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What accounts for the jump in the unemployment rate?

The Democrats meddling with the economy when they increased minimum wage last year, that's what. Unsurprisingly, the largest portion of the unemployment rate increase was due to the increase of 16 - 24 year olds entering the work force looking for work but not finding it. And what do these 16 - 24 year olds make? Get ready for it - minimum wage.

Patterico has a brilliant case study of his parents' ice cream shop to illustrate exactly how increasing the minimum wage brought us to this point. Democrats and liberals, pay close attention, please:

Raising the minimum wage by .70 increased their straight wage expense by $240 a week, or about $1000 a month. But it had collateral consequences as well, as their worker's comp. and unemployment insurance costs rose in relation to their payroll, as did their payroll tax contributions. The combination of wage increase and the various increases that spin off that wage increase was about $1500 a month. This is against a total wage expense for the part-timers of about $8000 a month.

Now, the ice cream parlor business is somewhat inelastic from a price stand point -- people won't continue to pay higher and higher prices for an ice cream cone when the alternative is simply to do without. So, that increase in operating expense could not, in total, be passed on to the customers. Instead, my parents worked a few more hours themselves and trimmed back on the hours they had the part-timers working. When one of the part-timers quit, they didn't hire a replacement for her.

Now, the same thing is going to happen next month -- another increase of .70 per hour, totaling about $1500 a month in additional operating expenses is going to kick in. This will come on top of significant increases over the past year in product costs -- multiply the increased cost of milk you are paying at the supermarket several times over and you get a feel for the increased cost of buying ice cream on a large scale for a business establishment.

They will raise the prices a little, but not enough to cover the total increase. They will cutback on the hours the part-timers work, and work a few more hours themselves. And if they lose another worker, they probably won't hire a replacement.

So what's the bottom line for Patterico's parents?

When Congress increased the minimum wage, for many many small business operators such as my parents, Congress took the profit from the business right out of their pocket. I'd be surprised if my parents' shop made more than $3,000 or $4,000 month in profit -- with them taking nothing in terms of a wage for themselves. If they had not cut-back their part-time work force payroll, the minimum wage hike would have taken every bit of that profit away.

Now they are working more than they want, and for a very modest annual return on their labor and investment.

And two fewer teenagers will be employed by them this summer than was the case last year.

The other six should have their resumes up to date.

Yikes!

This is not what the Democrats promised us would happen when they forced a minimum wage hike on our economy. But nothing they promise ever comes to fruition since they don't have a clue about how the economy works and many of them have never run a business before or have ever had to meet a budget.

Keep that in mind as Democrats make all kinds of promises about how a nationalized health care plan will improve medical services, save lives, and save money.

Of course, they will deny that they had anything to do with the largest unemployment rate increase in 22 years; instead, they will shift the blame to President Bush because nothing is ever their fault. Their intentions were good and, according to them, it's one's intentions that matter, not the real results of their intentions, no matter how disastrous.

Ed Morrissey at Hot Air has analysis as well and has come to the same conclusion after analyzing the numbers the labor department issued yesterday.


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Comments (43)

Anyone who believes the min... (Below threshold)
Bob:

Anyone who believes the minimum wage helps poor people is a Kool-Aid drinking liberal. The problem is that many Republicans, President Bush, included, have supported minimum wage hikes so they would appear to be "compassionate." Damn the economists, full speed ahead. No doubt those who are still employed may make a few dollars more per week, but the toll on those who are laid off and small business owners is staggering. If raising the minimum wage were really good, why not raise it to $10/hour, $20/hour or $50/hour? That would eliminate the specter of poorly paid workers altogether. Of course, a hamburger at McDonalds would be $25 and before long it would be served to you by a machine.

What accounts for the ju... (Below threshold)
Dave:

What accounts for the jump in the unemployment rate?

Maybe it has something to do with the high cost of gas? Most hardest hit would be the trucking industry which has a ripple affect on nearly every business.

I read somewhere the push f... (Below threshold)
goddessoftheclassroom:

I read somewhere the push for the MW hike came from unions whose wage index is linked to it.

Dave, Read the fir... (Below threshold)

Dave,

Read the first paragraph of my post again and then read the analysis by Ed Morrissey. He noted specifically how the numbers of people who already had jobs and lost them only fell by 49,000 when economists were expecting a loss of 55,000. The rate increase of 5.1% t0 5.5% was due primarily to the 16-24 year olds (minimum wage earners) without jobs who entered the work force looking for jobs.

Wall Street will continue t... (Below threshold)
epador:

Wall Street will continue to fall as/if Obama takes more momentum and if McCain falters. They look at the economy for a living.

All you blue folks out there better HOPE that things don't CHANGE as rapidly as they did in the Carter administration.

Kim, you are dreaming if yo... (Below threshold)
WildWillie:

Kim, you are dreaming if you think Dave and his ilk will actually read a post before commenting. Good post by the way. ww

Even though unemployment is... (Below threshold)
Susan Kennedy:

Even though unemployment is up, there are still thousands of $75K, $100K and $150K jobs.

http://www.realmatch.com
http://www.monster.com
http://www.careerbuilder.com

If one person looks for a job, they will find one, one person is not a statistic.

Kim,The rate in... (Below threshold)
Dave:

Kim,

The rate increase of 5.1% t0 5.5% was due primarily to the 16-24 year olds (minimum wage earners) without jobs who entered the work force looking for jobs.

I do not base my opinions on a single link posted on a blog.

First of there was unusually large surge of teenagers and people in their 20s into the labor force.

Second if you really want I can point out links to other analysis that show the affects of teenagaers and those in their 20's was neglible.

Excellent post. Just one gl... (Below threshold)
RB:

Excellent post. Just one glaring omission: George W. Bush signed the MW increase, so I don't think (in this instance) that it's fair to single out the D's for condemnation.

Susan, those are jobs for t... (Below threshold)
COgirl:

Susan, those are jobs for the educated, those who made sacrifices in their early years to better themselves.

It's the unskilled workers who would get minimum wage who are going without the jobs. I don't think someone who is illiterate is exactly a prime candidate for those $75K, $100K and $150K jobs.

WildWilie,you a... (Below threshold)
Dave:

WildWilie,

you are dreaming if you think Dave and his ilk will actually read a post before commenting. Good post by the way. ww

I do read entire posts. However I do not base my opinions solely on links that I find on far left or far right blogs. I look for many sources of news before reaching a conclusion.

I'm a 49yo engineer that li... (Below threshold)
Iron Mike Houston:

I'm a 49yo engineer that lives in Houston. I don't see anyone unemployed except someone that doesn't want to work.

I wonder if Patterico's par... (Below threshold)
Mac Lorry:

I wonder if Patterico's parents know that most small business with annual sales of $500,000 or less are EXEMPT from paying the Federal minimum wage? Instead of laying off part time workers maybe they should hire an enrolled agent to see if they even need to pay Federal minimum wages.

I'd be surprised if my parents' shop made more than $3,000 or $4,000 month in profit

Wow, two people working full time and only making $48,000 a year. One of them should get a real job (with health benefits), then hire more part time kids at lower then the federal minimum wages to run the place. If the sales look like they might go over the $500,000 annual limit then raise prices or cut hours to keep it under.

Now there are lots of small business people with no formal training in accounting and often these folks have a less than accurate view of what the term "profit" means. I had a relative (now deceased) who ran his own butcher business most of his adult life. He had nice homes, late model cars, and supported a family of 5. Once I asked him who did his taxes and he told me he usually didn't file a return because he seldom made a profit. In his mind a profit was the money he had left over after paying for everything his family needed to live a typical middle class life. I wonder if Patterico's parents have that same view? If so, then they should just pay the Federal minimum wage, stay clear of tax professionals, and pray they never get audited by the IRS.

