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unemployment doesn't go up, inflation goes down too
Published on January 12, 2007 By Sean Conners aka SConn1 In US Domestic
The Heritage Foundation likes to tout a study they did that apparantly "proves" that raising the minumum wage somehow increases inflation, raises unemployment and besides, the only people making that wage (or less) are rich suburban kids. They contend that we hurt those folks (who, in the last sentence didn't exist outside of a cushy suburban home) who will somehow be impacted negatavely by having a few more dollars in thier pocket.

It's all nonsense!

If we look at the last 4 increases in the minumum wage, we clearly can see that inflation has gone down after the periods we increased the min. wage. We can also see that inflation had an overall downward trend in the period.

since 1990, there have been 4 increases in the min. wage

in jan of 1990, the inflation rate was around 5% annually.

the 1st 2 increases in the min wage happened on april 1st of 1990 and 91 respectively.

in jan. 1992, after that wave, the inflation rate sunk to around 2.5% (and the conservatives screamed that raising the min wage would increase inflation then too)

the 2nd wave of min wage increases happened on oct 1, 1996 and sept 1, 1997.

in jan of 96, the inflation rate remained under 3%

again, conservatives screamed that an increase in the min. wage would cause more inflation.

in jan of 08, the inflation rate again moved south to a record low 1.5%

also, the consumer price index clearly shows that after increases in the minumum wage, the rate of prices going up went down.

the greediest amongst us will scream and parrot their bogus Heritage Foundation study, but don't believe it.

The facts clearly show that when the minumum wage is increased, unemployment has gone down overall, and that prices and inflation slowed. In other words, everybody wins! Unless you just want to keep poor people poor.




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Comments (Page 1)
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on Jan 12, 2007
wrong lil girl...keep whinin...
on Jan 12, 2007

Minimum wage raises help the poor temporarily.  Eventually prices go up because manufacturers are feeling the pinch of having to pay employees a higher minimum wage and we're right back to square one again.

It's not the solution some people seem to think that it is.

on Jan 12, 2007
Eventually prices go up because manufacturers are feeling the pinch of having to pay employees a higher minimum wage and we're right back to square one again.

did you look at my sources?

here...from the dept of labor...(the link's above, it's the 1st one)

1990 127.4 128.0 128.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 128.7 132.6 130.7 6.1 5.4
1991 134.6 134.8 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 137.8 137.9 135.2 137.2 136.2 3.1 4.2 1992 138.1 138.6 139.3 139.5 139.7 140.2 140.5 140.9 141.3 141.8 142.0 141.9 139.2 141.4 140.3 2.9 3.0
1993 142.6 143.1 143.6 144.0 144.2 144.4 144.4 144.8 145.1 145.7 145.8 145.8 143.7 145.3 144.5 2.7 3.0
1994 146.2 146.7 147.2 147.4 147.5 148.0 148.4 149.0 149.4 149.5 149.7 149.7 147.2 149.3 148.2 2.7 2.6
1995 150.3 150.9 151.4 151.9 152.2 152.5 152.5 152.9 153.2 153.7 153.6 153.5 151.5 153.2 152.4 2.5 2.8
1996 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 155.8 157.9 156.9 3.3 3.0
1997 159.1 159.6 160.0 160.2 160.1 160.3 160.5 160.8 161.2 161.6 161.5 161.3 159.9 161.2 160.5 1.7 2.3 1998 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.4 163.6 164.0 164.0 163.9 162.3 163.7 163.0 1.6 1.6
1999 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 165.4 167.8 166.6 2.7 2.2
2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 170.8 173.6 172.2 3.4 3.4

2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 176.6 177.5 177.1 1.6 2.8 2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 178.9 180.9 179.9 2.4 1.6
2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 183.3 184.6 184.0 1.9 2.3
2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 187.6 190.2 188.9 3.3 2.7 2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 193.2 197.4 195.3 3.4 3.4

the highlighted colums are the change in percent of prices overall . the first column is from "dec - dec" and the second is the "avg." according to the site.

as you can see, prices did not increase when the minumum wage was increased. there is no coorellation. there are many claims and threats, but no reality.
on Jan 12, 2007
damn,,,highlighting those colums screwed up the chart layout,,,my apologies,,,,here's the chart again, without the highlight...

1990 127.4 128.0 128.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 128.7 132.6 130.7 6.1 5.4

1991 134.6 134.8 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 137.8 137.9 135.2 137.2 136.2 3.1 4.2
1992 138.1 138.6 139.3 139.5 139.7 140.2 140.5 140.9 141.3 141.8 142.0 141.9 139.2 141.4 140.3 2.9 3.0
1993 142.6 143.1 143.6 144.0 144.2 144.4 144.4 144.8 145.1 145.7 145.8 145.8 143.7 145.3 144.5 2.7 3.0
1994 146.2 146.7 147.2 147.4 147.5 148.0 148.4 149.0 149.4 149.5 149.7 149.7 147.2 149.3 148.2 2.7 2.6
1995 150.3 150.9 151.4 151.9 152.2 152.5 152.5 152.9 153.2 153.7 153.6 153.5 151.5 153.2 152.4 2.5 2.8

1996 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 155.8 157.9 156.9 3.3 3.0
1997 159.1 159.6 160.0 160.2 160.1 160.3 160.5 160.8 161.2 161.6 161.5 161.3 159.9 161.2 160.5 1.7 2.3
1998 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.4 163.6 164.0 164.0 163.9 162.3 163.7 163.0 1.6 1.6
1999 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 165.4 167.8 166.6 2.7 2.2
2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 170.8 173.6 172.2 3.4 3.4

2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 176.6 177.5 177.1 1.6 2.8
2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 178.9 180.9 179.9 2.4 1.6
2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 183.3 184.6 184.0 1.9 2.3
2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 187.6 190.2 188.9 3.3 2.7
2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 193.2 197.4 195.3 3.4 3.4
on Jan 12, 2007

Lil Whip is right.  You show no cause and effect.  Basically, your arguement is akin to Brad's Reducing Piracy causes global warming.

