[1]Dumbo, a/k/a President Fifty Seven State, b/k/a Barack Obama shall not cease his War on Employment until no one is employed. Dumbo wants to raise the minimum wage to $10.10 per hour. The Congressional Budget Office has issued a report stating that such a raise would result in between zero to one million job loses. No shucks Sherlock. Not so surprising, the White House does not like the CBO figures, from Alexis Simendinger, RCP [2]:
President Obama’s drive to raise the minimum wage to $10.10 an hour is central to his goal this year of narrowing income inequality — and giving Democrats a fresh refrain in the midterm election campaign. But a few pages in an otherwise supportive Congressional Budget Office report scuffed that message.
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The White House favors the view that higher pay improves motivation, curbs distractions, improves retention, reduces turnover and cuts absenteeism among workers. All of that benefits employers and can offset higher labor costs. Employers also have the option of reducing profits while maintaining or increasing employment levels, Furman added.
I make it point not to believe anybody who does not believe what they are saying. For if as alleged by the White House if a higher minimum wage would improves motivation, curbs distractions, improves retention, reduces turnover and cuts absenteeism among workers. there would be utterly no need for federal legislation. Greedy employers would simply raise their pay to garner more profits.
I further note that the White House is quite willing for employers to lower their profits, and resulting federal tax revenues, but are not willing to curb Dumbo’s lavish vacations.