Hillary's campaign winding ... (Below threshold)

Hillary's campaign winding down?

there are some serious math... (Below threshold)
rob:

there are some serious math issues here, not the least of which is the $500/month for fringe expenses on $1000 earned. Last time I checked, workers comp was 7.65% and the average unemployment rate for a company in good standing was around 3%. Part timers, especially at a mom and pop ice cream shop, traditionally do not receive health or retirement benefits so 10% additional (rather than the hyperbolic 50% presented here) is a more accurate number.

If every employee cost an employer an additional 50% of his wages on top of the salary, the unemployment rate in this country would be about 90%, with or without the minimum wage increase.

Susan - I tried the realmat... (Below threshold)
Richard:

Susan - I tried the realmatch.com site, thanks for the tip!

Strange that a right wing b... (Below threshold)
jp2:

Strange that a right wing blogger would blame the problem on Democrats. What an interesting conclusion.

Strange that Democrats don'... (Below threshold)
tyree:

Strange that Democrats don't think through to the truth of their positions. How is that "multiple incomes for a mortgage" thing going? When I was younger only one income could be used for a mortgage, and homes were much cheaper, because only one income could be used to qualify. Developers did not overbuild the available mortgage market. Now many incomes can be used and qualifying with one income is very difficult. Laws cause change, and not all of it is good, and some of it is very, very bad. Prohibition didn't work out the way they thought it would, either.

When Congress increased ... (Below threshold)
Brian:

When Congress increased the minimum wage, for many many small business operators such as my parents, Congress took the profit from the business right out of their pocket.

Then...

I wonder if Patterico's parents know that most small business with annual sales of $500,000 or less are EXEMPT from paying the Federal minimum wage?

Hmm, you mean Patterico's tale is total BS, but to Kim it's a "brilliant case study"?

Nailed another one, Wizbang.

Hmm, you mean Patteri... (Below threshold)

Hmm, you mean Patterico's tale is total BS, but to Kim it's a "brilliant case study"?

Nailed another one, Wizbang.

Your conclusion, Brian, is based on commenter 13's assumption. Therefore, it is baseless.

This is absolutely the very... (Below threshold)

This is absolutely the very worst explanation I've ever heard for the sudden increase in unemployment related to the economic slowdown hitting the United States which is entirely related to the 40% price increase in oil since just Jan 1, 2008. First of all, even the economic stimulus tax rebate checks program is based on the idea that if the consumer public has more money to spend, then it will filter all through the economy and eventually filter back to Washington. Even Senator Obama is proposing a $1,000 middle class tax cut to boost the economy back towards recovery. And increases in the minimum wage also helps to increase consumer buying power, however the rapid hyperinflation in oil prices has taken many lower wage income earners out of the market economy who are now spending far less at neighborhood businesses and instead using the money to purchase gas or heating oil.

Too much of the economy is becoming centralized in the energy segment, which has rapidly taken capital for all other segments of the economy resulting in slower sales and hence job layoffs. I've owned enough businesses in my lifetime to have seen this cycle played out several times with recessions, however this oil based recession is an entirely a new variation on recessions. This recession is characterized by hyperinflation in energy prices, a ripple effect of inflation in food and all other products that require truck transport. A gallon of diesel fuel is now at the $5 level in the United States, compared to Mexico where the government subsidizes the diesel to a $2 a gallon price. In fact, many world economies subsidize oil prices to create economic stability and growth, unlike the U.S.

China for example is experiencing some of the world's fastest economic growth while the American economy is rolling backwards. The government keeps price controls on oil, and instead offers a subsidy to the oil producers to help them cope with raw oil commodity price increases. In April, for example, CHINA PETROLEUM AND CHEMICAL CORPORATION received a $1 billion dollar($7.1 billion yuan) government subsidy.

Better wages in the U.S. have nothing to do with big uptick in unemployment. The huge inflation in oil prices in the United States diverting billions and billions of dollars from all other segments of the ecomony in lost consumer spending has everything to do with big jump in unemployment as slower sales in many businesses result in job layoffs creating a cycle of recession that only feeds on itself.

