TCTI: Too Crazy Too Ignore
 Dave Ross
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In this Feb. 13, 2013 photo, President Barack Obama speaks to workers and guests at the Linamar Corporation plant in Arden, N.C. Obama says raising the minimum wage to $9 an hour and tying future increases to inflation will raise the incomes of millions living in poverty and spur job growth. Business groups are not so sure. They complain that boosting the federal rate from $7.25 an hour would discourage employers from hiring new workers, hurting the very people Obama aims to help. (AP Photo/Chuck Burton)

Raise the federal minimum wage to $9!?

BY Dave Ross  on February 14, 2013 @ 5:58 am (Updated: 6:11 am - 2/14/13 )

President Obama is pushing for a $9 federal minimum wage. That worries small business owners - like this restaurant owner in Aubrey Texas, "I have actually a couple choices, close down. The other choice is to increase prices."

One side argues the minimum wage pushes unemployment up, by making workers more expensive. The other side argues it pushes unemployment down by giving workers more to spend. It depends on whether you're looking at people as employees or customers.

But we all need to pause, reach for a bottle of water, take a sip, and relax for a moment.

Because all of us are both employees AND customers.

In Washington State the minimum wage has been indexed to inflation for years, and just hit $9.19. And yes unemployment in Washington State is at about 7.6 percent. Nothing to brag about. But that's the same as the unemployment rate in West Virginia, where the minimum is almost $2 less, it's the same as Tennessee which has no minimum wage, and it's lower than in Georgia where the state minimum wage is only $5.15, but unemployment is about 8.6 percent.

And I think the reason the $9 wage hasn't crippled Washington State is that the $9 ends up being spent pretty quickly at other businesses.

The way I look at it, we all need a place to live, we all gotta eat. And if we can't get it by working, we'll get it from the government, or by moving in with relatives. Which means when wages shrink - government grows, and you're gonna have company in the spare bedroom.

Dave Ross, KIRO Radio Talk Show Host
Dave Ross is co-host of The Ross & Burbank Show on KIRO Radio (weekdays 9-Noon) and never too far from the spotlight.
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  • hnuh wrote...
    w.lawn...
    February 14, 2013 12:08 pm
    per your 10:18 retort. If it is not self evident that the wealthy derive advantage from a powerful and corrupt government, well then you, sir, are an inimitably uneducated and inexperienced ignoramus, on the hoof and wearing fairy wings.
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  • William Lawn wrote...
    Yeah, Bill Gates is going to jump for joy over that $9/hr wage
    February 14, 2013 12:18 pm
    Dumbest a$sed comment I've ever read.
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  • GoldFish wrote...
    Dave, your facts are dumb
    February 14, 2013 12:51 pm
    You said that Tennessee and Georgia have no minimum wage and a wage of $5.15 respectfully. Both of those facts are irrelevant however because the national minimum wage is already $7.25 per hour. so of course a difference between less than $2 per hour won't cause dramatic shifts in unemployment rates, but you want to make us think that it's more like a shift of 4 or 5 dollars per hour. Way to skew the facts as usual Dave. You could at least try to be more inconspicuous with your intentions, you make it so easy. You are the least credible source of news in the region in my eyes.
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  • rational wrote...
    If $9 is good...
    February 14, 2013 5:02 pm
    If $9/hr is better that what we currently have, then why not raise it to $50/hr? By progressive "logic" that must be even better!
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  • CH wrote...
    Give the rich more tax breaks
    February 14, 2013 6:17 pm
    and We Americans will have more job. Rational is that were your job came from? Cleaning toilets for the rich?
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  • rational wrote...
    CH
    February 14, 2013 6:43 pm
    Wow, now aren't you a good progressive with that lie?! I didn't say anything about tax breaks for the rich, now did I? Lousy progressive liar. You're an embarassment to Obama...at least he's a good progressive liar.
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  • tlmbrt wrote...
    When
    February 15, 2013 1:18 am
    you force employers to PAY MORE in wages and benefits they have a harder time making a profit, so they have only 3 choices. 1. Go out of business. 2. Raise prices. 3. Hire fewer employees. Or a combination of 2 and 3. Generally higher prices overall will cancel out any increase in wages. The end result will be FEWER jobs and HIGHER unemployment. There is no action without an accompanying reaction! Actually, a good solution would be to ELIMINATE mandated minimum wages and let the free market work.
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  • Vortex of the Public Eye wrote...
    There is an aspect...
    February 15, 2013 7:01 am
    I haven’t heard discussed yet. Yes it’s true the “majority” of people on minimum wage are just entering the workforce and have not developed “marketable” skills. It’s also true that there are a small number of minimum wage workers who are “lower function” adults and frankly will not ever develop their skills. There is a third group which I am fond of; those with developmental disabilities. My sister-in-law and cousin have downs syndrome. My sister, age 29, used to be able to “work” at a well known local business in Western Washington and earn a minimum wage. It was simple tasks (wiping down tables) but it wasn’t the wage that benefited her, it was the work. The work placement program closed down in 2004 because too few employers were able to hire an employee they really didn’t need. Some of the corporate chains were able to still but there were not enough jobs still. We have since been able to let her volunteer at the food bank but it is not regular or frequent. While I can’t show you anything other than correlative evidence I believe the constantly increasing minimum wage in Washington directly impacted programs that benefited those with developmental disabilities. My point is it seems noble to give people an honest living wage for entry level work. In reality the jobs that typically only pay minimum wage (no tips) are not meant to be careers rather they are meant to build skills to be able to “climb the corporate ladder”. The people (such as my relatives) who make careers out of entry level jobs are on government safety net programs anyway and will still be on these programs at $9.00/hr or even $11/hr. People, please understand that the argument for raising the minimum wage is an emotional argument rather than factual.
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  • Deepsnow wrote...
    Blue States perform
    February 15, 2013 10:06 am
    Oregon has an $8.95 minimum wage and an economy that grew at 3 times the national rate. Washington State's economy outperformed the national figure. As a general rule those states with a minimum wage above the Federal rate outperform the lower wage states.
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