Obama’s Minimum Wage Gambit

 

The President’s proposal to raise the minimum wage is as politically clever as it is economically meaningless. The proposal is pointless in practical terms since it can’t become law and wouldn’t help the economy if it did. It is only significant because of what it says about President Obama.

The President is clearly learning how to use Republican dysfunction to his advantage. This gambit invites Republicans to put their most serious weaknesses on display. So far we are giving him what he hoped for and more. Any Republican response ought to begin by acknowledging the merits of the minimum wage.

While it’s true that a wage floor eliminates some jobs, that’s what it is meant to accomplish. In extreme circumstances, people can find themselves without negotiating leverage in the wage market. A wage floor, along with the rest of the social safety net, legislates out of existence certain jobs which are inherently exploitative.

  Along the way it incentivizes technological development, supporting careers in fields like computers and robotics which might not exist if the poorest in society could be starved into submission. Eliminating the wage floor entirely would do more than make the poor poorer. It would pull some of the momentum out of higher-paid industries, sucking wages downward for everyone.

While a minimum wage serves a purpose, it needs to be handled with care. An increase in the minimum wage moves the range of available careers higher up the value scale. However, if we shift it too far then lower-skill workers begin to suffer, seeing the opportunities to launch careers fade. For example, if the minimum wage were hiked to $20/hour, then the window of available careers will no longer include, as an example, the McDonalds restaurant. McDonalds might still provide drive-through service, but they could not afford to pay humans to do the work.

 Such a high minimum wage might make fast-food automation economically viable eliminating millions of entry-level jobs. Perhaps your Big Mac would be cooked and served by a mostly-automated restaurant. Your meal would cost a bit more and you might be less likely to get ‘screwed at the drive-through,’ but such a high wage floor could eliminate the entire concept of student employment and make unskilled work almost entirely redundant.

It makes sense to hike the minimum wage significantly if the mass availability of desperate workers is causing technology investment to lag. However, that is the opposite of what we are experiencing. Rapidly accelerating technical advances have created a long-term paradigm shift away from manual labor.

This has spawned twin problems, a frustrating talent drought in knowledge careers (unemployment for IT professionals is around 3%) and vast structural unemployment in less skilled jobs. Raising the minimum wage by a meaningful margin would exacerbate both problems at the same time. The modest increase Obama is proposing is probably too small to have any effect at all beyond its political value. According the Labor Department, in 2011 about 2% of American workers earned at or below the minimum wage. Most of them were under 25 and white. A tiny minority (3%) of hourly workers over 25 earn at or below the minimum wage.

The wage floor does little more than d etermine how many summer jobs the economy will support. That’s why there is little difference in the unemployment rates between states with a higher minimum wage and those that stick with the Federal rate. Our economy has developed to the point that the minimum wage is largely irrelevant.

The wage floor has no relationship to the most serious problem affecting low earners – our systemic failure to prepare workers to meet the exploding demand for technical fields. It takes years to prepare workers for knowledge careers. Those jobs are going unfilled and businesses are doing their best to adapt to the labor drought. All told, Obama’s proposal would probably eliminate a few thousand student jobs while doing nothing about our core problems.

Democrats are once again using the working poor as a backdrop for campaign photos. And Republicans can’t do anything about it. This would be the perfect moment for Republicans to unveil a rational, realistic program to address the collapse in upward mobility among the working poor and minorities. We can’t do that because we don’t have one.

We cannot develop sensible responses to real world issues while locked in an ideological fantasyland in which every problem is solved by cutting taxes, deporting Mexicans or humiliating pregnant teenagers. Jack Kemp is gone and no one has yet emerged with the courage or insight to continue his legacy. So, the gambit will probably succeed. President Obama and the Democrats are positioned to score a few more political points while struggling Americans languish.

For Republicans, it’s yet another opportunity missed.