Conservatives like to oppose things like decent wages or government price controls. Fair enough. But the U.S. is now suffering a great economic slowdown due to this directionless political philosophy that ignores the necessary reality of at least some government planning and direction of the economy in order to promote stability. Like an ostrich with it's head stuck in the sand, some just can't seem to comprehend that part of the role of government is to help offer at least some management to the economy and prevent crisis situations. Even the average housewife manages her family budget or economy, unlike the government. And further, pathetic conservative explanations blaming small minimum wage increases for increased unemployment will certainly play very poorly with most November voters, only driving millions towards voting for change of the White House and some in Congress. John McCain certainly won't win election if advances such outrageous explanations. Lower wage earners are a victim of the huge hyperinflation in oil prices, not a cause of any unemployment uptick.

Too much of the econo... (Below threshold)

Too much of the economy is becoming centralized in the energy segment, which has rapidly taken capital for all other segments of the economy resulting in slower sales and hence job layoffs. I've owned enough businesses in my lifetime to have seen this cycle played out several times with recessions, however this oil based recession is an entirely a new variation on recessions. This recession is characterized by hyperinflation in energy prices, a ripple effect of inflation in food and all other products that require truck transport


Paul, this is not an oil based recession. And oil based recessions (do you actually mean energy price shock which results in slower growth?)are nothing new if your historical knowledge reaches back to the early seventies? Another even more important point: we are not in a recession yet. A contraction, yes; a recession, no.

The major flaw in your argument, however, is that you ignore the elephant in the room, credit and liquidity. This economy would be in stress if oil were at $50/brl because liquidity has disappeared from the credit markets, in spite of drastically lowered interest rates. There are many instances of economic pull backs as a result of lowered liquidity (1980-1982 comes to mind).

Additionally, a spike in food prices is not the exclusive result of higher energy prices. The corn based ethanol fiasco is the culprit in much of the price increases in food commodities. Corn permeates the domestic economy in ways many can't comprehend. This disaster is truly bipartisan, as elements of the ag lobby persuaded Congress to grant certain producers incentives that thoroughly warped normal pricing methods, as in corn. Only later did we learn that ethanol could be produced much more efficiently from non food crops.

I think a better explanatio... (Below threshold)
John S:

I think a better explanation for why the 16-24 year olds are having problems finding work is because the entry level jobs are now filled by their parents and grandparents who lost their real jobs.

Interestingly, a former $450,000 Wall Street investment working part time as a Walmart greeter is considered employed and doesn't show up in the official unemployment report.

John McCain certai... (Below threshold)
Mac Lorry:
John McCain certainly won't win election if advances such outrageous explanations. Lower wage earners are a victim of the huge hyperinflation in oil prices, not a cause of any unemployment uptick.

I don't think McCain will make such a specific claim; that's not his style. A really good issue to use against the Democrats is their kowtowing to environmentalists. With federal and state laws impeding new drilling and new nuclear power plants the US is slowly being strangled, and now the Democrats are falling for the global warming scam. Unfortunately, none of this helps McCain as he's as clueless on energy policy as the Democrats.

What McCain could do is propose a surtax on the profits traders make when they buy oil futures and sell them before the delivery date. That one change will suck oil prices back to $100 a barrel. All McCain has to do is say he'll work to impose such a tax if elected. The courts allowed Clinton's retroactive tax increase based on campaign statements, so such a statement by McCain could have a cooling effect on speculation that drove up oil prices by $11 just yesterday.

If I were the chief supreme great grand master ayatollah I would impose a 110% surtax on profits made by buying oil futures and then selling them before the delivery date. My theory is that those who can't actually take delivery of the oil have no business in that market. Maybe that's naive, but something needs to be done to get the parasites out the energy and food markets.

Interestingly, a form... (Below threshold)

Interestingly, a former $450,000 Wall Street investment working part time as a Walmart greeter is considered employed and doesn't show up in the official unemployment report.

