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Democrats Scrap Minimum Wage Hike Idea But the Bill is Still a Boondoggle

Summary:
New Twist in Biden's Ridiculous Push For a Minimum WageTwo days ago I commented on a New Twist in Biden's Ridiculous Push For a Minimum WageThe twists were amusing but my final words tell the story. "It is Dead on Arrival in the Senate".Dead on ArrivalToday we learn, gratefully, that all of the Progressive cheers were for naught. The Democrats decided to scrap their minimum wage hike demands and all of their crazy twists to pull it off. Instead, the Senate Moves Ahead With Covid-19 Aid Package Without Minimum-Wage Boost.Senate Democrats had tried late last week to see if they could fashion a way to penalize large companies through the tax code if they didn’t pay workers at least an hour after the Senate parliamentarian said an across-the-board minimum-wage increase didn’t

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New Twist in Biden's Ridiculous Push For a $15 Minimum Wage

Two days ago I commented on a New Twist in Biden's Ridiculous Push For a $15 Minimum Wage

The twists were amusing but my final words tell the story. "It is Dead on Arrival in the Senate".

Dead on Arrival

Today we learn, gratefully, that all of the Progressive cheers were for naught. 

The Democrats decided to scrap their minimum wage hike demands and all of their crazy twists to pull it off. 

Instead, the Senate Moves Ahead With Covid-19 Aid Package Without Minimum-Wage Boost.

Senate Democrats had tried late last week to see if they could fashion a way to penalize large companies through the tax code if they didn’t pay workers at least $15 an hour after the Senate parliamentarian said an across-the-board minimum-wage increase didn’t comply with the chamber’s rules. But Democrats decided late Sunday to scrap the tax plan as its complexity and limitations emerged and it became clear that some Senate Democrats were skeptical of it.

Progressive Howls

We can’t let a parliamentarian decision stop a wage increase for Americans,” Rep. Ro Khanna (D., Calif.) said on a call with reporters Monday. 

Rules? Who Gives a Damn?

A minimum wage hike has nothing to do with the budget. 

And the rules for a fast-track reconciliation bill require the bill to be budget items only.

That is why I was sure this would die in the Senate, and it did. 

But once again note that no one gives a damn about rules as long as it is their legislative agenda in play. Both parties are equally guilty,

Bill Still a Boondoggle 

Even without the odious minimum wage hike, the bill is still a major boondoggle.

For discussion, please see Mitt Romney Explains Biden’s Stimulus Bill Is a $1.9 Trillion Clunker.

All that has been stripped out is the minimum wage hike to $15.

Even now, don't consider a wage hike out of the question.

I expect Democrats will come back with a stand alone proposal perhaps starting at $15 once again.

That would die too, but I do expect a compromise hike to $11.00 or $12.25 to pass. 

Mish

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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