This unilateral wage hike for federal workers will have a domino affect on the private sector which will result in more job losses. IMO 500K is a conservative number by the CBO, expect that number to double! Every single attempt to stimulate the economy has backfired, everything the emperor touched goes to hell and that’s a fact. The $800B stimulus produced nothing but lies and deceit that jobs were saved/ created without a shred of proof. There are more people out of work today than there were in 2009 when his majesty took office. His economic policies are deliberately running this country into the ground to fulfill his promise of fundamental transformation.
This is what happens when you have a petulant child who has never had a real job let alone ran a lemonade stand, nor any of his advisors for that matter, make economic policy. So here’s what is going to happen as he continues to dictate policy from the imperial throne room. Companies will continue to reduce staff and cut back hours. As time goes on things worsen companies will look into more automation to get away from this tyrannical govt imposing taxes, wage hikes, regulations and red tape which will result in even more people out of work. The imperial emperor is now in overdrive to put the final nails into the US economy.
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CBO says minimum wage bill would cost jobs, boost income
by Erik Wasson | The Hill
President Obama’s proposal to raise the minimum wage to $10.10 per hour would cost 500,000 jobs in 2016, according to a report released Tuesday by the nonpartisan Congressional Budget Office.
The report also found hiking the minimum wage from $7.25 to $10.10 per hour would raise income for about 16.5 million workers by $31 billion, potentially pulling nearly 1 million people out of poverty.
The White House and economic groups on the left immediately pushed back at the CBO’s conclusions on jobs even as they hailed the findings on poverty, saying its conclusions on jobs ran counter to other research.
“CBO’s estimates of the impact of raising the minimum wage on employment does not reflect the current consensus view of economists,†Council of Economic Advisers Chairman Jason Furman wrote in a blog post. “The bulk of academic studies, have concluded that the effects on employment of minimum wage increases in the range now under consideration are likely to be small to nonexistent.â€
Given its findings on poverty alleviation, Furman told reporters that the CBO report was an overall positive for the White House.
“Sometimes you have to have a respectful disagreement among economists,†Furman said in a conference call. “I think a lot of economists who have looked at [the] literature would summarize it differently than CBO has done here. more