Tag Archives: living wage

The Minimum Wage Effects Everybody

Artificially setting wages causes everything, up and down the supply chain, to get more expensive.  Way more expensive…

It causes the Buying Power of those it’s intended to help to go down. The “New” money they have never keeps up with the rise in prices of what they need to survive.

It causes the Employment Options for those it’s intended to help to disappear. The lack of a job has never helped anyone to provide for their family.

Raising the Minimum Wage puts even More Money in the Pockets of Big Labor Unions… and by Extension Socialist Democrats, who then cry for yet More and Bigger Government.

There is nothing good that comes from manipulating markets, regardless of what your economically challenged Liberal Progressive friends tell you.

Raising, Having, even Suggesting Minimum Wage Controls creates distortions in markets and ultimately hurts those who most need help.

If you think you support the idea you should think a little more and a little harder.

Stop this War on Women, Children and the Poor!

Stop this War on the Entire Nation.

Raising the Minimum Wage doesn’t help anyone.

It affects us all.


Blaming China

…for our failure to Embrace Capitalism?

I will remind you that China is the only reason we are doing as well as we are right now.

I know, I know.  They manipulate their currency!

Surprise! They always have.  I didn’t say trust them… But…

What do you think we, the U.S., are doing when The Fed Magically comes up with freshly printed money and pushes it into the market calling it “Quantitative Easing”?  Yes… that is currency manipulation.  And that’s just one of the ways WE do it.  Don’t act naive.

They take advantage of their workers!  Sometimes, yes.  That is a price they will have to pay down the road.  It’s the way it works, free-trade will always level the playing field without any planners help.  But for now, it is keeping them from an internal civil war… which would lead to the need to create a feeling of National Pride… and the quickest way to do that while keeping those currently in power, in power, is to… anyone, anyone?  Bueller?

Let’s spell this out in the simplest terms.

China makes stuff we like.  It’s often good stuff… because if it wasn’t, we wouldn’t buy it.  The Freedom to Choose is a beautiful thing.  It promotes the best products at the lowest prices making everyone’s lives better.

China is buying our Crappy Debt.  This keeps our economy going.  Nothing else.

China buys some of our stuff, just not as much as we would like. But who’s to blame for that when we don’t make much anymore…

And, drumroll please…… we don’t make much anymore because it too damn expensive to make stuff here.  The reason it’s too damn expensive to make stuff here is because labor costs too much.  (Gasp!) The reason labor costs too much is because of Unions.  The reason Unions are at fault is they prevent the market from determining the prevailing wage by bullying of business and promotion of minimum wage laws.  The Reason jobs go other places; from new York to new Jersey, from Texas to Monterrey, from the U.S. to China is because Living Wage/Minimum Wage laws and Unions make it too expensive to make whatever product it is in the previous place.  In other words, the outright denial and refusal to recognize basic rules of economics kills employment opportunity in one place and creates opportunity in the place the market is allowed to work…

We seem to be doing everything we can to destroy Capitalism.  We’ve been doing this for a very long time.  Given the American determination, when we set our minds to something… we get it done.

WE are destroying this country.

WE are responsible for the state of affairs we are in.

WE are overseeing the decline of the freest country on the planet.

And, by our continued support of Socialism… We are cheering all of it on.

So stop Blaming China for our Failure to Embrace that which made us Great.

If this hits too close to home and you simply can’t question your personal beliefs leaving you in a state to hate someone other than yourself…

Blame Iceland.

Blame Greenland.

Blame Malta.

Blame Tibet…

All are equally as guilty as China.  Actually, more so because they are not propping up what’s left of the U.S.

In the end it’s OUR failure to understand the only thing that makes, or made, the United States Unique in the World.

Capitalism.

Bare in mind, I’m not a Sinophile.  There are plenty of things to blame China for, or at least to use as bright, shining, examples of “What Not to Do, Ever”.  But these things revolve around Socialism… and when you’re busy giving Socialism a big sloppy wet kiss… you’re just not interested in hearing about how the story always ends.

Besides… they make nothing worth drinking.

(Originally Posted 101912)


Got Mad Skillz?

And you ain’t got no J.O.B.?

Or

Taxpayer Financed Workforce Training is Stupid….

Or

Outsourcing totally makes sense…

Or

Let’s get back to the Fundamentals…

Anything other than a business directly training its staff is ridiculous, and a colossal waste of taxpayer money.

Only the Business, Corporation, LLC etc. knows what specific skills are needed at any specific moment. And only they have the ability to “re-tool” quickly enough to meet market demand and best practices. Thus, they are the only ones equipped to train personnel in a competitive environment because of their flexibility due to their market participation and the knowledge derived from it.  This was called “On The Job Training”.

Then why doesn’t this happen?

