Minimum wage legislation stalls in the Senate


Republicans in the Senate have blocked a bill that would increase the federal minimum wage to $10.10 per hour incrementally over 30 months.

The development sets up minimum wage reform as a major topic during November elections.

Consumer companies have mixed opinions on the topic. Though some larger employers could feel a pinch from a higher level of minimum wages (MCD, SWY, KR, WEN) - some analysts think retailers (WMT, DG, FDO, DLTR, TGT) selling to lower income brackets could get a boost. There's also some speculation that more mom-and-pop shops will be forced out of business if the minimum wage goes to over $10 per hour.

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Comments (20)
  • bobsar
    , contributor
    Comments (375) | Send Message
     
    The Republicans seem to enjoy giving slam dunk issues to Democrats.
    30 Apr 2014, 01:58 PM Reply Like
  • The Rebel
    , contributor
    Comments (2431) | Send Message
     
    GDP was up a paltry 0.1% last quarter per today's report. If you would like to see it go negative, just pass that bill.
    30 Apr 2014, 02:09 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    Rebel, It already is negative if you compare this to the old GDP accounting measures. Remember, the BEA began using the new accounting measures last July and this was expected to add 1% to 3% to the GDP, depending on many factors and who you talked to. I think adding the additional measures is a good idea but I suspect the timing of it was done to cook the books.

     

    No matter how you look at this number, our economy is a mess.
    30 Apr 2014, 03:00 PM Reply Like
  • Topcat
    , contributor
    Comments (577) | Send Message
     
    But, GOP never thinks about the fact business needs consumers that have income to buy products. Way too much money, that could be spent on the economy, is sitting with big corporations (much overseas) and the 1%. GOP likes high unemployment, since it keeps wages down, don't forget that. But, it has gone to far, and we are now a gated VS ungated communities like other third world countries. GOP forgets we need a spending middle class. But, wingnuts have their overseas vacation homes and can also leave when it gets bad, which it will.
    30 Apr 2014, 02:14 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    Drop the double taxation and that money will pour into the US.

     

    The CBO estimated many people will lose their jobs if the minimum wage is increased. So you take away from one person and give to another?
    30 Apr 2014, 03:02 PM Reply Like
  • The Rebel
    , contributor
    Comments (2431) | Send Message
     
    President Obama's budget proposal includes a provision that would further restrict domestic corporations from expatriating through so-called corporate inversion transactions. The proposals also limit the U.S. tax benefits that can be realized through expatriation transactions.

     

    So his position is not to reform the tax code but to continue his anti-capitalist policies which are designed to further inhibit economic growth by not allowing corporations to get those funds back into the economy, all so the government can tax those funds and redistribute them to those who did nothing to achieve those profits.

     

    If he was really serious about fixing the problem, he would propose reforms that would subject the income earned by a corporation to one tax, thereby eliminating the double tax on dividends. All that overseas money would then find its way back into the U.S. economy. Then we could see some meaningful increases in GDP.
    30 Apr 2014, 03:57 PM Reply Like
  • magi48
    , contributor
    Comments (395) | Send Message
     
    The Republicans claim "they need to get more people interested in their party", but
    they do things that sway people from joining their party. Blocking a raise to allow people some financial relief is not a good start. Corporations continue to raise food, shelter, gas prices, you name it, but fail to give a little back so working people of little means can survive. This block in the Senate could be a major block for Republican support in the November elections.
    30 Apr 2014, 02:22 PM Reply Like
  • wam350
    , contributor
    Comments (170) | Send Message
     
    If the bill passes how many more unemployed will that create? Unemployed are are just more bread and butter for the dem's.
    30 Apr 2014, 02:43 PM Reply Like
  • bobsar
    , contributor
    Comments (375) | Send Message
     
    I agree with the economic reality of minimum wage increases reducing overall employment. In any case if it's done it should be state by state.

     

    Since "low info" voters only hear GOP is against raising wages this is an issue the the Democrats love and the GOP hands it too them.
    1 May 2014, 11:29 AM Reply Like
  • wild about nothing
    , contributor
    Comments (3) | Send Message
     
    I want to say the rich get richer and the Senate does nothing to help the poor guy out. Wages should go up to 10.10 right away and laws need to be passed that say that only a certain percentage of your help can be part time. You let a person work 24 hours a week and change the shift so they cannot get another job and you are assuring that person cannot ever get off food stamps.