About the Author: Chris Ladd is a Texan who is now living in the Chicago area. He is the founder of Building a Better GOP and has served for several years as a Republican Precinct Committeeman in DuPage County, IL, and was active in state and local Republican campaigns in Texas for many years. (Email: chrladd AT gmail DOT com)

Marilinda Garcia For New Hampshire House of Representatives

State Representative Marilinda Garcia was first elected to the New Hampshire House of Representatives in 2006, at 23 years of age. Elected to her fourth term in 2012, she currently serves on the Finance Committee and as Majority Whip for the Committee on Legislative Administration, and as a co-chair of the House Republican Alliance. She has previously served on the Committees on Children and Family Law and Election Law respectively.

http://elect-mari.com/

Gabriel Gomez running for MA Senate

                   

Contribute to Gabriel Gomez >

Learn About Gabriel >

Why I’m Running >

Read the Announcement >

J.C. Watts Launches 'INSIGHT America'

From BetNews:


J.C. "Buddy" Watts Sr., father of former Republican congressman J.C. Watts, in 1999 said, "A Black man voting for the Republicans makes about as much sense as a chicken voting for Col. Sanders." Back then, his son was the only African-American Republican in Congress and there's still just one. It is in part why Watts is taking steps to diversify his party by starting an organization called Insight.

Set to launch on Feb. 27, Insight will recruit students of color to serve in Republican offices, host professional development and policy forums and provide networking opportunities, Politico reports. The policy forums will kick off in March and focus on issues that affect ethnic minorities.

Watts, who runs a consulting firm, said he was inspired to create Insight in part by his time as a youth pastor. He hopes the group will help young people of color build the kinds of networks that build careers.

Read more: http://www.bet.com/news/politics/2013/02/19/j-c-watts-launches-group-to-groom-minority-republicans.html

Small Business, Entrepreneurship, Innovation, Key Ingredients to Latino Economic Progress

Coming off the heels of the grueling fiscal cliff debacle, it's beginning to be an exhausting endeavor just to follow with all these economic skirmishes in Washington. One last minute band aid-like fix comes after the other. First we witnessed the 2011 debt ceiling fight and the faulty agreement that followed all hashed out just days before the U.S. was set to fall into sovereign default.

Then we all saw Congress in session during the early hours of the new calendar year voting on legislation that, while protecting most Americans from higher tax rates, failed to address the underlying issue of national debt and deficit spending. These eleventh hour deals coming from a polarized Washington have done nothing for the economic well-being of Americans, and especially for a particular demographic: Latinos. As of November 2012, the unemployment rate among Latinos stood just above 10.0%, while the Latino poverty rate was a sobering 28%.

From January 2009 to September 2011, the median income for Latino households fell 2.3% from $38,667 to $37,759. These disheartening statistics have been worse for Latinos when compared to the general population in recent years and raise a valid question: What about the 2009 $1.2 trillion stimulus package and all the other left-wing economic policies through the years that were supposed to alleviate economic hardship among Latino communities? Any analysis of the economic state of inner-city Latino neighborhoods would provide ample evidence that expansion of social welfare programs and the government pumping money into various sectors at will, both of which are key pillars of the Democratic Party's economic platform, are not viable solutions to the financial challenges that Latinos across the United States face.

For too long, the elected officials who were supposed to serve Latino communities have taken the wrong approach. Rather than handing out money and wealth to Latinos, government at all levels should be focused on empowering Latinos to be able to act as rational actors carving their own economic path in this world. The key to this objective would be to encourage one thing: entrepreneurial behavior. Just like small business is the driving force that could bring about a robust economic recovery on a national level, a similar approach could bring similarly positive results to Latino communities all across America. Examining differing examples supplement this assertion. In California, the fastest growing group of residents opening small businesses is by far, Hispanic women.

However, there has yet to be any sign of economic improvement among California Latinos, undoubtedly due to the atrocious business climate in the Golden State. The incredibly burdensome tax system, an overwhelming regulatory code, and outdated labor union laws effectively inhibit entrepreneurship and innovation from taking root in California, therefore preventing Latinos in the state from being able to escape the dangerous cycle of being dependent on government handouts.

In contrast, Puerto Rico under Republican Governor Luis Fortuño and a center-right legislature passed a bevy of reforms to champion small business and innovation. After cutting taxes considerably both for individuals and businesses, deeply reducing the deficit by curtailing public spending and revoking excessive regulations, small businesses were given the opportunity to thrive.

The results were nothing less of extraordinary. Puerto Rico's unemployment rate was significantly reduced, Puerto Rican bonds reached a point at which they were outperforming bonds from every state in the Union, and the World Economic Forum determined that Puerto Rico's economy made a meteoric rise to become the second-most competitive economy out of all the Ibero-American countries, surpassed only by Chile, a country notorious for its preference for free markets.

Aside from achieving economic freedom solely through government action, entire communities can benefit if entrepreneurial behavior is encouraged and widespread enough. The Cuban community in South Florida quite possibly has the strongest culture of entrepreneurship among all Latino groups in the country, and subsequently, Cuban Americans have the highest median income out of all Hispanic groups, standing at $36,671 per household.

Furthermore, U.S.-born Cuban Americans have an average median income of roughly $50,000 a figure that surpasses even that of non-Hispanic whites. Encouraging entrepreneurship and championing small business are essential to ensuring that Latinos are empowered en masse to improve their economic standing. Only after tapping into brain-power and innovative potential of many Hispanics can we expect to see significant economic progress among Latino Americans.

© El Republicanos 2013

Randall Ramos is currently a sophomore attending California State University, Northridge, pursuing a Bachelor’s degree in Political Science as well as a teaching certificate in ESL. Mr. Ramos interned at the Republican Party of Los Angeles County and worked on Todd Zink’s campaign for California State Senate. Other activities include serving as acting President of the newly formed CSUN chapter of the Puerto Rico Statehood Students Association.

Young, Hispanic & Republican: Tough but Worth It

Having political conversations with both family and friends, while mentioning that I'm a Republican gets the usual response. “Why?” Porque si son racistas (Why would you, if they are racist), why would you ever be a Republican? Don’t you know they do not like Hispanics?  They (Republican Party) want to deport us all (Hispanics).

The conversation usually spirals downward to basically denigrating my support for the Republican Party. Interestingly, the responses just mentioned come as no surprise to me, given that 71% of Hispanics voted overwhelmingly for President Obama and the Democratic Party; that said, I wouldn’t want to want to highlight this as being the experience of every young Hispanic.

I can only speak about my own experience. Truth be told, I cannot blame those who question my political affiliation, for the most part Spanish (and English) media tends to focus on liberal Hispanic voices while labeling the Republican Party as a “self-deportation” and “anti-immigrant” Party. The media also likes to highlight more of the negatives in the party versus the positive. Over time this leads to the perception that the Party on a whole is bigoted. As someone who knows many Republicans; I know this is not true.

Our media loves to highlight those individuals who hold strong viewpoints on immigration; often they are the ones making incendiary remarks. These remarks are then picked up and broadcasted all over the Spanish speaking world (not just America) rarely does the media have speakers who are immigrant friendly on such as Senator Marco Rubio and former Secretary of Commerce Carlos Gutierrez. I do agree that we have to fix our immigration system, secure our borders and prosecute undocumented criminals who are causing trouble in the U.S. and send them back to their home country.

But, I also strongly believe that the Republican Party can do this while also bringing in more young Hispanics to the Party; in order for them do this, they need to open up and work on a solution to immigration that doesn’t start with “self-deportation.” Former Secretary of Commerce Carlos Gutierrez has even established a Political Action Committee called “Republicans for Immigration Reform” to increase the number of Hispanics in the Republican Party.

 I am the first to admit how herculean the task will be. When your own 2012 nominee (a moderate) stands up and uses “self-deportation” rhetoric; the road appears even harder. Yet, despite all this, I maintain my stance that Republican Party is both immigrant and Hispanic friendly; and this despite the rebuttals by those affiliated with the Democratic Party.

One only look at history to show proof of this. Before President Clinton took office Nixon was on record as having hired the most Hispanics to his administration; and President Reagan is the only U.S. President to grant amnesty. In a previous post on my blog I mention four points that should advocated from the Republican Party to increase young Hispanics to join the Party; which are immigration, free market capitalism, community engagement and education.

 Being a young, Hispanic and Republican is nothing to be ashamed about. It is better to stand alone; as an individual, rather than follow the crowd. The future of Hispanics and Republicans must start today. Both, the Hispanic community and the Republican Party must speak honestly to one another.

Hopefully, such honesty talk will lead to effective policy that will lead other young Hispanics to consider supporting the Republican Party. With regards the media coverage of Hispanics and Republican, it will always do what it needs to do for higher ratings.

The real question: will (despite perceptions) young Hispanics be more open to joining the Republican Party in the near future? I cannot guarantee a drastic change but having an open conversation could be a great start.

Don’t you think so?


Jose L. Fulgencio is Publisher of El Republicanos “Hispanic Center-Right Commentary, News & Politics” blog. Follow on Twitter at @jful51 

©El Republicanos 2013

Job creation policies matter to Latinos

By Alicia Criado, policy associate, Economic and Employment Policy Project - 12/19/12 09:00 AM ET

(The Hill's Congress Blog) 

I recently received an email from Vicky, an NCLR supporter, who thanked me for reporting each month on how Latinos are doing in today’s economy. She also shared that she is unemployed and has come to realize that being bilingual is not enough to help her land a job. Vicky does not have postsecondary education has found that employers want the whole package in a worker: adequate training, in-demand skills, and education beyond high school.

Many jobseekers like Vicky are keenly aware of what it takes to stand out in today’s job market, where the ratio of unemployed workers to job openings is more than three to one. Just over five years from now, in 2018, only 10 percent of jobs in the U.S. economy will be open to workers with less than a high school degree. Yet today nearly two out of five (38.4 percent) Latino adults — and almost half of foreign-born Latino adults (47.5 percent) — do not have a high school diploma. These facts are alarming given that by 2050 one in three American workers will be Latino.

It is not clear that the legislators who Vicky and approximately 12 million Latinos helped elect in 2012 understand the needs of the Latino workforce. According to our latest report,Now Hiring?  Latinos and the Job Creation Policies in the South Atlantic, legislators in South Atlantic states have made plans to create jobs without taking stock of the barriers that the burgeoning Hispanic labor force faces. State policymakers are paying little to no attention to the intersections of local job creation policies and current state workforce development, immigration, and transportation systems. Necessary investments in programs like basic skills training, which help Latinos successfully compete for jobs, are often overlooked. Priority is placed on developing and expanding tax incentives to encourage companies to create jobs and endorsing actions like anti-immigrant legislation that hinder Hispanic workers’ access to employment. These choices are to the detriment of workers and businesses alike, thus undermining job growth initiatives.

There is a need for significant policy adjustments at the state level to ensure that jobs in the fastest-growing industries are available to Latinos, the fastest-growing segment of workers. Given the diversity of Latino workers, a one-size-fits-all approach won’t work when developing strategies to meet their unique needs. This is especially true for Latinos in the South Atlantic. Disproportionate numbers of Hispanics in the region possess limited formal education or English proficiency and largely have inadequate access to language training. For example, among Latinos over the age of 25 in Georgia, 44.2 percent have not completed high school and 70.5 percent have limited English proficiency. If we look at this same population next door in Florida, we find that just 26.3 percent do not have a high school diploma and 57.4 percent speak English less than very well. Solutions and approaches must be tailored to local needs.

Now more than ever there is a need for policymakers to ensure that Latinos have a seat at the table to inform the job creation agenda at the state level.  The needs and concerns of the Hispanic community should no longer be an afterthought. The early warning signs uncovered in Now Hiring? Latinos and the Job Creation Policies in the South Atlantic call for serious policy discussions on how to ensure that jobs are within reach for a broader share of workers and their families. It is paramount that in this time of limited resources legislators endorse customized policy solutions that benefit employers and cultivate the workforce for years to come. These discussions can’t wait because our economy won’t work without Latinos.

http://thehill.com/blogs/congress-blog/economy-a-budget/273541-job-creation-policies-matter-to-latinos

How Latino legislators voted on the fiscal cliff, and potential fallout

by Sandra Lilley, @sandralilley

1:35 pm on 01/02/2013

The Latino legislators who voted in favor of a compromise to avert a fiscal cliff – mostly Democrats but including some Latino Republicans such as Florida’s Congressman Mario Diaz-Balart and Congresswoman Ileana Ros-Lehtinen – said they did it to ensure taxes would not increase on working to middle-income families.

“While this bill has its flaws, it immediately and permanently cuts taxes on 98 percent of the American people and 97 percent of small businesses,” stated Republican Congressman Mario Diaz-Balart,  who was in the minority of Republicans who voted “yes” to the legislation.  Outgoing Texas Democratic Congressman Charles Gonzalez, who is also the outgoing Chair of the Congressional Hispanic Caucus (CHC), voted in favor of the legislation, as did most Latino Democrats.  ”President Obama has kept his promise to protect the most vulnerable American families from further economic hardship,” said CHC Chair Gonzalez, who also praised the fact that the compromise preserved emergency unemployment insurance for 2 million households.

“The fiscal cliff agreement received significant support from both Democrats and Republicans, hopefully a sign of better things to come in the next Congress,” said California Democratic Congresswoman Loretta Sanchez, who also voted in favor of the deal.

The compromise “fiscal cliff” vote – which was eked out at the last possible minute before a series of tax cuts would have automatically ended – keeps the Bush-era tax cuts for most Americans except those making more than $400,000 dollars or families making more than $450,000 annually.  It also extends unemployment insurance and tax credits for working families as well lower and middle income families with children in college.

“We applaud the White House and Congress for working together to deliver a fair approach to reducing our deficit that doesn’t come at the expense of vulnerable, working and middle-class families,” said National Council of La Raza’s Janet Murguia, who supported the legislation.  Murguia also added the tax plan “is a strong first step toward ensuring that the burden of deficit reduction is shared more fairly, without jeopardizing the health of our economy and the financial security of Latinos and other vulnerable communities.”

Not everyone agrees, however.  Most Republican Latino legislators, like Florida RepublicanSenator Marco Rubio, voted against it.

“Of course, many Americans will be relieved in the short term that their taxes won’t go up,” said Senator Rubio in a statement, staying true to his Tea Party roots, which opposes any tax increases.  ”However in the long run, they will be hurt when employers pass on to them one of the largest tax hikes in decades. Furthermore, this deal just postpones the inevitable, the need to solve our growing debt crisis and help the 23 million Americans who can’t find the work they need,” said Rubio.

Rubio’s action drew praise from conservative Latinos such as political blogger Javier Manjarres, of The Shark Tank.  ”Rubio and his ‘gang of eight’ need to be commended from ‘bucking’ his squishy established Republican leadership in the Senate, after they bowed down to President Obama and compromising principles, again,” wrote Manjarres.  Daniel Garza, of the Libre Initiative, which advocates for less government spending, stated recently that “by refusing to recognize that the real fiscal cliff is our sky-high national debt and the pending entitlement crisis, the real losers are future generations of Americans who will be forced to endure a fiscal reckoning in just a few short years,” Garza said.

“Rubio is clearly trying to stake out some presidential territory here; he wants to be able to say he did not vote for any tax increases,” says University of Washington political scientist Matt Barreto, who explains that while this may appeal to very conservative voters, it can backfire among most Latino voters as well as many general election voters. “We found most Latino voters we polled wanted Congress to work out a compromise,” says Barreto.  He also adds that Mitt Romney’s “hard tack to the right” in the primaries backfired, and the same thing could happen to Rubio with Latino voters if there is a continued “disconnect” between the Florida Republican Senator and many voters.

RELATED:  Taxes are rising, but it could have been more painful 

California Democratic Congressman Xavier Becerra, who is on the influential House Ways and Means Committee, which formulates tax law, voted against it. Becerra, who is also the Vice Chair of the House Democratic Caucus, said the legislation did not do enough to ensure more job creation while dealing with the longer-term challenge of the deficit.  Becerra said House Republicans had “walked away” from the negotiating table until the last minute, leaving this “last-minute agreement on taxes.”

“In the end, I could not support this short-term fix which may spawn additional long-term problems, putting off until later the tough decisions on taxes and our nation’s debt and deficits, while also ignoring the biggest deficit challenging America’s prosperity: a jobs deficit,” said Congressman Becerra.

While Becerra’s politics are more consistent with Latino voters, who favor a combination of tax increases on wealthier families along with debt reduction, Barreto says there is a risk for Becerra too as he voted against the majority of  his party.  ”While Becerra is in a safe district and his politics are more consistent with Latino voters, he still could be tainted as someone who failed to go along with a compromise that was led by Vice President Biden and many of the Democrats.”

http://nbclatino.com/2013/01/02/how-latino-legislators-voted-on-the-fiscal-cliff-and-potential-fallout/

Tea Party Texan Cruz Gives GOP Hope In Hunt For Hispanic Votes

NPR | Jan. 01, 2013 2:35 p.m.

Sen.-elect Ted Cruz of Texas is a bright young Hispanic star who will be sworn in this week in Washington. The Republican Party nationally hopes Cruz will be part of the solution to its growing problemluring Hispanic voters.

Almost nobody had heard of Cruz when he began his campaign for the U.S. Senate. But when he stepped in front of a microphone, he could light up a room in a way that made the other Republican candidates seem lifeless.

"We're here to talk about politics," Cruz told a group of West Texas Republican women on the campaign trail. "If you go back to the ancient Greek, politics had two parts: 'poly' meaning many and 'tics' meaning blood-sucking parasites."

After laughter and applause, he continued: "Look, we're all tired of empty talk. I mean, what's frustrating as a voter is you see candidate after candidate that talks a good game, says they're going to cut our taxes, says they're going to stand for principle, and then they go to Washington and they turn into a spineless jellyfish."

Cruz had been speaking for just 40 seconds, but the West Texas women were nodding and laughing and saying "Amen." Cruz paced in front of them with a wireless microphone like a Cuban Tony Robbins — young, smart, good looking, intense, no notes, no teleprompter, his words and ideas flowing seamlessly.

He spent less time attacking President Obama than what he calls the "sold-out Republican establishment." He campaigned as a Tea Party true believer, calling to his followers to march with him to the barricades.

"From Ed Meese to Phyllis Schlafly to Dr. James Dobson to the five strongest conservatives in the U.S. Senate — Jim DeMint, Mike Lee, Rand Paul, Pat Toomey and Tom Coburn — every one of them is united behind this campaign," he told the crowd. "If conservatives continue to unite — and I ask for your help — we're going to win this race, and when we win this race Texas will lead the fight."

With no money, having never run for office, Cruz crushed Lt. Gov. David Dewhurst by 14 percentage points in the Republican Senate primary. Then he sailed to victory by an even bigger margin in the general election.

In the 1950s, Cruz's father fought beside Fidel Castro in Cuba but became so disenchanted with the revolution's aftermath that he became a staunch conservative after moving to the United States. His son has followed his father's footsteps, becoming a strict constitutionalist.

"Ted Cruz is someone who believes firmly in the United States Constitution and what it was intended to achieve," says Texas Attorney General Greg Abbott, who was Cruz's boss and remains a good friend. "He was able to translate that into a unifying campaign across the state. Unifying those who believe that America has lost its way and bringing along those who see a brighter future for tomorrow. "

Many in the GOP hope Cruz will be able to bring more Latino voters into their column. But he takes a Tea Party hard line on immigration. He's for bigger border walls patrolled by drones from above and is against the Dream Act. In the general election, Cruz did about as well as Republican presidential nominee Mitt Romney did with Texas Hispanic voters — which is to say, not very well.

"I think he's got time to think about this and to figure it out," says Ross Ramsey, executive editor of the Texas Tribune. "He doesn't have to stand for election, so he can experiment. He's got a period here where he can figure out where he fits in the Washington spectrum, where he fits in the national Republican Party and how the Hispanic politics work. But I think he's clearly in place, if it develops right, to become a national player."

If there's one thing political opponents have learned about Cruz, it's that you underestimate him at your own peril.

Copyright 2013 National Public Radio. To see more, visit http://www.npr.org/.

http://www.opb.org/news/article/npr-tea-party-texan-cruz-gives-gop-hope-in-hunt-for-hispanic-votes/