Friday, September 6, 2013
I want my $12 Big Mac!
I was somewhat bemused by the usual cast of idiots, sycophants and unwashed that were protesting last week at fast food places looking for a $15 base pay and saying that Wal Mart, at the point of a gun mind you, should be FORCED to pay every employee minimum of $25,000 per year.
I'm bemused because these simpletons haven't got a grasp on basic economics - and in fact - voted for the very guy that is causing their opportunities to disappear. You get what you vote for, and these folks deserve the ramifications of an Obama government. Without lubrication.
As I mentioned, these people don’t understand the most simple, basic elements of economics.
Like supply and demand.
With an unlimited supply of labor, labor becomes very cheap. That means you make less money – a lot less. And it doesn’t matter if you are a rocket scientist or a landscaper, the same law of supply and demand applies. When you have more butter than people demand to butter their bread, the price of butter, particularly excess butter, falls.
When you allow 1.5 to 2 million immigrants every year, whether legal or illegal to enter the work force, you have increased the supply of labor and thereby lowered the value/cost of that labor. When you allow 10-20 million illegals to stay without any sort of integration they have to work "under the table" which drives down the price of butter - I mean people - even more.
Which means you and I make less money. It’s that simple.
Now - to be clear - the only reason that there is not a complete collapse of wages in this country is that people are bailing out of the job market by retiring, going on disability or welfare. Or in the case of government workers - all three, but I digress. Then the healthiest ones turn to "cash based income" (I'll leave that one alone!) thereby lowering the value of on-the-books butter - sorry, people - even more. There are less people "working" today then there was thirty years ago.
Obama has presided over a staggering net job loss, an almost 100% increase in food stamps recipients and a similar increase in the number of people seeking disability. There used to be 3.2 "makers" in the US supporting 1 "taker". That number is now 1.6 makers for every taker.
Of course he wants to blame the "rich" - who else is going to fund all the promises made to the great unwashed? With a deficit approaching 18 trillion USD, even our friends won't lend us much more money. And in the eyes of a socialist - anybody that has more than you - is "rich". And therefore a target. Like fast food companies and Wal Mart.
How to fix it? That's the easy part. Unless you are a Democrat - because this is going to cost a lot of votes....
1. Enforce the borders and end undocumented wink-wink immigration
2. Nail those businesses that pay off the books - especially to illegals
3. Create a path so that off book illegals become on book legal workers. Not citizens, but workers. They get in line like everybody else.
4. Reduce the benefit allotment for welfare, unemployment and the like. It isn't a replacement for a wage. It is an insurance policy with term and benefit limits. 70% of your average last year's pay for 4 months.
5. Eliminate or even ABOLISH federal minimum wage laws. You would be surprised at how quickly the price of labor resets itself. People who are worth nothing, get nothing, people that do a good job and create good value get a good wage. People that create outstanding value or take outstanding risks with their own resources make a great wage.
6. Eliminate public sector unions that increase the cost of everything for everybody (except them of course!)
7. Remove intergenerational business asset taxes. If I built it - I want my kids to have it. And if it runs as a going concern, I don't want them taxed to death on the "theoretical" capital gain.
8. Ensure welfare recipients that are able get job and skill training by having them work on infrastructure projects - every location has those needs. Pay 'em the welfare, but create a path to get off it. No workee/trainee, no payee.
9. Take advantage of the knowledge of retired people - and pay them some sort of stipend to teach welfare youth skills that are in demand.
10. Elect leadership that believes that gov't should get out of the way of people, leave us and our stuff alone and allow us to return the USA to being the greatest country in the world.
Or you can pay $12 for a Big Mac.
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