Friends,

Here is a well-researched blog on why raising the minimum wage is not a good thing.

Ironically, this young man was quickly attacked by those who want to use nonsense to attack common sense. And he continued to be reasonable in his response.

I think it was well written.

Do you?

Ghost.

Virtuous Society

A few posts ago I alluded to the fact that most economists oppose rises in the minimum wage, while non-economists in general support them. I’m not an economist. But I think we need to take economists seriously, just in case they know something we don’t.

During the State of the Union address last night, President Obama told Congress that he would like the federal minimum wage to be $9/hour, instead of $7.25/hour. His reasoning was that it isn’t right for full-time workers to earn less than $9/hr. That premise isn’t a bad one–I think we’d all like to see wages rise and the standard of living along with it. But the effect of the minimum wage isn’t generally to raise wages. What it tends to do is cause unemployment among unskilled workers. This is true especially for teenagers, who are new to the labor market and lack experience and skills…

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10 Responses to

  1. DaPoet says:

    When Henry Ford increased his employees wages to five dollars so they could afford to purchase the automobiles the Ford motor company produced he was criticized by the press. Yet Henry Ford was proven correct and as a result of his investing in his employees he managed to increase his sales as well as helped the wider economy.

    To make money one has to be willing to spend money and raising the minimum wage will help put needed dollars into circulation which will in turn increase demand which in turn will give other small businesses the money needed to expand and increase hiring.

    All too often the studies conservative think tanks put out are “self fulfilling” – in others words intentionally designed to get the desired result. Historically conservaitve economic policies have failed to improve the economy, perpetuate the boom bust cycle while allowing those who have more than they’ll even need to funnel more financial resources away from those who have less into their wallets and bank accounts.

    Finely no one has an absolute right to operate a business and any small business owner who can’t afford an increase in the minimum wage or dares to argue that he can’t afford to pay a living wage to his employees deserves to be put out of business.

    • Great comment(s)!

      I agree with much of this.

      However, being on a fixed income, I worry about the intended inflation this move will cause.

      A twenty-five percent increase will cut my income another 30% ….

      OUCH.

      Ghost.

  2. DaPoet says:

    I agree OUCH! However it was the conservative fiscal policies of the Federal Reserve given a free hand by Nixon, Ford and Carter to fight inflation that brought about the stagflation during President Carter’s term that brought about the election of Reagan.

    • If only we paid politicians for long term results.

      Do you think we could get that in a Constitutional Amendment?

      • DaPoet says:

        LOL Not a snowballs chance in hell! 🙂 They are already being paid handsomely by the 1 percent – who are their masters – for the short term results of legally looting the federal treasury, middle class and less affluent class. The result of which is recreating the very conditions that led to the French Revolution and the Communist take over in Russia.

      • WOW! Do you think we are headed to another Revolution? A not so Civil-War?

  3. DaPoet says:

    I believe that we are heading for a total economic collapse which is why the govt. keeps passing laws that limit and/or take away the average American citizens rights to protest in order to protect the rise of the corporate state and to facilitate the fall of the American Democratic Republic.

  4. DaPoet says:

    Yes it is. Their intention is to create a totalitarian state, destroy the middle class and financially enslave the rest by making them dependent on the few breadcrumbs they will make a big deal of out of giving because of the so called goodness of their hearts.

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