Share on Google Plus Share on Twitter Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites (# of views)   4 comments

OpEdNews Op Eds

Pennies at the Register, Dollars in the Paycheck

By       Message David Sirota     Permalink
      (Page 1 of 1 pages)
Related Topic(s): ; ; , Add Tags Add to My Group(s)

Valuable 3   Must Read 2   Supported 2  
View Ratings | Rate It Headlined to H2 8/2/13

Author 18
Become a Fan
  (9 fans)
- Advertisement -
Source: TruthDig

Photo by  Walmart(CC-BY)

You know the boilerplate argument against higher wages in America, because you've heard it so many times from Fox News and CNBC pundits. But as service industry workers now mount protests against poverty-level pay and as the Associated Press reports that "four out of 5 U.S. adults struggle with joblessness, near-poverty or reliance on welfare," it is worth reviewing the blowhard's case for low wages one more time -- just to see whether it even makes sense.

The three-tiered argument goes like this: 1) Higher wages for workers create higher costs for corporations; 2) corporations pass on those higher costs in the form of product price increases; and 3) those price increases must be enormous for corporations to recoup all of their increased labor costs.

What gives these assertions such mass appeal is their populist insinuation that higher wages would hurt the Average Joe. Ultimately, that Average Joe is supposed to conclude that the supposed harm modest wage increases will inflict on him will be far greater than the benefit they will generate for him and the economy as a whole.

For the sake of evaluating this particular conclusion, let's set aside all of the other moral and economic questions at play in the larger debate over wages. Let's, for instance, bypass a discussion about why the richest nation on earth has a $7.25-an-hour federal minimum wage that condemns many workers to destitution. Let's also for a moment disregard the fact that CEOs of the biggest restaurant companies make more in a morning than the average minimum-wage worker in their companies make in a year. Let's even ignore evidence that raising the minimum wage boosts the economy by putting money in the hands of those who will most quickly spend it.

Click Here to Read Whole Article


- Advertisement -

Valuable 3   Must Read 2   Supported 2  
View Ratings | Rate It

David Sirota is a full-time political journalist, best-selling author and nationally syndicated newspaper columnist living in Denver, Colorado. He blogs for Working Assets and the Denver Post's PoliticsWest website. He is a Senior Editor at In These Times magazine, which in 2006 received the Utne Independent Press Award for political coverage. His 2006 book, Hostile Takeover, was a New York Times bestseller, and is now out in paperback. He has been a guest on, among others, CNN, MSNBC, CNBC and NPR. His writing, which draws on his (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): ; ; , Add Tags
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Tax the Corporations and the Rich or Take Draconian Cuts -- the Decision Is Ours

Bush Used the IRS, FBI, CIA and Secret Service to Go After Opponents -- Where Was the Fox and GOP Outrage?

GOP: Recession's Foreclosure Victims "Want a Homeless Life"

How the Trans-Pacific Partnership Gives Corporations Special Legal Rights

Busting myths that FDR prolonged Great Depression