Why a Balanced Budget Amendment? The Minimum Wage Debacle

The Fair Labor Standards Act of 1938 (FLSA) set $0.25/Hour in 1938.

Minimum Wage: What’s the history?

 

minimum wage debacle
by Steve Breen 6/13/2017

 

“Higher minimum wages both reduce overall employment and encourage relatively affluent workers to enter the labor force. Minimum wage increases often lead to employers replacing disadvantaged adults who need a job with suburban teenagers who do not.” – James Sherk, Research Fellow, Labor Economics at The Heritage Foundation

Fact: The FLSA was anything but ‘fair’ because it did not apply to all hourly workers, farm workers, for example.

Fact: Many types of employment today are not covered by the FLSA or any of its subsequent derivatives. Current and past minimum wage laws do not apply to many jobs in America, waiters, for example. Learn more from the Dept. of Labor.

We as a nation have come to a place in history, a point in time, where the federal budget can no longer sustain massive socialistic spending as national debt approaches $20 TRILLION.

Neither your household or business can long remain financially viable if spending outstrips income. It’s truly not rocket science.

If a prospective homebuyer were to apply for a mortgage with his or her credit score near or below zero, you know the obvious outcome. Don’t you? Right. That loan application would be immediately denied. Is this not the situation with the Federal government?

What to do?

  • Choose to be realistic
  • Tell Congress to balance the budget
  • When the Convention of States convenes, tell your COS representative you want a balanced budget amendment.

John White
Rockwall, Texas

A Streetcar Named DART (Or You Pick A Name)

Applying classic math, 100%-62.9%=37.1% true unemployment rate. [Source: BLS.Gov] During the Great Depression, unemployment peaked at 25% in 1933.

The Obama administration pushed for and got ACA coverage for families with children up to 26 years of age. [Source: HealthCare.Gov]

Today, we call these young layabouts ‘millennials’. Earlier layabouts who gave rise to Marxism and Communism were Karl Marx and Vladimir Lenin. Coming forward, Bernie Sanders, a notable layabout who did work a little in his life as a carpenter (“a shady carpenter”), educated himself on the writings of Marx, Lenin, and Trotsky.

The Minimum Wage Act of 1948 and the Fair Labor Standard Act of 1938 are socialistic laws intended to elevate Americans out of poverty, but it only applied to certain jobs. Back in my high school years, the minimum wage was $1.15/hour, but the Texaco gas station where I worked 12 hours per night 5 nights per week paid only $0.65/hour because gas station employees were not covered by the law and I didn’t complain. I needed the work. It’s helpful to know that I worked 12 hours per night while attending high school by day and, yes, I graduated.

People with actual marketable skills are worthy of wages well above the legal minimum wage and are generally paid far more than today’s minimum wage of $7.25.

The Minimum Wage Act of 1948 and the Fair Labor Standard Act of 1938 work contrary to their intended purpose because they fail in a free-market economic system, a natural exchange of ideas and services between willing buyers and willing sellers. Simply stated: The minimum wage laws are perfect examples of the inevitable failures of socialistic economics.

The “people in the basement” are the young people NOT in the labor force today. These so-called millennials don’t have to work.  What’s the cure? How do we get them out of the basement? Consider the wisdom of Founding Father Benjamin Franklin.

I am for doing good to the poor, but…I think the best way of doing good to the poor, is not making them easy in poverty but leading or driving them out of it. I observed…that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.

Franklin’s wisdom was valid 227 years ago on the day of his death, as it is today.

Nature abhors a vacuum, it is said. The Bernie-Sanders-inspired-layabout-millennial generation creates a huge labor market ‘vacuum’ that is a chief reason for illegal immigration and H1B visas. We have a pool of able-bodied and unwilling-to-work that today, May 28, 2017, represents almost 40% of the adult population of our country.

How can we minimize the illegal immigration problem and the tandem problem of millennials in the ‘basement’? I have a few suggestions.

  • A full repeal of ObamaCare
  • A full repeal of the Minimum Wage Acts
  • Better scrutiny of social programs like WIC, disability insurance, social securityobama has my vote he gave me a free phone payments to able-bodied Americans
  • End the free ObamaPhone program whereby 20,000,000 Americans get free cell phones
  • Dramatically cut back on Executive Branch departments and a myriad of social programs – You can tell President Trump which to cut via WhiteHouse.gov. Learn more via this link https://rockwallconservative.me/2017/05/27/help-pres-trump-drain-the-swamp-he-wants-your-input/

As PM Margaret Thatcher famously said, “The problem with socialism is that you eventually run out of other people’s money.”

John White
Rockwall, Texas

 

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Natural Economics Wages War on Wal-Mart Decision

1 September 2015 AD/17 Elul 5775

wal-mart cuts some workers hours after pay raise boosts costs

Around the country, employees demanded a “living wage”. Wal-Mart responded by raising minimum wages to $9/hour; early next year to $10. Naturally, raising wages raises costs thereby cutting profits and incentives to investors. What to do next? Cut hours. Zero sum gain for employees.

