Following through on Speaker Silver’s promise earlier this month, the Assembly is reportedly about to introduce a bill raising the minimum wage from $7.25 to $8.50 an hour, with automatic increases thereafter in line with the cost of living. As we’ve noted here before, this is a swell way to reduce job opportunities for low-skilled, entry-level workers — and it’s not a very effective way of helping the working poor, either.
As Rus Sykes pointed out here recently, New York’s exceptionally (and appropriately) generous Earned Income Tax Credit (EITC) already delivers over $1 billion in wage subsidies to ensure that no one really has to support a family on $15,000 a year. Unfortunately, the EITC and other social program supports for the working poor went unmentioned in today’s New York Times story on the Assembly bill.
Together these refundable credits provide $4.5 billion annually ($3.5 billion federal and $966 million state) in wage supplements to low and modest working families — money that is re-spent in the NYS economy, Rus points out. As the chart below demonstrates, the EITC already effectively raises the minimum wage from $7.25 hour to $10.44 hour without driving up the cost of labor, and killing jobs. Unlike a minimum wage increase which increases wages and the cost of labor across the board, the EITC targets maximum benefits to families earning approximately between $10,000 and $20,000 annually.
Pulse of The People: Don’t raise wage Published: Thursday, January 19, 2012
As the economy worsens, Democrats have turned to their signature issue in order to keep the dwindling chances of their re-election and increasing cling for power. The sad part is due to fear of their ineptitude this past year, the Republicans are side by side with the party they state they are 100 percent opposed in terms of the economy. Not only that, but 67 percent of the population of New York, once again is falling for it, requesting a raise in minimum wage.
The question is: Who does the minimum wage help and who does it hurt? Politicians and liberals will state it helps the poor, but most of the working class makes more than the minimum wage. Of the ones who do, only one in five live in a household that makes less than the poverty line. Sixty percent work part time and their household income is over $40,000. A majority of the workforce is also salaried, with a mere 1.6 million of the hourly workers, earning less than minimum wage. More than half of those are under 25. Many are students and/or part time workers. A vast majority of those, work in the restaurant or bar industry. Therefore, minimum wage does not help the poor.
Liberals and now Neo-Cons are so arrogant, that in their eyes, poor equates to individuals who lack intelligence. If one could live comfortably on food stamps, TANF, rent subsidy and free medical … where is the incentive to better oneself? Add in the fact that absentee fathers are the norm below the poverty level and that one receives more entitlements the more dependents one has, is there any doubt that poor females usually have a child with one father while living with another male who works but cannot be counted towards her income? With minimum wage and entitlement programs many of these workers that make minimum wage or lower, have a better quality of living than the lower middle class. Unlike the poor, who receive entitlements, the middle class must pay for the rising costs of gas, food and clothing (the three main commodities that go up with a minimum wage raise) and must do so at the same rate. That rate also becomes lower to the ceiling as a minimum wage increase rarely equates to any other pay being raised.
As for small business owners, what they do at the onset of an increase of wage? They lay off workers and raise the price of goods. There is no other option. Minimum wage creates unfair advantage to the huge corporations. Many say it is class warfare or the government vs. middle class, but one demographic that is constantly under attack is the small business owner. Large corporations pay lobbyists to pay off politicians to create more laws to hinder competition. Minimum wage is one of those laws
Who else gets hurt? The middle class does, as they must pay for necessities such as food and gas. Unlike the poor, who receive entitlements, the middle class must pay for the rising costs of gas, food and clothing (the three main commodities that go up with a minimum wage raise) and must do so at the same rate. That rate also becomes lower to the ceiling as a minimum wage increase rarely equates to any other pay being raised.
But more than anyone, raising middle wage hurts the former middle class retired worker, the senior citizen who lives on a lower fixed income with no cost of living adjustment in site. Not only do they not get the entitlement benefits the poor receive for children, they also usually have homes and must pay school taxes. An unfair system if there ever was one.
The only entity that benefits are the government politicians and bureaucrats,it is not up to the government to decide what or what is not a fair wage. A minimum wage is an unfair hold on labor. The free market can handle the problems of unemployment better than government. Not to say $6 is a fair wage, but it is not up to government to dictate that. It is up to the employer and employee. It’s the business’ money and employees should be able to pursue employment elsewhere. Freedom is more important than wealth and it has been proven that this helps no citizen and hurts many.
NYS Assembly proposes raising minimum wage By: Erin Vannella Raising the minimum wage sure sounds good. After all, who wouldn't want to get paid more? Problem is, some say now is not a good time. Our Erin Vannella reports.