John
Do you have a real life example of that? Is there an identifiable trend of former Wall Street bankers who now are Wal-Mart greeters? Or is this all in your imagination where the rest of your unemployment data resides?

I think John's point, Hugh,... (Below threshold)
hyperbolist:

I think John's point, Hugh, is that replacing a manufacturing job with a service sector job (for example) is not reflected in simplistic employment statistics. Probably should be, insofar as we're interested in gaining a more holistic understanding of the state of the economy.

If I were the chief s... (Below threshold)

If I were the chief supreme great grand master ayatollah I would impose a 110% surtax on profits made by buying oil futures and then selling them before the delivery date.

Mac
That's not a good idea.

Domestic commodity futures markets are founded on a common principle: risk transfer.

Cash merchants and producers (the people actually in the business of producing the commodity) offset their risk by selling or buying contracts from speculators. This system has worked exceedingly well through several volatile cycles, including the Hunt silver market debacle. Sometimes speculators have the upper hand ( 1973, 1979-1980) but the demise of the speculators has been even more traumatic(for them) but less well known.

Taxing them accomplishes nothing.

hyperbolistI... (Below threshold)

hyperbolist

I think John's point, Hugh, is that replacing a manufacturing job with a service sector job (for example) is not reflected in simplistic employment statistics. Probably should be, insofar as we're interested in gaining a more holistic understanding of the state of the economy.

This country has been cyclically transferring and reinventing jobs here for decades. Twenty years ago the domestic steel industry was dead and buried.....Wheeling Pittsburg, Bethlehem Steel, A K Steel, U S Steel come to mind. Today they thrive, commanding significant profit margins that absolutely no one predicted in its time of trouble.

I'm not familiar with the phrase "holistic understanding of the state of the economy". I'm relatively sure, though, that Wall Street bankers that formerly made $400,000 are not applying for unemployment benefits nor are they applying for employment as greeters for Wal-Mart. If they were, they would not register on the overall employment field analyzed by the government given the scale of Wal-Mart. However, the latter perform an important service for their employer and customers and are to be admired and commended for their service and contribution to the domestic economy. The former are the exception from a statistical viewpoint for the same reasons of scale.


That's not a good ... (Below threshold)
Mac Lorry:
That's not a good idea. Domestic commodity futures markets are founded on a common principle: risk transfer.

Well, like I said "Maybe that's naive, but something needs to be done to get the parasites out the energy and food markets." Day traders do nothing to mitigate market risk or make capital available, they're parasites making big bucks on market ripples, ripples they work hard to cause. Yesterday's 11 buck rise in the price of oil was caused by two pieces of information, a parasite's report saying oil could be $150 by July and an article published in Israel that talked about going to war with Iran over Iran's nuclear program. Nothing new, nothing of substance, nothing but pure speculation propelled into orbit by speculators manipulating the market so they can skim off billions without taking any real risk. Congress should add a surtax to profits made in short term trading of oil future contracts. That would do far more to lower the price of oil than the nonsense of adding a surtax to oil company profits.

Just my two cents. Besides I'm not likely to be elected to the office of chief supreme great grand master ayatollah anytime soon :-)

Besides I'm not likel... (Below threshold)

Besides I'm not likely to be elected to the office of chief supreme great grand master ayatollah anytime soon :-)

:) Neither am I.

Instead of a tax on either, and you make a very good point about an unnecessary surtax on domestic oil companies,I would suggest the following radical idea:

What if the U S government allowed (no, actually encouraged) commodity exchanges to allow trading in futures contracts that expired in 15-20 years.

If I were an independent oil/gas producer today and not under contract to supply a pipeline for current production/inventory I would hold my production and sell it forward at current prices. The current market is a bubble and I would look anywhere for the opportunity to lock in current prices for the future.

The reality is that every player in the market today knows this and no one would agree to a long term supply contract at $135/brl.

Unless I'm mistaken, the ... (Below threshold)
irongrampa:

Unless I'm mistaken, the min wage is a STARTING spot--not the guarantee of financial success.

