On yesterday’s Your World, Neil Cavuto welcomed Herman Cain to attack President Obama’s call for raising the minimum wage to $9.00 an hour. “Herman’s back to raise some Cain,” Cavuto joked.
Cavuto said, “Herman my friend good to see you. …You came from the fast food industry and you know well the impact this will have. Tell some of your old colleagues and managers that they’re going to have to up their minimum wage. What are they going to do?”
Cain said, “Well, they’re either going to have people work less hours or they’re going to hire less people. …I saw it when I was at Godfather’s, when I was at Burger King, I saw it when I was the President of the National Restaurant Association. Here’s where the President is dead wrong. If you were to force a minimum wage increase from $7.25 to $9, guess what? They’d still be living in poverty. …Most of the reliable studies out there, Neil, shows there’s going to be job reduction for the people who need those jobs the most.”
Cavuto pushed back mildly. “The immediate reaction is a lot of people lose their jobs because managers, stores, restaurants, what have you, start cutting back on workers. But things settle down, they start hiring again, off to the races.”
Cain said that’s not “totally accurate.” But Cavuto didn’t ask which part is. Instead, Cain continued, “Businesses have only one option when costs are forced on them and that is to eventually pass it on to the consumer.” After calling Cavuto “the Braveheart of business,” Cain added, “Most of the companies that hire a lot of minimum wage workers, they hire those minimum wage workers because they have very small profit margins.”
Cain quipped, “Now, Neil you know nine is my favorite number, but not in this case.”
Cavuto laughed, of course. “Herman Cain, great seeing you again,” he said,
The University of Texas recently did a study showing that to lift single mothers out of poverty, wages would have to be at least $17.50 an hour. But clearly, neither Cavuto nor Cain wanted to go there.
Just for shits and giggles, can anyone out there in the blogosphere tell me that they work for, or know ANYONE who goes to work and does nothing all day because their employer just hired them out of the goodness of their heart? And I mean minimum wage jobs. NOT Corporate or High Finance where this practice is prevalent.
Ya see Kneel, poverty is built into our system so we should just get over it and highlight the few folks that break the poverty bonds by what ever means works! That last round of trading in risk positions wuz a Bonanza for some of the most selfish & corrupt traders in this galaxy. But don’t worry, they can do it again, though not soon enough for us, right Kneel?!