Last night Bill OReillly advocated raising the min. wage & justified its expense to businesses by saying it would be offset by lowering taxes on profits currently held in overseas bank accounts. These repatriated dollars would thus compensate for the increased cost of labor by the new Federally-mandated wage hike. Well..... Wrong OReilly ! Most new job creation -- historically, coming out of a recovery -- is provided NOT by big corporations with overseas operations, but by Mom & Pops and other small, entrepreneurial businesses. These private enterprises--usually sole proprietorships, LLCs, & partnerships --dont have fat, foreign bank accounts with high-level tax lawyers working-out diversions & schemes to avoid particular tax considerations. Of course, lowering these taxes would be a good thing and would stimulate the economy, but it doesnt justify a policy that adds to the cost of labor. The small business in your local, small town community -- if the min wage is raised -- wont be able to hire low-skill Jr. to sweep out the stock room. So, Jr. will just continue to stay home, play video games in the basement, draw welfare, and maybe one day join ISIS ! Seriously, the incentives NOT TO WORK are greater than the incentives TO WORK exactly because of our perverted & bloated welfare system. Remember, Obama reversed the work requirements put in place by Clinton & the Republican Congress in the Welfare Reform of the 90s. Now we have something like 50 million people on food stamps-- a number greater than the entire population of Germany ! And, they say we need Illegal Immigrants for jobs !!!??? Hell, just stop giving out Obama phones, EBT cards & free healthcare, etc. and well have plenty of available workers already Here & Legal ! Wages, Prices, Profits. ...this is all part of the Law of Supply & Demand and relates directly to the incentives found in the economy for making money ! If the govt dictates more & more conditions regarding these factors-- they will stifle & retard growth that is otherwise naturally existing in the Free Marketplace. Why would these politicians do it ??? Because these barriers & rules are designed to favor one group of business people ( the political donor class ) at the expense of the other. Its an economy run like the old Royal way...back when Kings & Queens authorized economic activity that they would permit to certain connected people with Royal Charters. These type of preferred & privileged operations was part of the Ruling Class then...and its part of the Ruling Class now ! Unfortunately. This patronage system of picking Winners & Losers is a betrayal of our American Way of Life in Liberty. Its a state-run, fascist monopoly. I wish to God people understood economics better. This ignorance is why we have so many divisive Wedge Issues in our political campaigns. If people understood the Big Stuff, we wouldnt be fighting so many fierce social battles down these antagonistic rabbit trails ! QE has been one of the biggest, most consequential issues of our generation, and yet, not One person in Ten is aware enough to intellectually discuss it, much less, vote on it !! ------------------------ State of Franklin Join together in wisdom, or Die separated apart in ignorance. You know which side the Devils on.....
Posted on: Fri, 07 Nov 2014 12:04:20 +0000
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