"When you are an owner, every dollar counts," said Jack's Diner owner Wilfredo Ruiz. "Everybody says it's only one dollar an hour, but at the end of the year, it's thousands of dollars."
For Ruiz, raising minimum wage may do more harm than good, making a well intentioned pitch from Democrat Assembly Speaker Sheldon Silver more like writing on the wall.
"If they are going to be paid more, I will make less and not be able to stay open," said Ruiz. "It's really hard. It's really hard."
Silver wants to raise New York State’s minimum wage from $7.25 to $8.50 as a matter of what he calls economic fairness.
"Had New York's minimum wage kept pace with inflation since 1970 it would've been $10.80 an hour today," said Silver.
But his Republican counterparts say it's bad timing and a political gambit, that other parts of the economic cost structure need to be evaluated instead.
"It's the cost of workers’ compensation," said Republican Assembly Minority Leader Brian Kolb. "It's the cost of energy. It's the tax burden. I think this minimum wage hike is also going into the national political debate about the one percenters verses the 99 percenters and look at what we're doing for the 99 percenters."
If Silver has his way, wage would be indexed to rise with inflation. But it would have to pass the Senate first and then the test of reality according to Ruiz.
"I have to make another menu with different prices on it so I can stay open," said Ruiz. "It's really hard to do business right now."
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"Had New York's minimum wage kept pace with inflation since 1970 it would've been $10.80 an hour today," said Silver.
The fact is that Shelly and his minions have made it more difficult to be able to live on less by constantly raising taxes and pushing unfunded mandates down on the people of New York. Right? Isn't that the "State and Federal Mandate" bill that the county sends out because they don't spend a penny of money that's not mandated? And if $10.80 would allow someone to live as wel as they did back in 1970, don't you think that they should be making $12 instead? So they can be living BETTER than they were back in 1970??? How about $15? Then they could be living even MORE BETTER.
Again if this bill becomes law there will be unintended consequences in to for of layoffs and many who look for summer jobs will not be hired do to the new increased cost mandated by our so called representatives.
oh definitely not...these people that make the rules don't live in the real world. People on min wage are not raising families. They are teens and retirees who do very menial things with no skill. Most are not worth 4 bucks an hour. They are just cut and the people above them pick up the duties for the most part, in a smaller business. GE doesn't have them so for the so-called 1% there is no impact. This only hurts the 99% who pay for groceries and items and who are middle earners. It also hurts those on SS who want to keep busy, or those who are 16 or 17 and want to learn a first job to make spending money. Little babies don't starve because of a minimum wage that is too low, contrary to what retired liberals and people who never had a business claim.
Government: GET OFF OUR BACKS AND OT OF OUR DEALINGS. This is between private parties so stop sticking your nose in it. Similar to putting your nose into our bedrooms (mortal sin for liberals) keep you nose OUT of our agreements so that small businesses can hire kids. Without these jobs kids will never learn responsibility. These jobs are a gateway to adulthood that extremist big governmentalist want to interfere with.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
The minimum wage is a start, not an end goal...Try as we might, there will always be a group a the top of the economic ladder, and a group at the bottom.
"Arguing with liberals is like playing chess with a pigeon; no matter how good I am at chess, the pigeon is just going to knock out the pieces, crap on the board, and strut around like it is victorious." - Author Unknown
Why not make minimum wage $20 an hour? Since we are picking arbitrary numbers and making every unskilled person entering the workforce EQUAL. Who better to assign value to an employee but Shelly Silver. It goes without saying, those charged with law making know best. New York would not have made it to number 1 for worst states to do business without them.
The socialist utopia has never materialized....Yet people cheer the wage controls, as they anxiously await the day when all are equal in every way imaginable.
Well lets go all the way and make it a law that minimum wage jobs, people on SS, people on welfare and all other people working make the same as our representatives plus the same benefits.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
If our elected leaders would implement pro-growth policies and reduce property, school and business taxes, the state economy would grow and businesses would proper. Job creation would lead to increased competition for employees. Wages would be determined by market condition of supply and demand. There would be no need for another government mandated increase in the minimum wage that will result in reductions in payrolls, business closures and relocations, higher unemployment and increased poverty.
If anyone thinks for one minute that this is only to benefit the 'people'......then I have a bridge to no-where to sell ya.
The reason for the wage increase is to create more taxable revenue! PERIOD!!
The more money you make...the more the government gets! PERIOD!!
The government is just using the capitalistic system (what's left of it) to generate more taxable revenue! PERIOD!!
There are so many low wage earners, that the government can't satisfy it's appetite.
It's all about TAXES!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
When food, gas, and energy prices go up the one really hurt will be the ones on fixed incomes, seniors.
True. But all the government is banking on is the increase in tax revenue.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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