A high minimum wage posits, to me, that the receptor of said wage is expected to work at that wage for the foreseeable future. Hardly an incentive for improvement.

Kim,I'm sure you a... (Below threshold)
lowmal:

Kim,

I'm sure you are a wonderful person and we probably share many of the same views on matters of importance, but, I just can't hold it in any longer..

It's sure is a good thing there are other, more intrepid bloggers out there (especially Michelle Malkin) because all you do is use qoutes and link their stuff and then make your own breif comments on someone elses work..

I've been reading this blog for years, and, if it weren't for the fertile minds of people like Jay Tea, Kevin, and Paul, (and now some of the newer members) I could just go get my fill of thought provoking material at the sources that you consistently link to and indirectly plagerize (which I do already)..

You seem like a smart woman.. Start using your own talents and give us you're own thoughtful efforts on the subjects close to your heart..

It would mean alot more than just giving a "hat tip" to another's hard work..

lowmal - "indirectly plager... (Below threshold)
marc:

lowmal - "indirectly plagerize?"

Do you even know what the word means? Geesh, talk about over-blown rhetoric.

I think a good example is t... (Below threshold)
Oyster:

I think a good example is the restaurant business. Not only are union wages tied to MW, but so are tipped wages. About 2 years ago Florida raised the MW and the family-owned restaurant I did the accounting for had a payroll increase of 33%. That's pretty significant. Over the next year and a half they raised it two more times. Family owned, restaurants generally have a thin profit margin - single digits.

January 1st this year it went up again. Talk about the straw that broke the camel's back ... guess who got canned? Not the waitresses and bartenders, who were necessary to serve customers, who with tips, were already making far, far more than minimum wage and got another raise. (Although the staff was trimmed a bit) I lost my job and the owner brought his wife in to keep the books. I wasn't the only casualty. The general manager was given an option too: cut down to part time and the owner would pick up the slack, or he could find another job.

Incidentally, it had been nearly 3 years since my last raise. Minimum wage increases also stifle wage growth for people who invest time and effort in the businesses they work for. This is particularly problematic in the restaurant business. The service staff is transient. The majority of them work for a time in one place and move on to another, while cooks and managers tend to invest more time and effort in one job. So these increases affect their cost of living increases and their benefits are reduced, even in larger companies.

Hence the description "indi... (Below threshold)
lowmal:

Hence the description "indirectly" plagerized..

Do you even know what "rhetoric" means?

Sheesh..

Shut yer hole or make some sense..

Telling people to "shut yer... (Below threshold)
SPQR:

Telling people to "shut yer hole", class - you gots it.

This is something that the ... (Below threshold)
arcman Author Profile Page:

This is something that the Democrats/left either don't realize, don't understand, or fail to comprehend. Like "taxation on the rich" the rise of the minimum wage increases the cost to do business. There are two things you can do to combat these costs: You can pass them off to the consumer, making every thing more expensive; or you can eat the costs. There is a certain point where the cost to the consumer becomes more than the market can bear, so you start to eat costs. Since many small businesses are a labor of love, as well as an income source, profit margins are not always high. When ever I hear anyone talk about how the Dems are better for the economy it baffles me because most have absolutely no clue about how the economy works.

When ever I hear a... (Below threshold)
SPQR:
When ever I hear anyone talk about how the Dems are better for the economy it baffles me because most have absolutely no clue about how the economy works.

Because such "quotes" are usually uttered by media talking heads who themselves have no knowledge of economics. What they mean is that Democrats' platform includes more bread and circuses proposals that masquerade as economic reform proposals to the ignorant.

SPQR,Nice, insight... (Below threshold)
lowmal:

SPQR,

Nice, insightful edition to the running commentary you've contributed..

Kim is a big girl who doesn't need a blowhard like you to defend her from nasty little rascals like me..

I've seen plenty of your posts before.. Some of which have been borderline snobbish, depending on who's direction they were lobbed toward..