Having been in the hiring seat for a major retailer, I know for a fact that raising the minimum wage does cause unemployment.  Now if the economy is strong enough, they may get another job.  But we replaced many low skilled employees with automation.  I worked for them from 1978 to 1990 (years you conveniently omit).  Quite frankly, I trust milton Friedman and Walter E. Williams a lot more than pirates causing Global warming hokum. 

O, and Lil Whip is right in who earns the minimum wage.  Will an increase affect white collar america?  Hardly.  Will it affect Teens, especially minority teens?  Where are your stats on that?

on Jan 12, 2007
Quite frankly, I trust milton Friedman and Walter E. Williams a lot more than pirates causing Global warming hokum.


i haven't said anything about brad and his theory on global warming (and have no idea what it is or what you are talkin bout) so this is just red herring rhetoric....

Lil Whip is right. You show no cause and effect. Basically, your arguement is akin to Brad's Reducing Piracy causes global warming.

no, it's not,,,and the "ridiculous analogies" are silly

what ya'll haven't shown is any cause and effect that raising the minumum wage does the things you say it soes. it's just talking points parroted over and over and this one lil slanted study by the heritage boys.

stop telling me i'm wrong with silly analogies and unsubstiantiated claims.




on Jan 12, 2007
soes.


[oops,,,i meant "does"
on Jan 12, 2007
You neglect to point out that inflation surged to over 7% after the wage hikes in 90 and 91. It didn't recover to 1990's level until 1996, and then we were in the bloom of the tech boom.

If you look at the great depression, you'll find inflation and prices to be fairly low. Obviously, people losing their jobs and not having money causes prices to drop. When money is dumped on consumers unnaturally, then you'll see prices rise to meet their ability to pay.

You take a single decade, wherein you have a recession AND the tech boom. Then you claim the subsequent recovery and the later benefits of the boom are somehow the responsibility of minimum wage hikes. It's damned convenient granted, but it defies the reality of economics.

More money on hand? Higher prices. Imposed higher wages? You lose jobs. Set your head on fire, you won't freeze to death. You're trying to argue that people can fall upwards.
on Jan 12, 2007
You neglect to point out that inflation surged to over 7% after the wage hikes in 90 and 91. It didn't recover to 1990's level until 1996, and then we were in the bloom of the tech boom.


yeah, but you ignore that after the 96 and 97 hikes, none of that happened. and still, overall, the trend was down. but regardless, the other factors like inflation and prices are on my side as well.

you just keep saying that if weraise the min wage, we will have doom nd gloom...in so many words, but the facts don't show that at all.
on Jan 12, 2007
just a thought,,,then i gotta do sh*t...

maybe the compromise is this...some contend the combo of raising taxes on the rich and raising the min wage are good. others contend the opposite and stand for not raising the wage (some even want to lower it) and lowering taxes more for the rich.

maybe the combo of raising wages and lowering taxes is the way to go...more money in people's pockets, and more receits could mean more tax revenue.

hmmmmmm...
on Jan 12, 2007
"yeah, but you ignore that after the 96 and 97 hikes, none of that happened. and still, overall, the trend was down. but regardless, the other factors like inflation and prices are on my side as well."


And you purposely pick this era because you know that in this time we created an entire new industry that created millions of jobs. Handy, huh? You'll note that once the bubble busted you returned to the floundering of the mid-90's.

That's always been my beef with the "Clinton is God" crowd. For the first half of Clinton's tenure there was nothing to brag about. For the second, the prosperity didn't have a damn thing to do with him.
on Jan 12, 2007
And you purposely pick this era because you know that in this time we created an entire new industry that created millions of jobs. Handy, huh? You'll note that once the bubble busted you returned to the floundering of the mid-90's.


oh please,,,i've explained thoroughly why i picked the stats i did. and like i said before, every era has it's "events" that help shape things. some good, some bad. who's to say our next big industry boom isn't just around the corner and a higher min wage would increase people's ability to buy into it?

you keep throwing out doom and gloom predictions with no history to back it up, then try to nitpick my more complete data. you try to blame everything bad on the poor having a little more while ignoring the clear facts that that didn't happen at the very least on any consistant basis in the past.

this is just gettin silly...

have a great day baker, i'm sure we'll find some common ground down the road...

on Jan 12, 2007
Wtf? lol, whatever. It's like someone demanding proof of gravity. Mmmkay, enjoy.
on Jan 12, 2007
no, it's not,,,and the "ridiculous analogies" are silly


So are yours. You pontificate and manufacture relationships. But I have been there, and you have not. That is a fact.

Your analogies are as silly and perhaps more so than Brads. There is nothing in it that even remotely approaches cause and effect as you take out all that is not germaine to your point. And that makes your point as relevant as Pirates. Sorry, Facts win out over highbrow theory. And bad one at that.
on Jan 12, 2007

you keep throwing out doom and gloom predictions with no history to back it up, then try to nitpick my more complete data


You're kidding, right? Or are you so deluded that....oh, nevermind. It's not worth my time or energy.

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