President of Vice, Joe Jackass Biden, is trying to sell the idea of a minimum wage increase. I believe that to be a very bad idea for at least two reasons: First of all, we have still not recovered from the depression (the worst economy since the Great Depression, Manchurian President Barry Soetoro). To raise the minimum wage would do several things Joe conveniently avoided mentioning. It would put another burden on small and medium businesses already trying to figure out how to shoulder Obamacare. Yes, the mandate for business has been delayed but that is only postponing the inevitable. An increased minimum wage would mean more cost to the business owner to hire workers at the base rate. BTW, most business are small to medium in size. Secondly, it would affect job availability in a bad way. It is already difficult for those just out of college (no experience) to find a job. If MW is raised, it will be even more difficult because employees will either be forced to downsize (it costs money to run a business) or think twice about hiring new employees. Bottom line, raising the MW in a depression is putting the cart before horse. If Obama wouldve acted (even would act) more like Reagan and less like Carter, wed already have a recovery and with a robust economy then it would make sense to raise the minimum wage. Economically, what does raising the MW do? Consider that Wall Street is being held up artificially by quantitative easing. That means that the Federal Reserve is buying stocks with money theyre making out of thin air (there is no value backing that money). Nothing is even being printed -- its just credit because they made it up. If tomorrow morning the Fed were to stop the QE then Wall Street would crash. If they dont stop, expect the artificially held low interests to skyrocket. Lastly, increasing the MW is the sure path to more inflation, which is the hidden tax that taxes even those that only have a few coins.
Posted on: Sat, 29 Mar 2014 19:23:48 +0000