If that is so, all of these administration, congressman and senators should be fired.
Raising Minimum Wage Called ‘Reverse-Robin Hoodism’
An array of proposals from lawmakers, as well as the Obama White House, have called for increasing the federal minimum wage from $7.25 an hour to as much as $12 or even $15, and several cities including San Francisco have already approved a hike to $15.
But a new report asserts that since raising the minimum wage would cost the jobs of some low-wage workers and benefit others, it in effect would constitute “reverse-Robin Hoodism” — robbing the poor rather than the rich.
“Overall, the income gains from raising the minimum wage would come at a significant cost to the large number of workers who would become jobless,” according to the report based on research by Douglas Holtz-Eakin and Ben Gitis and published by the Manhattan Institute for Policy Research.
“Raising the minimum wage transfers incomes from the low-wage workers who become jobless to the low-wage workers who remain employed.”
The report states: “In other words, this is reverse-Robin Hoodism: taking jobs and income from the poorest to give to those who are better off. The wealthy would be untouched.” All of you people who work in these jobs, just remember, this is caused by Obama and this is your party – The Democratic Party.” Remember they are going to help you – sure they are!
The researchers estimate that raising the minimum wage to $12 per hour would affect 38 million workers — those currently making from $7.25 to $12 an hour, and others who are making slightly more but who the researchers argue would also see an increase in income.
The hike would cost 3.8 million jobs. And a mere 5.6 percent of the income gained would go to workers at or below the poverty line, while 40 percent would go to families with incomes one to three times the poverty threshold; the rest would go to families with even higher incomes.
Raising the minimum wage to $15 would affect 55 million workers and cost 6.6 million jobs; only 6.7 percent of the income gained would go to workers in poverty.
The researchers note that the workers who are most likely to become jobless due to the minimum wage hike would be the low-wage workers the increase was intended to help.
They add: “We find that any potential benefits from raising the minimum wage would be greatly offset by the negative labor-market consequences of the policy.”
Holtz-Eakin is president of the American Action Forum and former director of the Congressional Budget Office. Gitis is director of labor-market policy at the American Action Forum.