More money, more problems

Minimum-wage increases actually cost jobs

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Remember your first summer job?

You most assuredly remember the wage. That was, after all, why you got a job in the first place.

But your fondest recollections probably have nothing to do with filling out W-2s or cashing paychecks.

You probably recall a sense of pride in wearing a uniform and performing a task for someone other than your parents. You probably had newfound feelings of maturity when entrusted with a store key or an expensive piece of equipment. You remember small lessons – something people now call the “invisible curriculum” – that helped forge a lifelong work ethic.

It’s too bad fewer young people have the chance to share these experiences.

The teen jobless rate has been above 20 percent for 66 straight months – the longest stretch since the U.S. Bureau of Labor Statistics began tracking the number in 1948. And it would only get worse under the proposed $10.10 federal minimum wage plan President Obama is pushing.

The 40-percent increase would put entry-level work further out of reach for teens as companies cut back or eliminate low-skilled positions.

Despite comprising more than half of minimum-wage workers, teens and young adults have been largely excluded from the national debate. Instead, policy makers hope to sway public opinion by focusing on household breadwinners, a statistically small group in comparison but one with a highly emotional plight.

But it’s not the relatively few people trying to support a family on minimum wage likely to be hurt; it’s the young and unskilled who most likely will find themselves priced out of the work force.

Research from the nonpartisan Employment Policies Institute shows that every 10 percent increase in the minimum wage reduces teen employment at small businesses by 4.6 to 9 percent. The government’s own Congressional Budget Office has already estimated
the minimum wage increase would eliminate up to 1 million jobs.

Yet Obama continues to push the wage issue as an election-year strategy to rally his Democratic base.

Sadly, it could work, as liberals are gullible enough to believe that making workers 40 percent more expensive makes employers want them more.

Those grounded in reality – where the natural laws of economics reign supreme – know differently.

The last time the nation had a 40 percent minimum-wage increase – the three hikes between 2007 and 2009 – more than 114,000 young adults lost jobs, according to an analysis by economists at Miami and Trinity universities. For those with fewer than 12 years of education – a group most likely to be teenagers – the loss translated to a 12.4 percent drop in employment.

Another sobering statistic from the prior minimum-wage increase is that teenage work participation plummeted below 40 percent, meaning more than 60 percent of teens either couldn’t get a job or gave up trying to find one.

Though it’s true the 2007-09 increase occurred at the worst possible time – as the U.S. economy was entering a recession – it’s not as though the economy is currently booming.

Adding a minimum wage increase on top of the Obama administration’s other job- and investment-killing measures – Obamacare mandates, environmental regulations, energy policies – is a recipe for economic disaster.

The companies most likely to hire a young person – such as retailers, grocery stores and restaurants – already tend to operate on razor-thin profit margins. It’s not as if they can simply raise prices to offset a major increase in labor costs. They simply would adopt self-service technology at a faster rate.

Why would we expect any different? Should we expect companies to take an increase in labor costs and just go about business as usual?

And, really, does the average teen worker possess skills that merit $10 an hour?

Of course not. That is why the teen employment rate is at its lowest levels in six decades and will only get worse as “the minimum” climbs higher. That is why businesses in Seattle have successfully launched a recall effort in November to strike down the city’s $15 minimum wage law that took effect last month.

Citizens of that Northwestern city have had a chance to ask themselves a question the rest of us may soon be forced to address: What good is increasing the minimum wage if it raises relatively few wages, stifles job growth and makes it nearly impossible for the young to find paying work?

Most of us would rather see teens working $7.25-an-hour jobs instead of sitting around the house all summer earning nothing.

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hoptoad
4307
Points
hoptoad 07/14/14 - 06:52 am
7
1
My first summer job was in a

My first summer job was in a shoe store stocking shelves in the '50s, the minimum wage I received was like a million dollars to me. I remember kids delivering our morning paper on their bikes, grocery baggers, ushers in theaters, elevator operators in the big buildings, young people working behind counters in the soda shop or hamburger joint and young people walking dogs, emptying garbage and doing lawn work for elderly or infirm folks, just to name a few.

Some of these odd jobs went away because of innovation and automation. Some of it the kids nowadays feel too good to do the few options left to them and some jobs got eliminated because of the continued forced regulations, taxes and minimum wage hikes.

