Minimum wage
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FILE PHOTO: A newly constructed Target store is shown in San Diego, California May 17, 2016. REUTERS/Mike Blake/File Photo
April 4, 2019
By Nandita Bose
WASHINGTON (Reuters) – Target Corp will raise its U.S. minimum wage to $13 an hour in June, from $12 currently, increasing its payroll costs and putting new pressure on rival Walmart Inc to attract retail workers in a tight labor market.
Minneapolis-based Target employs over 300,000 workers and runs 1,845 stores in the United States. The discount chain is investing billions of dollars to improve its supply chain, grow its online sales and improve delivery of merchandise to shoppers’ homes.
Target previously raised minimum hourly pay to $12 in March 2018 from $11. In 2017, Target, said it was committed to raising its minimum wage to $15 an hour by 2020. The wage increase will affect “tens of thousands” of employees, a Target spokeswoman said.
Retailers have been finding it tougher to attract workers, with U.S. unemployment at its lowest level in nearly 50 years, while there has been growing political pressure on companies to pay workers a fair living wage.
Walmart, the world’s largest retailer and the largest U.S. private sector employer, pays workers $11 an hour at entry-level. Walmart did not immediately respond to a request for comment.
Amazon.com Inc raised its minimum wage to $15 an hour in October after facing harsh criticism over poor pay and working conditions. The online retailer said at the time that it would lobby Washington for the federal minimum wage to be raised.
The $15 minimum wage movement has found support from Democrats, including Senator Elizabeth Warren, who is running for the party’s 2020 presidential nomination, and Representative Alexandria Ocasio-Cortez, part of a new crop of Democrats swept into office this year on a stronger liberal platform.
“Croissants at LaGuardia (New York airport) are going for seven dollars a piece,” Ocasio-Cortez tweeted on April 1. “Yet some people think getting a whole hour of personal, dedicated human labor for $15 is too expensive??”
Amid the growing political pressure, other companies have also moved to raise wages. For example, Costco Wholesale Corp raised its minimum wage twice in a year and since March pays employees at least $15 an hour.
In a blog post due to be published on Target’s website on Thursday, the company’s Chief Human Resources Officer Melissa Kremer tied the minimum wage hikes to the company’s strong holiday performance, saying it “made a big difference.”
In March, Target forecast 2019 profit above Wall Street estimates after a strong holiday season.
“We were able to start them all (seasonal hires) at $12 or more – and that helped us reach our seasonal hiring goal ahead of schedule, which gave our teams a lot of extra time to train and prepare for our busiest season of the year,” Kremer said.
It was not immediately clear if Target employees who already make $13 an hour will also see an increase in pay.
Target’s spokeswoman said the company would evaluate hourly pay rates for such employees and make adjustments as appropriate. With some of Target’s previous wage hikes, such employees have been entitled to an annual merit raise and a pay-grade hike.
(Reporting by Nandita Bose in Washington, Editing by Rosalba O’Brien and Lisa Shumaker)
Source: OANN
Raising the minimum wage might be good politics, but it’s bad economics – despite what some economists say.
Last week, the Maryland legislature overrode the governor’s veto and adopted a $15 per hour minimum wage. It was a major victory for the “Fight for $15” crowd, but it almost certainly won’t be for low-skilled workers — at least not the ones who whose maximum wage will be $0 per hour because they cannot find jobs.
The minimum wage debate takes place within a swirl of emotion that tends to blind us to basic facts. Wages are nothing but prices. And when the price for something goes up, demand for that thing drops. This is one of the most fundamental laws of economics. But for some reason, huge swaths of the population think this economic law ceases to operate just because you apply it to labor.
It doesn’t.
From this simple economic truth, we can safely say that employment levels for low-skilled workers will be lower with a higher minimum wage than it otherwise would have been.
People impacted by highly-taxed industries voice their stories and how it destroyed jobs and opportunities.
