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Minimum Wage

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Cue the right-wing outrage over this Friday's Real Time with Bill Maher in 10...9...8... for the way he ended his New Rules segment while talking about the dangers of record income disparity in the United States:

MAHER: If you're rich, you should be begging the government to redistribute your wealth, because you know what happens in countries where there's a huge disparity between the rich and the poor? The rich get kidnapped. It happens seventy two times a day in Mexico.

He went onto talk about people resorting to using flame throwers on their cars in South Africa to stop it. He made a lot of really good points about what's happening to our society in the wake of the latest remake of The Great Gatsby being released, and our new Gilded Age which is worse than the last one. I'm sure all those on the right will hear is that he wants to raise your taxes and the clamor will be "Why doesn't he just volunteer to pay more himself?" -- because we all know how well just asking the wealthy to voluntarily pay more taxes, and only a tiny portion of them actually doing it, would work to solve our economic problems and the huge wealth gap we have now.



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From ABC's This Week, Sen. Jeff Sessions was happy to do a little fearmongering over the effect of more legal immigration on our economy and cites a flawed study from a right-wing anti-immigration group while doing it. Republican Senator Blatantly Lies and Claims More Legal Immigration Is Bad for the Economy :

The conflict within the Republican Party on immigration was fully exposed when Sen. Marco Rubio (R-FL) made the opposite point on Fox News Sunday, “When with we reform our legal immigration system, we get these people that are already here now paying their taxes and not taking anything out of the system, this will be a net positive for the country economically now and in the future.”

Rubio was making the argument to his fellow Republicans that they can get something for nothing by increasing legal immigration, but both liberal and conservative analysts agree that adding more legal immigrants will be good for the economy.

Sen. Sessions was relying on a paper from the anti-immigrant Center For Immigration Studies (CIS). The right wing group arrived at their conclusion that immigration reform would have a net negative impact by not counting the 11 million immigrants that already illegally in the country.

Republicans like Jeff Sessions are preaching to a vanishing choir. Read on...

As Sen. Chuck Schumer rightfully explained during the segment, what's driving down wages are those working in the shadows right now. Republicans like Sessions don't want a path to legalization for these immigrants because they don't want them voting and they like the cheap labor for business. I don't pretend to know what the legislation is going to look like that comes out of the Senate this week, but I do have no doubt that whatever their starting point is, Republicans will do their part to muck up the works and make it worse.

Full transcript below the fold.

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The hosts of Fox & Friends on Friday suggested that fast food workers should stop striking for higher pay and get a second job because the minimum wage "was never meant to be a career wage."

On Thursday, hundreds of restaurant workers in New York City went on strike to demand a wage of at least $15 an hour. The current median wage of $9 an hour puts workers at about $4,500 lower that the poverty threshold of $23,000 for a family of four. The current minimum wage in New York City is $7.25.

"Here's the deal, you're a minimum wage worker, that's an entry-level salary," Fox News host Brian Kilmeade opined on Friday. "If you're good, you'll get a raise."

"Minimum wage was never meant to be a career wage. If you work hard you will get higher -- you will get more money. Here's the other thing, as hard as it is in some cases, because you are a single mom or a single dad, you've got to get another job. You've got to get another job on top of that so you have two incomes."

"Brian you hit on the nose, I think, the key thing," co-host Steve Doocy remarked. "If it is a minimum wage job, expect to get paid the minimum wage."

"The National Restaurant Association said that they provide 13 million jobs, and those jobs could be jeopardized across the country if the minimum wage goes up," he added. "The industry says one of the best paths to achieving the American dream is to start with an entry level, minimum-wage job that is minimum wage."

(h/t: Media Matters)



From MoveOn.org: Robert Reich On Why Raising The Minimum Wage Is One Of The Smartest Things We Can Do:

2 minutes and 25 seconds from now, you will have new knowledge about why it should happen immediately.

You can sign their petition here: Raise the Minimum Wage to $9 / hr



Raising the Minimum Wage and the Forces Opposed to It

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If anyone needs a break from the typical fare we're treated to on the bobblehead shows on Sundays, check out some of Chris Hayes' show from this Saturday. It's rare that this kind of in depth and comprehensive discussion happens, even rarer where the discussion is so good, it's worth highlighting multiple segments. But that's exactly the case with this discussion of President Obama's proposal to raise the minimum wage made during his state of the union address, that is already being clouded by the fog of talking points in DC:

Then we’ll dive deep on the president’s proposal to raise the federal minimum wage from $7.25 $9 an hour, and to index the minimum wage according to inflation, so that it keeps pace with the cost of living. Republicans and business groups have lined up in opposition to a minimum wage increase, and in doing so, they’ve repeated a talking point that has been common in Washington for decades: that an increase in the minimum wage would lead to reductions in employment. As it turns out, there’s a growing body of empirical evidence that indicates that minimum wage increases, within a certain range, have no negative impact on employment, and may actually boost worker productivity and consumer demand, providing a much-needed stimulus to the economy.