Just because your sarcasm might be a bit more subtle than a simple ribbing statement of "shut yer hole" doesn't mean you have class and I don't..

Lighten up, curmudgeon.. (There, is that better? BTW, sense of humor is down aisle 9..)

lowmal, actually you are no... (Below threshold)
SPQR:

lowmal, actually you are not even close. It does mean that I have class and you don't.

Yes, SPQR...Your l... (Below threshold)
lowmal:

Yes, SPQR...

Your last statement most certainly had NO snobbish tones what so ever..

Thank you for proving my point about your demeanor..

Don't pat yourself on the back too hard or that 2x4 might pop out of your ass..

insightful article. It does... (Below threshold)
anonymous:

insightful article. It does make 'common sense'

When a third party gets involved with individual businesses to help "the poor worker" -- they miss big time that the 'small business person' IS a worker. Individual business owners 'love what they do' (ice cream shop, flower shop, diner, small catering, party
shop, whatever...they LOVE thier work and they
don't mind putting in longer hours (they love what they do, but they too need to make a living) When they are told they HAVE TO pay
a beginning worker (teen) or 'get back in the work world' worker, or part time worker 'mom'
type, or retiree who likes being with people type...when they have to pay such A CERTAIN WAGE...they, to survive for themselves and keep the business they worked hard to establish, because THEY LOVE what they do...
they will 'cut the staff' 'cut the hours'
of those who could have benefited from 'a job'

Adult people know the job in a small florist shop isn't going to 'in and of itself' pay all the bills...IT IS 'getting a start' in learning TO WORK. (showing up on time, dealing with people, being responsible, learning a trade (to maybe start thier own business?)
and if these beginning workers or retirees are working...'the nation' benefits in that they
do pay some 'income tax' state and federal.

Also, many working in such businesses often are part time, they work 2 part time jobs...
hard? maybe...but it won't kill them. Two jobs at $6.50 to $7 an hour is roughly $13 dollars an hour per week. Not bad (without any special training) If they worked 10 hrs at one job and 10 at the other - 13 per hour total for 20 hrs
is $260 a week. (very few taxes taken but some)

It's A START...it gives incentive to hang in there, to develop 'a skill' and MOVE UP by one's own efforts...it's usually in one's own neighborhood so there's little transportation cost. It's $1,040 a month - for a teen going to night classes, a retiree supplementing,
a housewife and MOM - helping her husband the main breadwinner for perhaps putting aside savings and buying the groceries.

...yes, but then a political party steps in 'to help'...

NOPE...it doesn't help. They only 'help' themselves to look like Mr. Nice Guy, but
when the little jobs dry up...'the little guy'
has to attempt to get 'a start' where the competition is KEENER...

Government, stay out of 'American business'
We can handle our own life. We are independent adults.

correcting to the TRUTH in ... (Below threshold)
anonymous:

correcting to the TRUTH in the statement someone made above:

>Excellent post. Just one glaring omission: George W. Bush signed the MW increase, so I don't think (in this instance) that it's fair to single out the D's for condemnation. Posted by RB

Our President stated a min. wage hike should also be accompanied by tax and regulatory relief for small businesses, (a tough sell for Democrats) In other words; dems did not want to be fair to both sides; they wanted ONLY a min. wage increase period. Republicans in the house and senate eventually negotiated a bill that did give consideration to the business owner with tax breaks for the businessman. (rightly so) also, rather than the dems in the house idea of leaping from $5.15 per hour to $7.25 immediately...something that would have made the economy PLUNGE for the 'little guy' as businesses cut staff...the Republicans negotiated a wage increase in increments of 3 years. (and let me add: any min. wage worker who is working, will usually get more than min. wage ANYWAY in 3 years or 'move on' on their own; making the min. wage increase bill by democrats pretty meaningless)And since the business person was also given tax breaks in consideration and respect for how they are important to the economy ...our President was
objective and impartial in finally agreeing to the min. wage increase. Dems did what dems do best...partiality to only half a nation.





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