Raising Minimum Wage Puts Millions INTO Poverty

Raising Minimum Wage Puts Millions INTO Poverty

As President Obama continues his tour around the nation in an effort to raise the federal minimum wage to $10.10 he continues to state that, “Raising the minimum wage will life millions out of poverty”, most recently before a fawning audience at the University of Michigan. The data simply does not support the notion that raising minimum wage lifts people at the bottom of the economic ladder out of poverty. In fact, it does the opposite. Poverty increases dramatically every time the minimum wage is raised.

First there’s the “non-factual-analysis-common-sense” test of this. (Don’t worry, my usual factual analysis is below.) Raising the current minimum wage from it’s current $7.25 to $10.10 per hour would be a gross increase of $2.85 per hour — before taxes and other deductions. If we assume zero deductions and a 38 hour work week (because employers are now avoiding working minimum wage employees 40 hours so as to avoid the insurance coverage mandates of the President’s Affordable Care Act), $2.85 x 38 hours = a weekly increase of $108.30. Again, not taking any deductions into account at all. One hundred and eight dollars is going to “lift a family out of poverty”? The very notion is asinine and the statement an insult to any thinking person’s intelligence.

The statistical and factual analysis makes the President’s statement even more ludicrous:

The Fair Minimum Wage Acts of 2007 and 2012 have raised the federal minimum wage by 70 cents per hour, three times. In 2007 the minimum wage was $5.15 per hour, in 2008 it was raised to $5.85, in 2009 to $6.55 and in 2010 to $7.25.

According to the U.S. Census Bureau and U.S. Dept. of Labor; in 2007 there were 37.3 million people living in poverty; in 2008 39.8 million; in 2009 43.6 million, and in 2010 46.2 million.

In 2012 the Census Bureau reported the number living at or beneath the federal poverty threshold (individual filing singularly, $11,670/annual income; couple filing jointly $15,730) rose to 46.5 million. (2013 numbers are not out yet). The data is inarguable. Raising the minimum wage puts people — millions of people– INTO poverty.

Which is worse – that our President is ignorant of these facts or that he is not ignorant of them at all but is intentionally lying to advance an agenda that will add to the woes of the poor?

I choose to believe the latter. The facts are that most in this nation are not aware of this adverse relationship between minimum wage hikes and numbers living in poverty. On the surface, a President running around banging the “raise the minimum wage” drum only adds to the misconception that he & his political party are the one’s “looking out for” those in lower economic classes. Further, by screaming about Republican resistance to raising the minimum wage it advances the other misconception that Republicans only care about the rich and for big business.

As just demonstrated, the facts are the exact opposite. By opposing minimum wage hikes the Republicans are actually the ones protecting millions from falling into or deeper into poverty; by supporting min. wage hikes the Democrats are dooming the poor.

Reversing these untruths is the challenge facing conservatives today. How do we do it? Well, we here at the ACofC have a plan for doing just that – and a golden opportunity for executing it is right around the corner.

If you didn’t already see it, I once again presented the National Weekly Tea Party Address last week–and took the gloves off. I decided to tackle the racist, liberal haters head on. The video has now gone viral & if you haven’t seen it yet, here you go:

National Tea Party Weekly Address – week of March 30, 2014


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