"$10.10 Minimum Wage Would Actually Create New Jobs: Study"

[applegrove]

$10.10 Minimum Wage Would Actually Create New Jobs: Study

The Huffington Post | By Jillian Berman

http://www.huffingtonpost.com/2013/12/19/1010-minimum-wage_n_4474183.html?utm_hp_ref=politics&ir=Politics

"SNIP....................................


Raising the minimum wage would help the working poor and give the entire economy a boost, a new analysis finds.

If the minimum wage rose to $10.10 per hour, as Senate Democrats and President Barack Obama propose, 27.8 million workers would see their wages go up as a direct or indirect result of the boost, according to the Economic Policy Institute, a left-leaning think tank. These workers would take home about $35 billion in additional wages and they would probably spend it, as low-income people living with little financial cushion cushion tend to do.

The result: During the initial phase-in period, the U.S. economy would grow by about $22 billion, EPI found. The growth in the U.S. economy would result in about 85,000 new jobs, according to EPI. That counters arguments from conservative economists that raising the minimum wage could actually hurt the working poor by making employers hesitant to hire more workers. (A notion that’s been proven wrong by some economists and remains hotly debated.)

The analysis is an update to a similar report released by EPI earlier this year. It takes into account the fact that five states recently raised their minimum wage, meaning workers living in those states would feel less of an impact from a federal minimum wage boost than when EPI published the original research in March.




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[El_Johns]

1. K&R

[Warpy]

2. Create new jobs, increase the revenue stream for income taxes and OASDI

and ultimately result in bigger dividends on equities as business improves all the way up the line. What's not to love? Well, it would remove the "Sky is FALLING" urgency from Social Security naysayers and it would somewhat increase inflation.

Wages have been held down all this time because the wealthy didn't like inflation. Well, they've still got inflation and a ruined economy on top of it.

I think they're dimly realizing they're facing a revolution if they don't raise wages considerably, both from taxpayers who are sick of subsidizing mega corporations who don't pay their employees enough to live on and from the workers, themselves, who have had enough poverty and humiliation, thanks.

[applegrove]

3. Yup. Americans are realizing the whole trickle down scam is really wages going down

for the middle class and the poor while the rich get all the resulting "productivity gains".

[diabeticman]

4. I do hope it does happen. But I am not going to hold my breath.