"Maybe I'm crazy for going down this road": Beck claims Obama tanking economy to drive teenagers into ACORN, Americorps
July 24, 2009 6:51 pm ET
From the July 24 edition of Fox News' Glenn Beck:
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The affects of moderate minimum wage hikes have been thoroughly investigated. They do not cost jobs.
I mean, I'm not a teenager, so I'm clearly not as bright as you are, but it seems to me that such information might be a bit more relevant than an unnamed "2003 study by economists."
And no, I'm sure they don't employ young economics majors like yourself. Hopefully, they employ economics majors who know what they are talking about and aren't convinced they've learned everything there is to know before their skin has cleared up.
"high state minimum wages fail to correlate to poor labor market outcomes, let alone have a causal relationship. Similarly, the pattern in job growth by state shows little relation to whether a state has a minimum wage." - Employment and the Minimum Wage—Evidence from Recent State Labor Market Trends
"So what's the difference in the unemployment rates of stingy and generous states? Exceedingly little.
"Of the 21 states with the lowest allowable wage, 9 of them (or 43 percent) have an unemployment rate higher than the national average of 5.1.
On the other hand, of the 30 states with higher minimum wages, just 10 (or 33 percent) have an unemployment rate above the national average.
Unemployment and the Minimum Wage
There's a lot more I could cite. The truth is, studies of actual effects of actual minimum wage increases haven't shown that they increase unemployment.
"The Employment Policies Institute (EPI) is one of several front groups created by Berman & Co., a Washington, DC public affairs firm owned by Rick Berman, who lobbies for the restaurant, hotel, alcoholic beverage and tobacco industries."
OK, raising minimum wage costs employers more. It also puts more money into the pockets of workers, which means more consumer spending, which means more revenue for businesses, which means increased profits, which means expansion, which means more jobs, which means more workers, which means more consumer spending, which means more revenue for businesses, which means increased profits, which means expansion, which means more jobs, which means more workers, which means more consumer spending...
State of denial? State of confusion?
The overall impact is that businesses reduce profit expectations, allowing the gross upward redistribution of wealth to reverse so that the overall standard of living increases for those making less income.
The problem is that profit expectations have become unrealistic - because, as a result, wages do not keep up with the cost of living.
If you look at the statistics available through multiple sources, you will see that wages have actually gone down in inflation-adjusted dollars since the Reagan years.
It is vital to a capitalist system that a vibrant middle class is maintained. This is the root cause of the economic troubles we are now experiencing - because the middle class was saving less (instead investing in high-risk schemes in the faint hope of tapping the prosperity that was promised by the very rich).
An increase in the minimum wage is only a beginning, but it is far better than sitting back and expecting that some elusive morality will take hold among the profit-takers. The next step is to actually cap profits to a set percentage of a company's gross income - say 40% (a very generous margin - ask any retailer). This would mean that a company would actually have to pay employees more, would have to re-invest in its own internal economy, would have to put money into research and development (encouraging more innovation - another boon to the economy).
What happens now is that profits are increased and then removed from the productive economy and re-invested into financial instruments that produce nothing at all (and end up poisoning the economy, as occurred last year).
You can study all the economics you want, but for every theory you find, there will be three or four that contradict it. The only real answer is to look at how economic policies impact actual people.
Your mother should never have had to work two jobs - she should have been free to choose to work two jobs. The reality is that she had no choice - just ask her.
"I'm a teenager..." come back when you've experienced life for a little while longer. I don't know about the rest of the people on this thread, but I don't appreciate being lectured to by some kid who still lives under his mom's roof and eats the food mom provides for him on how to economize, thanks anyway.
My left leg is a little shorter than my right... mind pulling it?
Minimum wage jobs are what most of us had when we entered the work force. Many young people today feel that minimum wage jobs are beneath them, especially in the wealthier towns and cities. It's a luxury that their parents allow. Some kids and even adults, don't have that luxury.
My left leg is a little shorter than my right... mind pulling it?) I've never been paid minimum wage and I used to detassle corn in the middle of fields. So don't accuse me of not working purely because I thought they were beneath me.
So again, save the lectures, Mr. Alger. Go out and experience life for a while before you become convinced that you know everything. Or ANYTHING.
BTW, just to save you time: Raising minimum wage has ZERO negative impact on job creation. In fact, every time wages have gone up for any reason, it's lead to economic expansion. Maybe you were asleep when your history teacher tried to explain to you why slavery is not a viable economic model. The more people who can BUY what is being produced, the wealthier the country producing those products becomes. Get it?
What I did say about you is that you've got much to learn about judging others.
When most of us were nineteen, the world looked a lot easier to figure out. We too were like you.
After spending time in the real world, away from our parents, and having experienced things like war, recession, unemployment, illness, loss, tragedy and joy, we understand, that the person you mock, could be anyone of us.
Life can be pretty cruel and not everyone is where they are due to things they were able to control.
I had people turn me down for minimum wage jobs -- one I recall was as a parts delivery guy for a NAPA store. The manager told me no and said he had to because he knew that as soon as the economy got better, someone with my education and skills would be gone right away. I got turned down for a custodial job at a local college -- same reason -- and I'd have probably stayed at the college for the free tuition, because I didn't have a degree at that point.
And never mind that -- if someone, anyone is willing to work, and all he or she can get (or is capable of) is a "menial" job, does that mean he or she should be deprived of the opportunity to have a place to sleep, something to eat, and something to wear?
In addition, I REFUSE to accept the notion that a higher minimum wage is so bad for productivity that jobs get cut or fewer workers get hired. That's BU!!SH*T. The employers merely pass the cost along to their customers, and the added cost of a minimum wage increase is not that significant.
So, you don't have the training or experience to comment intelligently on this topic. Go live your life for a while, experience the day to day struggles that almost all of us have, and then come back to let us know if it's easy as you seem to think it is.
So your argument must be that businesses should lower their prices if wages stay stagnant, right? Gotta keep inflation down, right?
Reading through this thread it's obvious that a career choice of economist is not well-advised. Who suggested you major in economics? You'll find it extremely boring and waste of time.
You should consider law and specifically litigation as it would better seem to match your expressed personality. I suggest that after spending a fair amount of time in rooms with litigators.
Where did you plagiarize that from Glen? How many times has that been written about Hitler?
Lefty, I bet you did not figure in all his perks and health care either. Book deals, speaking engagements and comedy tours. Yes, yes people actually pay to hear him speak. Go figure.
MAYBE??
THAT ship set sail a long, long time ago.
"Maybe"?
Btw, remember when Glenn Beck cried earlier in the year, this was 10 times better. Too funny indeed. LOL
Wow, is the truth finally sinking in through even Mr. Beck's thick, doughy skull?
Seriously...seriously.