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Pat Graves
July 3, 2010

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Wage floors have the effect of pricing low productivity workers out of the job market. It's a simple matter of supply and demand.

Typically, the issue of minimum wage has been used merely for political pandering. However, it is becoming increasingly evident that more and more people are unable to earn a livable wage. Sadly, a great many people fail to understand that raising the minimum wage would only make matters worse in the current economic climate.

Also, the minimum wage issue diverts people from the causal policies that fuel the debate over the minimum wage.

Issues like giving people a living wage ignore the fundamental problems that are destroying this country's middle class. It's not necessarily the height of wage rates which should concern us. It is exactly the purchasing power of those wages which is the problem.

Sadly, it is usually capitalism which gets the blame. But the real reason is that capitalism has not been allowed to do what it does best; allocate scarce resources for the greatest benefit to society in the satisfaction of their needs a wants.

The two-income household, wage stagnation, widening wage gap, massive wealth disparity, erosion of our manufacturing base, huge trade deficits, etc. All of these problems can be traced back to the early to mid 1970's, yet very few are able to make the causal connection. And when it's presented to them, all of the arm-chair economists come out of the woodwork to discredit, discount, and thoroughly bash the idea.

Almost the entire mainstream of academia has been set up to provide intellectual cover for the status-quo system. Nobel-laureate economists get weekly opportunities to spread their venom of the status-quo to media outlets nation-wide. The masses have been poisoned effectively for nearly a century by this backward, asinine system. So effectively that it has rendered them incapable of critical thought when their theories have been thoroughly exploded right in front of them.

Keynesianism is the gold-standard for impoverishing a nation.

(Suggest removal) 6/30/13 at 6:41 a.m.

This is an economic issue. However, to those on the Left who call themselves "liberal", yet remain resistant to change, this is just a political issue with which they use to vilify Republicans and strike fear and class hatred into their constituents.

...But, I digress.

Actually, both parties like to trod out their respective economic fallacies so that as they continue to rob us at gunpoint, we can all feel good about it, and even thank them as we set them upon pedestals. Your family may be going hungry, but society as a whole is better off.

The so-called science of economics is a vast sea of contradictory theories and beliefs. IMO, mainstream doctrine has poisoned the well for about a century now which has become so entrenched in academia, business, public opinion, and politics. Its one and only true benefit is that it provides intellectual cover for the oppressive growth of big-government.

(Suggest removal) 6/13/13 at 6:36 a.m.

The Tea Party chose their name to call attention to the effects of the increasing economic burden placed on American businesses and taxpayers by our federal government.

Since there is no logical, moral, or economic reason for the belief that the increasing expropriation of private wealth, it's waste, re-distribution, and ultimate destruction is somehow going to create a better, more prosperous and equitable society--the essence of Progressive ideology--they have no choice but to resort to the Progressive propaganda: The moralist angle. The race-baiting. The evil Republicans, the greedy corporatists, and the rest who want dirty air and water, and Grandma turned out into the street.

It's sad but effective. It's all they got.

(Suggest removal) 6/9/13 at 9:15 a.m.

It's no wonder FDR won by a landslide. What's not commonly known is that Roosevelt campaigned on a platform of balanced budgets and smaller government.

Therefore, the incessantly regurgitated claim of "totally unregulated laissez-faire capitalism" is nothing but a grossly disingenuous red herring that displays a massive lack of logical reasoning and critical thought. Typical herd-mentality. Moo.

(Suggest removal) 6/9/13 at 8:32 a.m.

The true shame is how so many people hold on so tightly to economic fallacies and misconceptions.

Long-held historical myths continue to this day in serving to hobble economic recovery as it did in the 1930's.

One of the biggest that still infects liberal thinking is that low wages and the lack of purchasing power is a drag on the economy. The crash of '29 was a result of the inflationary policy of the Fed during the latter half of the '20's. As this boom was artificial and unsustainable, a contraction was inevitable and necessary.

A market economy thrives and grows when the per-capita amount invested in labor causes increases in productivity which in turn lowers costs to business, lowers prices for consumers, which in turn cause wages to rise and, due to lower prices, increases the purchasing power of those wages. This is the capitalist mechanism which improves standards of living for the whole of society.

When an economic correction is needed due to distortions created by government and monetary intervention, it has been customary to employ ever more wrong-headed and destructive interventions which only serve to prolong any real and sustainable recovery.

So, in 1930 Herbert Hoover--WHO NEVER IN HIS LIFE ESPOUSED ANY LAISSEZ-FAIRE BELIEFS WHATSOEVER--successfully convinced businesses to maintain wage rates and thus the purchasing power of labor (Henry Ford paid his employees more not so they could buy cars, but to combat the high turnover in mundane assembly-line jobs). But during the initial down-turn, prices were falling, which has the natural effect of raising wages and their purchasing power.

So then more wrong-headed economic intervention was employed to maintain price floors. These two opposing interventions served to increase the costs to business which led to the fall-off in production and the increase in unemployment.

But that wasn't enough for the "laissez-faire" Hoover. The Smoot-Hawley tariff greatly increased costs for businesses and dealt a great blow for farmers. In a vain attempt to help farmers Roosevelt gave us the AAA policy of plowing under crops and destroying hundreds of thousands of livestock to maintain higher prices. I guess destroying wealth to create prosperity and puting people in bread lines so they can make ketchup sandwiches is the type of logic that infects Progressive minds.

Then in 1932, Hoover,the "do-nothing, laissez-faire, capitalist", with his Progressive logic undaunted, gave the American people the largest tax increase in U.S. history with the signing of the Revenue Act of 1932. As a result, total receipts fell for the next year. Shocker!

(Suggest removal) 6/9/13 at 8:31 a.m.

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