77 online
Most Popular Choices
Share on Facebook 32 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds   

A $10.10 or higher minimum wage will boost Florida’s economy, create more jobs and reduce government social costs.

By       (Page 1 of 2 pages)   1 comment
Message Farid Khavari
Farid Khavari for Governor
Farid Khavari for Governor
(Image by Fardi Khavari)
  Details   DMCA

A $10.10 or higher minimum wage will boost Florida's economy, create more jobs and reduce government social costs.


Independent Florida governor candidate, economist Farid Khavari, says conservatives should embrace higher minimum wages even more fervently than liberals do. Holding down wages has vastly increased government's costs of corporate welfare.

Since 1968, the minimum wage has in Florida officially declined by almost 25% in inflation-adjusted dollars. And that's the inflation that the government admits to.   1968's $1.60 per hour would be $10.20 in today's dollars, compared with Florida's new $7.93 which went into effect this year. The $7.93 represents a whopping 14-cent raise over 2013.    

Florida's Republican governor Rick Scott says he "cringes" whenever the topic of raising the minimum wage comes up.   That is no surprise, because Scott has repeatedly demonstrated his lack of concern for anyone without a million-dollar checkbook, his decision to sacrifice over 6,000 lives per year and thousands of jobs in the name of ideology, and his ignorance of simple economics.  

In his 2006 campaign for governor (as a Republican) Charlie Crist was silent on raising the minimum wage. In his reincarnation as a Democrat, Crist now says "we have to do more."        

Ironically, the people who most strongly oppose raising the minimum wage are the same people who are horrified by the expansion of the Food Stamp program, Medicaid, and other forms of social costs (often called "socialism") which lead to higher deficits, higher taxes or both.  

In fact, holding down the minimum wage has greatly expanded corporate welfare in America, which costs us more than we know.   According to research by the University of Illinois and UC Berkeley, taxpayers subsidize the employers of low-wage workers by $243 billion per year because their wages are so low that the workers qualify for $243 billion in Medicaid, Earned Income Tax Credit, Food Stamps and Temporary Assistance.  

Interestingly, 73% of families receiving these benefits are working.   This means that taxpayers enable big corporations to shift their labor costs onto the public. This is exactly the definition of corporate welfare.  

That's right, taxpayers are already paying for a higher minimum wage, but the employers get the extra money rather than the workers.   If the employers pay workers more, the social costs to taxpayers would be reduced.   Reducing social costs to the taxpayers ("socialism") is a core tenet of conservatives, right?

Are those working people who receive government benefits the "takers"? Or are the "takers" the corporate welfare recipients who save $243 billion per year on labor costs subsidized by the taxpayers?

The Congressional Budget Office says that raising the minimum wage would benefit about 15% of workers, and raise 900,000 people out of poverty.  

What are the real economic benefits--or consequences-- of raising the minimum wage?

We have all heard that people will lose their jobs. We all worry about the price of a Big Mac.  What we don't hear much about is the fact that putting more money into the hands of people who will spend it increases economic activity much more than it costs.  

In Florida, $10.10 is about $86 per 40-hour week than $7.93, about $4,500 per year.   About 1,000,000 Florida workers, including many who earn more than the current minimum wage, would benefit by raising the minimum wage to $10.10 by 2016. Let's say the average benefit is only $3,000 per worker per year, which makes $3 billion per year in increased pay.  

But when that $3 billion circulates and recirculates through Florida's economy, at least $15 billion per year in economic activity happens--enough to support 150,000 new jobs in Florida.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Funny 2  
Rate It | View Ratings

Farid Khavari Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Farid A. Khavari, Ph.D., is a noted economist and independent candidate for Florida governor in 2014. He is the author of 10 books including Environomics: the Economics of Environmentally Safe Prosperity (1993) and Toward a Zero Cost Economy (more...)

Go To Commenting
The views expressed herein 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
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

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

Seniors on Medicare overpay $1,000 per year for drugs thanks to corruption in Congress

Don't buy the big lie about the legalization of the medical marijuana in Florida!

A $10.10 or higher minimum wage will boost Florida’s economy, create more jobs and reduce government social costs.

Why corruption in Miami-Dade County must be rooted out?

Why war is no option against the Shia-Mullah regime of Iran?

What is the best kind of government for Iran? Zerocracy

To View Comments or Join the Conversation:

Tell A Friend