Alexander: Minimum Wage Hike “A Stale, Bankrupt, Ineffective Policy” That Will Destroy 500,000 Jobs

Wednesday, March 12, 2014

At a hearing on Wednesday of the Senate labor committee, Senator Lamar Alexander, the committee’s senior Republican, said there were better ideas with bipartisan support to reduce poverty than Democrats’ proposal to increase the minimum wage by nearly 40 percent, which would cause a loss of 500,000 jobs, according to a balanced view by the nonpartisan Congressional Budget Office.

“I believe families shouldn’t live in poverty but the idea of raising the minimum wage to address that is a stale, bankrupt, ineffective policy,” Senator Alexander said. “According to the Congressional Budget Office, it will cost low-wage workers 500,000 jobs, make it harder to create more jobs, and give 80 percent of the benefits to families above the poverty level.”

Senator Alexander said there are a number of amendments and proposals “that Republican senators would like to offer to this bill when we have an opportunity to amend it—proposals that will create a pro-growth economy with more good jobs.”

“There are better ideas,” Senator Alexander said. “Reform refundable tax credits to benefit all low-income workers, replace long-term unemployment compensation with job training, change Obamacare’s work week definition from 30 hours to 40 to encourage full-time jobs, and use existing federal education dollars to give children of low-income families a $2,100 scholarship to choose a better school.”

At the hearing, in response to Senator Alexander’s questions, Congressional Budget Office director Douglas Elmendorf testified that the CBO projects job losses as a result of increasing the minimum wage to $10.10 an hour could reach as high as 1 million, or as little as a very slight decrease, and that 500,000 losses was its “central estimate.”

Mr. Elmendorf also testified that just one in five of the dollars earned from the increase will go to workers who are members of families below the poverty level, and that nearly one-third of those families that would benefit from the minimum wage increase already earn more than three times the poverty level.

Senator Alexander said,“My hope is that if we were going to continue to consider this proposal about jobs, that we would be allowed to offer amendments that would do better than cause a loss of 500,000 jobs—according to a balanced view by the nonpartisan Congressional Budget Office—and would provide benefits to a greater share of Americans living below the poverty level than the 2 percent this proposal would help—also according to the CBO—and that would not make it more expensive to create jobs, which would seem to me to be exactly the opposite of what we should be doing in a period of time when we’ve had such longstanding unemployment among so many people.

“We would like to raise family incomes. We would like to help people move up the economic ladder. But we have a different philosophy. We’d like to take the big, wet blanket of rules and regulations off the economy that has been put on in the last few years and offer specific amendments that would that would create more growth in our economy, more jobs.”


Salon And Spa Joins Cambridge Square

Cambridge Square developers have announced the addition of Spalon Three to the community’s tenant family. Spalon Three, which is owned by Ooltewah resident Shawn Dunn, is a combined spa and salon concept that will occupy 2,500 feet on the community’s public square. Opening date is slated for late spring 2015.  Cambridge Square is a commercial, retail and residential development ... (click for more)

New Hamilton County Businesses

Here are the new business licenses from the County Clerk's office: 3 I'S PERSONAL CARE SERVICES 4447 JAMES DRIVE CHATTANOOGA, TN 37416 ALL AMERICAN SUBCONTRACTOR LLC VARIOUS LOCATIONS CHATTANOOGA, TN 37402 ALL AMERICAN TREE SERVICE 5245 DONLYN LANE HIXSON, TN 37343 ARC FITNESS STUDIO 4716 MURRAY HILLS DR CHATTANOOGA, TN 37416 ARCHITECTURAL ... (click for more)

Cabela's To Open Fort Oglethorpe Store May 13

Cabela’s announced Monday plans to celebrate the official grand opening of its new Fort Oglethorpe store on Wednesday, May 13, with a unique ribbon-cutting ceremony followed by a weekend-long celebration featuring giveaways, family activities and more.  The ribbon-cutting ceremony, hosted by Cabela's executives and special guests, will begin at 9:45 a.m. and conclude with ... (click for more)

City Detective Who Was Arrested Twice In 4 Months Is Fired After Internal Affairs Investigation

A city detective who was arrested twice in four months has been fired by Police Chief Fred Fletcher. David Catchings had been charged with DUI last September and then with domestic assault at the end of the year. Police said, "After a complete review of both investigations – which included recommendations from Internal Affairs, the Administrative Review Committee and Officer ... (click for more)

Physicians Thank Their Patients On Doctor’s Day

March 30 has been set aside as National Doctors’ Day since 1933 as a time to recognize the contributions made by our physicians. While the recognition is appreciated, our greatest satisfaction comes from caring for our patients.  For 132 years, the Chattanooga-Hamilton County Medical Society has been the physicians’ voice as we worked together to improve health of our community. ... (click for more)

Roy Exum: Goodbye, Dr. Nassour

About 51 years ago, right after Jim Creel had graduated from the University of Texas and was in Guadalajara for medical school, he was surprised to find a complete stranger sitting on his battered and dusty Volkswagen. “He had seen my Longhorns sticker and was thrilled to find somebody else in Mexico who loved the University of Texas. “That’s when our friendship started and it ... (click for more)