Obama’s Minimum Wage Hike ‘Won’t Meaningfully Help Economy’

Peter Schiff on the consequences of raising the minimum wage:

Peter Schiff Exposing The Jon Stewart Daily Show Deception (Video)


Obama’s Minimum Wage Hike “Won’t Meaningfully Help Economy” (ZeroHedge, Feb 6, 2014):

The US minimum wage has been a common news topic lately – increasing its sound and fury since President Obama’s State of the Union proclamation of a rise in federal employee minimum wages to $10.10 (from $7.25). While obviously a contentious political issue, one question keeps coming up – will this help? As BofAML notes in a recent report, a simple back-of-the-envelope calculation suggests that the rise in wages from a minimum wage increase would amount to fractions of a percentage point on macroenomic data. There simply are not enough people working at (or below, since some jobs are exempted) the minimum wage to have a noticeable impact on the total wage bill and in the end, there are just too few people, earning far too little, at the minimum wage to meaningful affect aggregate macroeconomic statistics. So why is he doing it?

In the end, there are just too few people, earning far too little, at the minimum wage to meaningful affect aggregate macroeconomic statistics

So one has to ask – if the rise in the minimum wage has begligble effects on growth or inflation and has the potential to price some out of the employment market – why is President Obama so insistent on its occurrence?

1 thought on “Obama’s Minimum Wage Hike ‘Won’t Meaningfully Help Economy’

  1. I have known government contractors. They are called beltway bandits, and they earn in the hundreds of thousands of dollars…..and many of them are feather merchants. It is a long lived scam.
    Obama’s absurd minimum of $10.10 an hour………most of them spend more than that on a drink at the bar at the Four Seasons…….I know, I have been in it first hand…….
    This guy does nothing but make speeches.
    I despise Hillary Clinton, but she once made a remark that now really rings true. “So and so did this, someone else did that…….Mr. Obama made a speech in 2004.”
    That was one of the rare truths ever to come out of her mouth.

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