When Democrats want to crush the economy, they raise the minimum wage

Discussion in 'Political Opinions & Beliefs' started by mitchscove, Jan 17, 2019.

  1. mitchscove

    mitchscove Well-Known Member Donor

    Joined:
    Sep 4, 2016
    Messages:
    7,870
    Likes Received:
    4,479
    Trophy Points:
    113
    Democrats’ $15 Minimum Wage Bill Is A Big Deal

    Congressional Democrats, empowered by their new House majority, introduced legislation on Wednesday that would raise the federal minimum wage to $15 an hour. It’s incredibly significant, both in symbolism and in effect. It’s a clear sign of how far the Democratic Party has moved — and how it’s moved toward smart, powerful economic policymaking.

    It was just six years ago that President Barack Obama was pushing an increase in the minimum wage from $7.25 an hour, where it has now sat for nearly 10 years, to $9 an hour. Democrats in Congress went slightly further in 2013, introducing a bill to set a $10.10 wage floor. Even three years ago, the party power was advocating an increase to only $12 an hour.

    How did Democrats ditch their more timid positions to rally behind a $15 wage? The seeds were sown during the Great Recession, when millions of Americans lost their jobs and therefore their incomes. Many of those newly jobless people ended up in service sectors like retail and fast food, where they soon found that minimum wage work doesn’t pay enough to get by.

    https://www.huffingtonpost.com/entry/opinion-democrats-minimum-wage-bill_us_5c3f78e4e4b027c3bbbd7137

    Simple. With unemployment at all time lows due to Trump's policies, they have to crush the economy as they did when the economy was recovering from the dot-com disaster under Bush. The 40% increase Pelosi and Reid passed by holding Katrina victims and veterans hostage in a May 25, 2007 law smacked the economy down in July 24, 2007, July 25, 2008 and finally on July 25, 2008 caused the Great Recession. Because Pelosi and Democrats skated the last time, here they are pulling their destructive act again, again attacking the livelihoods of minorities and youth, again kicking out the bottom rung of the ladder of success.

    H.R.2206 - U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act,2007
    110th Congress ( 2007-2008 )

    Title VIII: Fair Minimum Wage and Tax Relief - Subtitle A: Fair Minimum Wage - Fair Minimum Wage Act of 2007 - (Sec. 8102) Amends the Fair Labor Standards Act of 1938 to increase the federal minimum wage to: (1) $5.85 an hour on the 60th day after the enactment of this Act; (2) $6.55 an hour 12 months after that 60th day; and (3) $7.25 an hour 24 months after that 60th day. Makes such minimum wage increases applicable to American Samoa and the Commonwealth of the Northern Mariana Islands on a different transitional basis.

    https://www.congress.gov/bill/110th-congress/house-bill/2206

     
    Last edited: Jan 17, 2019
  2. mitchscove

    mitchscove Well-Known Member Donor

    Joined:
    Sep 4, 2016
    Messages:
    7,870
    Likes Received:
    4,479
    Trophy Points:
    113
    Pelosi had some help. Just causing unemployment among minorities doesn't melt down the economy. Pelosi had some unwitting help. In 1999, Andrew Cuomo loaded up the housing market with minimum wage earners. Even that wasn't enough. Cuomo had to make sure that there was a market for the toxic mortgages or they wouldn't have been originated.

    *CUOMO ANNOUNCES ACTION TO PROVIDE $2.4 TRILLION IN MORTGAGES FOR AFFORDABLE HOUSING FOR 28.1 MILLION FAMILIES*

    See full chart of higher goals by metropolitan area
    <http://archives.hud.gov/news/1999/pr99131cht.pdf>

    WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced a policy to require the nation's two largest housing finance
    companies to buy $2.4 trillion in mortgages over the next 10 years to provide affordable housing for about 28.1 million low- and
    moderate-income families.

