Newspaper logo  
 
 
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

09.24 Everything you've been told about plastic is wrong – the answer isn't recycling

09.24 Unlocking secrets of sea level rise in Greenland [15 minute video]

09.24 Air pollution rots our brains. Is that why we don’t do anything about it?

09.24 What are public lands?

09.24 The Netherlands Unveils the World's First Recycled Plastic Bike Lane

09.24 Americans: the next climate migrants 'We're moving to higher ground': America's era of climate mass migration is here [estimates do not include migrants from other nations even more affected]

09.24 Opec predicts massive rise in oil production over next five years [wonderful for fossil fuel investors; terrible for all plants and animals]

09.23 Nasa launches satellite to precisely track how Earth's ice is melting

09.23 Climate study ‘pulls punches’ to keep polluters on board

09.21 Greed is killing Alaska's salmon habitat – but we can still save it

09.21 Trump administration poses new threat to birds in allowing ‘incidental’ killings

09.20 Al Gore Is Still Optimistic [24:06 video; rather than future Frankenstein governments, how can we better ensure having brilliantly efficient & competent governments?]

09.20 The $11 trillion question Chris Cillizza can't answer

09.20 Florence sparks pollution fears after excrement-filled 'hog lagoons' overflow

09.20 EU must end new petrol and diesel car sales by 2030 to meet climate targets – report

News Media Matters

09.22 Progressives to DNC: It Would Be 'Insane' Not to Hand Over Twitter Account to Ocasio-Cortez

09.20 Morning Edition’s Think Tank Sources Lean to the Right

09.19 Taibbi: Bernie Sanders’ Anti-Amazon Bill Is an Indictment of the Media, Too

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

09.24 Sexual assault is fun if we can all 'lighten up' about it

09.24 Brett Kavanaugh faces second allegation of sexual misconduct09.23 MARYLAND GOVERNOR REBUFFS CALL FOR CRIMINAL INVESTIGATION INTO BRETT KAVANAUGH ATTEMPTED RAPE ALLEGATIONS [Republicans above the law...]

09.23 Trump Is Strangling the U.S. Refugee Program to Death

09.23 Michael Moore's "Fahrenheit 11/9" Aims Not at Trump But at Those Who Created the Conditions That Led to His Rise

09.23 The Trump Administration's Latest Tax Scam for the Rich [video]

09.23 One Tiny Tax Reform, Billions for America

09.22 As Right-Wingers Push Trump to Fire Rosenstein, Here's What to Do If He Does

Justice Matters

09.22 Making Tariffs Corrupt Again

09.22 Why isn't Mark Judge testifying about Kavanaugh? He is an alleged witness

High Crimes?

09.20 Trump Should Be More Worried About the Brennan Dossier

09.19 'Killing a generation': one million more children at risk from famine in Yemen [Does America's government have empathy? Does it understand the concept of morality? The Saudi Air Force would be ineffective without U.S. military assistance...]

09.19 ‘Tied to trees and raped’: UN report details Rohingya horrors

09.16 Merchants of Death Profit from the Bombing of Children as a US-Backed War Goes Largely Ignored

Economics, Crony Capitalism

09.23 The Spider’s Web: Britain’s Second Empire [1:18:01 documentary video; the Book]

09.23 Why We Have To Break Up Amazon

International & Futurism

09.24 'Stop this disaster': Brazilian women mobilise against 'misogynist' far-right Bolsonaro

09.23 For This Year’s International Day of Peace, Korea Takes the Lead

09.22 Which nation is 'most generous' to refugees? Certainly not the US

09.18 Racist rioting in Chemnitz has reopened Germany’s east-west split [After 10,000 generations, we are all mixed-race. So let's become friends with our cousins instead!]

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Wall Street Journal Does the Minimum
Newspaper logo

MEDIA CRITICISM:

Wall Street Journal Does the Minimum

In its editorial denouncing a the minimum wage increase, the WSJ omits essential facts.

by Alice Cherbonnier
Wednesday, 15 July 2009

The EITC is a tax-free subsidy for the businesses who hire minimum wage workers. If businesses pay workers more, then the government will subsidize them less.

The July 13, 2009 edition of the Wall Street Journal carried an editorial, "Mandating Unemployment," that rails against the idea that the U.S. minimum wage should be increased. It starts out by informing us that the June unemployment rate for U.S. teenagers is 24% (38% for black teens), then tosses out the usual "free market" bromide that raising wages will result in even higher unemployment (called "disemployment").

The heart of the editorial's argument is that, if a minimum wage employee gets paid more, that person will receive less Earned Income Tax Credit from the federal government. Employers, it seems, are doing employees a big favor by paying them the current minimum wage of $6.55 an hour (before taxes and FICA are deducted), because, if they earn more, they'll get less federal money.

The Journal helpfully trots out a chart (prepared by the Tax Foundation) showing that a full-time minimum wage employee earns only $13,100 a year, but in actuality will have an annual cash flow of $20,043, thanks to an EITC of $5,028, a refundable child tax credit of $1,515, and a "making work pay credit" of $400.

Nowhere in this sorry editorial is there any discussion of the value of work performed by workers at the bottom rungs of the employment ladder, and whether the jobs available to minimum wage workers are worth what the employees are paid. There is a whiff of suggestion that some of those receiving minimum wage are so marginal that they wouldn't be "worth" 70 cents an hour more in their paychecks. Employers are doing society a favor, readers are led to infer, by hiring people who add little value to their bottom lines. They shouldn't be asked to pay them enough to live on. Instead, they—and the Wall Street Journal—are happy to allow all U.S. taxpayers to make up the difference.

Wouldn't it be reasonable to expect the Wall Street Journal, of all entities, to endorse the concept of people supporting themselves without any form of government subsidy? Not when it comes to the bottom line of Wall Street Journal constituents. In 2005, over $39.7 billion in EITC claims were made by 21.9 million tax filers. That's great for minimum wage employees, but it's also a $39.7 billion tax-free subsidy for the businesses who employ those workers.

The disingenuous editorial concludes, "If Congress were wise and compassionate, it would at least suspend the wage hike for one or two years until the job market recovers. We know this Congress won't do that, but someone has to speak up for the poorest, least skilled Americans."

Yes, Wall Street Journal, someone does need to speak up for "the poorest, least skilled Americans." And it's not you.

P.S. to the Journal: The EITC is not available to the very group that's most in need of jobs: young males. To qualify for the credit, you cannot be someone's dependent for tax purposes; and, unless you have a "qualifying child," you need to be at least age 25.


Alice Cherbonnier is the Managing Editor of this newspaper.



Copyright © 2009 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on July 15, 2009.
 

Public Service Ads: