Money Minute: Minimum Wage Hike a Job Killer? Coffee Prices Perk Up

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The Congressional Budget Office weighs in on the increasingly heated debate over raising the minimum wage.

The CBO is considered to be an important non-partisan voice in many policy debates. Its report on raising the minimum wage to $10.10 an hour offers ammunition to both proponents and opponents. The CBO says it would help lift 900,000 families out of poverty and increase incomes for 16.5 million people, but it would also lead to the elimination of about 500,000 mostly low-wage jobs.

Critics of the Obama economic program point to the low number of Americans who are counted as being part of the workforce, saying it indicates many people are so frustrated that they've stopped looking for a job.
But a deeper look at the numbers by the outplacement firm Challenger, Gray & Christmas finds almost all of the decline comes from teens. It says that trend started well before the recession began. And most of those teens aren't dropping out because of a lack of opportunity. Challenger says they don't want to work -- partly because of all the other activities they're involved in.

You might need some of extra change in your pocket to buy that morning cup of joe. The price of coffee futures soared by 10 percent Tuesday, the biggest one day gain in almost a decade. If prices go up at the retail level, you can blame a severe drought in Brazil.

Here on Wall Street, the Dow Jones industrial average (^DJI) lost 24 points Tuesday, but the Standard & Poor's 500 index (^GPSC) edged up by 2 points and the Nasdaq composite (^IXIC) rose 28, stretching its win streak to eight straight sessions.

In merger news, two mall-based jewelry chains are combining. Signet Jewelers (SIG), which owns Kay Jewelers, has agreed to buy Zale (ZLC) for $1.4 billion.

First Ford (F) shocked pick-up lovers by saying it will build next year's F-150 with aluminum, not steel. Now, the Wall Street Journal reports that General Motors (GM) will do the same with its Chevy Colorado and GMC Canyon. Both companies are trying to improve truck fuel economy.

-Produced by Drew Trachtenberg.


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18 Comments

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rence_reboredo

The way I see it people need to take life into their own hands now days, you can do that by learning how to trade the markets. I've been learning to the website Bionic Traders they have excellent videos and I just got their deal they are running and I'm very happy with their course material. The instructor is a very knowledgeable trader. I've been doing really well so far and my goal is within one month to quit my job and I believe I can do it.

February 25 2014 at 7:35 PM Report abuse rate up rate down Reply
theycallmeroy3

And wages have stagnated for those below the threshold. But its not just because of CEO's pay. Location, lack of formal education, and mortgage responsibilities can play a part. And there's talk of offering a insurance policy to this group. More from progressive liberals. Which goes to show a wade hike isn't the end of it.

February 19 2014 at 5:31 PM Report abuse rate up rate down Reply
1 reply to theycallmeroy3's comment
theycallmeroy3

wage.

February 19 2014 at 5:32 PM Report abuse rate up rate down Reply
theycallmeroy3

And its not just the top 1% doing well in this country. More the top 10 percent of wage earners, which opens the door to more than the argument against the pay of CEO's. It comes to life choices as well. And voters may eventually come to shun this, " I must have two chickens in my pot at all times. Regardless if I make poor choices in life."

The top 10% are educated, two parent households, in strong neighborhoods, with little crime.
Hardly a sin.

February 19 2014 at 5:21 PM Report abuse rate up rate down Reply
progressivehoax

Let them raise the wage, the only ones it will hurt are the low info slugs that voted Democrat.

February 19 2014 at 4:52 PM Report abuse -1 rate up rate down Reply
hdgoose

They have to raise min wage. Kids now are living with their parents until they are at least 30 yrs old. Its ridiculous. I don't want my kids living with me that long. Back in the day; I was able to live on my own since I was 19 yrs old. Now it is impossible today because low wage jobs did not keep up with inflation. . I don't feel sorry for the small businesses; if the owners have to tone down to a Mercedes instead of a Bentley so what?. Boo hoo; how about all those that have to take the bus because they can't even afford a beater car or pay the insurance on it? Have some pity on those that are down at the bottom. Don't give me that crap about they deserve to; or they need to move up. Up to what? I've been working for over 30 yrs; I should be a CEO now according to your logic; guess what? I'm not or anywhere close. Don't let the taxpayers support Wal Mart workers which qualifies them for public assistance while Wal Mart makes billions in profits. That is obscene and wrong.

February 19 2014 at 4:41 PM Report abuse +1 rate up rate down Reply
1 reply to hdgoose's comment
theycallmeroy3

It probably would be less painful for teens, if their parents paid them an allowance.The hike in Federal wages alone isn't the magic bullet on poverty, at all. There's little doubt Congress won't pass some kind of Federal wage hike, purely for political purposes. Yet, the problem is still there.

February 19 2014 at 5:09 PM Report abuse rate up rate down Reply
alfrankenfool

Just look at the posts from the Obamabots, Evan Barthold and hensonduncepfoolfeffer.

February 19 2014 at 4:25 PM Report abuse +1 rate up rate down Reply
tncsf

I'D RATHER BE WORKING FOR $7.25/HR THAN BE UNEMPLOYED FOR $10/HR.

February 19 2014 at 4:15 PM Report abuse +1 rate up rate down Reply
1 reply to tncsf's comment
hsenpfeffer

Heck you are getting 2 cents a post from your koch masters now. Do enough 2 cents a posts and you might get up to minimum wage.

February 19 2014 at 4:19 PM Report abuse -1 rate up rate down Reply
tncsf

Yes, without a doubt raising the minimum wage will result in enormous job loss, particularly in those industries that will now adopt automation to replace now higher-cost labor.

For instance, in Japan (Tokyo) more than 80% of fast food jobs have now been replaced by automation/robots. Flipping a hamburger or frying fries can just as easily be accomplished by a robot.

February 19 2014 at 4:01 PM Report abuse -2 rate up rate down Reply
1 reply to tncsf's comment
Ron

When it's profetable to replace the burger flopper with a robot they will do it if they are paying $5.00 or $20.00 an hour...............ed

February 19 2014 at 4:57 PM Report abuse +1 rate up rate down Reply
Stevie Diffy

Be the person that works at minimum wage. Then see how you will feel. Be the person that made more then minimum wage and had their pay cut back to minimum wage and see how you feel. Who and what would Jesus be for? They didnt get upset as much as when Jesus overturned the money changers table. When Jesus messed up the money is when they got fired up and wanted Him to leave ( the pigs that died ). So what are most of you concerned with? People or your money?

February 19 2014 at 3:48 PM Report abuse -1 rate up rate down Reply
BroPower

The Obama regime wants to "liberate" more Americans from working.!
Obamacare will set-free over 2 million jobs and
raising the minimum wage over 10 dollars
will liberate another million or more workers from working.

February 19 2014 at 3:30 PM Report abuse +1 rate up rate down Reply