CBO: $10.10 Minimum Wage Will Cost 500,000 Jobs, Increase Deficit

[angelatc]

http://www.cnbc.com/id/101352849

Raising the federal minimum wage to $10.10, as President Barack Obama and Democrats in Congress are proposing, could result in about 500,000 jobs being lost by late 2016, the Congressional Budget Office estimated on Tuesday.

The nonpartisan CBO also said that increasing the hourly wage could reduce U.S. budget deficits by a small amount for several years, but then increase them slightly in later years.

 

[Lucille]

The CBO report says that there is a two-thirds chance (likely range) it will destroy 1 million jobs, so CNBC was being kind (if you want to call it that).

I give it a two-thirds chance it will be even more than that.

Congressional Budget Office Says Raising the Minimum Wage Could Cost 1 Million Jobs
http://reason.com/blog/2014/02/18/congressional-budget-office-says-raising

http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdf

 

[twomp]

Is it painfully obvious to anyone else that the CBO is racist?

 

[Zippyjuan]

Interesting figure- given that the estimated people who would receive the increase of about $2 an hour was only about 200,000.

http://www.washingtonpost.com/blogs...e-for-federal-contractors-heres-how-it-works/

Who would get a raise? By some estimates, around 200,000 people — though this would only happen gradually, over time, as new federal contracts get awarded. That's about 10 percent of the federal contracting workforce. So it's a change at the margins.

More background: There are currently about 560,000 employees of federal contractors who make less than $12 per hour, according to a study last year by Demos. A smaller subset of those would potentially be affected by the new rules.

That would require every federal contractor making under $12 an hour losing their job. Seems quite high to make that claim.

 

[Root]

https://mises.org/daily/6097/The-Crippling-Nature-of-MinimumWage-Laws

In truth, there is only one way to regard a minimum-wage law: it is compulsory unemployment, period. The law says, it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. Remember that the minimum-wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result.

 

[eduardo89]

Interesting figure- given that the estimated people who would receive the increase of about $2 an hour was only about 200,000.

The article is talking about raising the federal minimum wage for ALL workers.

 

[Danke]

If automation or more efficient workers are the result, then ok it is a job killer.

Otherwise, it just raises the cost to the consumer.

 

[Occam's Banana]

CBO: $10.10 Minimum Wage Will Cost 500,000 Jobs, Increase Deficit

Yet more proof of the abysmal failure of free markets.
Clearly, the government will need to do something about this ...

 

[eduardo89]

If automation or more efficient workers are the result, then ok it is a job killer.

Otherwise, it just raises the cost to the consumer.

Automation and efficiency are good things.

 

[Danke]

Automation and efficiency are good things.

usually. Step into an airplane without a human pilot. Good luck.

 

[eduardo89]

usually. Step into an airplane without a human pilot. Good luck.

Isn't that what already happens? How much do pilots really do nowadays?

 

[torchbearer]

usually. Step into an airplane without a human pilot. Good luck.

They were even considering replacing ATC with computers.

 

[Danke]

Isn't that what already happens? How much do pilots really do nowadays?

A shit load. But I'd love to do it from the comfort of my living room. Oh shit, an engine failure, let me refill my coffee cup, and I will get on this. Oh my god, the plane crashed, oh well, I think I'll take a nap.

Going the way of the medical profession.

 

[Danke]

And don't forget, you can save a few dollars on a non union carrier where the pilots will be fired for refusing an aircraft that he is unconformable with taking.

I really laugh at the flying public. Ignorance is bliss. They complain about the stupidest things. You want to get from A to B in one piece?

 

[Danke]

I have really had it with stupid comments about aviation. Ya some novice has a private pilot pilot license. So he is an expert. An EMT is just as qualified as a Doctor preforming brain surgery too, right?

I was the top of my class in the military and went on to master flying fighters in both air-to-air and air-to-ground. Now of course I am over qualified in flying large commercial planes. As an example (there are many) is Air France Flight 447. I am embarrassed that such incompetent pilots fly passengers around the world. But that is a fact.

The flying public goes for the cheapest fare...why don't they do that in selecting a doctor?

I'm tired of hearing complaints.

You get what you pay for.

You want automation, bring it on. I will never step on an aircraft without a human who wants to arrive alive just as much as me.

 

[eduardo89]

And don't forget, you can save a few dollars on a non union carrier where the pilots will be fired for refusing an aircraft that he is unconformable with taking.

I really laugh at the flying public. Ignorance is bliss. They complain about the stupidest things. You want to get from A to B in one piece?

What US airline do you recommend?

 

[Danke]

What US airline do you recommend?

PC has invaded the US.

Maybe Southwest. But it is really a crapshoot.

When I was an instructor I had a girl cry during a simulator session. The stories I could tell.

If you can, stay away from regional jets. Very inexperienced.

 

[eduardo89]

When I was an instructor I had a girl cry during a simulator session. The stories I could tell.

She still go her licence.

 

[Danke]

She still go her licence.

OK, I'm guilty, I'd pass her.

 

[Root]

She still go her licence.

I could fly that.