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.”


Miller & Martin Attorney Honored As Fellow Of Chattanooga Bar Foundation

Miller & Martin attorney Ward Nelson has been recognized for his professional achievements and for his commitment to the Chattanooga community with an invitation to become a fellow of the Chattanooga Bar Foundation. Each year the CBF invites a select few to join the ranks of the local fellows. The fellows work to improve the study of law, improve the administration of justice, ... (click for more)

Baker Donelson Recognized In Managing Intellectual Property's 2016 IP Handbook

Baker Donelson has been recognized as a "highly recommended" firm in the 2016 edition of Managing Intellectual Property's IP Handbook, an annual publication which recognizes leading law firms and lawyers in intellectual property. Baker Donelson is one of six law firms listed as "highly recommended" in the state of Tennessee for its intellectual property work, which includes ... (click for more)

Customer At East Ridge Gas Station Shoots And Kills Robber; He Had Been Trying To Take Female Clerk With Him

East Ridge Police said a customer at an East Ridge gas station early Thursday morning shot a robber, who was then found by police lying outside the station and was arrested.  The robber has died.  His name is being withheld pending the notification of next of kin. At 1:47 a.m., East Ridge Police responded to 4011 Ringgold Road, the Marathon Service Station, on ... (click for more)

Bridge Repair Over 12th Street To Cause Temporary Lane Closure On US 27

While investigating a pothole in the bridge on U.S. 27 North over 12 th Street in the construction zone, crews discovered a potential weak spot in the bridge deck that could over time result in more damage to the bridge deck.  For the safety of the traveling public, the outside lane in this area will be closed until the contractor makes necessary repairs, TDOT officials ... (click for more)

A Disturbing Trend At Exit 11 - And Response (3)

So, am I the first to notice a trend?   How many wrecks does exit 11 need before anyone asks "whats up with that?"  I have lost count of the wrecks that continue to happen, even after last year's awful loss of life (which I believe 51 percent of the blame should fall on the THP officer on duty).  The problem with this section of interstate are sight lines ... (click for more)

Roy Exum: A Story You Won’t See

In a puzzling time when the big daily newspapers have veered strongly away from “all the news that is fit to print,” allow me to share a story that you very likely will not see on CNN, ABC News, or in the big media conglomerates that influence the way you think, the way you react and – as a result – easily warp our common senses. This story is very true. Late last Sunday afternoon, ... (click for more)