Feb 23, 2021
Sens. Cotton, Romney to propose raising federal minimum wage to $10 with phased approach
This news has been received from: FOX News
All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.
Sens. Tom Cotton, R-Ark., and Mitt Romney, R-Utah, are proposing legislation to raise the federal minimum wage to $10 an hour, coupled with an E-Verify system to ensure employers hire only legally authorized workers.
Cotton joined Sandra Smith and John Roberts on "America Reports" Tuesday to discuss the proposal.He also weighed in on the $1.9 trillion COVID-19 stimulus bill, which he argues is "just fulfilling a lot of Democratic wishes."
SEN. TOM COTTON: [On COVID-19 stimulus] "There are a lot of earmarks in here. Democrats are bringing back wasteful earmark spending and they’re doing it with a vengeance in this bill.
REP. JAY OBERNOLTE: IF BIDEN'S $15 MINIMUM WAGE HAPPENS, FOR 1.4 MILLION AMERICANS THE REAL WAGE WILL BE $0
The bill spends hundreds of millions of dollars on states that haven’t lost any money. States that have had surpluses in the last year. [It] spends tens of billion dollars on schools, not this year, when the schools need it may need it most, but in future years. That has nothing to do with getting kids back to school this year.
It was one thing to spend this kind of money a year ago, at the outset or the height of this pandemic. But now we’re on the verge of turning the corner and getting back to something very much like normal in a matter of weeks, not months. This money is just fulfilling a lot of Democratic wishes.Video
[On minimum wage proposal] What we’re doing is proposing a $10-an-hour minimum wage, phased in over time after the pandemic ends, and a mandatory E-Verify program that ensures employers are only hiring legally-authorized workers. Those two things go hand-in-hand. If you raise the minimum wage, of course, you create incentives for dishonest employers to hire illegal immigrants to work. Therefore, use the E-Verify system to ensure that higher wages are going to American workers. We think it’s a reasonable compromise.
Obviously, the 15-dollar-an-hour minimum wage does not have the votes to pass the Senate because it would kill so many jobs. We think this is a constructive step that hopefully Democrats and Republicans can get behind.
CLICK HERE TO GET THE FOX NEWS APP
I would be open to working with any Democrat who recognizes that $15 an hour is simply too high in many parts of the country, and who is willing to work across the aisle. Now, the Democrats have taken a partisan approach to this bill so far. I’m not sure they’re going to reverse themselves on that.
I’m not going to negotiate here on television, but I will say I’ll work with any Democrat who wants to try to craft a solution that helps raise wages for American workers."Roman Chiarello is a Web Video Producer for FoxNews.com.
News Source: FOX News
Study: Increasing Minimum Wage Led To Higher Prices at McDonalds
Jack Davis, The Western Journal March 8, 2021 0 Comments
Progressives lost their effort to include an increase in the federal minimum wage as part of the coronavirus relief spending bill that cleared the Senate on Saturday. Their goal had been to more than double the federal minimum wage from its current level of $7.25 per hour to $15 per hour.
The paper, published by the National Bureau of Economic Research, looked at what happened at various McDonald’s restaurants when the minimum wage went up.
“Our data imply that McDonald’s restaurants pass through the higher costs of minimum wage increases in the form of higher prices of the Big Mac sandwich,” Princeton economist Orley C. Ashenfelter and Czech economist Štěpán Jurajda wrote.
After examining wage and price data from most of America’s McDonald’s restaurants, the researchers concluded there was a “full or near-full price pass-through of minimum-wage-induced higher costs of labor.”
1/2 Study finds @McDonalds restaurants pass through the higher costs of minimum wage increases in higher prices to customers. via @BrookingsEcon @davidmwessel –> https://t.co/yLWRzbl6PK
— Summit Global Strategies (@SummitGlobal1) February 25, 2021
However, they said they did not find a connection between the wage increase and the replacement of workers through the introduction of technology.
“To provide insight into this issue within the fast food industry, we study a recently developed labor-saving technology in McDonald’s restaurants: the introduction of touch-screen ordering kiosks,” the study said.
“These were available in one fifth of McDonald’s restaurants in 2017, but were available in close to three-fourths by 2019.
“Our data do not indicate that the introduction of this technology was related to minimum wage increases. This evidence is not consistent with technology introduction being a channel for negative employment effects of minimum wages.”
In reporting on the study for the FEE, Brad Polumbo noted that although it did not find a connection between wage increases and job cuts, the issue is bigger than just the wage-earner.
“If a McDonald’s cashier’s take-home pay increases 20% after a minimum wage hike, but the prices for the food and other things they spend their wages on increase by a similar amount, they aren’t actually any better off. This would happen throughout the economy, not just in fast food,” he noted.
Rachel Greszler of the Heritage Foundation reported that a “$15 federal minimum wage would generate a cascade of unintended consequences across the U.S.”
“Childcare costs would increase by an average of 21 percent — an extra $3,728 per year for two children — and up to 43 percent, or more than $6,000, in some states,” her study reported.
“The impacts would be greatest in lower-cost areas; in Louisiana, Oklahoma, and Mississippi, costs would surge between 37 percent and 43 percent.”
McDonalds response to Democrats $15. Min. Wage
Study: $15 Minimum Wage Would Force McDonald’s to Increase Prices 38 Percent
McDonald’s says, every one of its 14,000 stores nationwide has started replacing cashiers with automated touch-screen kiosks.
— Al (@Al01619246) February 25, 2021
Polumbo said advocates for a higher minimum wage “see only the nominal rise in workers’ weekly paychecks that a government mandated wage increase can bring. Yet they fail to see beyond that. They fail to consider the future workers who will not be hired at all and the millions of minute price increases that would largely erase nominal wage gains regardless.”
“As McDonald’s response to minimum wage hikes clearly shows, there’s no such thing as a free lunch. That’s why the ‘Fight for $15’ would hurt most the very same working Americans it’s meant to help — who’d be stuck paying more for their next Big Mac, McFlurry, or (overrated) McDonald’s french fries,” he wrote.
A CNBC report projecting the impact of a higher minimum wage said that “in about half of states, the cost of living would still eclipse earnings for workers paid $15 an hour.”
This article appeared originally on The Western Journal.