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Mitt Romney: Letís raise the minimum wage
Hotair ^ | 05/09/2014 | Ed Morrissey

Posted on 05/09/2014 1:35:13 PM PDT by SeekAndFind

Alternate headline: Romney not running for President in 2016. Mike Barnicle braced Mitt Romney on the GOP’s demographic issues and its “conservative bent” on popular initiatives like immigration reform and a minimum-wage hike. Romney talks about the big tent of Republicanism, but notes that he supports a minimum-wage hike:

CLICK ABOVE LINK FOR THE VIDEO

“I think we ought to raise it, because frankly, our party is all about more jobs and better pay, and I think communicating that is important to us,” Romney said on MSNBC’s “Morning Joe.”

In recent days, two of Romney’s former opponents, Rick Santorum and Tim Pawlenty, have also urged their part to raise the minimum wage.

Republicans are correct to aim toward blue-collar economics, especially after the debacle of focusing on the so-called “47 percent.” The minimum-wage hike, especially as proposed by the Obama administration, is the wrong way to go about it. The US has repeatedly hiked the minimum wage, and yet has ended up in the same position in regard to the percentage living in poverty anyway. Why? Because raising the minimum wage only temporarily boosts buying power, as prices rise and jobs erode in response to the higher costs it imposes.

In fact, as the CBO pointed out, the majority of the costs end up being borne by the poor the minimum-wage hike is supposed to help:

Once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent, CBO projects (see the table below). As with any such estimates, however, the actual losses could be smaller or larger; in CBO’s assessment, there is about a two-thirds chance that the effect would be in the range between a very slight reduction in employment and a reduction in employment of 1.0 million workers

The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold, CBO estimates.

Moreover, the increased earnings for some workers would be accompanied by reductions in real (inflation-adjusted) income for the people who became jobless because of the minimum-wage increase, for business owners, and for consumers facing higher prices.

If minimum-wage hikes solves problems of poverty and inequality, then we would have solved both of those issues decades ago. We have yet to see any evidence that they actually produce anything but an extremely short-term benefit, and mostly to those who don’t need it. (Amity Shlaes presented an argument this week that it actually made the unemployment situation during the Depression substantially worse.) Unfortunately, the GOP hasn’t done a very good job of pointing out the pitfalls of this policy, while Democrats mainly demagogue the point on “fairness.”

What kind of economic message should Republicans have? We need to focus on policies that expand opportunity, especially in the entrepreneurial arena. The massive decline of business births over the last several decades has curtailed the kind of job creation and economic expansion that puts pressure on labor markets to increase compensation. As I argued in my column for The Fiscal Times this week, that decline is a result of a massively-expanded federal regulatory regime that stifles start-ups while giving advantage to rent-seeking large players in markets:

The problem, therefore, is national, and must relate to regulatory or tax policy or a combination of both. During this period, though, taxes didn’t increase sharply for businesses, at least not until recently. With few and temporary exceptions, though, the federal regulatory regime has only increased. The Phoenix Center pointed out this implacable escalation in its April 2011 policy bulletin on regulatory expenditures.

As a share of private sector GDP, the federal regulatory burden has increased over the same period as this study. The Phoenix Center recommended at the time that even a small decrease in federal regulatory burden – just 5 percent, roughly decreasing the regulatory budget by less than $3 billion – would generate an additional $75 billion in the economy and add 1.19 million new jobs to the private sector.

Instead, we passed Obamacare.

We have another indirect method to test this conclusion, too. Expanded regulation tends to favor larger and more established firms in a market, which have more resources and better economies of scale to deal with compliance issues. Sure enough, the Brookings Institution study found that kind of dynamism alive and well. “Whatever the reason,” the authors conclude, “older and larger businesses are doing better relative to younger and smaller ones.”

Instead of increasing costs on business and stifling even more jobs, the GOP should be aiming at cost and regulatory reductions, an expansion of energy production to lower costs even further, and streamlining the tax code to rid ourselves of the rent-seeking policies that offer unfair advantages to larger players. Republicans and conservatives should consider a more comprehensive and deliberate effort to rein in market consolidations on that basis, too. Anti-trust has always been more of a function of the other end of the political spectrum, but any effort to defeat crony capitalism has to aim at two targets: the reduction of centralized power in the public sector, and the reduction of centralized power in the private sector. Unless we’re serious about both, we’re not serious about ending crony capitalism, and we’re not serious about blue-collar economics.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: minimumwage; mittromney; ricksantorum; romney; santorum
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1 posted on 05/09/2014 1:35:13 PM PDT by SeekAndFind
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To: SeekAndFind

someone please stuff something in that idiot’s mouth.


