CBO: Minimum Wage Increase will Increase Income Inequality
Posted By Daniel Greenfield On February 19, 2014 @ 9:55 am In The Point | No Comments
This is how the numbers have always worked. The left intervenes in the economy to reduce income inequality and destroys jobs which leads to more income inequality. The more it intervenes, the more people end up out of work or living from paycheck to paycheck. If it continues intervening with price controls and a planned economy, then basic staples become out of reach for most people and the only people to buy anything is in the black market.
But the left never learns and it never admits to the consequences of its own actions.
“Raising the minimum wage to $10.10 per hour would reduce employment by 500,000 in 2016 compared to if Congress left the minimum wage at $7.25 per hour, the Congressional Budget Office said in a report on Tuesday.
Raising the minimum wage to $10.10 would boost the income of about 16.5 million workers, the non-partisan body reported, raising their income by a total of $31 billion.”
The non-partisan body also found that raising the minimum wage to $10.10, as called for by the White House and congressional Democrats, would significantly boost the incomes of low-wage workers.
I’ll skip the Repub vs Dem arguments and cut to the chase. Raising the minimum wage is a choice. Like every policy, it has pros and cons. Some workers will benefit. Others will lose.
If the Dems simply admitted that, we could have a rational conversation on the subject. Since they won’t, we can’t. In their world, no one will lose their job, unless businesses are mean. That’s the philosophy that led to people fighting over powdered milk in government stores in Venezuela while the government denounces milk hoarding.
Minimum wage hikes hit workers in businesses with low profit margins and who are disposable and replaceable hardest. Those are the people who have the most precarious foothold in the economy already. Many of them are minorities. And then a few years later, Warren will demagogue some more about the income inequality she helped cause.
The hike looks good on paper, in practice it means half a million people losing their jobs while other people make slightly more money which will be offset by a hike in the very services and products they use by businesses that pass along the cost of the hike so that a lot of people lose their jobs and those who get the hike will see their living standard remain in place.
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