This is evidence of more information the mainstream media has not addressed honestly. Instead of telling Americans the truth about the forced minimum wage, they use it to flog Republicans.

ymnbde
9521
Points
ymnbde 07/14/14 - 07:20 am
7
0
sharecropping on capitalism

government does look on business owners
as "not having built that"
but, same as a sharecropper farming someone else's land
government does not share in any risk, only the reward
and uses its marxist mercenaries, the poor and uneducated
to further its goals
government isn't just taking money from a business owner
they're taking her labor, her toil
why doesn't government try to actually educate young people
and give them valuable skills?
because the poor and uneducated are useful to them
mercenaries, in the war on capitalism

deestafford
25382
Points
deestafford 07/14/14 - 07:47 am
4
3
Ignorance, Class Warfare, and Greed....

Ignorance, Class Warfare, and Greed are the reasons people and organizations support the increase in minimum wage.

Ignorance. The supporters are ignorant of the basic economics of what the minimum wage does to people, workforce and the economy. Ignorance can be reduced by going to YouTube and looking at two of America's greatest economists, Dr. Milton Friedman and Dr. Thomas Sowell, discuss the minimum wage. So educational and enlightening.

Class Warfare. One of Obama's and his sickopants tactics and objectives is to pit one class of Americans against another. This is right out of Saul Alinsky's preachings. Obama wants to make as many people as possible to feel as if they are victims and the only reason they are where they are is because of two things: the "system" and the "man". Many people who are at minimum wage jobs are there because of their life choices---dropping out of school, having children our of wedlock, marrying the wrong person, or running with the wrong crowd are some of the indicators of bad life choices.

Greed. Greed comes from the unions who have many of their contracts tied to the minimum wage. The higher the minimum wage--the higher the wages in the contract.

There are some Republican people in politics and on TV, to include Fox, who believe the minimum wage should be tied to inflation. This would be disasterous. The small business man can't tie his prices to inflation. Nothing, and I mean nothing, should be tied to inflation in a free market economy---even though we are moving away from a free market economy daily.

Excellent editorial.

RMSHEFF
15269
Points
RMSHEFF 07/14/14 - 08:00 am
4
2
The democrats aided by the

The democrats aided by the liberal media have always used the minimum wage issue and "living wage" issues to push their socialist agenda. As always it is aimed at the emotions of the low information and to pit one group agains another. Get the FACTS!

http://www.heritage.org/research/reports/2013/02/who-earns-the-minimum-w...

In 2012, there were 3.6 million hourly paid workers in the United States with wages at or below the federal minimum wage of $7.25 per hour. These workers made up 4.7 percent of the 75.3 million workers age 16 and over who were paid at hourly rates. In 2012, 6 percent of women who were paid hourly rates had wages at or below the prevailing federal minimum, compared with about 3 percent of men

Minimum-wage workers under 25 are typically not their family’s sole breadwinners. Rather, they tend to live in middle-class households that do not rely on their earnings. Generally, they have not finished their schooling and are working part-time jobs. Over three-fifths of them (62 percent) are currently enrolled in school.[5] These workers represent the largest group that would benefit directly from a higher minimum wage, provided they kept or could find a job.

nofanofobama
6801
Points
nofanofobama 07/14/14 - 08:33 am
8
0
1st job i remember, walking

1st job i remember, walking the beans and bailing hay in iowa..10 cents an hour...trapping supplamented my earning in the fall...we moved to fla in 1967 worked with plumbers 35 cents an hour...lt may sound cheap but during the 1st oil embargo in 74, a carpenter and my plumber kept me in more hours than i wanted ...while other were begging for work..i made 7.50 hr and had 60plus hours work weeks...i was loaded, after 1 year took my money flew to N. California and followed the DEAD, and literally blew it all....when i was broke and had taken care of my adventurous side was ready to go back to school and settle in...worked at a private Golf course in the bag room for 1 dollar an hour plus tips..made enough working 40 to 50 hours a week to nor go in debt while in college...those jobs are now few and far between...those experieces need to be had by all our youth, it would be good for them to work and learn the value of work...

