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Christine Lagarde enters the minimum wage debate

  • Count IMF Managing Director Christine Lagarde as another proponent of raising the federal minimum wage in the U.S.
  • Lagarde points to the 50M working Americans living below the poverty level in making her claim that "we" have to do something about it.
  • Legislation on a minimum wage increase has been stalled in Congress, but is likely to be teed up as mid-term election issue.
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  • Bloomberg Lagarde interview
Comments (27)
  • aeroguy48
    , contributor
    Comments (607) | Send Message
     
    No "we" don't Have to do anything about it Christine, keep your nose out of our business.
    17 Jun, 07:54 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    Why not? Yeah, let's keep other countries' noses out of "our" business. Let us let 10s of millions of our own citizens live in poverty while a small percentage of Americans gorge on material possessions. Something to be so proud of here in America. And now, back to our regularly scheduled programming on Fox News...
    17 Jun, 08:01 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    It really chuckles me how Americans say Germany is so much better because they don't have debt. And they don't realize that most Germans pay 60% tax. Okay, some Americans pay over 50% tax. But many, many Americans pay less than 20% in taxes. And Germans do pay sales tax, it is just that the tax is already factored into the price. Germany has more income equality too.
    17 Jun, 08:25 AM Reply Like
  • snoopy44
    , contributor
    Comments (641) | Send Message
     
    Michael:
    You forgot to mention that lovely little tax that Germans pay, called the VAT. At 18% on any major purchase it adds quite a bit to the purchase price of many goods. I know because as a GI living in Germany in the early 80s, I saw it firsthand. A 18% VAT here in the US would absolutely crush industries like the auto business.

     

    S.
    17 Jun, 08:30 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    But........I think income inequality shouldn't be the focus. The focus should be on the poor and why they are poor. Many Germans don't invest in the stock market. If you look at the super wealthy, most of their wealth is in stocks. Does that mean Wall Street is the problem. No, the problem is not enough financial education about how to invest wisely in the stock market. I am poor, but not for long.
    17 Jun, 08:31 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    However, I do blame banks and credit card companies for charging ridiculously high interest rates on debt. So rule #1, don't get in debt. I was fortunate. Others, including many of my friends, are not.
    17 Jun, 08:35 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    @snoopy44:
    Good to know. I have some German friends, and they say Germany is not all as good as it seems. But then again, they have free healthcare and low tuition.
    17 Jun, 10:09 AM Reply Like
  • desertdiva725
    , contributor
    Comment (1) | Send Message
     
    No healthcare is not free there as well. It is just a better system for the consumers. They have choices.
    17 Jun, 01:20 PM Reply Like
  • Bill Bentley
    , contributor
    Comment (1) | Send Message
     
    Raising minimum wage is a stupid idea. It just starts a cycle of raising costs, and in turn prices, then everything costs more and the poor are still living in poverty.
    The ambitious work hard, learn new skills and EARN more money. Government handouts perpetuate laziness and poverty.
    17 Jun, 08:27 AM Reply Like
  • wam350
    , contributor
    Comments (111) | Send Message
     
    You got that right!
    17 Jun, 08:41 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    Minimum wage should be set at the minimum amount needed to survive. As I stated many times, the inflation adjusted minimum wage was $15/hour in 1960s. Now it is $7.25/hour. Why is that? As for prices, a shirt costing $20 here costs $80 in Japan. I think Americans get a bargain price for goods.
    17 Jun, 10:27 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    Someone with a brain and a conscience comments finally. Thank you.
    17 Jun, 10:31 AM Reply Like
  • skipmac
    , contributor
    Comments (38) | Send Message
     
    This is a very large world Mr. Cholminshik. If you don't like the Armerican way of life you are free to pack your bags and move to a country of your choice. Another reason why it's a great country.
    17 Jun, 08:34 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    Ah, "the like it or leave argument." An old favorite. The argument of someone with no ideas or no constructive responses. The current American system will have the 75% of Americans with little to no money knocking at your door soon in the next 20-30 years. Be prepared.

     

    P.S. Its not a great country. Its just like all the rest, better for some things and worse for others. Keep deluding yourself though...it will soon be all you have left.
    17 Jun, 08:41 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    choiminshik, before making your comments, you should consider the history of the government’s attempts to alleviate poverty in the US. Statistics show the more the government tries to do, the worse the situation becomes. Our government is the problem, not the solution.

     

    You should also take into consideration that middle class America is in decline despite massive amounts of money being thrown into all these social programs. Compare that to a growing middle class in emerging markets that have a social program I call ‘You no work, you no eat’. That same social program was the way things used to be in the US, and we had a growing middle class.