As recently as the 1980s, this was almost universally accepted by economists — even those on the left. But things changed in 1994 with the release of the Card-Krueger study that purported to show raising the minimum wage did not have a substantial impact on employment. Economist Robert Murphy explained what happened in a 2014 article.
“Once the researchers controlled for other trends, it appeared that in practice, modest increases in the minimum wage had a negligible impact on employment in the low-skilled and teen populations. Indeed, this revisionist literature has grown so influential that, recently, 75 economists—including seven Nobel laureates—publicly signed a letter to prominent federal politicians, urging them to raise the federal minimum wage to $10.10 by 2016.”
So, what gives?
This is a prime, real-world example of a truth economist Frank Shostak explained in a recent article: without a firm grasp of basic economic principles, it becomes impossible to properly evaluate any observations you make and to properly interpret economic data.

Murphy and Tom Woods discussed these minimum wage studies during episode 182 of the Contra Krugman podcast. A Murphy pointed out, there has been a raging debate over these studies in the economic literature for years. Using different assumptions and variables in their equations, researchers can “prove” completely opposite conclusions using the exact same data-set. As Murphy put it, you can manipulate the math to “prove” just about anything.
This reveals an underlying problem with economic data-driven research. You can’t put the economy in a laboratory and isolate a single factor. There are hundreds of variables impacting employment in an economy at any given time. It’s virtually impossible to isolate the minimum wage and definitively say, “X caused Y.” Murphy summed it up this way during the podcast.
“This stuff is tricky and a lot of times when you get into the weeds of it’s just ‘Aw, well they have their specifications and we find these statistically significant results,’ and these guys tweak it and you end up with something else. The data is messy and it’s noisy. That’s the problem with this stuff too. There are a lot of things going on besides just hiking the minimum wage that changes employment, and so, if you want to, you can keep changing your specifications until you get the result you want. You haven’t lied. You did the regression correctly given the data and the specification you looked at.”
Again – you have to have solid economic theory. And the logic of supply and demand is irrefutable. If you raise the price of labor, there will be less labor used. If a person produces $10 per hour of output, you aren’t going to pay him $15 per hour.
Opponents of the minimum wage are often caricatured as unconcerned with the plight of poor, low-skilled workers. And yet it’s the policies pushed by “Fight for $15” crowd that actually hurts the employment prospects of many of these workers. Of course, the workers who manage to keep their jobs will benefit from the higher pay. But lost in the analysis are those workers who lose their jobs or never get hired to begin with. They make nothing. And sadly, the remain virtually invisible in the political calculations.
Economist Frederic Bastiat implores us to look not only at the seen but also the unseen. This is the mark of a good economist. But politics only pays attention to what is seen. What is unseen can be swept under the rug for political expediency.
Minimum wage advocates seek to solve a legitimate problem facing American workers: their dollars buy less and less every year. But simply mandating employers fork over more dollars is a little like putting a band-aid on an amputation. It doesn’t do anything to address the underlying problem. We don’t have a wage problem. We have a money problem.
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Source: InfoWars

FILE PHOTO: Mexico’s President Andres Manuel Lopez Obrador looks on during a meeting with industry bosses and members of his cabinet to discuss the new administration’s policy on the minimum wage at National Palace in Mexico City, Mexico December 17, 2018. REUTERS/Edgard Garrido/File Photo
April 2, 2019
MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador said on Tuesday that the country’s economy will grow “at least” 2 percent this year, projecting a larger expansion than a government estimate issued just a day earlier.
On Monday, the finance ministry lowered its 2019 growth estimate to between 1.1 percent and 2.1 percent, compared to a previous estimate of between 1.5 percent to 2.5 percent.
Lopez Obrador told reporters at his regular morning news conference on Tuesday that the projection was too conservative.
“I think their forecast was too low. We’re going to grow at least by an estimated 2 percent this year … and 3 percent next year,” he said.