SGT49
1812
Points
SGT49 07/14/14 - 10:10 am
2
2
"Sickopants" I love that one,

"Sickopants" I love that one, DeeStafford.

willie7
938
Points
willie7 07/14/14 - 10:33 am
0
0
Hotel maids and nursing home
Unpublished

Hotel maids and nursing home workers aren't teenagers, and most make minimum wages. We taxpayers subsidize most of them.

Darby
24763
Points
Darby 07/14/14 - 12:00 pm
3
0
By the time I entered high school I

had found my first real job.

I had a paper route with the Charlotte Observer. I received a small percentage on every paper I delivered.

Every morning, rain, shine or bitter cold, I had to to drag myself out of bed in what seemed the middle of the night (probably because it was), slip out of the house without waking Momma or Daddy and pedal off on my old beat-up bicycle with its greatly over-sized basket.

After my “breakfast” of toast and coffee at a local Main Street diner I would pedal my bike down to where trucks from Charlotte had already dropped off large bundles of that day’s edition. The other boys and I would cut the metal wires binding the papers together and count out the proper number of papers for our individual needs.

Some I would roll into tubes, secured with rubber bands to facilitate throwing, others I would leave flat. Believe it or not, I could “sail” a flat, once-folded paper twenty or thirty feet onto a porch or walkway without it coming apart. (There were few if any inserts or coupons in those days.)

The large basket was extremely heavy when filled and I didn’t weigh that much myself. In the beginning, I tipped over more than a few times until I got the hang of it. With each paper delivered, my load became a little lighter and a bit more manageable.

My route ended near my school where I parked my bike and began the rest of the day…. Wide awake, but probably just a little more tired than some of the other students.

Pardon my ramblings, but I was feeling a little nostalgia for "the good old days".

cush1944
5779
Points
cush1944 07/14/14 - 12:21 pm
4
1
"Every morning, rain, shine

"Every morning, rain, shine or bitter cold, I had to to drag myself out of bed in what seemed the middle of the night (probably because it was), slip out of the house without waking Momma or Daddy and pedal off on my old beat-up bicycle with its greatly over-sized basket."
Most of the liberals today would want your parents arrested for child abuse.

carcraft
25056
Points
carcraft 07/14/14 - 12:50 pm
0
0
My first Job paid $1.50/

My first Job paid $1.50/ WEEK. I was 10 or 11 years old and worked as an office boy. I worked about 6 to 8 hours a week. I picked up the mail, carried documents to other lawyers offices, sorted and stamped mail and carried papers to the courts and recorders office to be filed or recorded. End of the day I emptied waste baskets and did some light cleaning . Switched law firms and got all the way to the vast sum of $10.00/week. I worked as an office boy till I hit 16 then worked as a stock boy for minimium wage, about $1.25/ hour. 2 hours after school and 4 hours on week ends.

t3bledsoe
14250
Points
t3bledsoe 07/14/14 - 02:09 pm
1
3
Living wage yet again

I understand the point about this as being an issue of jobs effecting teenagers, BUT what about the 18'teens and older group. People who can not go to college MUST rely on the "living"wage. These people WANT TO provide for their families as well as any other people!

RMSHEFF
15269
Points
RMSHEFF 07/14/14 - 03:04 pm
4
0
T3

If you need to earn a living wage you must get a skill that pays a living wage. Also,wait to have a family when you can afford to have a family. It is not at all difficult to obtain a skill that pay enough to live on. A truck
driver can make 50K a year. The problem is that some make no attempt at gaining a skill and just want to be paid 30k a year flipping hamburgers or some other entry level job. Many of those adults that find themselves in these entry level minimum wage jobs are there because of drug use or out of wedlock births or some other poor decisions in their lives.

Darby
24763
Points
Darby 07/14/14 - 03:38 pm
5
0
"These people WANT TO provide

for their families as well as any other people!"
.
T3 - I will tell you again but I know you won't listen...

It's NOT THE RESPONSIBILITY of the employer or the government to provide a "living wage" to anyone!

It's MY RESPONSIBILITY to find a job that pays a "living wage" or to improve and bring my skill set to a higher level to qualify for that higher wage.

Or I should work two or more jobs if necessary to get what I need to support myself and my family. Or, all of us in said, "family" should work and "pool" our incomes to pay the bills.

Where do YOU GET OFF, placing the responsibility for my welfare on the folks I work for, or on giving that responsibility, and that POWER to an already MUCH TOO POWERFUL government?

