Shrink the State. End the Fed. Balance the budget. Make a profit. Leave an inheritance.
Gary North
Written by Gary North on June 13, 2012
For over 50 years, economists who have studied the minimum wag law have found this: every time the minimum wage is hiked by law, black teenage unemployment increases, especially for boys.
This fact never dampens the enthusiasm of Democrats in Congress.They push forward, always trying to raise the minimum wage.
This time, they want to hike it to $10 an hour.
This is being promoted by blacks — Rep. John Conyers, Jr. (D-Mich.), Rep. Jesse Jackson, Jr. (D-Ill.) — and whites: Rep. Dennis Kucinich (D-Ohio), lifetime promoter Ralph Nader, and the president of Public Citizen, Robert Weissman. The bill is called “Catching Up To 1968 Act of 2012.” With a snappy name like this, how can it lose?
Easy. The House is controlled by Republicans.
They promoters say the minimum wage has not kept pace with inflation.
This is why there are at least a few jobs for teenage black boys.
The minimum wage is $7.25 an hour.
The congressmen said that at $10 an hour, the minimum wage would still be below 1968 levels when adjusted for inflation.
I suppose it would also be below 1965.
“This legislation is long-overdue and sorely needed,” said Conyers. “More than 30 million Americans would see their wages increased, which would provide an immediate boost to the economy.”
He neglected to mention why employers would continue to keep all $30 million on their payrolls in light of a 38% increase in wages, plus Social Security taxes.
Two thirds of the American public — including a majority of Republicans — supported raising the minimum wage in a October 2010 poll by the Public Religion Research Institute.
This indicates that two-thirds of the American public does not understand basic economics.
But we knew that before the poll was taken.
In 2008, candidate Barack Obama promised to raise the minimum wage to $9.50 an hour by 2011. He didn’t.
Republican Mitt Romney has supported the idea of adjusting the minimum wage to keep up with inflation.
Too little too late. The black youth of today, when asked, all say they either want to be basketball stars or hip hop stars!! go figure and if they cannot be one or the either then they try their best and damdest to be ":who the baby daddy" knowing that their offspring will be on the government teat and they too will be able to suckle with their illegitimate offspring as well as the mamas of these kids. Then of course they resort to stealing and selling drugs!! so please Democrats, Republicans, ayatollah barack hussein obama. mitt romney even if you push the minimum wage to $100 and hour these black youths will still want to be hop hop stars.and make babies.. Give me a break….. WAKE UP AMERICA.
Ron Unz has argued that a rise in the minimum wage would reduce illegal immigration. An ancillary benefit, perhaps, to bad policy.
It should become apparent to any logical observer that inflation follows the minimum wage rather than the other way around. For Congress is only chasing its tail by habitually raising the minimum wage to follow inflation. They create the syndrome of cause being the effect being the cause.
Furthermore it them becomes illegal to employ someone willing to do a job that is not worth $10/hour. Even if the employer could do so and the worker would be great full to do it. To a great extent, unemployment of everyone is caused by having a minimum wage in the first place.
The problem is telling politicians who want to be heroes of the people by raising the minimum wage. That's OK, there is always a lag between when the public catches on and politicians realize it. That's what causes turnovers in politics.
They are going to exacerbate the problem with this stupid law.
Politicians are only interested in one thing in a proposed increase in a "minimum wage" – a predictable and immediate increase in taxable hours for the Federal governments kitty the Friday following its implementation. Leaving out an increase to Federal withholding of income taxes and looking only at the combined payments for welfare taxes (e.g., Social Security/Medicare & Medicaid) of 15.3% for employers and employees, a $ 2.75 an hour increase equals 42¢/hr minimum for them. For easy math let's presume 500 million taxable hours per day this may be applicable to, I don't know what the actual figure is – but THEY DO, so that's a cool and easy $ 1 Billion a week in cash flow for the Federal government from welfare taxes alone. Nobody else in the marketplace gets to increase their prices and cash flow like this, they have to think about competition, what a potential 37% increase in prices might do to sales; not the Federal government they don't have any competition. So they prey upon and victimize the people on the bottom rung of the socio-economic ladder and they aren't ashamed about it either.
Let the free market work….higher entry level wage = less jobs.. .." I'd like to pay you what you're worth … but the minimum wage prevents me."
must be a big reason so many black teenagers become entrepreneurs in the drug, criminal and prostitution trades! So nice to see that Democrats are still smarter and more moral than everybody else.
Actually there should not be a minimum wage at all. There would be so many more jobs available if we did away with it all together. Those folks drawing food stamps and welfare etc could be offered jobs and if the jobs were refused then the welfare could just be stopped all together. When is America going to wake up and realize that we are no a longer wealthy nation that can sustain the poor with mandatory minimum wages that have made us uncompetitive on the world stage? Wake up!!!!!!!!!!!
WHEN THE MIN . WAGE GOES UP THEN THOSE OF US WHO ARE ON A FIXED INCOME WAGES (BUYING P;OWER)GOES DOWN .
THE COST OF LIVING FOR US GOES UP.
Pray tell, why are black teenage boys deemed "unemployable"? Are they supposed to be happy to work for $2 dollars an hour? How is no minimum wage any different from "make work" jobs? If every worker volunteered to work for $2 an hour regardless of their position then this would create huge amounts of wealth for companies.
The entire concept of a fixed minimum wage is a joke. As an employer, if you raise my cost of operations, I will pass the increase along to my customers. So if min. wage is now $7.25 and a two pounds of meat is $7.25, then when you raise the minimum wage to $10, (which increases my overhead to produce more meat) do you not think the price of meat won't rise as well? ____All we are doing is inflating numbers. Real buying power remains the same. It just allows some candidate to say "under my administration, wages improved 25%" or whatever….
It will cost more to the customer no in this ecomony.
And every time minimum wages go up, the cost of goods goes up, to match it. Where do these idiots think the extra money that an employer has to have to pay the minimum wage comes from? From you and me, because we have to pay the higher costs of foods, fuel, etc., that goes up as a result of the higher expenses of producing goods.
These idiots DON'T know how to run a business, don't know how to manage a business, and have not a clue as to how business runs, to create a profit, so that more jobs can be created.
Of course, the Democratic Political machine is built on the concept of having unemployed voters dependent upon government handout, and who are easily inflamed by charges of racism. This bill is just another in a long line of Democratic legislatioon efforts to maintain power by ruining the lives of constituents, while blaming someone else.
I have the answer to all this… it's called "Starve the Beast!"… if the working class ALL submitted revised W-4s, exempting themselves out of paying federal income tax, where would all these people that are at the federal government's teat, milking the system, get their benefits and money from? The IRS would be OVERWHELMED by the refusal of such a large number of people refusing to pay taxes, that there would be no way they would be able to prosecute anyone. And if their salaries are cut off because there's no money to pay for them? It would work!
1. Listen to TruNews with Rick Wiles.
2. Listen to The PowerHour with Joyce Riley.
3. Don't vote for ANY evil (greater or lesser).
This is not just the Democrats. If we would recognize that the vast majority of right vs. left ideology is designed to distract us from the what both sides are doing – increasing government's power at the expense of ours – we'd have a fighting chance at getting the frankenstein monster to be a force of service rather than one of permission slips.
Remember that the first priority of every organism is to preserve itself – and that includes government.