Minimum Wage Fiasco - Obama Style
By Dr. Phil Taverna
Minimum wage is like the birth control issue. It sounds good. May even feel good but it makes no sense and it is not worth it. And Fluke said she didn't need it!
Obama has no business sense and he has proven that over and over again. If he was running a business, which he never has, the first question he would ask is how many businesses who are paying minimum wage can afford to pay a minimum wage increase?
Economics 101 would ask Obama to determine if there is enough profits to pay for the increase in wages. He unilaterally raised all the federal workers but that is not based on profit. It is based on taxpayer dollars. So all those middle class folks who are lining up to pay for ObamaCare increases, Medicaid increases and now payroll increases for federal workers should be filled with delight!
The next question is how many businesses have several minimum wage earners and will the increase put the business into bankruptcy. The CBO looks at jobs lost, but how many businesses will be lost?
The follow-up question would be how much will the business have to raise its fees and prices to cover the increase in payroll caused by ObamaCare and the minimum wage increases?
And what about the snow ball effect. If you increase the totem pole bottom row by $3 dollars an hour... What about all the others on the totem pole. Do you really think they will sing Kumbaya and not ask for the same $3 dollar raise. Now what happens!
So the smart employer says well what can you the employee do to increase my profits so I can pay you more? And most employees have no clue about the business and just answers with a blank stare like a 4 legged animal looking into oncoming headlights.
So the genius Obama thinks that by raising the minimum wage he is going to help somebody. Obama will probably help a lot of people out of a job. CBO says 3 million. They are usually wrong. But how many businesses will be lost because they will not be able to compete. They will be lost forever!
So in the end the increase that is there for inflation purposes will actually cause an increase in inflation. Similar to a dog trying to catch his tail. The faster he turns the distance between the teeth and tail remain the same. If the minimum wage goes up three dollars an hour, the wage earner is no closer to catching his tail. If he loses his job... He is done. If he can work more hours that would be great but that is unlikely in the great Obama-Clinton economy. After all Billy Bob said Obama was doing all the right things like he did when he was president.
O'Reilly wants to increase minimum wage. Well there is a guy who makes a great deal of money. If he wasn't on Fox News and running a real business, he might think differently. But in all his businesses he has tons of money to run them. It is the liberal in O'Reilly slipping out again. He isn't paying anyone minimum wage, why should anyone else not have to pay a higher minimum wage. Well because they can't afford it and stay in business.
The other end of the spectrum is the over taxation of the middle class and higher who are business owners. So let's do a little math. Let's say the business owner makes $100,000 a year taxable income. He has 100 workers making minimum wage. and they work 30 hours a week. Excluding all the taxes and nonsense, a three dollar increase could amount to a gross payroll increase of more then $450,000 annually. You should include all those special payroll taxes and ObamaCare and the like in the computation.
Well unless this guy is drilling for oil, he won't be making $100,000 this year. And probably will have to close his business and look for a job working for the government or the media. The wonderlands where profit is not all that important.
So we take it the next step, this owner paid about $30,000 to $50,000 dollars in taxes last year. Now that is gone. Whoops can't we start over again. So not only did we lose 100 jobs but we lost the tax revenue of the owner and all the workers. That doesn't make any fiscal sense! But it will make Obama Sense or is it Cents!
This all started with Carter. Jimmy thought he could manipulate the taxes and the spending. It was under Carter that deficit spending started to become outrageous, thanks to the LBJ programs. And these idiots including FDR thought the economy would catch up and wipe away the deficit and return prosperity to the great America. It hasn't happened since Jimmy the peanut farmer was president.
Obama comes along who never ran a business in his life and puts spending on amphetamines. And the economy stops and goes in reverse for the most part. Obama doesn't take any blame. He blames it on education and technology.
So after all that do you really think raising the minimum wage the Obama three dollars will help or hurt the economy? You could be the dumbest person on the planet and realize it sure won't help. If it doesn't help why do it. Maybe they should have asked that before the liberal Democrats signed ObamaCare.
If it doesn't help the majority and the Republic... For God's sake don't do it!
Liberals don't answer to God. They don't answer to the people or the republic. Then why on earth would you keep voting for these losers. They keep making lots of money... How come you don't?