Skip to comments.The Real Reason Big Labor Wants a Minimum Wage Hike
Posted on 05/06/2014 5:33:23 AM PDT by Kaslin
President Obama used a recent weekly address to once again call for an increase in the minimum wage up to $10.10 per hour. The President urged Congress to pass legislation making this change, and praised similar minimum wage hike efforts underway in states and localities. He criticized some in Congress for standing in the way and promised to keep up this fight because our economy works best when it works for all of us not just a fortunate few.
Perhaps, before he again employs his lofty rhetoric in defense of this perennial liberal cause, the President should consider the evidence which suggests that such a dramatic minimum wage increase would actually damage our economy and kill American jobs. Also, he may want to think about just who stands to benefit most from a minimum wage hike is it really all of us?
The Lucas Group, an executive search firm, recently released a study which found that the proposed 40 percent increase in the minimum wage would force many businesses to slow down expansion or even freeze hiring entirely. Nearly one third would have their hiring plans negatively affected in some way. Consumers would see a rise in prices as well and some businesses would even be forced to close. The service industry would be especially hard hit.
And its not just the Lucas Group warning of these dangers theres plenty more research where that came from. The Wall Street Journal reported that nearly 40 percent of businesses polled in another survey would be forced to fire employees under President Obamas proposed minimum wage law. The Congressional Budget Office (CBO) issued a report earlier this year which noted that raising the minimum wage to $10.10 could kill up to one million jobs.
The Lucas study was focused on small- and medium-sized businesses, the engines of the American economy. Its Main Street thats been hurt the worst so far by the Obama Administrations economic policies to say nothing of the crippling effects of ObamaCare and its Main Street jobs we stand to lose if the minimum wage hike goes through.
If workers and small businesses have the most to lose, who has the most to gain from a minimum wage hike? One group thats pushing actively for the increase is a trusted ally of the President organized labor. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) President Richard Trumka has breathlessly praised the sheer breadth of wage hike efforts around the country as breaking new ground in dynamic ways. And no wonder hes pleased. If minimum wages increase, Big Labor is in for a windfall.
Union workers already make considerably more than the current minimum wage. However, many union bosses set up their contracts so that an increase in the minimum wage leads to an increase in the union wage as well. Baseline union wages are often set at a certain percentage above the minimum wage, so the former would be set to increase.
Higher union wages mean higher union dues. And labor bosses like Trumka know how important these dues are. As union membership declines across the country, theyre grasping for every cent they can get their hands on. Of course, whenever union coffers fill, thats good news for the sympathetic politicians they tend to support during election years like President and certain Members of Congress pushing for the minimum wage hike.
Thats the real cycle of minimum wage economics. A higher minimum wage means a higher union wage, which means higher union dues. Businesses have to slow down hiring or lay off workers, jobs disappear, but more money pours into the pockets of Big Labor bosses. So much for the Presidents desire that the economy work for all of us. It seems like his minimum wage increase will end up benefitting a fortunate few after all politicians in Washington and their Big Labor allies.
Always follow the money.
IMO, It’s all about VOTES, the purpose being to keep the âgiver’sâ elected and keep the flow of money going to those who want the gubmint âgive aways â (thus supporting their businesses and the other group of takers who want all that âFree Sh$tâ they get for voting demodummie.
Sadly, it’s pretty much the same thing any more.
This is only NOT happening because Republicans in Congress are holding the line against it.
In any jurisdiction where it gets on the ballot this fall, lemmings will flock to the polls to vote themselves a raise.
Obama, you silly dummy, the economy works best when people are working, and you keep screwing that up.
During my first 22 years of working—on a time clock—I was in 5 different unions. Not by choice.
Each & every one of those union contracts has built on the notion of any changes in minimum wage would mean an automatic change in the union contract.
This is all another payback from Obama to Unions—especially just before another election.
My take on this is:
if the minimum wage is increased to 10.10 per hour, it would raise all of the workers above the level needed to get the full subsidies for obamacare. Imagine the revolt if that happens.
Minimum wage of $7.25, in a full-time position/no OT, gives you about $1100/month. (Assume ~10% withholding, but you’ll get it back in April). Unless you live in a crazy expensive city like SanFran or NYC, that’s plenty to live on if you can budget it. You can find an apartment for ~$600, even less if you split it with some roommates, Dallas has 3bedrooms around $1200+ last I checked. You can get a decently cheap phone through Ting or MetroPCS, and that includes the all-important text/data plan. $50. That leaves around $500 for food, gas, etc. Yea, it won’t be fun, and you don’t have much spending money. But a minimum wage job isn’t intended for supporting a family. By the time you have that family, you should be old enough to at least have moved up to a managerial/higher position, as well as a couple raises. If you’re still making minimum after having been in the workforce for several years, you’re likely not a good sample of the species, and probably shouldn’t be passing your genes on.