bmac32 wrote:
Believing that fast food companies pay their unskilled labor low wages primarily because they are greedy capitalist pigs, protestors flocked to McDonalds and Wendys last Thursday. Well
Flocked might be a strong descriptive term. The pro-union activists, nonetheless, demanded from the purveyors of low quality food-like products that employees get a bump in pay. Currently, minimum wage is set at $7.25 per hour. The economically challenged protestors of market driven wages are asking the profit-driven businesses to increase that wage to $15 per hour.
Heck. Why stop there? Lets kick it up to 25, or 40 dollars per hour.
Ostensibly the demand is being made because the current minimum wage is not a livable wage. (Apparently you just keel over if you are employed for under 15 dollars per hour.) Protestors and union activists say that workers making minimum wage are incapable of escaping poverty, and such a low wage hinders the economic recovery of America. . .
And then
We have this moment of honesty from a young woman who protested her burger-flipping job in Hartford, Connecticut:
And that $15 an hour, that would mean I would have to work a little less days (sic) instead of every day, all day.
Right. If we up the pay for this lowly fast food worker, then she wont be burdened with the obligation of going to her job all day, every day, just like the rest of us.
The protestor, however, is a prime example of how liberalism injures the very people it claims to empower. Imagine this single mothers surprise when, after having the minimum wage increased to 15 dollars per hour, she finds herself laid off. Or maybe she will be one of the lucky few who are able to keep their job (with a pay increase) that will now be asked to work twice as much to make up for the laid off portion of Wendys workforce.
The truth is, it is hard to make a living on $7.25 an hour. But minimum wage, just like the jobs that offer such a lowly level of compensation, is not designed to be a wage that empowers a livelihood. Flipping burgers, or mopping the floor at your local Wendys is not supposed to be a career choice.
Which brings us to the often repeated (in this column anyway) difference between careers and jobs. The Current Walmart CEO started his career as a part time (minimum wage) employee
But notice that he wasnt satisfied with remaining in that position. Upward mobility, and ambition, does far more to increase the living standards of any given employee than petitions, protests, and government mandates.
The jobs at the center of the minimum wage discussion are jobs that are not designed for the average American worker to make into a career. Flipping a burger is a job for a part time teenage worker. It can even be a stepping stone for someone who fell into hard times, and is actively looking to increase their skill set (in hopes of obtaining more gainful employment). It is even a great job for someone who is looking for some supplemental income while they job hunt for better prospects.
What the single mother in the video fails to digest, is that there is a finite amount of resources her employer can allocate toward her employment. Her pay is not restricted by her bosss greed, or the corporations insatiable appetite for profit (although, it has been proven that most American businesses are actually run with the intention of turning profits.). Rather, her pay is limited by the willingness of the American people to fork over hard earned dollars for convenient (albeit disgusting) fast food. An increase in the minimum wage is also an increase in the cost of operating a business. Wendys therefore, would likely be forced to up the prices on their menu; which would likely turn a portion of their customer base away.
Lastly, it is not as if our single mother anecdote is living off of the take home pay from her job. A single mother in America making minimum wage qualifies for a slew of social programs. All these social programs are designed to help her unlivable wage become quite livable. Does she get housing assistance? Day care assistance? Heating assistance? Healthcare assistance? Food Stamps? Welfare? Child tax credit?
She is obviously, after all, not looking for an increase in income
Shes looking for more money for less work. And that attitude, more than corporate profits or minimum wage laws, are to blame for her diminutive pay.
The jobs that earn minimum wage are not supposed to be careers, or family sustaining employment opportunities. Raising that wage will harm the poorest among us. Joblessness will increase, teens will be blocked out of the workforce in even greater numbers, and our favorite Single mom in Hartford might just find herself on unemployment.
Of course if she was on unemployment, she wouldnt have to worry about going into work every day.
http://www.youtube.com/watch?feature=player_embedded&v=h9ulSVkbrOUhttp://finance.townhall.com/columnists/michaelschaus/2013/12/28/minimum-wage-activist-i-want-15-per-hour-so-i-dont-have-to-work-so-much-n1759400/page/fullBelieving that fast food companies pay their unski... (
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Rules of the game: To win, you must disprove at least one of the 50 or so statements below. To simply deny the logical conclusion is to be like a child claiming victory after losing the game 50 0. Adults only!
Instead of a minimum wage, we should have an ELR (Employer of Last Resort) program in which the federal government hires any adult who is unemployed at (say) $10.00 per hour for a 40 hour week with full healthcare and other fringe benefits. These employees can then be put to work at zero cost by any federal, state, or local government office or by certified NGOs.
This establishes a minimum wage level that private enterprise must exceed. The result will be an increase in price and/or decrease of profit. But will it bring on inflation?
Before inflation rears its ugly head, many millions of Americans will be getting more income, spending it, decreasing inventory, increasing production, and getting hired away from ELR ranks by private enterprise. The question then becomes: will there be a shortage of goods or will the increased production level create enough goods to prevent harmful inflation?
