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The $15.00 Minimum Wage, Economic Forecasting

By Administrator ~ May 26st, 2015

Hi,

 

Now there are three cities, Los Angeles, San Francisco and Seattle, who have each and all legislated a minimum wage of $15 within five years for their respective cities. As previously stated arnold supports a $15 minimum wage for the entire United States. This plan should be put into force near the bottom of our next recession (probably late 2016 or early 2017) when there will be no real job losses caused by it. The net result will be the Federal Government (that means you and me) will not be subsidizing major (and minor) corporations expenses. Presently, because of low pay, the Federal Government is providing food stamps, health insurance, telephones and various subsidies; all of which would end with a $15 minimum wage. Then, only indigents and seriously disabled unable to work would be the recipients of entitlement programs.

 

The job loss if a $15 minimum wage were imposed now would be significant. But at or near the bottom of a recession, most of the job losses would already have occurred so that the impact would be negligible in terms of job loss and in terms of new hires at the bottom of a recession when the economy starts to stimulate the initial surge would more than suffice to necessitate hiring even at 415 per hour. That is the good news. The (possible) bad news is that wait staff would no longer have tipping; nor would tipping typically be provided to any employees except in extreme cases. Additionally based upon counties with high minimum wage about 80% of the income would be within 20% of that $15 per hour amount with about 10% higher and 10% lower. In this way compensation is more closely related. The progressives believe that this is good. arnold does not.

 

The DJIA should continue to rise possibly to 20000.

Gold is experiencing a small drop and should start rising again up to maybe 41500 plus or minus.

Oil is having a great difficulty rising above $60 and looks to be heading back to $40 should it not start to rise.

The dollar continues to be strong and should be much stronger.

Interest rates on the 10 year Treasury continue to hover in the 2.2% range.

Real estate pricing is at or beyond the top in virtually every market. The outlandish asking prices and
outlandish sales prices are clear indications of a top.

The economy continues to look weak. Retail sales continue to be very weak as are now car sales.

 

arnold

 

 

 

 

 

 

 

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