A new study from a prominent researcher finds that higher minimum wages have increased poverty in poor neighborhoods, a finding that could shake up the debate over the federal wage floor and slow the liberal push for a $15-an-hour minimum.
The study, led by the University of California, Irvine economist David Neumark and published by the business-backed Employment Policies Institute, finds that, over the course of decades, higher minimum wages don’t reduce poverty in disadvantaged neighborhoods. Rather, the analysis finds that a $1 increase in the minimum wage raises poverty rates and government dependency by about 3 percent.
The report also finds evidence that cash welfare fails to lower poverty.
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Didn't need to be an economist to figure that one out, but Democrats aren't interested in removing poverty, only prolonging it for the votes it gets them. Without the carrot on the stick, the Dems don't have a mechanism to keep the plantation going.
ReplyDeleteThe more money they receive the more they will spend. The more money they spend, the more debt they will accumulate.
ReplyDeleteI wonder how many people are going to lose their jobs in Salisbury the months to come. Since O'Malley signed a bill when he was governor raising the minimum wage, and the next raise is on July 1st, 2018 which means that minimum wage in Maryland is going to be rise to $10.10 from $9.25, and it was already raised last year from the $8.75 minimum wage from 2016. Going to be interesting how Salisbury businesses are going to adapt to having the minimum wage raised $1.35 in two years.
ReplyDeleteWhen you get bumped up to middle class wages you get no help and higher taxes, you basically make enough for YOU to put a roof over your own head and the government takes the rest. No more independence card shrimp & steak, your eating hot dogs now!
ReplyDeleteTypical for some rich dude to make this crap up, and the rest of you follow cheering em on. Bunch of clueless idiots commenting and unless you are living that life you have no room to comment.
ReplyDeleteThey make more they can afford more and spend the more they are making. That my friends is simple economics. Making more money does not create more poverty, as the rich man said. I wonder how impoverished he is. Maybe he should give up a few of his $$$ and see how less impoverished he becomes.
June 12, 2018 at 10:38 PM
ReplyDeleteYou’re the one who doesn’t understand economics. Everything in the Business runs as a cost vs profit model. And many entry level jobs hold very little value to companies. Meaning the jobs can be removed or automated if the cost of hiring people to fill those postions are no longer profitable. Why do you think so many entry level jobs have disappeared or been outsourced. It’s because having Americans make those items aren't profitable.
Also it’s simple economics that if people make more they spend more. What a laugh. If the bottom of the economy make more it means that businesses will have to pay their employees more meaning they have to charge more and by doing so it's just creating the same senario and sometimes even makes the poor poorer because of inflation. Also making the rich man give up his $$$, have you seen taxes people make $100,000 a year lose almost 30% of their gross wages in Federal income tax add state income then other taxes they have to pay and they lose at least 50% of their gross wages. Here is a simple statisic for you “The top 10% pays 70% of all taxes.”
I’ll mention I am not against raising minimum wage, but what the government is doing to increasing minmum wages are ridiculous. They should have been raising the minimum wage slowly over time not have sharp increases, or try reaching a $15 minnimum wage which is doubling the current federal minimum wage. I’ll leave off with an interesting fact, the minimum wage was originally created to block people of color from getting a job, since having to pay a person of color a certain amount made it so that Caucasians were more likely to hire people from their own race.