% in the first quarter of 2014.”

Fortunately Republicans argue raising the minimum wage to $10.10 per hour arguing that it “would damage the nation’s fragile economic recovery. Several GOP lawmakers took note of fresh data released Wednesday indicating the economy grew at a sluggish 0.1% in the first quarter of 2014.”

Most people making only a minimum wage salary are mostly in transitional work. They are mostly young people with little work experience. They jobs they work are not highly skilled.

The latest statistics support these facts as a CNSNews report shows:

“A majority of the Americans who worked for the minimum wage or less in 2013 were 24 years old or younger, according to data released by the Bureau of Labor Statistics, and only 0.8 percent of American workers were 29 or older and worked for the minimum wage or less.

“A supermajority of 67.5 percent who earned the minimum wage or less in 2013, according to BLS, worked in what the government calls the ‘Leisure and Hospitality’ industry. This includes restaurants, bars, hotels, theatres, amusement parks and other facilities catering to people pursuing recreational activities.

“Workers who get tips on the job can be paid less than the legal minimum wage if their combined wages and tips exceed the minimum wage.”


For those who aren’t very good in math, .8 percent is less than 1 percent.

Many people who work in the hospitality industry supplement their minimum wage pay with tips. Some of them make big bucks.

“The Congressional Budget Office reported earlier this year that increasing the minimum wage to $10.10 by 2016 ‘would reduce total employment by about 500,000 workers.’” That means, for so many low information voters, nearly a half million people would lose their jobs. Of course, in the end the job losses would be blamed on Republicans and George W. Bush.

Are there stories of people working multiple jobs to make ends meet? Yes, there are. Are industries stingy with hiring and paying higher salaries? Yes. The problem lies, not with the minimum wage, but with maximum taxes and regulations. Forcing employers to pay more for work is a tax.

The solution to higher wages is a free economy where employees are in demand because the economy is growing. Politicians believe they can fix an economy by passing a law. If that’s true, then why not pass a law that says, “the economy is fixed” and move on?

Here’s a breakdown of the industries where there are the most minimum wage workers:


About that minimum wage and ObamaCare, here’s what’s really going to happen

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This is from Joe For America.

I remember when Slick Wille Clinton was hyping a raise in the minium wage had how people would benefit.

Then the GOP plan was to eliminate taxes for people making 40k and under while lower other rates.

Clinton and his hacks convinced the low information crowd they would only benefit from the wage increase.

Now Obama is back pandering to the low information crowd.

Be careful of what you wish for as you just might get it.


President Obama and the Democrats have decided that the minimum wage will be their class warfare issue for this election. That and, of course, the infamous “war on women” that the Evil Koch Brothers are paying for.

Well, like most things the Democrats believe, it just ain’t so.

Here’s the CEO who turned Bennigan’s around from a restaurant chain going under to a profitable business that employs thousands of people in all kinds of jobs.

Mr. Manlemele makes a number of points. First, the minimum wage hike is going to hurt business, and it will hurt most the people it’s designed to help because they won’t have jobs. Second point is that ObamaCare is hammering business, and it’s also hurting those at the low end of the economic scale because their hours are being cut back, and the cost of health insurance has gone up from 32% to over 50% in most markets because of ObamaCare.

Back to the minimum wage, over 500 economists have come out against increasing the minimum wage.

Over 500 economists signed an open letter to the White House and Congress urging them to reject a federal minimum wage increase.

The list, which included four Nobel laureates and several veterans of past administrations, warned the minimum wage hike would cause economic damage.

“One of the serious consequences of raising the minimum wage is that business owners saddled with a higher cost of labor will need to cut costs, or pass the increase to their consumers in order to make ends meet. Many of the businesses that pay their workers minimum wage operate on extremely tight profit margins, with any increase in the cost of labor threatening this delicate balance,” read the letter.

In other news, strident Obama supporters who operate big businesses, and who the President frequently calls on for economic advise, Bill Gates, Michael Bloomberg and Warren Buffett have all come out against President Barack Obama’s push to raise the minimum wage.

When restaurants have to pay servers significantly more not only will the talent pool shrink and eliminate those without experience, restaurants will automate the function.

Customers at D-Dog House in Brickell aren’t greeted by a waiter. Nor do they step up to a counter like in a fast-food restaurant.

Instead, each table is equipped with an iPad, from which customers can order their food with no human intervention.

Waiters confirm orders with customers, bring the food from the kitchen when it’s ready, and are available to accept payment and help customers who need it. But customers can enter and leave the eatery with little interaction with a human employee.

If this technology is widely adopted, it has the potential to drastically cut labor costs at many restaurants — and put many waiters out of work.

Sean Raee, owner of D-Dog House, said he has fewer servers because of the iPads.

Raise the minimum wage and you’ll not only be ordering fast food on a touch screen, an automated machine will be cooking your burger. Amazon, and every other firm involved in large scale distribution is reducing costs using warehouse robots and Amazon is working on delivery drones.

Bottom line, if you’re a minimum wage – or close – worker and people are hustling you to vote Democrat or join a union because you’re going to be making $15 per hour, you should think about the hard reality of life. Minimum wage goes up and you, and hundreds of thousands of people like you, are going to be replaced by robots.