     

    I am against this me first attitude folks seem to have now days. If you own a business and everybody is working part time for dirt wages who is going to buy goods and services from you???? This crap about always the lowest price is non sense. Fair prices is the way it ought to be. The internet is taking away thousands of retail jobs and taxes in some states are not being paid to the State. In Oregon we do not have a sales tax. You order on line and save 20% or more off the same item a department store would price at. It is stupid to allow them to get away with it. If everybody made nothing the rich would still want more. Now we have the super market wars/ A race to the bottom. Lets see who can carry the poorest selection at the lowest price. Lets not give folks what they want lets give them only what we feel they ought to have. I will not go on the trend is in the content.
    Are millions of folks who think just like me and in 2016 you Republicans will see a lot of all blue ballots turned in and you will be out for maybe 12 years or longer and I mean all the way out;
    30 Apr 2014, 04:59 PM Reply Like
  • The Rebel
    , contributor
    Comments (2431) | Send Message
     
    Your boys control the Senate.
    30 Apr 2014, 05:59 PM Reply Like
  • CCCB
    , contributor
    Comments (98) | Send Message
     
    Rebel, you know dumcrates don't like facts to get in the way.
    cccb
    30 Apr 2014, 07:03 PM Reply Like
  • South Mountain
    , contributor
    Comments (461) | Send Message
     
    @wildaboutnothing....you cannot tell me how to run my business by controlling the number of hours I choose to employ an individual. You libs/socialists/Marxists just don't get it. Earn more then educate yourself and stop stealing from people who risk all to provide jobs.
    30 Apr 2014, 09:15 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    “Are millions of folks who think just like me” – therein lies the problem.

     

    Our government, and the legislation it produces, has been reduced to the political party that has the best sound bites at the moment. Voters have consistently failed to look past the rhetoric and examine the impact that some of this legislation will impose on our economy. Voters are now making decisions based on ‘what’s in it for me’ rather than examining the impact their choice will have on everyone else.

     

    Obamacare is probably the worst legislation ever passed in the history of the planet. On the surface, the concept sure sounds good (and there are some good parts) and I think you would be hard pressed to find anyone who did not believe we needed to make changes to our health care system. But the reality is that there was no research done on the impact this legislation, as written, would have on America. The eventual damage is being delayed, but there is no escaping the fact Obamacare alone has the capability to bring America to its knees and probably will.

     

    As far as income inequality, I would go so far as to say it presents an enormous danger to the US. The argument lies in how to rebalance this inequality. Do you achieve that through wealth redistribution or by strengthening the overall economy by adding jobs, thereby increasing demand for goods and services which will increase pay levels? The latter should be the obvious choice but regrettably, there are millions of folks just like you.

     

    Increasing the minimum wage to $10.10 will have a net increase of $2 billion a year according to the CBO. http://1.usa.gov/1hgpNdx

     

    That $2 billion a year number represents approximately 4 days of interest payments on the National Debt. It also represents the daily wages (direct and indirect) lost due to Obama’s war on coal. It also represents a fraction of the income that would be derived from just 1 project, the Keystone Pipeline. Do you see where the ‘trend is going in the content’?

     

    An increase in the minimum wage sure sounds good, but in the grand scheme of things, it is nothing more than a sound bite that will do little to rebalance income inequality. And with the US carrying $200 trillion in unfunded liabilities with absolutely no plan to address this, millions of people just like you are sure to hasten our descent to the bottom.
    1 May 2014, 05:43 AM Reply Like
  • wam350
    , contributor
    Comments (170) | Send Message
     
    Rope a Dope: You are 100% correct!
    1 May 2014, 10:37 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    Well I think 110% but I'll accept 100%, thank you.
    1 May 2014, 11:00 AM Reply Like
  • Alex_P
    , contributor
    Comments (251) | Send Message
     
    Rope a dope, Wow... your comment is brilliant. You summed it up perfectly.
    1 May 2014, 12:51 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    Alex, unfortunately, sound bites seem to rule the day rather than logic.

     

    There is a movement underway to force Congress to make the US public fully aware of the actual debt we carry, not this paltry $17 trillion number they throw out there. Perhaps if more voters realized how bad things really are, they would vote differently.
    1 May 2014, 01:51 PM Reply Like
  • Alex_P
    , contributor
    Comments (251) | Send Message
     
    Rope a Dope, I would love to believe that we can somehow change the trajectory of our nation but I am not optimistic at all.
    American public has been conditioned to a level of entitlement that is not conducive to voluntarily accepting economic pain which will be the necessary ingredient for correcting the problem. The Federal government is borrowing (creating money indirectly) 40% of its budget now largely to pay Social Security, Medicare, Medicaid and hundreds of other transfer payments. Can you tell me who among these you are talking about and all the other cronies working with government will be willing to give up their "entitlements"? The only way this will be corrected will be through collapse of economy and the rise of dictatorship to force the absorption of poverty. The political system with the support of the majority of the population is so corrupt that we can not sustain any free market capitalism nor a Constitutional republic in the US.
    1 May 2014, 11:55 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (706) | Send Message
     
    I agree; we’re pretty much toast. The ‘low info’ voters now outnumber those who understand we’re going in the wrong direction and I think some of them, even if confronted with the facts, would still vote to stay our present course. For these people, I don’t think they’ll understand until they’re wading through the rubble of what was once called America.

     

    I have no idea when this may happen but I began stocking up on gold and lead about 2 years ago.
    2 May 2014, 04:02 AM Reply Like
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