The answer lies in productivity, which brings us to the question of infrastructure. If we spend on infrastructure like we spent on World War II, we will have the world's best infrastructure and the world's highest productivity and there will be no harmful inflation and very low unemployment and the ELR ranks will thin out.
So the answer to the minimum wage question is federal spending: ELR and infrastructure. That brings up the last question: the budget.
Rules of the game: To win, you must disprove at least one of the 50 or so statements below. To simply deny the logical conclusion is to be like a child claiming victory after losing the game 50 0. Adults only!
Q1: For the taxpayers, is our national debt really a burden that must be repaid?
A1: No. For the taxpayers, it lacks those two qualities of a real debt. Its a Debt In Name Only, a DINO-**
1. THE DINO IS NOT NOW AND NEVER WILL BE A TAXPAYER BURDEN.
The DINO is the total value of all maturing treasuries. By calling the DINO unsustainable, Wall Street con artists, plotting to privatize Social Security and make a fortune in commissions, have panicked the public, politicians, and journalists. But actually, it is not the taxpayers but the buyers of newly-issued treasuries who, in a virtual bond rollover, pay for redemption of the mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could create a demand for treasuries by buying large quantities in the open market. The taxpayer is NEVER burdened but almost all US voters are swallowing whole the Wall Street hoax!
Our Treasury is like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate banks before cutting infrastructure projects.
2. THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.
Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. Indeed, to supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., THE DINO MUST GROW WITH OUR ECONOMY. In fact, deflation and then depression will hit us hard unless large budget deficits replace the cash that we are now exporting.
Q2: Could savers make a run on US Treasury bonds?
A2: Only when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! Thats why the whole world relies on US bonds.
Q3. Could savers stop buying US Treasury bonds?
A3. Only when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.
Q4: Could savers prefer foreign sovereign bonds?
A4: Yes, indeed! Now, almost two thirds of the worlds reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if Chinas infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. And that could happen only if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, leaking sewers, creaking railroads, aging power grids, etc., etc.
Q5: Wont we need higher tax rates to pay for infrastructure?
A5: The federal government needs taxes but not for spending. Just as you would destroy your redeemed IOUs, the IRS destroys its receipts, actually shredding bills and melting coins for scrap. Since Congress cannot touch a cent of tax revenue, it creates new money out of thin air (just like your bank creates loans), deposits it in the Treasury, and spends it with checks. The Treasury auctions bonds to finance deficits that are limited ONLY by the will of Congress.
The ONLY rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can finance both the DINOs annual debt interest and our much-needed infrastructure. Every day, you fill your kitchen sink with water AND you prevent it from overflowing. Why cant Congress fill our economy with money building infrastructure AND prevent harmful inflation? China builds 24/7 without harmful inflation. Why cant we do that?
Q6: How can increasing the DINO be good for the economy?
A6: Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The bad Debt Clock is also the good Assets Clock. Since we are exporting cash, deficit spending is our economys SOLE source of savings! Well, our (DINO + total bank deposits) / GDP ratio is less than half of Chinas comparable figure and our M2 (money supply) / GDP ratio is half of Switzerlands ratio and one fourth of Hong Kongs ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation. Ask Grandma how it was in the good old days!
Q7: How much should Congress tax and spend?
A7: Ideally, Congress should tax just enough to prevent harmful inflation and should spend almost enough to cause full employment (and harmful inflation). Result: low unemployment and low inflation.
Instead, bribed by Wall Street, Congress taxes as little as possible, enriching the rich, and spends as little as possible, impoverishing the rest of us by restricting deficits / savings. Just as quacks killed George Washington by bleeding his bad blood, Congress is destroying our younger generations by reducing (possibly to zero!) our annual budget deficits / private sector savings increase / consumer demand. And, by bribing Congress to pass austerity budgets, the Wall Street charlatans are deliberately nursing a huge army of unemployed labor to suppress the wages and working conditions of the shrinking middle class.
Result: recessions, high unemployment, an army of unemployed labor, a growing under-class, a scared work force, declining wages and consumer demand: a downward spiral of despair threatening deflation and depression. Growing inequality will create a land of slums and gated communities: Hell on Earth!
Austerity today deprives our grandchildren of infrastructure that would surely enrich and possibly save their lives. We must educate all of them now and employ all of our resources to build the infrastructure that they will need when they become parents. Lets follow Presidents Lincoln (railways, telegraph, land-grant colleges), Theodore Roosevelt (National Parks, Panama Canal), and FDR (TVA, PWA, WPA, etc.)
Q8: How should one vote?
A8: Vote only for someone who NEVER EVER worries about the DINO and who ALWAYS worries about Americans looking for work and reluctantly drawing benefits forever instead of building infrastructure.
Q9: I have to balance my budget. Why doesnt Congress balance its budget?
A9: If you could legally print money in your attic, why would you balance your budget? Congress only needs to balance full employment against harmful inflation. Why is something so simple so hard to see?
To stay ahead of China, please help me convince voters that Congress, limited ONLY by the onset of harmful inflation, must build infrastructure
to promote the general Welfare and secure the Blessings of Liberty to ourselves and our Posterity
Please copy and distribute this message wherever you can.