Report: Minimum wage hike backers rarely pay interns

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This is from The Daily Caller.

The DemocRats are only free with other peoples money.

Just because lawmakers want businesses to pay more for entry-level workers, doesn’t mean they are willing to do so themselves.

According to a new study by the Employment Policies Insitute (EPI), only four percent of the 210 lawmakers who pledged their allegiance to a bill raising the minimum wage pay their interns.

The Fair Minimum Wage Act would increase the federal minimum wage from $7.25 an hour to $10.10 an hour. EPI found that 96 percent of its House and Senate supporters give their interns a minimum wage of zero.

This includes the authors of the bill, Iowa Democratic Sen. Tom Harkin and California Democratic Rep. George Miller. House Minority Leader Nancy Pelosi is another strong supporter of the legislation who doesn’t pay her interns.

These legislators did not respond to The Daily Caller News Foundation’s request for comment.

“To cavalierly call for a $10.10 minimum wage while the vast majority do not pay their interns, shows that they are talking out of both sides of their mouth and are not living up to the same standards they expect of others,” Michael Saltsman, EPI’s research director, told TheDCNF.

Thirty-five Senate offices pay their interns. Only 11 of them are headed by Democrats.

Saltsman added, “If you created a situation where you all of sudden had to pay for interns, there would be fewer intern positions available. A lot of folks up in Congress don’t seem to realize that the same dynamic applies in the private sector. If you raise the cost of hiring employees, there are going to be fewer opportunities available for workers.”

A minimum wage increase has been on the table since President Barack Obama’s 2013 State of the Union Address, in which he told Americans, “Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty, and raise the federal minimum wage to $9 an hour.”

And more recently, Obama highlighted the issue in a lengthy New Yorker profile, informing the reporter that he would judge his time in office by his ability to fight income inequality.

“It’s an election year tactic. It’s an attempt to leverage people who are dissatisfied with the current state of the economy,” Saltsman told TheDCNF. “Instead of talking about Obamacare, we are talking about class warfare. I think Democrats are hoping they can use this to draw a contrast with Republicans and in close races around the country make them look like they are out of touch with the middle-class people.”

A number of studies have suggested that minimum wage increases harm the job prospects of lower-skilled workers and fail to deliver as an anti-poverty measure.

“I think this shows that it is really not about the workers… The fact that we keep talking about the minimum wage in the context of an election year means that it is a more cynical plan to put more Democrats in office,” Saltsman said. “Unfortunately, it is entry-level employees who are going to be fronting the tab.”

Read more:



This is from Breitbarts Big Government.

DemocRats never let facts get in the way of their agenda.

With the midterm elections just over 300 days away, nervous Democrats reeling from the Obamacare debacle are hoping a big push to raise the minimum wage will be the silver bullet that will spare them from the historic losses they suffered in 2010.

Democrats and unions are busy working to get minimum wage initiatives on state ballots in the hopes of creating an electoral “minimum wage magnet” to attract low-income, minority, and union voters to the polls.

Seven minimum wage facts, however, may diminish Democrats’ high hopes.

1. Just 2.8% of American workers earn at or below the minimum wage.

The U.S. Department of Labor says 1.6 million people make the federal minimum wage of $7.25 an hour. Another 2 million earn below that rate, such as restaurant servers who make tips in addition to a lower base hourly wage which, according to U.S. News and World Report, “in many cases actually puts them significantly above the minimum wage in reality, if not officially.” That means in a nation of 317 million people, just 3.6 million (1.1%) make at or below the minimum wage. As a share of the U.S. workforcejust 2.8% of people working make minimum wage.

2. Half of all minimum wage workers are 16 to 24 years old.

According to the Department of Labor, “minimum wage workers tend to be young,” and “about half of those paid the Federal minimum wage or less” are below age 25. Many of these are students working while in school or teenagers with part-time or summer jobs. That means half of the people most affected by a minimum wage hike are among those least likely to show up at the polls to vote, especially in a midterm election year. Indeed, minimum wage workers who are 16 and 17 years old are not even legally eligible to vote.

3.  Labor workers already make well above the minimum wage.

Democrats and unions hoping labor workers will be energized by a minimum wage bump will be sad to know that laborers in every single sector of what the government calls “production and nonsupervisory employees”—like manufacturing, construction, mining, retail, transportation, etc.—already earn well above the minimum wage. In fact, in November 2013, the government reported that the average hourly labor wage across all industries was $20.31—a figure nearly three times the federal minimum wage. And as the unions themselves boast, a union member’s annual salary is already $10,400 higher than a non-union worker.

4. Even those who support minimum wage hikes concede it could kill jobs.

Many economists and conservatives point to the body of economic literature that shows minimum wage increases kill jobs and simply encourage companies to pass along the added cost in the form of higher prices. But even ardent supporters like socialist Seattle City Council member Kshama Sawant, who recently helped pass a $15 minimum wage in the SeaTac, Washington, concede the move could spawn job losses. “There may be a few jobs lost here and there, but the fact is, if we don’t fight for this, then the race to the bottom will continue,” said Sawant.

