Will a higher minimum wage lead to higher unemployment?
Bob Rice, Penny Lee and Gary Shapiro discuss Obama's suggestions in the State of the Union speech
- Duration 13:42
- Date Feb 13, 2013
Bob Rice, Penny Lee and Gary Shapiro discuss Obama's suggestions in the State of the Union speech
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To hit the rest of our deficit reduction target.
We should do what leaders in both parties have already suggested.
And save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well off and welcome back to.
After all why would we choose to make deeper cuts to education and -- Here.
Just to protect special interest tax breaks.
How that fair.
Why is that -- a reduction.
Is a big emergency.
Justifying making cuts in Social Security benefits but not closing some locals.
How does not promote -- Gary how is that -- how does that promote.
-- present credits of false arguments -- I was totally disappointed in his state of the union because it was a Hawaii but divisive speech -- instead of talking to us as a nation he was clearly talking to them people who voted for him.
He's basically saying in his speech last night that we do not have a problem with the deficit.
And any revenue that he will manage to raise.
We'll go towards all these new spending now we did say no one additional -- go to the team to cutting the deficit -- -- -- an increase in the deficit.
Totally not true I mean.
There's so many programs doesn't know the laundry list without any organization of all that -- leadership and all that any appeal.
The vote to either side effect -- finest moment and nothing to do with spending.
Or deficits and it was about immigration and is that I'm -- The emotional -- was about gun control one of the most divisive issues in our country.
So I think -- -- from the business perspective it it was a it was a very uninspiring speech he actually when he talked about manufacturing.
He thinks and the people in the manufacture based on tax credits.
Know people manufacture based on if -- make sense if if we have.
-- predictable taxes lower taxes compared to our competitors if we -- have obamacare and all these regulations and rules.
I think he has to get it out there and talked to some real business owners about what motivates them to hire people.
So while the American public is saying that the number one issue for them our jobs in the deficit.
The president ignored the deficit or had some false arguments and on jobs he he created some things -- really have to do government spending creating jobs not businesses.
All right the president also talked to -- -- raising.
The minimum wage let's listen to the president again on that.
Today a full time worker making the minimum wage earns.
Dollars a year.
Even win the tax relief we put in place.
A family -- two kids that earns the minimum wage still lives below the poverty line.
That's why since the last time this congress raise the minimum wage.
Nineteen states have chosen to bump there is even higher.
Let's declare that in the wealthiest nation on earth.
No one who works full time should have to live in poverty and raise the federal minimum wage.
The nine dollars an hour.
-- -- You know business better than almost anybody on this.
-- -- -- -- -- The minimum wage cost jobs as some on the right went on what I was saying earlier of course it does I -- it is simple thank you global economy guys is is not 1950 it's not even 1975.
It's a global economy.
If it cost too much to hire workers here.
Big companies will just hire workers elsewhere that's it simple asked that.
-- in this argument that.
The and then we're the wealthiest nation on earth before the wealthiest they were running a good.
You a debt of approximately a 100% of our gross domestic product right now.
-- how does that make is the wealthiest.
We're one of the most indebted nations in the world we have one of the biggest GDP he's in the world but we -- not any longer one of the wealthiest nations in the world for precisely that recent and we have.
Have to wake up and smell the coffee on these issues -- is it it is it looks.
Some companies having -- laid people off.
In these tough times to make -- of those who do have a job.
Further above the poverty line than they otherwise might do on the current minimum wage.
It's a great idea to have I mean she raises their.
The payoff for all workers is a good -- to have whether or not it can -- contract -- that's what we're gonna have this debate about.
As though we are going to be he would be talking about going forward but it as far as the notion any idea it is a good thing and I wish the rest of the country -- rest of the world -- actually.
Raised there and they're as good as -- rates as well as well I mean we saw recently.
With Hewlett packer -- China they are actually it's more on a child as -- and Indian going into whether or not do.
To be able to hire on high school students.
But there are also demanding that the workers -- work for those companies overseas.
Actually have to lift their -- their standards of living and lift the ability to be able to bash people can have a case like this is singing.
A job let me out of life sustaining will be based on what their income is I don't think that the ideals of -- are back.
But I mean to go back to the other point that -- manipulate I also was disappointed the president actually didn't put.
More meat on the bones as far as the deficit was concern -- I was really disappointed to see that the language which he uses at the none of these proposals should.
Raise the deficit I would have loved it seen it could it will not go a little bit more permit it permit.
In what he laid out but I think didn't get what he did was was sound in what he what he is trying to appeal to.
Was the broader American public which was to say we do need to have economic growth and a balanced approach is not just going to be about spending cuts.
And not just about raising revenues that we need to have a balanced approach if we're gonna grow this economy and move it.
All right a couple of our viewers weighing in on this James Greene says that is the American public believe that all of these proposals will not raise the deficit it makes no sense.
The big city says -- we don't have to believe Obama said so you know just like he said it the last time.
I'm Gary you know a lot of companies including a lot of small businesses.
That would -- -- up -- that -- Walk -- practical effect do you believe that these kind of proposals would have on those companies and on the tech industry which is an industry all of the present at a very much of the future too well.
Tech industry is is a growth industry with and we rumored debating cuts and spending and raises in taxes the third -- is the president unless that is growth so our whole focus -- -- growth economy and innovation economy.
The minimum -- really doesn't come into play there -- that we do.
Feel for the restaurant owners and the service providers who are dealing with -- obamacare and then we'll be dealing with a minimum wage that will be certainly a job cutter.
But in terms of what we can do for innovation.
We obviously need the immigration the president talked about it got a standing ovation for that when he talked about skilled immigration that have.
Has to be resolved that was a bipartisan standing that ovation.
We need predictable taxes.
We need lower taxes compared to our competitors around the world the president talked about that and it is easy -- that he could do his repatriation.
-- -- -- Get that money overseas the trillion dollars it is just sitting there.
That our companies have made overseas it's been tax.
Services to be to get it back here we -- invested here and now how -- economies I think what the tech industries looking for -- of -- looking for him Nelson calling for spending for them.
Good for predictability in taxes.
We'd like to see -- all the -- loop -- go away as well.
And we're also looking for a president doesn't throw money -- us.
Or pick the winners and losers we just want to be able to go out there and compete and that means the ability to stop demonizing business and last night we tacked on a little bit divisive.
There is no.
Reporting members of congress in the -- Republican Democrat who wearing problem solver opinions and that's in the tech industry does it solves problems we got to reach across party lines into attendees talking about and say.
Let's work things together and solve the problems sadly I think the president was speaking to the people who elected him not to the American people.
Penny President Obama was.
I didn't as C it is is demonizing business and he what he was trying to do is exactly.
-- Gary was saying let's solve these problems and he's he's just -- that we have to do it -- balanced -- is right now we've got two sides of the issue.
Both on the left on the right Wright is saying it has to be it spending cuts in the left saint.
Only tax -- -- only increasing on the revenues is that the president is saying look this is about choices and this is about the values that we're gonna put forth if we're gonna have eight.
Fairness -- -- our economic structure never gonna -- equal opportunity for all -- granted me pick and choose what it is we cannot go to the austerity measures.
That had been proposed neither Republicans nor can we just go to fix straight out you know tax everybody to get this over to Britney and -- 2%.
The -- -- and businesses as well so can we sit down in a balanced way in pick and choose and we're we are gonna.
Wait you know go through the waste fraud and abuse in in the various different agencies that are out there or they're different ways are there loopholes that beginning Rihanna.
To close that won't have a destructive nature on businesses so he's just asking -- it you -- to step back and half that adult conversation that for the sequestration happens on March 1.
And see if we can't come together and put that -- a balanced playing together they'll actually get the economy growing.
Bob is the present leading an adult conversation -- -- no because an adult conversation waste fraud and abuse is a joke.
I'm ladies and gentlemen I don't believe that that's gonna have any impact what so ever.
On the fiscal problems that we face we have to look at fundamental entitlement reform.
And and I'll disagree with some of my cohorts are on the right if -- I I think.
Taxes you know yes I mean like nobody wants to -- more -- but we can you you only get -- fix this problem.
Increases in revenues and decreases in expenditures and I don't have to tell any person running a helpful the United States if that's true why can't the government understand that.
All right the you you don't we talk to as well penny I mentioned the -- thinking Gary -- the emotional side of president Obama's speech last night.
Which was really when he got to the subject all of -- gun control.
-- how effective was that part of the speech and in particular the decision today and on that to close the speech on that.
You know I think it was very effective it was interesting to see I was watching them -- this -- and it's another network that would actually was with us.
-- being on the search on the search.
-- engine -- -- kind of they were doing dial test is in real time is to see how people were responding to.
And I was actually surprised as emotional as it was and I thought it was very active in the hall.
And I and it kind of an appeal to the broader audience.
It actually didn't go very high on the dial meters I was actually surprised it was impressive to watch that I thought -- would actually.
Be a little bit more higher so will the president has his work cut out -- Gary was saying early this is a very very divisive issue.
I think the president was right to say that it deserves a vote vs going through the litany -- -- -- at various different proposals.
We do know that the American public overwhelmingly supports universal background checks.
We know the majority of the American people support limiting the magazines we -- American the majority of the American people also limit on assault weapons -- that he should be taken out.
But we cannot do this in a piecemeal fashion -- needs to be comprehensive.
Not one bill is going to solve all the problems we need to look at mental health we need to look at this in a comprehensive way.
And I think that's what the president was asking for is that -- -- least something needs to be done because right now we shouldn't have another tragedy like we've been dealing.
Thank you Gary it was an interesting approach the president took -- a very challenging one.
To the Republicans in particular.
These people -- is a vote what do you make of the way he sort of threw down that gauntlet.
Well there are two Americas losing American realism obviously is brutally and you're isolated and you're scared occasionally and having a gun is a comfort and then there's a suburban and urban America -- Guns are more of a problem -- an asset and the challenges when your president your president of the whole country and -- divisive social issues and you have a choice you can be in your face and I think to present at the little in your face.
Or you could recognize that there are two different differing viewpoints and and the president feels he's in the right side of history I actually agree with the president on -- social issues.
I just wish she would be a little more empathetic to the fact that people disagree with him in the -- to bring them along slowly develop a consensus.
In it -- to -- that that the strength.
And the weakness of the United States is that we have a very diverse population grew to almost any other country in the world so so we're always battling on social issues is we don't -- from the same script.
We do we have different views and abortion and gay rights and gun control and it's divisive and to me the important issues which will define our future not those issues.
This is our weather will have a strong economy and jobs and what we've made ourselves promises that we can't keep and we're not dealing with that at all the presence there to do the entitlement this they reveal the deficit it to me is not a good leader he will not get him on mount Rushmore.
And that's what he's really be thinking about which I know I'm sure he's thinking about it's not about the social issues if if our kids have a less.
Good life than we have -- he is not going to be viewed very well in history and I think that's the path he's going for years of more about.
All right Gary got great to get your -- -- -- -- Shapiro by the likes Shapiro thank you very good Gary Shapiro president and CEO.
A Consumer Electronics Association and penny Lee a former senior advisor to senator Harry -- great to -- you both.
BC Jeff thank you so much.