To The Daily Sun,
How about an honest, scientific discussion about the minimum wage? That won't come from any politician seeking election. The minimum wage is just another bead and trinket used in the same fashion they were to seduce the trust of American Indians.
The fallacy is raising a persons wage increases their buying power. This lifts them up the economic ladder. It simply isn't true, as wonderful as it sounds. If it were true, why is it 70 years past the greatest "give away" president of all time, FDR? It's decades past multiple minimum wage hikes, decades past lucrative union contracts; decades past Medicare, Medicaid, Social Security and disability, and years past Obamacare. Yet, economic inequality stands at a record high in America in 2016. All in the backdrop of a never-ending expansion of government with its endless, sure-fire recipes to cure inequality.
Wages are vastly higher today than they were 10 years ago, 20 years ago and 30 years ago, with employee benefits far more generous, while more things are free today or subsidized than at anytime in history. The programs that pay for these things are all insolvent with forward cost projections revealing Greek-style levels of indebtedness.
Still Bernie Sanders and millions more are screaming for a higher minimum wage, demanding more stuff "free" because people deserve them to make things right and even. It is pure poppycock.
There is no greater political fantasy or con job being put over on voters than the illusion higher wages, minimum or otherwise, will make any person's life better. It won't happen. It has never happened. Every penny of increased wages not earned or "paid for" with higher output (greater efficiency) or improved quality is simply going to be passed through the production chain as higher prices for goods and services to every other consumer.
There is no mystery to this. Any elementary analysis of basic economics proves this to be the resulting effect. Higher (economically undeserved) wage hikes are why the car you bought in 1970 for $10,000 now costs $30,000, and the college tuition that cost $6,000 15 years ago now costs your son or daughter $15,000. Unpaid wage hikes by government mandate, or from unions with a gun to the head of their employer cause price increases in lockstep with the higher wage.
Every dollar of your increase is eaten up paying higher prices for every good or service you buy made more expensive by others getting the same unpaid-for wage hike. Your living standards were not raised one iota, no matter your higher income. In fact, after taxes you're (income has) likely (fallen) behind. You can't defy the laws of gravity and you can't defy the laws of basic business economics no mater how many politicians, starting with FDR, have tried.
Bernie Sanders is the latest quack. Risk capital will demand and get its appropriate return for that risk no matter who is president, or there will be no business investment, no jobs or tax income to pay for all the free stuff.
If you really want raise people's living standards we need to rediscover electricity, the telephone, the internal combustion engine, the steam engine, the jet engine, the computer chip, the automobile assembly line and the flush toilet.
Politicians demanding higher wages, more expensive government, and things "free" is the biggest con game ever perpetrated on a class of life that is supposed to be superior but reveals, time and time again, the thinking power of a single-cell amoeba.
- Category: Letters
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