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Minimum-wage increase would cut Ohio jobs, group says

Published: Mon, July 30, 2012 @ 2:17 p.m.

WASHINGTON — The Employment Policies Institute has released a study examining proposals to raise the federal minimum wage to $9.80 per hour.

According to EPI’s analysis of recent Census Bureau data, a wage hike of this magnitude is projected to eliminate as many as 35,634 jobs for Ohio’s less-skilled and experienced workers.

Analyzing Census data, the study finds that the legislation is poorly targeted to those in poverty. The average family income of a beneficiary of a $9.80 wage hike in Ohio is $51,889 — well above the $15,080 year-round income cited by proponents of the minimum-wage rate increase.

The average family income figure reflects that nearly 61 percent those who would benefit from the increase either live at home with family, or have a spouse who also works. The study states 6 percent of beneficiaries are single parents supporting children.

“The economic consensus on raising the minimum wage is clear, and these latest proposals are no exception,” said Michael Saltsman, research fellow at EPI. “Instead of reducing poverty rates, a higher minimum wage reduces employment for the least-skilled job seekers.”


1JimiJam(3 comments)posted 2 years, 1 month ago

This just in: Fiscally conservative think tank opposes progressive legislation. In other news, sun continues rising in the East.

I wonder how many people still living at home with family would prefer moving out on their own, if only their jobs paid well enough to afford it.

Where's the explanation of how a wage increase would lead to job loss? The family income data has nothing to do with that claim, and the claim itself is only stated and restated. What about the other 34 percent of people who would benefit?

And is there any proposal as to how lower income workers might improve their circumstances? Is working at multiple low-paying jobs every waking hour the new American Dream? Surely the underpaid aren't supposed to rely on the safety net...

Wages have been stagnant for 40 years now, eroding the economic base of the nation. The old diamond-shaped structure has become a pyramid as the middle class has been allowed to shift lower, and with wages so inadequate to basic existence it's only a matter of time before that pyramid's wide base is chiseled away. Until someone can actually explain how increasing wages to reflect the current cost of living and rate of inflation, these proposals are the best means of reinforcing the economy's foundations.

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2sonnype(70 comments)posted 2 years, 1 month ago

Same old Republican party line.During the Bush years the Republican controlled Congress shot down a minimum wage increase three times and it wasnt until the Democrats gained control that the mininum wage was increased.Republicans only take care of the wealthy and the last Republican President that cared about the poor and middle class was Teddy Roosovelt.

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3Knightcap(699 comments)posted 2 years, 1 month ago

$9.85 is fine but at the same time kick a lot of the welfare and food stamp takers off the public dole.

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4AnotherAverageCitizen(1174 comments)posted 2 years, 1 month ago

That seems a little extreme to raise minimum wage that high.
But if the repubs had their way minimum wage would probably be $4.00 an hour.

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