For the most part, Hayes' guests were outstanding and really informative to listen to, with the exception of the Hispanic Leadership Network's Jennifer Sevilla Korn. She may be the kinder, gentler face of the Republican Party with toned down rhetoric with respect to the immigration issue, but on Hayes' show, she was nothing but a right wing talking points regurgitation machine with little to no facts to back up her assertions.

If you listen to her carefully during her time on the show, she was challenged by Hayes quite a few times to give specifics for her claims about minimum wage supposedly causing businesses not to hire or that it might cause inflation. How often does that happen? And just like a typical conservative, she never answers him. The same can't be said for the others on the panel who were more than willing to talk about specifics and shoot holes straight through her talking points.

In the segment above, Lew Prince, owner of Vintage Vinyl, Inc. a small business in St. Louis, Missouri, talked about his invitation to come to the White House with a number of other small business owners and they were asked by President Obama "What can I do for you?" Prince recounted that the first thing they all said in unison was to raise the minimum wage to $10 per hour, because "putting three hundred bucks a month in the hands of the customers is the best economic stimulus the country can have and that money tends to get spent in the businesses more than any other."

Unlike Korn, Prince's point is backed up by research.

A 2011 study by the Chicago Federal Reserve Bank finds that minimum wage increases raise incomes and increase consumer spending, especially triggering car purchases. The authors examine 23 years of household spending data and find that for every dollar increase for a minimum wage worker results in $2,800 in new consumer spending by his or her household over the following year.

A 2009 study by the Economic Policy Institute estimates that Obama’s campaign pledge to raise the minimum wage to $9.50 by 2011 would inject $60 billion in additional spending into the economy.

The National Employment Law Project's Tsedeye Gebreselassie followed up by discussing the fact that 74 percent of the public supports raising the minimum wage. Unlike the conservatives speaking out against it, they understand that that one cannot live on the current wage and that the minimum wage has not kept pace with inflation. They know the opposition is with the lawmakers supporting the top wage earners only.

Korn cites some unspecified economist-- who of course isn't a partisan--telling her that raising minimum wage is going to cause inflation. While that might be true if it is raised too high or if the economy was in a period of stagflation, that's not the political environment we have now and Prince countered her argument quite nicely.

PRINCE: You won't get a business owner that says that and I'll tell you what, the portion of wages, that is in my cost, is actually relatively small and even in the manufacturing and a whole lot of areas. It is relatively small. My overhead is complicated and large, and the minimum wage and the wage, is actually a small part of it. And prices in America, this is, you know, the great secret – prices in America are not set by the cost of making something or doing something. Prices are set by what market research tells most companies you are willing to pay. You know, the reason a beer is ten bucks at Yankee stadium isn't because...

HAYES: Of course not.

PRINCE: … you can get it there to the bar across the street where it is two bucks.

In the next segment the panel discussed the two different arguments we're seeing from Republicans on why they're against raising the minimum wage. One being the that it will cause a negative effect on employment and the other being that it will cause price spikes that the system cannot absorb.

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As Think Progress noted, Republicans immediately shot down President Obama's proposal to increase the minimum wage to $9 per hour during his State of the Union address, claiming that it would harm job growth and make it harder for small businesses to hire. None of that is true of course, but that's not going to stop them from looking out for campaign donors like the U.S. Chamber of Commerce and the National Restaurant Association -- both of whom are against the proposal. Guess they want to keep that cheap labor coming!

Wingnut Rep. Marsha Blackburn however, had a different take on why it's acceptable to pay Americans starvation wages, and accidentally shot a big hole in her own talking point. Don't expect her to retract what she said if she's asked about it:

OOPS: GOP Rep. Inadvertently Makes The Case For Nearly Doubling The Minimum Wage:

Tennessee Rep. Marsha Blackburn (R) chose a different reason to oppose the proposal today. A stronger minimum wage, Blackburn said, would negatively affect the ability of young workers to enter the workforce as teenagers, and would prevent them from learning responsibility like she did when she was a teenage retail employee making a seemingly-measly $2.15 an hour in Mississippi:

BLACKBURN: What we’re hearing from moms and from school teachers is that there needs to be a lower entry level, so that you can get 16-, 17-, 18-year-olds into the process. Chuck, I remember my first job, when I was working in a retail store, down there, growing up in Laurel, Mississippi. I was making like $2.15 an hour. And I was taught how to responsibly handle those customer interactions. And I appreciated that opportunity.