2 posted on 05/09/2014 1:36:53 PM PDT by kingattax (America needs more real Americans.)
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To: SeekAndFind
Atta boy, Mitt. Keep working to show yourself as a Democrat. Run for president again and see if you can get 24 million Republicans to stay home to beat your last record of disenfranchising a mere 12 million Republican voters!
3 posted on 05/09/2014 1:37:11 PM PDT by Obadiah (Always remember that you're unique. Just like everyone else.)
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To: SeekAndFind; kingattax

4 posted on 05/09/2014 1:38:09 PM PDT by 2ndDivisionVet (I will raise $2M for Cruz and/or Palin's next run, what will you do?)
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To: SeekAndFind

The minimum wage is another way for members of the big-government/big-corporate crony-fascist complex to eliminate competition from small businesses. Big companies don’t employ minimum-wage workers anyway. Small businesses employ minimum-wage workers. Raising the minimum wage is no skin off their noses, and it drives the competition out of business.


5 posted on 05/09/2014 1:38:56 PM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: SeekAndFind

Romney if you want to get me excited about your prospects, then stop rambling about minimum wage and start to take concrete actions to bring back AMERICAN MANUFACTURING.

Otherwise you had your chance last time.


6 posted on 05/09/2014 1:39:02 PM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: 2ndDivisionVet

We tried telling people. Everything we said was true.


7 posted on 05/09/2014 1:43:24 PM PDT by Norm Lenhart (How's that 'lesser evil' workin' out for ya?)
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To: SeekAndFind

Mitt, why should we take any advice from you??, you loser!

Nothing good would have come from you in the WH anyway.


8 posted on 05/09/2014 1:43:59 PM PDT by sickoflibs (Obama : 'I never said that you can keep your doctor . Republicans lie about me ')
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To: SeekAndFind

But... but... I thought he was severely conservative!


9 posted on 05/09/2014 1:44:04 PM PDT by DestroyLiberalism
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To: SeekAndFind

Mitt is a fool. I gave him credit ,up until now, for at least realizing he was a loser, out of touch with the Republican grass root voter.


10 posted on 05/09/2014 1:46:48 PM PDT by Huskrrrr
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To: 2ndDivisionVet

:)


11 posted on 05/09/2014 1:47:39 PM PDT by Tennessee Nana
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To: Tennessee Nana

Hey TN, notice anything missing from these recent MITT threads?


12 posted on 05/09/2014 1:48:52 PM PDT by Norm Lenhart (How's that 'lesser evil' workin' out for ya?)
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To: SeekAndFind
So says Mitt Romney, a supporter of murdering babies, an implementer of Gay Marriage in Massachusetts, an implementer of Socialized Medicine, and a Governor that taxed everything and anything that moved.

Just wait though, if by some chance God decides to punish us again with him as our Nominee, we'll have Freepers telling us how we have to vote for the "Lessor of two evils" because if we don't, it'll be our fault for whatever Democrat JackAss gets elected.

As for me, I'm with Alexander Hamilton:

"If we must have an enemy at the head of Government, let it be one whom we can oppose, and for whom we are not responsible, who will not involve our party in the disgrace of his foolish and bad measures." - Alexander Hamilton
13 posted on 05/09/2014 1:49:25 PM PDT by SoConPubbie (Mitt and Obama: They're the same poison, just a different potency)
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To: 2ndDivisionVet

Mitt Romney, just another PROGRESSIVE Republican like John McCain and his sidekick, Lindsey Graham.


14 posted on 05/09/2014 1:49:28 PM PDT by A. Morgan (Ayn Rand: "You can avoid reality, but you cannot avoid the consequences of avoiding reality.")
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To: SeekAndFind
As a further illustration of the degradation of the Republican Party, they're actually putting out feelers about running this asshat again.

I'm at the let-it-all-collapse stage.

15 posted on 05/09/2014 1:50:01 PM PDT by Madame Dufarge
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To: SeekAndFind

No, as$hole.

Go away, no one likes you, no one needs you, you lost, because you are a putz.

Now, with all do respect, f*** off as fast as you possibly can, Mitt.


16 posted on 05/09/2014 1:52:26 PM PDT by chris37 (Heartless.)
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To: Norm Lenhart

No

we’re here

on duty guarding our country from the likes of Willard and other phonies...


17 posted on 05/09/2014 1:52:32 PM PDT by Tennessee Nana
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To: Madame Dufarge

Well said.


18 posted on 05/09/2014 1:53:03 PM PDT by tomkat
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To: SoConPubbie

Careful, you’ll get the President of FR
s Romney support squad posting pics of Yosemite Sam on a dragon and saying “That’s you!”

And we all know how devastating that can be ;)


19 posted on 05/09/2014 1:53:08 PM PDT by Norm Lenhart (How's that 'lesser evil' workin' out for ya?)
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To: SeekAndFind

20 posted on 05/09/2014 1:53:18 PM PDT by cripplecreek (Remember the River Raisin.)
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