Should the US Government be paying out over $250 billion in welfare spending on workers whose employers shift their labor costs over to the US taxpayers?
Should the US Government be paying out $250 billion a year in hidden welfare subsidies to US employers and businesses who shift their costs over to US taxpayers?
This morning, the CPB hosted an interesting interview with Republican conservative Ron Unz, regarding the proposal to raise minimum wages to $12 an hour. Mr. Unz, multimillionaire, founded Wall Street Analytics, Inc. in 1987, as a financial services software company that was acquired by Moody’s Corp. in 2006. Between 2006-2013, Unz published the American Conservative magazine. In 1999, Unz ran briefly for U.S. Senate, and in 1994, challenged Gov. Pete Wilson in Republican primary election, receiving 34 percent of the vote. Anyone doubting Mr Unz’s conservative Republican credentials should note that in 1998, Unz spearheaded a California proposition that dismantled the state’s bilingual education system.
Ron Unz’s Explanations of why a $12 an hour mininum wage would be beneficial to America:
Here follows a rough transcript of the economic and financial reasons why a $12 an hour minimum wage would benefit America. http://www.opb.org/news/article/npr-a-wage-hike-campaign-from-an-unlikely-source/
Why push for a pay hike?
Right now $250 billion dollars of social welfare spending goes to workers who cannot survive on their paychecks. This “massive system of hidden government subsidies” for low wage employers of corporate business welfare, allows them to “shift the costs of their workforce over to the taxpayers.”
“I think businesses should stand on their own 2 feet, rather than forcing taxpayers to make up the difference.”
How much help is needed by a family of 4, with both parents working?
On $12 an hour minimum wage – a couple would make $50,000 a year, which is “doesn’t make you rich, but it is certainly enough to get by” in most American cities, dramatically reducing social welfare spending.
What workers and what jobs are we talking about?
Nearly all minimum wage jobs are “low-wage service sector” jobs that “are non-tradable jobs” that cannot be outsourced to foreign competition. This means that the extra costs of raising the minimum wage “are passed along to consumers through raising prices to keep their workers at a much higher paycheck“.
Sound ominous, right?
“Those price rises we are talking about, are very much smaller than most people realize.” Walmart is America’s largest low-wage employer. 300,000 Walmart workers average about $9.00 an hour. “All Walmart would have to do to cover a $12 an hour minimum wage is raise their prices by 1.1%, just one time.”
“The average Walmart shopper would pay only an extra $12.50 a year.”
~ Not much when compared to what the average Walmart consumer spends per year: $1,136 ~
Is raising minimum wages to $12 an hour really enough to make a difference?
“For every extra 3 or 4 dollars they earn in a paycheck, they lose $1 of Government assistance, so an increase to $12 minimum wage, nationwide, would boost the income of 40% all wage earners in the USA” and reduce welfare spending.
“The average rise for a full time worker would be $5,000 a year, which is “a life changing amount of money.”
“If their wages went up by $5,000, they would lose $1,000 to $1,500 of government benefits, leaving them far better off.”
This also means that “they earn that $5,000, rather than getting it as government welfare programs.”
“Most workers would rather earn their living, rather than getting government handouts or welfare programs.”
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Shocking, Controversial stuff, eh?
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© Steven M. Fry
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