Making $2.15 an hour certainly lower than today’s minimum wage, which federal law mandates must be at least $7.25 an hour. But what Blackburn didn’t realize is that she accidentally undermined her own argument, since the value of the dollar has changed immensely since her teenage years. Blackburn was born in 1952, so she likely took that retail job at some point between 1968 and 1970. And according to the Bureau of Labor Statistics’ inflation calculator, the $2.15 an hour Blackburn made then is worth somewhere between $12.72 and $14.18 an hour in today’s dollars, depending on which year she started.



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I've heard Lady-Mc-Cheney, Mary Matalin say a lot of ridiculous things in her defense of Mitt Romney, but this segment from Anderson Cooper's show on CNN this Thursday evening may have set a new low, even for Matalin's standards, which generally range from low to non-existent. Apparently labor unions, paying people minimum wage instead of slave wages and poverty programs that keep people from starving when times are tough are harming upward mobility in America.

And in this idiot's world, women being allowed to control their own reproductive health and having access to birth control is not one of the primary economic factors in most women's lives, but instead something that has no affect on whether they get "upward mobility opportunities" as well. Really astounding from someone who I assume was alive and cognizant during the last half a century or so and who has been around long enough to maybe remember the days when women were discriminated against because they might not be able to remain at a job, because heaven forbid they might end up pregnant.

Who needs misogynistic men around when you've got women like Matalin doing as much or more damage to her own gender as her male counterparts could ever hope to do.

As to the rest of the segment on CNN, I was glad to see The New York Times' Charles Blow call out Matalin for presuming to know what's best for African-American voters and the fact that you can't separate the issues she was discussing from the economic impact on the lives of average American workers, no matter what their race or gender.

Transcript via CNN below the fold.

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A worker in Florida got an earful from Rep. C.W. Bill Young (R-FL) on Wednesday when he asked the congressman to support a bill that would raise the minimum wage to $10 an hour.

"Jesse Jackson, Jr. is passing a bill around to increase the minimum wage to 10 bucks an hour," the man tells Young in a video obtained by FLDemocracy. "Do you support that?"

"Probably not," Young replies.

"Ten bucks, that would give us a living wage," the constituent points out.

"How about getting a job?" Young snaps.

"I do have one, $8.50 an hour," the man insists.

"Why do you want that benefit?" Young grumbles. "Get a job."

"I do have a job, but it's not enough to get by on," the man explains as Young turns away.

In 2010, the Florida Republican voted for a cost-of-living pay increase for himself and other members of Congress. He currently makes the default yearly Congressional salary of $174,000.

(h/t: Think Progress)



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A Republican Senate candidate in North Dakota and his staff found themselves stumped recently by a voter who wanted to know the state's minimum wage.

A video of the exchange between Rep. Rick Berg (R-ND) and a young woman was posted by the North Dakota Democratic Party on Monday.

"I was wondering what is the minimum wage right now in North Dakota?" the woman asked.

"Hmm," Berg replied, pointing at a staffer and adding, "You know, this guy would know."

"I think it's probably seven something," the congressman guessed. "It depends -- they don’t have a minimum wage for waitresses in North Dakota."

Berg then posed the question to a staffer who only knew that it was "same as federal."

"Oh! Put it back on my shoulders!" the candidate exclaimed.

North Dakota is one of about 20 states where the minimum wage is the same as the federal minimum wage, currently $7.25.

As The Huffington Post's Amanda Terkel noted, Berg voted against raising North Dakota's minimum wage in 1999, 2005 and 2007 while he was serving as a state lawmaker.

The Center for Responsive Politics reported in 2010 that Berg had a maximum net worth of over $54 million, making him the 14th richest member of Congress.



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The panel on Up With Chris Hayes this Saturday of Sam Seder, Bob Herbert, Josh Barro and Victoria Defrancesco Soto had a discussion on the growing wealth inequality and lack up social mobility which are being made worse by things like Republicans wanting to cut a billion dollars in food assistance for the poor in their proposed Farm Bill.

Bob Herbert made a really great point late into the first clip when they were discussing the fact that SNAP, which used to be called food stamps, is subsidizing corporations that don't want to pay a living wage and that we ought to be raising the minimum wage among other things to remedy that. I think that's a point that is not mentioned nearly often enough when we see the likes of Paul Ryan demagoguing the needed expansion of the program. A good deal of those people using the program to keep from starving are not unemployed, but are the working poor.

More great discussion on the Romney's trying to rewrite the fact that they inherited great wealth instead of admitting they were born with huge advantages that most Americans are never going to be lucky enough to have below the fold.

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