     

    Due largely to Liberal delusions, the US is already bankrupt and dead; we’re just too stupid to fall over.
    17 Jun, 09:13 AM Reply Like
  • mikec711
    , contributor
    Comments (3) | Send Message
     
    So if Walmart does not pay enough, why do not these people get other jobs. Is it because they have not gotten themselves trained to take on other jobs? So Walmart is offering them a certain amount of $s for their hours. Nobody else is offering them more. It could be argued that Walmart is giving them the best deal. But apparently the best is not good enough. Even though nobody else thinks they're worth that much, Walmart must pay them more. Have you ever run a business? Do you know what happens when the $7.50/hour people become $15/hour people? Then the current $10/hour people become $20/hour people, the $20/hour people become $35/hour people (it is not perfectly proportional, but if you've worked hard, taken ownership and worked from $7.50 to $15 ... now the kids who start today having proved nothing get $15 ... you're going to expect to continue to receive double the minimum). Then a mix of large price increases and large layoffs ensue. But if you supported ACA, large price increases and large layoffs are something you don't see as bad. So I guess it's all good.
    17 Jun, 08:40 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    It is not that easy to get a job based on people's individual limitations. Don't have a car. You're limited to where you can work. Can't talk on the phone. You're limited to where you can work. As for me, due to disability, I am slow or very slow. I work over the internet (can't drive), so I get paid based on output. If you take my pay, it is close to minimum wage on a hourly basis, despite getting raises each of the last four years. I don't think I should demand more pay, because like it or not, you as an employee have an invested interest in the survival of the company, because if it dies, you lose out too.
    17 Jun, 10:20 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (689) | Send Message
     
    We have spent something like $16T since the 1960's on the "War on Poverty" and "Great Society", and what do we have to show for it? Generations of people completely dependent on public assistance, the disintegration of the family unit, and the increasing sense of entitlement, that they are victims and someone else must be to blame for their lot in life. And then there are people like you, who closely follow SA while trading off the profits of these "sociopaths and psychopaths" who supposedly run America. You are the worse kind of hypocrite.
    17 Jun, 08:46 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    I have no political leaning anymore and its not liberal delusions. Didnt we just spend trillions on 2 wars and cut taxes at the same time. The delusion is that all our debt is from supporting underprivileged people.
    17 Jun, 09:19 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8135) | Send Message
     
    You know who has never run a small business and had the responsibility of trying to make payroll every two weeks?

     

    Christine Lagarde, that's who.
    17 Jun, 09:23 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Demanding the use of other people’s money to increase wages is, without question, a Liberal delusion.

     

    If you want businesses to substantially increase wages then I would suggest you mortgage your home, borrow money from family, and take on debt up to your eyeballs, which is EXACTLY what Sam Walton did long ago to build an empire that employs millions. Then the profits belong to you and you can pay people what they want.

     

    DVL’s response is spot on but I would suggest you just keep living the dream.
    17 Jun, 09:40 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    Hourly paid workers, yeah we can't afford to give them raises. CEOs who do a bad job, they get millions. Keep living the delusion. I own many many stocks and have seen CEOs get millions even when their performance is terrible.

     

    There are two sets of rules in this country. One for a small subset of people and then there are rules for everyone else. And if you think this is fair or such rules don't exist, you are deluded.
    17 Jun, 09:54 AM Reply Like
  • CincinnatiRick
    , contributor
    Comments (354) | Send Message
     
    The ultimate delusion is that you can do your charity with other people's money. It's the cheap thrill of the limousine liberal.
    17 Jun, 10:29 AM Reply Like
  • EGARYE
    , contributor
    Comments (155) | Send Message
     
    The delusion choiminshik is that government can set a wage rate without damaging the economy and punishing the poor. There is a simple economic solution to getting people out of minimum wage jobs.

     

    1 - Lower the US corporate tax rate to a point where companies are incentivized to keep the money overseas. Today were exporting companies and jobs to havens like Ireland. Did you see the Covidien deal yesterday or Walgreens or the pile of cash Apple is holding?

     

    2 - Kill Obamacare. Allow companies to sell insurance across state lines. Let states establish their own standards for policy requirements that are not based on ideology. Implement tort reform that rewards lawyers instead of patients. Most important educate the public.

     

    3 - Eliminate the EPA and start over. The US can be energy independent today if it wasn't for the EPA and foolish Interior Department regulations and policy.

     

    JFK said, "a rising tide lifts all boats". If we had a robust economy there would be no need for a minimum wage. Today we have a government strangled economy which results in rationing by companies. You cannot legislate wages you have to promote prosperity.
    17 Jun, 12:22 PM Reply Like
  • GregT
    , contributor
    Comments (387) | Send Message
     
    We have poverty in this country, not because we have a lack of resources, but because we have a very large percentage of the population that cannot do what is in their own best self interest. And not doing what is in one's best long term interests includes big parts of the middle and upper class.

     

    Imagine taking a 1000 family sample of lower and middle class Americans. Write each family a check for $1 million. Come back in 5 and 10 years to see how they are doing. At least 50% will be no better off than when they started. Perhaps a lot more than 50%. Many will have indulged in a material orgy that only stops when the money runs out. We see it with lottery winners all the time.

     

    Whether it be how we spend our money, raise our kids, eat our food or deal with drugs, we have a very large proportion of people who cannot do the right things for themselves.

     

    At a fundamental level, poverty is not something that can be solved with more money. It can only improve if our culture and maturity as a society improves.
    17 Jun, 02:12 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (807) | Send Message
     
    I actually agree with you that a lot of people don't know how to save money and sacrifice, but it is not just that. I would say problems of poverty have to do with: 1) Poor money management by too many people; 2) Poor parental role models in teaching how to budget money; 3) a society that worships material possessions; and last but not least 4) a power structure in this country forcing down wages for the vast majority of this culture.
    17 Jun, 02:29 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    And a banking system that puts people in more and more debt.
    17 Jun, 02:34 PM Reply Like
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