Read from Bloomberg: Wal-Mart Cuts Some Workers’ Hours After Pay Raise Boosts Costs

Wal-Mart is the low-price leader in the world. While some may scoff at its low wages, the fact of Wal-Mart’s benefit to our lowest income families is unmistakable: Wal-Mart customers save over $2,000/year over what they would pay at Kroger or other up-scale grocer.

Economist Milton Friedman warned against the good intentions of mandatory minimum wage which will have the opposite effect.

The fact is, the programs that are labeled ‘for the poor’, ‘for the needy’ almost always have effects exactly the opposite of those the well intentioned sponsors intended them to have. – Milton Friedman discussing the effects of minimum wage, dispelling the myth that it is a Good Thing.

Inevitably, Wal-Mart must raise prices to maintain investor expectations. As prices increase, market forces will drive down purchases by the company’s traditional customer which, in turn, will put pressure on the company to further reduce hours and demand more productivity from employees who will again demand higher wagers and so the inflation spiral gains momentum.

Time was when Sears, Montgomery Ward and JC Penney were on top. Today, two of these former giants gasp for breath while one has gone out of business. Time comes when Wal-Mart will follow suit.

Socialism fails every time it’s tried. Capitalism is not an economic theory, but the natural exchange of goods and services among a free people. Mandatory minimum wage artificially shapes the marketplace.

Socialism does not increase a society’s overall wealth; it shares the poverty.

John White

Rockwall, Texas

What Cost NY Minimum Wage “Kool-Aid”? $15/hour | A Milton Friedman Moment for Me. And You.

23 July 2015 AD
10 Av 5775

New Yorkers celebrate of $15/hour minimum wage for fast-food workers. Do they truly understand what will happen next?

NY Times story: New York Plans $15-an-Hour Minimum Wage for Fast Food Workers

click on image above for full story from NY Times
click on image above for full story from NY Times

What did economist Milton Friedman say about the minimum wage?

While we continue to say ours is a “free market society”. It is not. Thomas Jefferson warned us time and again against the perils of big government. Consider these statements of our third President:

Were we directed from Washington when to sow and when to reap, we should soon want.

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first.

Government big enough to supply everything you need is big enough to take everything you have … The course of history shows that as a government grows, liberty decreases.

We Americans are on a course toward national bankruptcy and we’ll bring down the entire world with us. Growth of government is unsustainable. We now have federal regulations in place that inhibit the hiring of inexperienced teenagers and drive capital offshore.

Hopefully, the soon coming Article V Constitutional Convention, if coupled with nationwide spiritual revival, may save America the beautiful from becoming the America that was.

milton friedman - world runs on individuals persuing their separate interests

John White​
Rockwall, Texas

Living on Easy Street – WSJ Identifies Top 10

Too Good To Be True?

We senior citizens who continue to labor at our crafts, sometimes imagine long, exotic vacations where nary a single worry crosses our collective brow.

Less work, more pay? Boy, does that sound like a good deal! Or, is it?

Herewith excerpts from a Wall Street Journal article by a trio of writes, Michael B. Sauter, Alexander E. M. Hess and Lisa Nelson, compare annual labor hours to hourly wages.

These look like good deals, but there is a price, a terrible price: loss of liberty.

10) United Kingdom
> Average annual hours per person: 1,611
> Average working hours per week: 31
> Average wage per hour: $31.27 (11th highest)
> 2011 unemployment rate: 8%

9) Finland
> Average annual hours per person: 1,578
> Average working hours per week: 30.3
> Average wage per hour: $33.63 (9th highest)
> 2011 unemployment rate: 7.9%

8) Luxembourg
> Average annual hours per person: 1,565
> Average working hours per week: 30.1
> Average wage per hour: $46.78 (2nd highest)
> 2011 unemployment rate: 4.9%

7) Denmark
> Average annual hours per person: 1,496
> Average working hours per week: 28.8
> Average wage per hour: $48.82 (the highest)
> 2011 unemployment rate: 7.7%

6) Ireland
> Average annual hours per person: 1,469
> Average working hours per week: 28.3
> Average wage per hour: $45.53 (3rd highest)
> 2011 unemployment rate: 14.6%

5) Belgium
> Average annual hours per person: 1,446
> Average working hours per week: 27.8
> Average wage per hour: $38.90 (5th highest)
> 2011 unemployment rate: 7.2%

4) Austria
> Average annual hours per person: 1,431
> Average working hours per week: 27.5
> Average wage per hour: $36.63 (6th highest)
> 2011 unemployment rate: 4.2%

3) France
> Average annual hours per person: 1,392
> Average working hours per week: 26.8
> Average wage per hour: $34.26 (8th highest)
> 2011 unemployment rate: 9.3%

2) Netherlands
> Average annual hours per person: 1,336
> Average working hours per week: 25.7
> Average wage per hour: $42.67 (4th highest)
> 2011 unemployment: 4.4%

1) Germany
> Average annual hours per person: 1,330
> Average working hours per week: 25.6
> Average wage per hour: $35.33 (7th highest)
%25> Average annual hours per person:

Read more: Countries Where People Work Least – 24/7 Wall St. http://247wallst.com/2012/07/18/countries-where-people-work-least/#ixzz20yqeGwq6