WH: Min. wage hike wouldn’t lead to up to 1 mil job losses like CBO predicts

Posted by: ST on February 18, 2014 at 7:00 pm
Obama confused

Math easily confuses this administration.

Via the Washington Free Beacon:

A top White House economist says that President Obama’s minimum wage increase will have “zero effect” on employment, despite a CBO report that the proposed hike would likely eliminate 500,000 jobs.

“Our view is that zero is a perfectly reasonable estimate of the impact of raising the minimum wage on employment,” Council of Economic Advisers chairman Jason Furman said on a conference call with reporters shortly after the report came out.

Furman said the CBO was out-of-step with the White House’s views on the proposed 40 percent hike, though he praised the report for highlighting wage boosts that will accompany the hike.

“Sometimes you have respectful disagreement among economists,” he said of the parts of the study that did not confirm White House rhetoric about the $10.10 wage.

The CBO report found that the wage hike leave up to 1 million workers unemployed, and that the vast majority of benefits would go to middle class earners rather than those living below the poverty line.

“The $10.10 option would reduce total employment by about 500,000 workers,” the CBO said. “As with any such estimates, however, the actual losses could be smaller or larger; in CBO’s assessment, there is about a two-thirds chance that the effect would be in the range between a very slight reduction in employment and a reduction in employment of 1.0 million workers.”

Waiting – just waiting – for anyone in the administration, or a Congressional Democrat, to spin this the same way they did a week and a half ago when another CBO report provided troubling numbers on future employment in the US as a result of the eventual full implementation of Obamacare. National Review’s Jonah Goldberg wrote at the time:

The Congressional Budget Office issued a politically explosive report this week, finding that Obamacare will reduce the number of hours Americans work by the equivalent of 2.5 million full-time jobs. This is different from killing 2.5 million jobs, Obamacare defenders are quick to insist. This will be a shortfall on the supply, not demand, side. In other words, people with health insurance will opt not to work in certain circumstances if they know they won’t lose their coverage.

Democrats insist this is a boon. Indeed, many are talking about it as an act of liberation (which reminds me of an eleven-year-old headline from theOnion: “IBM Emancipates 8,000 Wage Slaves”).

House minority leader Nancy Pelosi says the CBO report vindicates Obamacare, because “this was one of the goals: to give people life, a healthy life, liberty to pursue their happiness. And that liberty is to not be job-locked, but to follow their passion.” [...]

Right. “Job-locked.” How dare you be obligated to have to work for a living to pay your bills and be a responsible adult. You follow YOUR passions, while the rest of us go to work to pay for them!  Those of us who haven’t lost our jobs once the minimum wage is raised, that is …

(Hat tip: Memeorandum)

Related: From PJ Tatler – WH: Employers Can Prevent Job Losses After Minimum Wage Hike by ‘Accepting Lower Profit Margins’

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8 Responses to “WH: Min. wage hike wouldn’t lead to up to 1 mil job losses like CBO predicts”

Comments

  1. Sefton says:

    If anything the CBO estimate is short.
    Recall the CBO estimating a $940B price tag at the signing of Obamacare into law. How many times has that gone up since?

  2. Carlos says:

    Just a guess, understand, but a mightily educated one: The WH is lying through their teeth, knowing full well the CBO put as good a face on the dismal report that it could.

    That fits the profile of administration announcements.

  3. Just look at all the economic catastrophes perpetrated by this administration including the failed stimulus, belly-up green energy concerns, and Obhammudcare, then convince me they have even the rudimentary math skills to so much as balance a checkbook.

  4. Carlos says:

    Checkbook, Drew? They don’t need no shtinkin’ checkbook because they charge everything, knowing full well it’ll be our children, grandchildren and great grandchildren paying for their vote buying through economic slavery to China et al.

    But that doesn’t ever concern the narcissist ’cause it has no immediate effect on him.

  5. Tango says:

    ….”if you like your job, you can keep your job…”

  6. tommy mc donnell says:

    under normal economic theory it might cause job loss. under obamanomics is will create jobs. everything in obamanomics creates jobs.

  7. Carlos says:

    Strange how, when a CBO report is favorable to whatever the admin is trying to cram down our throats, the admin touts it as proof-positive whatever scheme they’ve created is absolutely wonderful, but if the CBO offers a neutral or negative assessment of whatever the admin’s pie-in-the-sky giveaway is, they don’t have a clue which way is up!

    But then, the admin and its minions talk out of so many sides of their mouths not even a scorecard could keep it straight…