    Cuomo said the historic action by HUD raises the required percentage of mortgage loans for low- and moderate-income families that finance
    companies Fannie Mae and Freddie Mac must buy from the current 42 percent of their total purchases to a new high of 50 percent - a 19
    percent increase - in the year 2001. The percentage will first increase to 48 percent in 2000.

    https://archives.hud.gov/news/1999/pr99-131.html

    The subprime meltdown that first started when Cuomo's ARMs started resetting on minimum wage earners who couldn't afford normal mortgage rates was spiked when the workers who could afford the mortgage rates were thrown out of their jobs. The problem was compounded when the demand created by Cuomo caused a shortage in drywall, spurring demand for Chinese drywall that ate away at copper in the walls of homes in tropical areas. People who put down 5% on vacation homes walked away from those homes when they started getting sick. See Lee County Florida.

    Because Cuomo used Fannie & Freddie, Government sponsored enterprises, Mortgage Backed Securities issued by the GSEs or containing GSE-backed mortgages were given the highest rating by the credit rating agencies, luring international investment.
     
  3. Balto

    Balto Well-Known Member

    Joined:
    Jan 13, 2013
    Messages:
    10,094
    Likes Received:
    2,252
    Trophy Points:
    113
    You do know Costco already pays a solid $14 fit anyone willing to come push carts, right? And do you see Costco talking bankruptcy or massive layoffs? No you don’t, and they’re nearly at $15 an hour.

    It works, all the whiners either need to close up shop or deal with the hike.
     
  4. kriman

    kriman Well-Known Member Past Donor

    Joined:
    Apr 29, 2018
    Messages:
    26,997
    Likes Received:
    11,048
    Trophy Points:
    113
    Gender:
    Male
    When the economy is good as it is now, employers have to pay higher wages to get employees. However, when the economy goes sour, the less productive higher wage earners will be he first to go.
     
  5. jcarlilesiu

    jcarlilesiu Well-Known Member Past Donor

    Joined:
    May 12, 2010
    Messages:
    27,905
    Likes Received:
    10,504
    Trophy Points:
    113
    Lol. Your anecdotal, single subscription based retailer PROVEN to serve the upper middle class, does not speak for all business.
     
  6. mitchscove

    mitchscove Well-Known Member Donor

    Joined:
    Sep 4, 2016
    Messages:
    7,870
    Likes Received:
    4,479
    Trophy Points:
    113
    Costco employees generated $811,700 in revenue per employee. Walmart employees generated $227,427 in revenue per employee.

    How many people would you like your average retail store to lay off?

    When compensation is disconnected from value produced on a nationwide basis, history and common sense tell us jobs are lost and recessions are in play.
     
  7. One Mind

    One Mind Well-Known Member Past Donor

    Joined:
    Sep 26, 2014
    Messages:
    20,296
    Likes Received:
    7,744
    Trophy Points:
    113
    If all retail stores paid 15 bucks an hour, which is probably what min wage would be if adjusted up for inflation and productivity, things would still roll on, profits would be made by these chains and all would be well. With full time jobs being predominate over part time jobs.

    Afterall, retail stores once paid much more than min wage long ago, and gave sales commissions to their employees, and somehow those business still survived and their owners did well. Hard to believe, ain't it? Yet I lived it once upon a time.

    The growth in disparity in income, in favor of the top, has something to do with wages being too low overall in the service sector. Since we lost the value added jobs to slave labor. Americans cannot work for a buck an hour like mexicans and asians do.
     
  8. mitchscove

    mitchscove Well-Known Member Donor

    Joined:
    Sep 4, 2016
    Messages:
    7,870
    Likes Received:
    4,479
    Trophy Points:
    113
    Obamacare was responsible for the part time economy. There is no disparity in opportunity. There is disparity in work effort. Perhaps people consumed by envy should work harder. They have to overcome cheap labor coming across the border ,,, which means that they have to produce more to make their wage worthwhile.

    Fact remains that minimum wage increases cause job losses and recessions. It's not an opinion. It's a fact. The only time a significant increase in the minimum wage didn't cause havoc was in the late 1990's, the dot-com bubble, when the economy was booming with IT work and capital gains tax was slashed.

    Do your homework.
     

Share This Page