Political Radar

`$10.10 option'

February 20th, 2014

The Congressional Budget Office has estimated that raising the federal minimum wage to $10.10 an hour -- up from $7.25 -- would cost 500,000 jobs but could help move 900,000 workers above the poverty threshold.

The report is instructive for Hawaii state lawmakers, who are also having a debate about raising the state's $7.25 an hour minimum wage.

From CBO:

Increasing the minimum wage would have two principal effects on low-wage workers. Most of them would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold. But some jobs for low-wage workers would probably be eliminated, the income of most workers who became jobless would fall substantially, and the share of low-wage workers who were employed would probably fall slightly.

7 Responses to “`$10.10 option'”

  1. Bart Dame:

    That report has been criticized by a lot of economists as off-base and inconsistent with the best recent studies. Here is one article for those interested in getting started in understanding the criticisms:


  2. Manoa_Fisherman:

    The Congressional Budget Office is suppose to be like our Legislative Reference Bureau, impartial and non-partisan. The CBO tells it like it is and many times defies the inclinations of both the GOP and Democrats. At $10.10, it looks like 900,000 people get to be raised out of poverty by a few hundred dollars, while 500,000 people are forced to be unemployed and put in permanent poverty. Clearly, all changes to the minimum wage have consequences, all people just have to acknowledge that fact, that's all.

  3. Especially Incognito:

    10.10 or 100.00 an hour, people will
    end up paying more taxes and it will
    not be beneficial if at 10.10 an hour,
    person still has to pay for Health Insurance
    or a part of it.

  4. Bart Dame:


    I am not accusing the CBO study of bias. It is essentially a survey of other studies, but its findings are at odds with other highly regarded "studies of studies" on the effect of minimum wage hikes. In fact, a consensus has formed among economists, with about a two to one ratio, that a hike in the minimum wage would have an imperceptible impact upon the rate of employment.

    So it is a bit jarring to see the CBO, after surveying the same literature, come to a different conclusion. Here, for example, is a "meta-study" of recent research on the minimum wage which reflects the more widely accepted view:


  5. Manoa_Fisherman:

    B. Dame:

    "There are three kinds of lies: lies, damned lies, and statistics." The same goes for "studies" often times. People are allowed to chose their own poison to bolster their positions. The bottom line is that one cannot ignore the fact that all choices have consequences and to ignore the obvious ones borders on lunacy.

    For instance, Act 48 that was to address "mortgage abuses" was a total waste of government resources when not one foreclosure used the DCCA's elaborate program. The politicians were told time and time again by the financial institutions, mortgage companies and attorneys that the law was not going to work, and yet Sen. Roz Baker insisted on implementing this new law. See: Sociopath definition. After the law failed, Baker insisted on even more changes to the law that were opposed by the same parties with valid concerns. Still no one was helped by these laws and made things more costly for people to obtain a mortgage. See: Psychopath definition.

  6. Auto de Fe:

    Roz Baker is both a sociopath and a psychopath? That's a terrible thing to say about sociopaths and psychopaths.

  7. Especially Incognito:

    There are two lies. A white lie by conservatives from those who say President Obama does black lies.

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