Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Economy

How the minimum wage will hold workers back in the labor market

2 months ago
in Economy
3 min read
How the minimum wage will hold workers back in the labor market
Share on FacebookShare on Twitter


The Congressional Budget Office has found that the Biden administration’s federal minimum wage hike to $15 per hour over four years would result in 1.4 million unemployed by 2025, but would lift 900,000 people out of poverty. The Washington Post helpfully reported the “good news” in this cold-blooded trade-off: “The net pay going to the country’s workers would grow substantially, by $333 billion, would more than double the amount subtracted by the workers who will lose their jobs, according to the estimate.”

This may be enough to induce the Biden administration and the Democrats in Congress to drop this standard gift to the nation’s unions, but that’s unlikely. The firmly progressive ideology of what was supposed to be the centrist Biden White House is showing.

There is a better way to improve the conditions of those living in poverty; it’s called a job. The left might object that the jobs aren’t plentiful enough, but it’s obvious that a higher minimum wage will not create any more of them; if anything, it will make them scarcer. If the Biden administration were serious about reducing unemployment, it would drop the minimum wage plan entirely, allowing many unskilled workers to find employment this year and to gain job skills in years to come.

The Democrats have seen and probably been nonplussed by the increased support for Donald Trump among black and Latino voters in the 2020 elections. It was only Trump’s weakness among white suburban voters that saved Joe Biden and enabled the Democrats barely to hold on to power in the House and Senate.

One of the reasons for Trump’s success among these traditionally Democratic voters was his effort to build historic levels of employment for the lowest paid members of these groups by making clear to the business community that he would not raise the federal minimum wage of $7.25 per hour. People without the skills or employment experience to earn more were enabled, then, to compete for entry level jobs, and they did so eagerly and successfully. If Trump won a second term, this process would be continuing, and people who began with entry level jobs would be acquiring experience today that would make them employable at higher wages in the future.

This is because a minimum wage will do more than freeze low-skilled workers out of the workforce; it will prevent them from learning the skills that have always enabled low-skilled Americans to better themselves. A leading economics textbook makes this point: “low-paying, entry level jobs can provide workers with experience that will help them move up the job ladder to higher paying positions.”

What is really significant about a job is not what you earn, but what you can learn. The stories of those who have succeeded in the economy are all essentially the same. Talk to the owner of a successful trucking firm, a restaurant, or a nail salon, and you will almost certainly hear that he or she started out at the lowest level in that…



Go to the news source: How the minimum wage will hold workers back in the labor market

Tags: DemocratseconomicsFinanceGovernmentHoldlaborMarketminimumPresidentwageWashingtonworkers
Previous Post

Token effort – Bitcoin crosses $50,000 | Finance & economics

Next Post

CIO Leadership: Fostering a High-Performing Culture Will Lead the Discussion at …

Related Posts

India’s exports to be in positive territory In 2021-22: Commerce ministry | Late…
Economy

India’s exports to be in positive territory In 2021-22: Commerce ministry | Late…

by Forex News
April 21, 2021
0

India's exports to be in positive territory In 2021-22: Commerce ministry | Latest English News WION Go to...

Read more
HSBC chief vows not to ‘flip-flop’ on China strategy
Economy

HSBC chief vows not to ‘flip-flop’ on China strategy

by Forex News
April 21, 2021
0

HSBC will not “flip-flop” on strategy every time there is a flare-up in tensions between Beijing and the west,...

Read more
World’s 10 biggest economies before Covid pandemic vs. now
Economy

World’s 10 biggest economies before Covid pandemic vs. now

by Forex News
April 21, 2021
0

A child runs past a wall mural depicting healthcare workers wearing face masks along a road in New Delhi,...

Read more
Huarong debacle tests Beijing’s resolve to bail out state groups
Economy

Huarong debacle tests Beijing’s resolve to bail out state groups

by Forex News
April 21, 2021
0

When the former chair of China’s biggest manager of distressed debt was executed in January, the focus had been...

Read more
Leaked Amazon Memo Shows How It Forces Out Employees to Hit Targets
Economy

Leaked Amazon Memo Shows How It Forces Out Employees to Hit Targets

by Forex News
April 21, 2021
0

Amazon has a goal to get rid of a certain percentage of employees each year, often 6% — and...

Read more
Billionaire Leon Cooperman turns down Elizabeth Warren’s offer to testify on her…
Economy

Billionaire Leon Cooperman turns down Elizabeth Warren’s offer to testify on her…

by Forex News
April 20, 2021
0

Warren invited Cooperman, with whom she has repeatedly clashed, to appear at an April 27 hearing on creating a...

Read more
China’s Alibaba invests $350 mln in capital increase to Turkey’s Trendyol -trade…
Economy

China’s Alibaba invests $350 mln in capital increase to Turkey’s Trendyol -trade…

by Forex News
April 20, 2021
0

Chinese internet giant Alibaba invested $350 million in Turkish e-commerce firm Trendyol in a capital increase, according to an...

Read more
Unemployment benefits cut short for 300,000-plus amid pandemic: study
Economy

Unemployment benefits cut short for 300,000-plus amid pandemic: study

by Forex News
April 20, 2021
0

Outdoor dining tents under constructions in Arlington, Virginia, on Feb. 5, 2021.Liu Jie/Xinhua via GettyMore than 300,000 Americans lost...

Read more
Central and Eastern European central banks are buying up gold, citing ‘rapid str…
Economy

Central and Eastern European central banks are buying up gold, citing ‘rapid str…

by Forex News
April 20, 2021
0

(Kitco News) After several large gold purchases by Poland and Hungary, the Central and Eastern Europe region now accounts...

Read more
Live Foreign Currency Exchange Rates
Economy

UK vacancies jump 16% in March as firms prepare for reopening – business live – …

by Forex News
April 20, 2021
0

UK vacancies jump 16% in March as firms prepare for reopening – business live The Guardian Go to...

Read more
Next Post
CIO Leadership: Fostering a High-Performing Culture Will Lead the Discussion at …

CIO Leadership: Fostering a High-Performing Culture Will Lead the Discussion at ...

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

Buffett cut Apple, Baron Tesla: Billionaire market selloff lessons

Buffett cut Apple, Baron Tesla: Billionaire market selloff lessons

1 month ago
Ethiopia’s War Leads to Ethnic Cleansing in Tigray Region, U.S. Report Says

Ethiopia’s War Leads to Ethnic Cleansing in Tigray Region, U.S. Report Says

2 months ago
Polyester Yarn Market Set For Rapid Growth and Trend By 2026 PHP (Germany), Dura…

Polyester Yarn Market Set For Rapid Growth and Trend By 2026 PHP (Germany), Dura…

4 months ago
German Startup Creates Ocean Platform to Generate Power from Waves, Wind, and So…

German Startup Creates Ocean Platform to Generate Power from Waves, Wind, and So…

5 months ago

Today Market News

India’s exports to be in positive territory In 2021-22: Commerce ministry | Late…
Economy

India’s exports to be in positive territory In 2021-22: Commerce ministry | Late…

April 21, 2021
HSBC chief vows not to ‘flip-flop’ on China strategy
Economy

HSBC chief vows not to ‘flip-flop’ on China strategy

April 21, 2021
European Super League on the brink of collapse after condemnation
World

European Super League on the brink of collapse after condemnation

April 21, 2021
World’s 10 biggest economies before Covid pandemic vs. now
Economy

World’s 10 biggest economies before Covid pandemic vs. now

April 21, 2021
Huarong debacle tests Beijing’s resolve to bail out state groups
Economy

Huarong debacle tests Beijing’s resolve to bail out state groups

April 21, 2021
Guilty verdict spared George Floyd’s family more injustice, Harvard law professo…
Politics

Guilty verdict spared George Floyd’s family more injustice, Harvard law professo…

April 21, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz