By Robert Laurie ——Bio and Archives--February 19, 2014
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Once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent, CBO projects (see the table below). As with any such estimates, however, the actual losses could be smaller or larger; in CBO’s assessment, there is about a two-thirds chance that the effect would be in the range between a very slight reduction in employment and a reduction in employment of 1.0 million workers.At least Nancy Pelosi will be happy. That's up to a million more people who would be freed from the horrors of employment, enabling them "to chase their dreams" of becoming authors, sculptors, and painters.
The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold, CBO estimates.
What this is is a transfer of wealth from some low-income earners to other low-income earners. Some — of course, this is so obvious, it’s not rocket science — some will be better off, will make more, but others are going to lose everything. They’re going to lose all of their income, and they’re going to lose the first step on the ladder into employment, which is the hope for the future. So it’s a high price. You can make your choice, but there isn’t a free lunch. They are running ads saying to give America a raise, as if it’s no cost. It is a cost, and it’s other low income people who will be the ones who pay it.Never mind that 81% of the families who benefit from this are already above the poverty line. Also, please ignore the fact that those who remain on the low end of the income ladder will actually be worse-off since the CBO says the wage hike will increase the cost of the things they buy. You're not supposed to be reading the fine print. When you're talking about the ravages of "income inequality" more is always better. Got it?
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