Are you trying to make (the metaphorical) me dependent on others for the rest of my life?

Is that your goal?

Darby
24763
Points
Darby 07/14/14 - 03:46 pm
5
0
"Most of the liberals today would

want your parents arrested for child abuse."

.
All too true Cush, but my mom and dad didn't ask for a nickel of my earnings. They encouraged me to open a savings account and I did.

Although, once I graduated high school I did begin to contribute to the family bills (I was working in a grocery store by then.) until I moved out.

Bodhisattva
5872
Points
Bodhisattva 07/14/14 - 04:25 pm
4
2
More propaganda, yellow journalism and untruths from the AC

"Though it’s true the 2007-09 increase occurred at the worst possible time – as the U.S. economy was entering a recession". Duh. Brilliant deduction. Sure, the minimum wage hikes, not Bush's massive recession that crashed the entire economy was the cause of job losses. What a crock.
" the Obama administration’s other job- and investment-killing measures"? More nonsense from the Chronicle. Try and try again, the GOP keeps living up to their sworn oath, made before Obama was even inaugurated, to vote against anything and everything he tried to do. Luckily, he managed the stimulus to keep the recession from killing the economy even more, with ZERO GOP House votes and only 3 GOP Senate votes. (Although the GOP had no problem giving big money to corporations instead of to people.).

Teen, teen, teen, ...?????? The Chronicle attemps to make it sound like most minimum wage workers are teenagers just working for their party and fun money. Even many of those who are teens are contributing to their household income since real wages have hardly increased at all since 1979. No matter what the Chronicle's yellow journalism and propaganda tries to sucker the reader into believing (of course, if like many of their editorials it's just rewording of right wing think tank talking point papers), according to the Bureau of Labor and Statistics, only 24% of minimum wage workers are teens. 49% are women who are age 20 or older. There goes the Chronicle's propaganda point. To further blow the Chronicle's worthless and bogus talking points, according to the Census Bureau, ONE FOURTH OF ALL AMERICAN WORKERS EARN $10.00 AN HOUR OR LESS. Why would we need to raise the minimum wage? For working American families to be able to afford to pay for a place to live, transportation, utilities, food, clothing, healthcare, and just flat out be able to live. It's a shame that the Chronicle hates working Americans so much that they think think $10.00 an hour is overpaying them. Let's see the haters and the whiners live on that pittance while working their rear ends off. It's unbelievable that so many people think they're so much more important and worth so much more than other people. When one of the worst offenders is Walmart, and 4 of the heir is always on the list of the 10 richest Americans and the 6 are worth as much as the bottom 42% of all Americans, don't give me the "can't afford to pay" $10.00 an hour bull.

corgimom
30081
Points
corgimom 07/14/14 - 05:22 pm
2
5
The same people that don't

The same people that don't want the minimum wage raised are the same people that don't want to pay for food stamps, housing, and other social services. Pick what you want. Either employers pay it as wages, or taxpayers pay it in social services.

It is a myth that everybody working a low-paying job are there because of poor life choices. Take a long look at Augusta. What are the big industries now in Augusta? Retail, fast-food, and call centers.

You want people to "earn their way up"? How, when the jobs AREN"T THERE???

There are 47,000 people in Augusta living in poverty.

Do you see thousands of good-paying jobs in Augusta, that are begging to be filled?

A while back there was a story about an Army soldier who said that after he got out of the Army that he couldn't find a job to support his family, that all he could find was low-paying jobs.

What poor life choice did he make?

cush1944
5779
Points
cush1944 07/14/14 - 05:50 pm
4
2
"Teen, teen, teen, ...??????

"Teen, teen, teen, ...?????? The Chronicle attemps to make it sound like most minimum wage workers are teenagers just working for their party and fun money. "
bod, it is sad what you say is true, most are not teens. Most are dropouts, folks too lazy to do any better. When a person has no skills of value beside placing cans on a shelf they get paid what they are worth.

cush1944
5779
Points
cush1944 07/14/14 - 05:59 pm
4
0
"A while back there was a

"A while back there was a story about an Army soldier who said that after he got out of the Army that he couldn't find a job to support his family, that all he could find was low-paying jobs.
What poor life choice did he make?"
corigmom, I do appreciate him serving the country but a few years in the service does not give a skill set for the rest of your life. A lot of high dropouts use the service to learn a skill that will help them make a living when they get out. Some do the same thing they did in private life and do just enough to get by.

