Economist Morici: Obama's Minimum Wage Hike Will Cost Jobs

Wednesday, 19 Feb 2014 05:53 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
A leading economist says the Congressional Budget Office is correct when it says President Barack Obama's increase in the minimum wage for federal workers will lead to massive job losses.

"In the past when we've raised the minimum raise, it's merely been to catch up with inflation," Peter Morici, a professor of international business at the University of Maryland, told "The Steve Malzberg Show" on Newsmax TV.

"But the president is talking about a 40 percent increase. Going to McDonald's is going to be like going to the Automat. They won't be able to afford their people out there for you, or they'll be closing McDonalds," he said Wednesday.

Story continues below video.



The increase, to $10.10 per hour for federal workers, will also have a ripple effect, Morici says.

"What they didn't tell you, though, is if you raise the wages of 16 million Americans by $4 to $5 an hour, someone's going to be charging higher prices and those wages won't be worth what they're worth today," he said.

"So, a lot of this will be dissipated by inflation. What's more, the economy will grow more slowly and Mr. Obama will have less real dollars to pay all of his welfare programs.

"The programs that these people depend on, like Medicaid and food stamps and so forth, will be under increasing stress because, guess what, the president has discovered he can't cut defense any more."


See "The Steve Malzberg Show" on Newsmax TV each weekday live by clicking here now.



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

White House: GOP May Try to Impeach

Friday, 25 Jul 2014 11:43 AM

One of President Barack Obama's top advisers says the White House takes seriously the possibility that House Republicans . . .

Rasmussen: US Voters Expect Another Cold War With Russia

Friday, 25 Jul 2014 12:19 PM

Most U.S. likely voters expect a Cold War-style relationship between the United States and Russia, according to a Rasmus . . .

Pope Francis to Visit US Next Year

Friday, 25 Jul 2014 12:07 PM

Pope Francis will make a three-day trip to the United States next year - his first visit since becoming Pope in March 20 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved