Minimum Wage Fight Divides Democrats
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I'm Anne Marie for totally in New York before we get to our story on minimum wage here are some other top stories. We're following Uber. Mid its much anticipated public debut on Friday, but it was a disappointing one. As shares of the company fell seven point six percent on the first day of trading. The company's stock closed at forty one dollars and fifty seven cents a share on the new York Stock Exchange giving Uber evaluation of about seventy six billion dollars. Uber's. Debut comes after rival lifts IPO. In march. That company has seen shares slide since its debut, the companies are being watched closely in what's expected to be a big year for tech IPO's, the US and China failed to reach a trade agreement on Friday after the US raise tariffs on two hundred billion dollars worth of Chinese goods at midnight. The Wall Street Journal's Josh zoom Brune says consumers may be into feel an impact with the latest increases. These products did have a ten percent tariff previously, but that's small enough that a lot of companies had kind of absorbed the cost they hadn't pass it onto consumers. And so you're looking at goods like furniture, and handbags and all sorts of grocery foodstuffs, and all these sorts of things that come in from China that people do purchase on a regular basis things that are in the stores at target, and WalMart, and Costco, and those goods are now going to see that high tariff. And so once that tariff really starts to bite, we would probably expect to see some of the prices of those types of items start to rise. Is the stores the future of talks between the US and China remained uncertain as of Friday afternoon. China has previously vowed to retaliate against the US for raising tariffs from ten percent to twenty five percent. Meanwhile, the Trump administration announced plans to provide aid to former who have been suffering amid the trade battle retaliatory tariffs from China and the European Union have led to lower crop prices. China has also reduced purchases of US farm exports, including soybeans which are trading near a ten year. Low and pork the US department of agriculture says it is working on a new aid program for US formers. The house of representatives has approved a disaster aid package worth more than nineteen billion dollars for regions including Puerto Rico that have been hard hit by natural disasters. The house approved the Bill in a vote of two hundred fifty seven in favor to one hundred fifty against lawmakers disagreed over how much aid should go to Puerto Rico, President Trump and Republicans have expressed concern. Earns over how Puerto Rico has spent previous funding. Local officials have been calling for more aid and deny that previous federal funding was misspent negotiations on disaster aid continue in the Senate. Striking scenery world-class music and film festivals and authentic. Character are just a few reasons why telluride Colorado is a favorite summer destination. Telluride offers endless outdoor activities catering to all passions and tastes. For more information. Go to visit telluride dot com slash W. S J. Regional differences across the United States are impacting Democrats fight for fifteen dollars an hour. Minimum wage joining me now from Washington with more details is Wall Street Journal reporter, Eric Morath, Eric this has long been a push from Democrats. But you found the issue is actually now dividing members within the party because of the differences they face in their home states. Yes. So Democrats have long supported raising the minimum wage, which is bent at seven dollars and twenty five cents an hour since two thousand nine this is something that President Barack Obama called for and three different state of the union addresses. But what's different now is what level should that wage? Be there's quite a bit of support including from almost every democratic presidential candidate around the idea of a fifteen dollar minimum wage, and that's a higher number than many Democrats, including those in the house are are comfortable with and that's especially true in places like Alabama where. The median wage is much lower than say New York City, and they're concerned that fifteen dollars minimum would result in layoffs in their state. So they are now competing proposals to raise the minimum wage and both would be gradual tell us about how these proposals differ and how they account for changes state to state. Sure. So the proposal that has the backing of the majority of Democrats, including the leadership would raise the minimum wage to fifteen dollars an hour by the early part of next decade, and it's pretty similar to two previous minimum wage increases, the national level that set states have the ability to go higher but a national floor set. What Representative so all from Alabama and others have proposed is a tiered system a system that will look at the cost of living in each metro area and set the minimum wage accordingly that would allow the rate to rise faster and more expensive cities. But a place. Like the deep south it wouldn't maybe reach fifteen dollars an hour until the twenty thirties. And that's only dependent on how inflation picks up. So as Democrats are struggling to unite behind a single proposal, even if they do this is a measure that would face challenges in the Senate, which is controlled by Republicans. Yeah, that's right. There hasn't been any signal that the Senate is willing to take up minimum wage increase. The president has at times said that he thought even the current minimum wage is too high when he was running for office later, he ended up saying maybe ten dollar minimum wage, it'd be appropriate. But here's the key. Here is Democrats want to go out and campaign in the twenty twenty that they are on the side of American workers and raising the minimum wage is a key part of that platform. But if they can't even show that they can pass it out of a house that they control you know, that we can message quite a bit Eric in your piece you talk about how this debate among lawmakers right now is marrying a debate. That communists, have long had over minimum wage how so yeah. Well, you know, just kind of back to economics one, oh one. If you raise the price of something in this case, the cost of labor the demand for that product typically goes down. So that's just basically if you make workers artificially paid more than the demand for labour will fall and businesses will look to automate the looked to off shore. There's all sorts of different lovers. They can pool, and that's kind of the classical economic theory. But there's been a lot of studies into the state minimum wage increases where the classic one was New Jersey, raise the minimum wage, Pennsylvania. Didn't they're bordering states. What happened and outcome was that, you know, there wasn't massive job loss among fast food workers in New Jersey, kind of mirrored the trends of the rest of the region. The thing that we don't know is fifteen dollars an hour would be an unprecedently high minimum wage in the United States. Even when adjusting for inflation. The rate has never been that. Hi. So we don't know if that's above the tipping point where job losses would be created. Or if it's something where it would benefit people by lifting them out of poverty. Reducing income inequality without causing layoffs. You mentioned twenty twenty and we are already looking ahead to election season. And what some of the presidential candidates have said already. How do you think this is likely to continue playing out this election season? I think the minimum wage we'll have a lot of support as an election issue, especially at the national level because it's something that sounds great and doesn't cost the government anything. The government doesn't have to raise taxes to increase the minimum wage like they do if they want to expand health care coverage per se. So it's a popular issue from a national perspective. I think what we're seeing here in the debate is once you get down to the state and local level. There are some concerns about if you know, San Francisco should have the same wages as like Frisco, Texas. That's Wall Street Journal report. Eric Morath joining us from Washington with more on the debate over minimum wage, Eric thanks so much. Sure. Happy to join you. Now onto some more headlines from the Wall Street Journal a mutual fund in Boston says it's returning more than ninety million dollars to the Sackler family, which owns Purdue pharma, the maker of Oxycontin, the family's money made up the majority of Baltar capital management's one hundred fifty million dollar fund its founder Brad Baltar said the Sackler is long term commitment to the fund was uncertain as Purdue pharma faces more than two thousand lawsuits from cities counties and states for the company's alleged role in the opioid crisis. The Wall Street Journal has reported that Purdue is considering filing for bankruptcy last month. The company reached two hundred seventy million dollar settlement with Oklahoma's attorney. General lingerie retailer Victoria's Secret will no longer broadcast its annual fashion show on network television following a decline in viewership and increased criticism. The show had aired on CBS and ABC for nearly two decades in an internal memo sent to employee's. CEO of the retailer's parent company. L brands said it was rethinking the show and working on developing new content and finally Washington DC has launched a new project called the DC can't count in the hopes of assessing a hotly debated topic. The ecological impact of free roaming cats the first goal of the one and a half million dollar project is to find out. Just how many cats are in the city. The Wall Street Journal's Joe craven McGinty explains how it works. So the researchers are dividing Washington DC and to sampling blocks that measure eight hundred by eight hundred meters they play twenty cameras with an H block. And essentially, they just wait for cats to wander by the cameras are activated by emotion sensor, and they'll collect data every twenty four hours for one month. And they take the information at NFL individual cats by their for pattern the first day to give a simplified example, they see how many cats they captured. On camera. The second day, they'll do the same thing some cats captured on the first day, we'll be recaptured by the photographs and the proportion that is recaptured gives them an indication of what portion of the entire population was captured on the first day. The reason for doing this is that to determine what the ecological impact of cats is on the environment. You I need to know how many cats are out there. Once you know that you can investigate for example, how many birds they might be killing how many small mammals and so forth in two thousand thirteen. Scientists estimated outdoor cats kill up to four billion birds and more than twenty two billion mammals each year in the United States, the findings which were published in nature communications received significant backlash from advocates, and it's still a much debated topic. So we'd like to know what you think should cats be allowed to roam freely. Tell us why. Or why not by tweeting us at W? SJ podcast or emailing? What's news at W S, J dot com. That's what's news for this Friday afternoon. I'm Anne Marie for totally for the Wall Street Journal have a great weekend. And thanks for listening.