Edwards and Obama want to Raise Minimum Wage to $9.50
From the WaPo:
I had an interesting thought on this matter. We look at who the “poor” are. We are told that most are single mothers working two jobs to make ends meet. Being a single mother implies that these women have substantial housing and daycare costs to provide for their kids. High food costs. And we already have high gas costs. This demographic tends to have a disproportianate number of smokers, and the Dems have already targetted tobacco for tax increases. Further, they want to increase energy costs to discourage use in order to fight global warming.
And then it hit me what the minimum wage increase to $9.50 will do. Daycare workers typically make close to the minimum wage when working in the Corporate Daycare centers like Kindercare, etc. These daycare centers typically have very low fixed cost structures and large variable costs related to the number of kids that attend. A significant portion of their overall expense (and I am estimating that runs as high as 50-60% of their total cost model) is spent on labor. Effectively doubling the minimum wage from $5.15 to $9.50 is going to increase the cost of food immediately. It will create a ripple effect that increases the cost of gasoline, automobiles, and so on because it forces all business to account for the additional labor costs. And beyond that, it will lead to massive layoffs as companies eliminate low end positions and consolidate workforces. But it will almost certainly double the cost of childcare. Childcare will increase in cost by almost 100%. Right now, the going rate for childcare in Phoenix at a corporate daycare center ranges from $150-200 per week. That will double to $250-300 at a bare minimum because of the increase in labor costs. And expect that quality will also suffer as daycare centers reduce the instruction time and the child to caregiver ratio.
The rich and upper middle class can afford nannies for the price that daycare costs a couple with two children. If daycare for two kids is $500 a week, that is $2000 a month. And for $2000 a month, one can easily find and afford good live-in help.
The working poor making above $10.00 a hour are not going to get raises because businesses will be forced to cut costs and raises above this threshold will not happen due to the raises mandated on employees making less than $10.00. So imagine that in order to “help the poor”, the lower middle class find that their daycare costs double, their food costs skyrocket, and their paychecks stagnate because business’s profit margins shrink.
It is a scary thought. Rampant inflation. Skyrocketing costs. Increased unemployment. Wage stagnation. And more folks on welfare rolls. Welcome to the Democrat Party’s economic policy. At least Hillary is a corporate whore and won’t slit the throats of the American economy because it will sabotage her Cattle Futures and Arkansas Real Estate investments.
Former Sen. John Edwards of North Carolina, who was the first to address the crowd at Hy-Vee Hall, said he would do a number of things to alleviate poverty in America, including raising the federal minimum wage to $9.50 per hour.
He would pose that same question later in the Brown and Black Forum at North High School to Sen. Barack Obama of Illinois, who pledged that he would do likewise.
I had an interesting thought on this matter. We look at who the “poor” are. We are told that most are single mothers working two jobs to make ends meet. Being a single mother implies that these women have substantial housing and daycare costs to provide for their kids. High food costs. And we already have high gas costs. This demographic tends to have a disproportianate number of smokers, and the Dems have already targetted tobacco for tax increases. Further, they want to increase energy costs to discourage use in order to fight global warming.
And then it hit me what the minimum wage increase to $9.50 will do. Daycare workers typically make close to the minimum wage when working in the Corporate Daycare centers like Kindercare, etc. These daycare centers typically have very low fixed cost structures and large variable costs related to the number of kids that attend. A significant portion of their overall expense (and I am estimating that runs as high as 50-60% of their total cost model) is spent on labor. Effectively doubling the minimum wage from $5.15 to $9.50 is going to increase the cost of food immediately. It will create a ripple effect that increases the cost of gasoline, automobiles, and so on because it forces all business to account for the additional labor costs. And beyond that, it will lead to massive layoffs as companies eliminate low end positions and consolidate workforces. But it will almost certainly double the cost of childcare. Childcare will increase in cost by almost 100%. Right now, the going rate for childcare in Phoenix at a corporate daycare center ranges from $150-200 per week. That will double to $250-300 at a bare minimum because of the increase in labor costs. And expect that quality will also suffer as daycare centers reduce the instruction time and the child to caregiver ratio.
The rich and upper middle class can afford nannies for the price that daycare costs a couple with two children. If daycare for two kids is $500 a week, that is $2000 a month. And for $2000 a month, one can easily find and afford good live-in help.
The working poor making above $10.00 a hour are not going to get raises because businesses will be forced to cut costs and raises above this threshold will not happen due to the raises mandated on employees making less than $10.00. So imagine that in order to “help the poor”, the lower middle class find that their daycare costs double, their food costs skyrocket, and their paychecks stagnate because business’s profit margins shrink.
It is a scary thought. Rampant inflation. Skyrocketing costs. Increased unemployment. Wage stagnation. And more folks on welfare rolls. Welcome to the Democrat Party’s economic policy. At least Hillary is a corporate whore and won’t slit the throats of the American economy because it will sabotage her Cattle Futures and Arkansas Real Estate investments.
Bullwinkle
Move_Zig
Gman
robert108