The former Mexico City mayor promises an end to what he calls neoliberal projects and has targeted 4 percent growth by the end of his six-year term. He added that he will pursue “a better distribution of revenue, a better distribution of wealth.”
(Reporting by David Alire Garcia and Diego Ore; Editing by Susan Thomas)
Source: OANN

FILE PHOTO: U.S. Labor Secretary Alexander Acosta speaks at the SelectUSA Investment Summit in National Harbor, Maryland, U.S., June 20, 2017. REUTERS/Kevin Lamarque/File Photo
April 1, 2019
By Daniel Wiessner
(Reuters) – The U.S. Department of Labor on Monday issued a proposal that would make it more difficult to prove companies are liable for the wage law violations of their contractors or franchisees, a top priority for business groups.
If adopted, the rule would likely help fast-food companies and other franchisors who have been sued by workers in recent years for wage-law violations by franchisees.
The department in 2017 had already repudiated legal guidance issued by the Obama administration that had expanded the circumstances in which a company could be considered a so-called joint employer under the federal Fair Labor Standards Act (FLSA).
Labor Secretary Alexander Acosta in a statement said Monday’s proposal would reduce litigation under the FLSA and provide clarity to businesses and courts. The FLSA mandates that workers be paid the minimum wage and overtime, among other requirements.
Publication of the rule kicked off a 60-day public comment period.
Under the proposal, companies would be considered joint employers only if they hire, fire, and supervise employees, set their pay, and maintain employment records. That would likely exclude many franchisors and companies that hire contract labor.
The Obama administration’s guidance included several other factors, such as the nature of the work being performed and whether workers were integral to a company’s business. That definition of joint employment had rankled the business community, which said it threatened the franchise business model and would lead to a spike in lawsuits.
Matt Haller, vice president at the International Franchise Association, a trade group, said the Obama-era rule had led to frivolous lawsuits and changed the way franchisors interacted with franchisees.
“Through this proposal, the Department of Labor has the chance to undo one of the most harmful economic regulations from the past administration,” he said.
The Obama-era regulation was not legally binding, but Monday’s proposal would be if it is adopted. That would make it more difficult for future administrations to undo, but also open it up to legal challenges.
The proposal comes as the National Labor Relations Board is moving to roll back a separate Obama-era standard for determining joint employment under federal labor law, which governs union organizing and workers’ rights to advocate for better working conditions. Under a rule the NLRB proposed in September, companies would have to possess direct control over working conditions to be considered the joint employer of franchise or contract workers.
(Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Matthew Lewis)
Source: OANN

FILE PHOTO: Mexico’s President Andres Manuel Lopez Obrador looks on during a meeting with industry bosses and members of his cabinet to discuss the new administration’s policy on the minimum wage at National Palace in Mexico City, Mexico December 17, 2018. REUTERS/Edgard Garrido/File Photo
April 1, 2019
MEXICO CITY (Reuters) – Mexico will help to regulate the flow of Central American migrants passing through its territory, but the root causes behind the phenomenon must be tackled, Mexican President Andres Manuel Lopez Obrador said on Monday.
Speaking after his U.S. counterpart Donald Trump on Friday threatened to close the U.S. southern border if Mexico did not halt illegal immigration immediately, Lopez Obrador said he would not have a confrontation with the United States.
“I prefer love and peace,” Lopez Obrador said, speaking at his regular morning news conference.
(Reporting by Dave Graham; Editing by Chizu Nomiyama)
Source: OANN

FILE PHOTO: Mexico’s President Andres Manuel Lopez Obrador looks on during a meeting with industry bosses and members of his cabinet to discuss the new administration’s policy on the minimum wage at National Palace in Mexico City, Mexico December 17, 2018. REUTERS/Edgard Garrido/File Photo
March 28, 2019
MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador said on Thursday he was committed to helping curb illegal immigration after renewed Twitter criticism by U.S. counterpart Donald Trump, but he suggested it was an issue chiefly for the United States and Central America to address.
Illegal immigration across the U.S. border has caused persistent bilateral tensions ever since Trump launched his bid for the presidency almost four years ago, saying that Mexico was sending rapists and drug runners into the United States.
With initial campaigning for the 2020 U.S. presidential election already underway, Trump sent out a tweet early Thursday that again attacked Mexico over migration.
“Mexico is doing NOTHING to help stop the flow of illegal immigrants to our Country,” Trump wrote. “They are all talk and no action. Likewise, Honduras, Guatemala and El Salvador have taken our money for years, and do Nothing.”
Trump again threatened to close the U.S. southern border.
At his regular morning news conference, Lopez Obrador was asked about Trump’s tweet, and said he was focused on addressing the root causes of migration. He repeated that he wanted a cordial relationship with Trump.
“We respect president Trump’s position, and we are going to help. That is, this is a problem of the United States, or it’s a problem of the Central American countries. It’s not up to us Mexicans, no,” Lopez Obrador told reporters.
“I just emphasize that migration flows of Mexicans to the United States are very low, a lot lower,” he said. “The Mexican is no longer seeking work in the United States. The majority are inhabitants of our fellow Central American countries.”
Trump’s latest broadside came one day after the United States, Honduras, Guatemala and El Salvador agreed to conduct joint police operations in Central America to improve border security and tackle illegal immigration.
The three countries account for the bulk of migrants apprehended trying to cross illegally into the United States.
Trump’s remarks also followed calls on social media for a new caravan of migrants to form in Honduras.
Over the weekend, a group of around 1,200 migrants, most of them from Central America, began moving toward the U.S. border from southern Mexico.
(Reporting by Miguel Angel Gutierrez, Dave Graham and Lizbeth Diaz; Editing by Jeffrey Benkoe)
Source: OANN
Fast-food giant McDonald's will no longer participate in lobby efforts against minimum wage increases, boosting the likely passage of a House bill introduced by Democrats that would gradually raise the federal minimum wage to $15 per hour, Politico reports.
Genna Gent, McDonald's vice president of government relations, made the announcement in a letter to the National Restaurant Association on Tuesday.
"We believe increases should be phased in and that all industries should be treated the same way," Gent said. "The conversation about wages is an important one; it's one we wish to advance, not impede."
The House bill, The Raise the Wage Act, was considered a long shot when Democrats first introduced it in January. A companion measure in the Senate has 31 Democratic co-sponsors, led by Sen. Bernie Sanders, I-Vt.
The current federal rate is $7.25.
The U.S. Chamber of Commerce, which argued a $15 per hour U.S. wage would burden small business owners and force cuts to workers' hours, said Tuesday it would be willing to negotiate over raising the hourly wage.
In its letter, McDonald's said it was "committed to playing a meaningful role in the spaces we occupy."
Source: NewsMax America
Fast-food giant McDonald's will no longer participate in lobby efforts against minimum wage increases, boosting the likely passage of a House bill introduced by Democrats that would gradually raise the federal minimum wage to $15 per hour, Politico reports.
Genna Gent, McDonald's vice president of government relations, made the announcement in a letter to the National Restaurant Association on Tuesday.
"We believe increases should be phased in and that all industries should be treated the same way," Gent said. "The conversation about wages is an important one; it's one we wish to advance, not impede."
The House bill, The Raise the Wage Act, was considered a long shot when Democrats first introduced it in January. A companion measure in the Senate has 31 Democratic co-sponsors, led by Sen. Bernie Sanders, I-Vt.
The current federal rate is $7.25.
The U.S. Chamber of Commerce, which argued a $15 per hour U.S. wage would burden small business owners and force cuts to workers' hours, said Tuesday it would be willing to negotiate over raising the hourly wage.
In its letter, McDonald's said it was "committed to playing a meaningful role in the spaces we occupy."
Source: NewsMax Politics


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