Wednesday, February 19, 2014

Lowering Wages to $4 an hour for Long Term Unemployed.

Another incredible idea from the conservative American Enterprise Institute that demoralizes the long term unemployed even more than they already are.

Republicans are feeling incredible lately. As bad as their ideas are, they’re oddly still the ones setting the agenda.

But this has also given Republicans the courage to say anything that pops into the heads, giving us an invaluable insight into what our world would really be like if they had their way.

Wanna see another brilliantly demoralizing and demeaning shot aimed at the long unemployed?
Bloomberg: A $4 Minimum Wage Can Get People Back to Work: The fate of the long-term unemployed is arguably the most immediate social and economic challenge facing the U.S. today. One goal should be to make it easier for companies to hire the long-term unemployed. And a step forward would be to let companies pay the long-term unemployed less by lowering the minimum wage for them. 
After all, employers are taking a big risk hiring experienced workers:
If we knocked the minimum wage down to, say, $4 an hour, we would significantly mitigate employers' risk from hiring a long-term unemployed worker. Allowing employers to pay this group of people 45 percent less than other minimum-wage workers provides a strong incentive for businesses to give the long-term unemployed a shot.
Thanks for giving us a shot at the good life again. Oh, and don't forget making the public take all the risk and responsibility for taking care of $4 an hour labor:
This policy would have to be paired with an expanded earned-income tax credit, or with more straightforward wage subsidies -- federal transfer programs that supplement a worker’s labor market earnings with tax dollars. 

Many on the left will cringe at the thought of lowering the minimum wage. Many on the right won’t like a new government program of wage subsidies. 
Another words, taxpayer would be picking up the tab for business.

1 comment:

Anonymous said...

You're right. They should just raise it to $25/hour so there are 200 million kicked off the labor participation rate.

I know flipping burgers and having someone to greet me at walmart is worth at least that much.