Darby
24763
Points
Darby 07/14/14 - 06:08 pm
5
0
"When one of the worst offenders is Walmart,

and 4 of the heir is always on the list of the 10 richest Americans and the 6 are worth as much as the bottom 42% of all Americans, don't give me the "can't afford to pay" $10.00 an hour bull."

.
And just how is ANY of that, YOUR business, Bod? Why don't you start up your own business, get rich and start paying your employees $15 or $20 an hour? (Maybe $40 or $50 even. Why not?)

I'm certain that wouldn't be much of a challenge for someone with your talents. Get a few of your liberal buddies to follow along with you and you could solve all our economic problems.

You wouldn't need any help from today's movers, shakers, innovators and entrepreneurs.

Please keep giving the country and the world your economic insight. You're SO good at it.

Darby
24763
Points
Darby 07/14/14 - 06:14 pm
6
0
The jobs will never be there as

long as a large segment of the population are *trained and conditioned to sit on their butts and wait for the "government" to throw them scraps.

*(In return for their votes!)

RMSHEFF
15269
Points
RMSHEFF 07/14/14 - 07:34 pm
2
0
It is obvious that all the

It is obvious that all the liberals posting on this subject have never signed the front of a paycheck.....only the back!

Darby
24763
Points
Darby 07/14/14 - 10:08 pm
3
0
"It is obvious that all the liberals

posting on this subject have never signed the front of a paycheck.....only the back!"
.
Some maybe, but others, not so much. Unless you count EIC as a "paycheck".

Bodhisattva
5872
Points
Bodhisattva 07/15/14 - 06:18 am
1
2
Why is it my business?

Because the owners of WalMart, McDonald's, and probably others that haven't been exposed yet, have actually had on their "employee help webpages" how to take advantage of government assistance because they pay such crappy wages. They're some of the richest people in the world and are too d****d cheap to pay their employees a living wage and expect the taxpayer to pick up the tab while they put more cash in their pockets. THAT'S WHY IT'S MY BUSINESS. They can jolly well afford to pay their workers a decent wages without relying on MY tax dollars to supplement their business model. I don't set foot in their stores, I for danged sure don't want to have to help them out with my taxes.

Carcraft: I don't know what year you earned the $1.25 minimum wage but, unless it was prior to 1972, the $1.25 was worth more than today's $7.25. In 1972, $1.25 was worth $7.34 an hour. If you're a bit older and it was in, say 1960, that $1.25 was worth $10.05 an hour. The $1.60 an hour minimum wage in 1968 was worth $10.94 an hour today, and we've gone downhill from there. Many workplaces use the minimum wage as a base, so today even if you're earning $4.00 above the minimum wage, you're still earning less, and having less buying power, than what the minimum wage used to be. It just amazes me that so many people on the right think that this is a perfectly acceptable business model. Of course this is the old Confederacy, where people thought it was perfectly acceptable to own your employees and pay them nothing. Now the right believes it just fine and dandy to pay people 1960's and 1970's wages in 2014 and beyond and expect them to live on them. You could live on them 35-55 years ago, but not with today's prices.

carcraft
25056
Points
carcraft 07/15/14 - 07:23 am
1
0
Bod, why do we have

Bod, why do we have inflation that robs the value of the dollar? Why do poor people never catch up to the cost of goods as inflation rolls along? Well we have inflation because the government prints money to cover debt. Obama has added $7 trillion to the national debt. This increases the supplynof dollars and decreases the value. Raising wages and welfare benefits are reactionary to the falling value of the dollar so it ALWAYS trails the decline of the dollar. The value of goods and services stays stable it is the value of the dollar that changes. It was mid 1960's when I made $1.25/hour. Coins were real silver. You could buy a gallon of gas for a silver quarter. Today you can still buy a gallon of gas for a silver quarter.!

Darby
24763
Points
Darby 07/15/14 - 09:36 pm
1
0
Bod -

Still none of your business unless you have skin in the game, unless you have built the operation and unless you are writing the paychecks...

You DO HAVE THE RIGHT however to work yourself into a lather though, so go ahead, indulge yourself.

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