Monday, March 8, 2010

No really... they're here to help.

One of the great statist economic policy follies is that of this concept of the “living wage”, which is manifested by the incessant push from minority and civil rights activists to raise the minimum wage, or as we around here at BwD headquarters like to call it, “the great jobs killer”.

Forcing businesses, mostly small businesses, to raise their minimum wage will result in one of two things: that increase in the cost of doing business will be passed on to the consumer in the form of higher prices for goods and services and/or the employer will cut back on the hours of or lay off the employees at the bottom end of his wage scale.

Higher prices and higher unemployment… now who can't get with that program?

Of course, these self-styled activists because of their noble-minded efforts wind up shafting the very people they are most trying to help. Check out the graph below tracking the corresponding rise in the minimum wage alongside the rising black teen and overall teen unemployment rates.

For all you back-patters out there we leave you with this little gem from our boy, B-Daddy.

Ever notice how Democrat favored policies have a racist outcome, even if Dems aren't racist? Welfare trapped minorities into a life of dependency. Racial quotas breed resentment of minorities. Public school monopolies primarily put inner city minorities at a disadvantage. Abortion impacts blacks disproportionately more than whites.

Add the push for increases to the minimum wage to this list of unintended consequences.

Because it’s feeling good about yourself and your efforts that trumps actual results.

P.S. B-Daddy is thinking about going to a Coffee Party get together at Lestat's Coffee House in North Park in a friendly gesture/effort to find some common ground with those folks. Let him know whether or not you think that is a good idea. After some initial reservations, we figure, screw it - why not? We do believe conservatives have some common ground over what they call "corporatism" and we call economic fascism and what we both refer to as crony capitalism.

P.P.S. Lestat's... are they serious?

Could they possibly find a more obvious venue for disaffected Hopenchange beta-male types. At least no one's going to get lost trying to find the place.

P.P.P.S. Sorry, can't let this go. Leslie, Sarah, Dawn, were we to do anything similar could I suggest KnB Wine Cellars in Del Cerro or Hoffer's in La Mesa.

Discussing things as important as the future of the nation should not be accompanied by anything less than a wide variety of fine adult libations.


paull12 said...

Here is another "I feel good about this" move from the Obamanation: the current move on the administration's part to give small businesses a tax credit for every person they hire. That will add jobs to the economy. How does this work when a small business can't afford to keep who they have are they then expected to leap on this unexpected gift from heaven to hire someone they can't afford to pay because their business is in the can? I am not sure what economics book this play came from but it should be on the Farenheit 451 list.

Dean said...

Paull12, to add to the non-sense even more, as I understood it, this tax credit would apply for salaries above $112,000.

What small and medium-sized businesses are offering jobs in that salary range?