So why is “On The Job Training” a phrase of the past. In other words, what happened to the days when “unskilled” workers would be hired and trained to fill the desired positions within a company?

The Minimum Wage happened.

The Minimum Wage is why you have to go to school and GUESS what skills will be necessary to secure a job of your liking.

Decades have passed since “getting into”, “starting in the mailroom” or “getting in on the ground floor” of the profession of your choice was an option. Now those industries must hire “trained” or “skilled” employees because they cannot afford to spend any time paying you to learn on the job. It is simply too expensive… because there is an artificial Minimum of which they must pay.

This is why “unskilled” labor in other countries such as China CAN be employed to make things like Apple iPad’s because the wages are far lower and make it possible to build the time spent training the workforce into a product cost consumers are willing to pay.

This is why companies, who want to stay in business, outsource jobs…

If they could not outsource jobs… you would not have an iPad to play with in addition to many other things you take for granted.

Are you with me so far?

Outsourcing, because labor is too expensive in the U.S., enables YOU to have cool stuff you would otherwise NOT HAVE.

But instead of illustrating this simple truth for all to understand, we embrace ideas like “The Living Wage”. (As an aside… considering the “Living Wage” kills jobs as illustrated above resulting in “No Wage”, I’m not sure why anyone supports it. But too few out there seem to think past the warm, pleasant, feeling of the inane goo being poured into their ears. I digress.)

Another problem that should be understood is Big Labor’s relationship to the Minimum Wage/Living Wage. If you’ve ever been confronted by someone with a clipboard asking you to sign a petition to “raise the minimum wage” it is always a Union Member or someone being paid by a Union. Weird… right?  We all know Unions don’t get paid minimum wages!

Well, the Unions base their “scale” or pay rate upon whatever the minimum wage is.  So… by raising the Minimum Wage (A Wage hardly anyone other than first time, entry-level, workers earn) you are handing the Unions an exponentially larger raise. For example, a 25-cent increase in the minimum wage can hand the Unions a $1.25 raise in their base scale. Play around with that math for a second… we have lately seen the minimum wage raised from $5.25 to $7.50+ in some areas with Union base wages already at $35. So using this example, a $2.25 raise to a “Living Wage” gives the Unions a… wait for it… $11.25 raise! That’s a 30% increase in pay per hour to $46.25. That’s just for one hours worth of the same work they were doing prior to the law being changed.  That takes a Union member making $72,800 a year to $96,200 plus benefits!  Are we still talking about the “minimum wage” here?  No… no we are not.

What also happens is the artificially higher wages prevents companies from being able to afford to hire unskilled labor and train them to fulfill the need of the company.  And, in the dim thinking of the Unions, assures their employment at their already exorbitant hourly wage rates… right up until the company lays them off, or goes out of business completely.  Hostess Twinkie anyone?  Seems self-explanatory… but apparently it’s just complicated enough for the Union membership not to understand, so the Union dues keep pouring in.  Then pouring out to the Union Bosses and Leftist Politicians for their election campaigns.

So is it any wonder that jobs move overseas?

If you’re still not convinced… let’s take your $750 iPad and multiply the cost of the labor alone ($250) by 30% with a required 33% profit margin on each unit… now you would have to pay $1100… which you would most likely not do, thus too few people would be interested in buying it over a lap-top… so nobody would have one because there would be no profit available incenting Apple to make it.  If you doubt this and think Steve Jobs would have made it anyway just because he was a “caring”, “altruistic” humanitarian… read his book.

Can you imagine the cool stuff we would have if the government, and those people with the very best of intentions, would just keep their fingers, and noses, out of the Free-Market.

There’s no telling how great our lives might be…

We’ll never know, because this issue is too easy for the Demagogues to make anyone speaking the truth about a Government Mandated Minimum Wage out to be evil.  Which, frankly, illustrates the ignorance of the masses who allow themselves to be manipulated by the Unions and Politicians.  Too bad… it’s a huge loss for all of us, including them.

This is a very important concept to understand as it’s a building block in the foundation of basic economics.  Once you can wrap your mind around what is being explained here you are half way to fully understanding how the world works.

So if you got Mad Skillz and ain’t got no J.O.B. it’s your fault if you support a minimum wage

…Biaaoootch!

(Originally posted 111112.  But some things need repeating.)


Some Organized Truth…

Why are Unions so Interested in the Minimum Wage when none of the Union Member work for it?

This is one of those issues that not politician will touch.  Luckily for us, I’m no politician.

So is it about a “living wage“?  Union members make FAR more than any living wage law would provide already.

Is it about being “fair” to illegal aliens who come here to work?  Union Members are not concerned about being fair to those who “steal” their jobs.

OK, so it must be about something important to the Unions… Right?

It’s Cuz they gots’ Mad Skillz!

If the Democrats are the Party of Speaking Truth to Power, they sure don’t seem to know much of it.