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White House: Employers Can Prevent Job Losses After Minimum Wage Hike by ‘Accepting Lower Profit Margins’


Geee

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white-house-employers-can-prevent-job-losses-after-minimum-wage-hike-by-accepting-lower-profit-marginsPJMedia:

The White House lauded a Congressional Budget Office report on the proposed minimum wage hike to $10.10 per hour while brushing off one key finding: that such a bill could cost half a million jobs, and maybe more.

 

“The new Congressional Budget Office (CBO) report finds that 16.5 million workers would get a raise from increasing the minimum wage to $10.10 per hour and this would help millions of hard-working families, reduce poverty, and increase the overall wages going to lower-income households,” Jason Furman, chairman of the Council of Economic Advisers, and Betsey Stevenson, Council of Economic Advisers member, wrote in a White House blog post this afternoon.

 

“On employment, CBO’s central estimate is that raising the minimum wage to $10.10 per hour would lead to a 0.3 percent decrease in employment and CBO acknowledges that the employment impact could be essentially zero,” they continued. “But even these estimates do not reflect the overall consensus view of economists which is that raising the minimum wage has little or no negative effect on employment. For example, seven Nobel Prize winners and more than 600 other economists recently stated that: ‘In recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market.’”

The CBO report says that “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.”

“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,” the report adds.Scissors-32x32.png


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@Geee

 

(Not to defend these statements/spin)

I would be interested in knowing the question/assumptions given to the CBO. The thing we have to remember is, the CBO only answers the question asked based on the parameters provieded.

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Only .3% lose job... when has the White House ever used a number like?

 

So using the WH's sort of numbers..... 2% of the workforce would get a raise while 1/2 million would be laid off.

 

I like how the WH thinks business could just take a little less profit. Sounds like more forced wealth transfer.

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Oh yeah, the big bad business owner should also lower their profits to pay for better health care and to pay for climate change and...

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