Originally posted by df1
I tried to explain this to some of my friends before it was passed, it's really simple economics. The economy corrects to the inflated wages, and the
correction is not fun for anyone.
You confuse simple economics with economics for the simple. The amount of inflation caused by a couple dollar increase in the minimum wage will no
more cause rampant inflation than an added drop of water will overflow the Atlantic Ocean.
The US government controls the money supply and the value of the dollar via the FED to the detriment of everyone excepting the very rich. The
capitalists constantly sell this fear that socialists will come in and impose a centralized economy controlled by the government. This is pure
nonsense, these capitalists have already imposed a centralized economy controlled by the central government. Who controls the money supply and the
value of the dollar should be of more concern to every citizen.
This minimum wage legislation that is constantly harped about is a canard designed to fool the ignorant. Every citizen should have greater concern
over who controls the money supply and the value of the dollar, because the people currently driving this train are not operating in the best interest
of the American people. I would imagine that the capitalist money brokers are over joyed at seeing the common man bickering over the false flag of
"minimum wage" legislation while they continue screw us with the FED.
I am well aware of how out economy is run by a private cabal of a bankers.
It's irrelevant to this conversation though.
For those you saying "you try and live on min wage" you don't understand what I mean by correction.
The Economy will first adjust to the shock of increased wages, then it will adjust to the new Min Wage . No , new, wealth, is , created.
Prices go up along with the wages the effect you wanted will vanish in the long run and the correction will be bad in the short run.
Why Min Wage Hikes are bad.
Mr. Slave is making 5.25(?)
Mr. Guy is making 7.25
Mr. Dude is making 15.00
Mr. Employer likes Cartoons.
Corrupt Globalist Government trying to crash the value of our dollar and kill our country.....Raises Min Wage to 7.25 over 5 years.
The common man thinks it's a great idea.
More money means more wealth....... right?
Mr. Slave now gets paid 7.25
Mr. Guy is now making slave wage
Mr. Dude is making 15.00
MR Employer has to raise prices to compensate for the increase in wages by Mr. Slave. This is a fact of real business.
Mr. Guy has just lost value on his money
Mr. Dude has just lost value on his money
Even Mr. Employer has just lost value on his money.
That increase in wages Mr. Slave saw is now being neutralized by prices.
So Now MR. Employer is in a bit of a bind. He has to raise prices again, but how can he stay competitive?
Mr. Guy no longer having the buying power he once had demands a raise
So does Mr. Dude.
Mr. Guy is wondering why he is getting paid a slave wage to do non slave labor. Mr. Dude is feeling the effects of increased prices at home.
If Mr. Employer raises wages across the board, he has to raise prices again.
And he can't raise prices or he will lose business.
So, he goes to Mr. Dude, and hands him a pink slip. Sorry Mr. Dude.
Mr. Employer will have to fill that position with someone cheaper. Or cut labor overall. Mr. Guy may get a small raise, but he will get an increased
work load. to compensate fro Mr. Dude. And Mr. Slave will have more demands on him as well.
Mr. Dude is stunned, lots of people are facing the same thing. He can't find a job anymore at the wage he was making ,and he barely got by on that.
Unemployment is up, welfare is up. More people are signing on to social programs. Which will be on the tax payer to make up for. Now there is less
money on the market because of taxes. Mr. Employer is losing too much business.
He goes to Mr. Guy , sorry, I have to cut your wages back to slave labor.
Mr. Guy takes his paycut, what else is he going to do?
This all devalues the money.
Now it's cheap to export but kills the consumer on imports. This is a country that depends on the whole world to make it's slave labor.
Mr. Employer can't afford to pay the prices for the imports needed to run his business. Boards go on the windows.
And now he's out there looking for a new job. Competing against the people he just fired.
All those companies shipping jobs overseas are happier than a pig in **** though. It wasn't the Republicans that signed NAFTA. Not that it matters
they are both working towards the same goal.
Horaaay Wage Hikes! (for politicians who will never have to explain this to the voting public who doesn't understand it anyway)
This effects the middle class more than anyone. The elite class isn't effected by these things. The Slave class just expands. The middle class is the
one getting screwed over.