I grew up in a family who had to stretch their money the best way they could. So I understand those in our nation who labor hard to pay their monthly bills. As our economy continues to struggle, the President and his congressional allies are proposing another hike in the federal minimum wage.
I have already written about the racist roots of the minimum wage. The Davis-Bacon Act of 1931 was intentionally designed to prevent blacks from being hired for federally funded work projects. Raising the minimum wage also raises the cost of all kinds of goods and services for consumers, rich and poor: if the grocery store has to pay more to have its shelves stocked, it will have to raise the price of groceries. And I have also written about how raising the minimum wage will undoubtedly raise unemployment rates among the lowest skilled workers.
This third concern was raised in a recent report by the non-partisan Congressional Budget Office (CBO), which analyzed the probable effects of the proposed minimum wages increases. The report stated that the changes would most likely eliminate at least 500,000 jobs (or as many as 1 million) by the time they were in full effect. In return, they would raise the annual income of families in poverty by about $300 a year. more >>
This week CNBC reported on its quarterly All America poll, a survey on a variety of political economy topics. (Videos of the report can be seen at the CNBC website.) One of the topics in the report was the attitude of people towards increasing the minimum wage.
Not surprisingly, most people are in favor of increasing the minimum wage. Hiking the minimum wage is always politically popular, which is perhaps why it is a go-to policy when other economic policies are not popular. Also not surprising therefore, Democrats are making a 40 percent increase in the minimum wage the biggest talking point in their economic policy agenda this year.
Of course, as every first-year student of economics can tell you, there is always a trade-off on every economic choice. Where there are winners, there are also losers. In this case, a 40 percent increase in minimum wages will have a variety of trade-off effects. One effect will be an increase in the cost of doing business, for those businesses that employ a lot of low-skilled workers. more >>
WASHINGTON – Jim DeMint, president of The Heritage Foundation and former U.S. Senator from South Carolina, urged Americans to embrace what he says is the true source of national strength, the "little platoons" of families, churches, and entrepreneurs who solve the problems that government seems unable to answer.
"America was unique in all the world because we were built from the ground up by innovative and courageous individuals and the 'little platoons' that Edmund Burke talks about — the families, the church groups, the small businesses, the charities — that's what makes America strong," DeMint told The Christian Post in an interview at The Heritage Foundation on Thursday. DeMint's new book Falling in Love with America Again, wants to reconnect Americans with their roots and away from what he describes as destructive government programs.
DeMint attacked "big government and bigonomics," which promise to help the poor and middle class but end up doing the opposite. "Not all big is bad, but when government props up businesses and unions, and creates a monopoly of power, it tends to concentrate power and smother the activities of the little platoons," the Heritage president explained. more >>
A Roman Catholic diocese in Massachusetts that refused to sell a historic mansion to a gay couple is facing mounting legal pressure.
Massachusetts' Attorney General Martha Coakley recently filed a brief in support of the gay couple who are suing the Diocese of Worcester alleging discrimination.
Filed before superior court earlier this month on behalf of the Commonwealth of Massachusetts, Coakley argued that the diocese's actions constituted "sexual orientation discrimination." more >>
GOP beware: Although another Harvard poll found that 52 percent of young millennials and 47 percent of the elders want Obama ousted -- Millennials love you less -- thanks to Republican dinosaurs like Mitch McConnell, John McCain, Lindsey Graham, and others -- who pollute the conservative message.
Recent findings from a Pew Research poll titled "Millennials in Adulthood" should leave conservatives, capitalists and generally anyone embracing smaller government, deeply concerned -- because the America they know today will be much different in the near future. And here's why.
According to this poll, millennials, now ranging from age 18 to 33-1/2, are unique, in that they are "relatively unattached to organized politics and religion." The Pew poll also found millennials are "distrustful of people" but still lean heavily Democrat, despite the intellectual dishonesty liberals regularly display. more >>
Tech billionaire Bill Gates expressed doubts about the impact of an increase in the minimum wage, despite his long-time support for President Barack Obama, who publicly endorses the policy idea.
"When people say we should raise the minimum wage, I worry about what that does to job creation," Gates, Microsoft founder and cofounder of the Bill and Melinda Gates Foundation, declared at a Washington, D.C. event at the American Enterprise Institute on Thursday. The business giant argued that a minimum wage increase would "dampen the demand for labor."
Gates paraphrased Robert Dohrer, chair of the Forum of Firms at the International Federation of Accountants, who noted that "poverty in the United States is often related to employment and economic growth." The Microsoft founder warned that "capitalism over time will create more inequality and technology over time will adjust labor demand," meaning that the rich will become richer and the poor will lose their jobs and be replaced by machines. more >>