Who doesn’t want something for nothing? However, there is no such thing as everything has a cost at some point and that is the problem with populist policies. When a politicians poll numbers are low and the people lose faith in said politician it is a safe bet that they will start offering populist policy ideas in order to boost their popularity. This is what Obama and the democrats are now shooting for with their $10.10 minimum wage increase.
I am against the federal minimum wage because it applies the same logic to the entire country which is never right. Wages vary state-by-state because the cost of living varies state-by-state. Housing, energy, food and other core goods in North Dakota are far less expensive than housing in DC, New York, Boston or LA which means wages are generally lower. With that, does North Dakota, which has low unemployment already, need a $10 minimum wage? I honestly don’t know, I don’t live there which is my point, but in all likelihood they don’t need $10/hour.
All labor is not equal which an unpopular idea generally speaking, but it’s true. Does a 16 year old cashier worth $10/hour? Well, based on my last shopping trip, no. How about a cashier versus the cart collector who ventures into traffic in the rain, snow, hot and cold weather, is that work equal? No, not by a long shot, I know, I did both jobs. Not to mention the largest portion of hourly workers are the young and unskilled which is why they have minimum wage jobs. As they gain experience and skills their pay will naturally increase but a starting point is always going to have the lowest wage point.
Above all, minimum wages should be determined by the states as I stated earlier, cost of living is local. As it stands now there are states that have higher minimum wage levels than what the federal government mandates already. Some states have indexed the minimum wage to inflation as well which should tell you that in the areas where wages need to move higher the states are working on it.
I am not against higher wages at all, but the way this is being proposed is illogical and being done largely to help the democrats keep the senate. Using the working poor as a political tool is wrong, but that is what politicians, largely democrats, do. If the democrats really cared about the working poor they would have raised the minimum wage in 2010 before they lost the house, but their arrogance made them think, like the GOP from 2001-2006, they would never lose control over government. They were wrong, obviously.
I see the democrats do this all the time, they crack down on welfare and ignore the poor when it is convenient, but when victory is becoming more difficult they know, basically, by bribing the most desperate in the electorate, the poor, they can win votes. Hey, republicans do it too, but generally not to the same level as democrats are only friendly to the poor when needed and the rest of the time they simply feel their pain. They also have another reason to do it, Obamacare is another which I already wrote about, but the real reason is because Obama’s miracle economic recovery is a complete farce.
How many times have we heard about the 4 million jobs that Obama, all by himself, like Superman, created all of these jobs? All the time, but we have to keep in mind people are dropping out of the workforce faster than the jobs are being created which is why unemployment has decreased. My question is whether or not you looked at the quality of the jobs ‘created’ under Obama, all by himself, look like. If you are a liberal I am confident you never get past the headline figures or do any critical thinking about the monthly employment reports. If you did the research you would know where I am going with this.
Obama is the minimum wage job creating president. Out of all the jobs Obama created the vast majority were within the food and beverage and hospitality area of the economy which are all hourly paying jobs. It isn’t his fault, wait, it is since he takes credit for all things good that happen and none of the bad. However, the people who have these jobs know the truth and by giving them a raise Obama is trying to win back their support. I don’t think it will work but it is a sound political ploy. I just wish the liberals would open their eyes to see what he is doing, but they don’t and all critical thinking stops when his name is uttered, much like the right when Bush was in office.
The other negative aspect about the minimum wage hike is that it will hurt jobs, according to the CBO. Granted, more people will be helped than hurt, which is the recent defense of the CBO estimates, but it doesn’t change the fact people will be hurt. Not only will jobs be lost, but hours will be cut mainly because not all work is equal. The rise in pay will not create aggregate demand for products, food and energy demand will increase, but even at $10/hour people still don’t make enough to buy new cars or iPods, etc. Well, that isn’t totally true I guess…
Some minimum wage earners would have spent their money on products, iPods, etc., but these are the people who will be losing their jobs! I am referring to the 16-24 year olds who are still in school and living with mom and dad. Those people will find it harder to find work as adults who need jobs have more experience and will, with higher hourly wages, be more willing to seek modest work when times are tough. The youth unemployment rate is still sky high, double digits sky high, and rival black and Latino unemployment figures because even with low minimum wages adults in hard times are taking whatever they can get for work. My point is that the young are those who waste their money in Apple products which would create aggregate demand within the economy. Adults just trying to make the mortgage are spending their money on the essentials, that’s it.
Obama’s grand idea will only make an existing problem, youth unemployment, even worse. To think, these are the people who voted for him to begin with. Again, it’s not Obama’s fault, he has never created a job or has any idea how the economy actually works… they didn’t cover that in community organizing school. In other words, this will backlash on the democrats and remember, I am OK with higher minimum wages so don’t shoot the messenger. I just wish liberals and the poor would finally open their eyes to what the democrats are all about, staying in power. They only choose to discuss your problems when they have to, like now as votes are going to be tough to get. Don’t believe me, go do some research, I am right.
Populism is Terrible Politics: Minimum Wage Increase
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