5. Minorities and the poor are hit hardest by the minimum wage.  Nobel Prize-winning economist Milton Friedman famously noted that “the most anti-black law on the books of this land is the minimum wage law.” Higher wages mean employers seek higher, more skilled workers. That, said Friedman, puts those with disproportionately less education and experience at a significant disadvantage when looking to put their foot on the first rung of the employment ladder.

6. Even progressives concede the minimum wage is no panacea for America’s economic woes.

President Barack Obama’s former chairwoman of the Council of Economic Economic Advisers Christina Romer says, “economic analysis raises questions about whether a higher minimum wage will achieve better outcomes for the economy and reduce poverty.” As a result, says Romer, “most economists prefer other ways to help low-income families.” Similarly, progressive Daily Beast writer Jamelle Bouie says while he supporters the move, “the minimum wage is a Band-Aid for wage stagnation and income inequality” and “doesn’t make up for our sluggish economy and weak labor market.”

7. 21 states already have minimum wages that are higher than the federal $7.25/hr rate.

Just last week, 13 states boosted their minimum wage rates above the federal minimum wage rate of $7.25/hr. That means 21 states now already have minimum wages that exceed the federal rate.

For these reasons and more, Republicans see Democrats’ minimum wage tactic as a desperate attempt to run from the Obama record.

“If I had a dollar for every time Democrats thought their issue of the week was going to be their pathway to victory, I would have enough money to pay taxpayers back all the money that was wasted on the broken Obamacare website,” said Republican Congressional Campaign Committee spokeswoman Andrea Bozek.

Mirror, Mirror, on the Wall, Which States Provide the Most Handouts of All?

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This is from Town Hall.

The welfare system discourages stay at home fathers.

The welfare system also discourages being responsible for your children.

The only thing the welfare systems encourages staying dependent 

on the taxpayers money the system takes away from working citizens. 



About two years ago, I shared a map put together by a pro-statism organization that supposedly showed that welfare benefits were very miserly and not sufficiently generous to lift people out of poverty.

My gut instinct was to reject the findings. As I wrote at the time:

The poverty line is set considerably above a level that would indicate material deprivation…far above the average level of income in most nations of the world. …Welfare checks are just one of many forms of redistribution, and the data used to create the map do not count food stamps, Medicaid, housing subsidies and a plethora of other means-tested programs.

My skepticism was further augmented when I ran across an amazing chartshowing that it made more sense to live off the government in Pennsylvania rather than earn more income.

It turns out that I was right to be skeptical. My colleagues at the Cato Institute have just released a detailed study calculating the amount of handouts available in each state. They then investigated whether the level of redistribution was so high that people might decide it didn’t make sense to be productive members of society.

You probably won’t be surprised to learn that it’s better to live off the government in most states.

Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years. The current welfare system provides such a high level of benefits that it acts as a disincentive for work. Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour.

Here are some of the details from the study, which used the example of a mother and two children.

…the federal government currently funds 126 separate programs targeted toward low-income people, 72 of which provide either cash or in-kind benefits to individuals. …no individual or family receives benefits from all 72 programs, but many recipients do receive aid from a number of the programs at any given time. …this study seeks to determine the approximate level of benefits that a typical welfare family, consisting of a single mother with two children, might receive, and to compare those benefits with the wages that a recipient would need to earn in order to take home an equivalent income.

What shocked me the most were a couple of tables showing how living off the taxpayers is a pretty good deal.

The first table shows how much a household would have to earn – before tax – to have the same lifestyle that is available from the welfare system. The study also looks at median salary in each state and shows that eight states actually provide handouts that are greater than that amount!

Redistribution Nation Worst 24

The study also reveals that handouts give recipients far more than is needed to reach the federal poverty level. Indeed, the panoply of benefits is so excessive in some places that recipients are pushed to more than twice what is needed to get out of poverty.

Redistribution Nation Poverty Rate

Or maybe it would be more accurate to state that handouts are so excessive that recipients are lured into dependency.

I’ll close with a couple of surprises from the study. I was shocked that Illinois and Maine both ranked among the least extravagant states. Maine “earned” third place in the Moocher Index, so I assumed they would be especially profligate. But I guess having a lot of people on welfare doesn’t necessarily mean that they’re getting a lot of money.

And Illinois has veered far to the left on fiscal policy in recent years, so I assumed politicians were giving out lots of goodies. But apparently bureaucrats are first in line for handouts and that reduces the amount of loot available for other groups.

On the other hand, I didn’t expect to find New Hampshire being about as profligate as Vermont.

Most of the other states are where you would expect them to be. Fiscal hell-holes like New York and California redistribute money like crazy, while zero-income tax states such as Texas, Florida, and Tennessee are comparatively frugal.

P.S. Here’s a map showing which states have the most food stamp dependency.

P.P.S. Let’s not forget that the poverty rate was falling steadily before the federal government declared a “War on Poverty.”

P.P.P.S. If you’re thinking about moving, you may want to avoid “death spiral states.”

P.P.P.P.S. The U.K. welfare system also makes work unattractive compared to living off taxpayers.


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