Dec 5, 2012 Comments Off Chuck Biscuits
Excerpted from WND: A far-left think tank founded with input from President Obama is pushing a plan for private retail stores such as Walmart to create a “new wage floor” that hikes workers’ wages by at least 27 percent to $12.25 per hour.
The scheme is outlined in a new study published by Demos, a longtime partner of the disgraced ACORN activist group.
Unmentioned in the Demos study is that the “new wage floor” is modeled after another Demos plan for a “living wage” that devastated business when it was attempted in some cities in the 1990s as a pet project of ACORN.
According to Demos’ own website, while Obama was a state senator in 1999, he served on the working group that founded Demos.
WND previously reported Demos may have been instrumental in the Obama administration’s hiring of Van Jones, the former White House “green jobs” adviser who resigned after it was exposed he founded a communist revolutionary organization and called for “resistance” against the U.S. government. Jones is now a Demos scholar.
Last month, Demos released a 15-page research paper titled “Retail’s Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy.”
The extensive paper pointed how out more than 15 million people work in the private retail sector.
“Given the vital role retail plays in our economy, the question of whether employees in the sector are compensated at a level that promotes American prosperity is of national importance,” Demos argued.
The study provides a chart listing the country’s biggest retailers, including Walmart, Target, Kroger, Home Depot, Walgreens, Lowe’s, Best Buy, Safeway and Macy’s.
The plan urges the enactment of a “new wage floor” for the lowest-paid private retail workers equivalent to $25,000 per year – or $12.25 per hour – for a full-time, year-round retail worker at the nation’s largest retail companies, identified as those employing at least 1,000 workers.
“For the typical worker earning less than this threshold, the new floor would mean a 27 percent pay raise,” notes the study.
Demos claims the “new wage floor” would lift 700,000 Americans out of poverty, and more than 1.5 million retail workers and their families would move up from in or near poverty.
The think tank posits the pay hike would create 100,000 or more new jobs, thus stimulating the economy. It surmises the pay increase would cost consumers “just cents more per shopping trip on average.”
The study, however, does not mention that the template for the “new wage floor” is a failed Demos plan urging a “living wage.”
The White House itself indicated support for the “living wage” concept in documents obtained by the Associated Press in February 2010. They showed the Obama administration was considering a new policy that would give an advantage in bids for billions in government contracts to companies that pay workers “living wages” and offer generous benefits.