Minimum-wage millionaires? Joseph Farah shows employees how to retire wealthy

WorldNetDaily.com ^ | Friday, April 30, 2004 | Joseph Farah

[GeronL]

right on.

Sounds like Walter Williams doesn't he? Except he didn't mention making his wife wash his car or anything.

[spetznaz]

Raising the minimum wage seems like a nice warm-hearted thing to do since it would 'uplift' the masses who 'toil' in low-wage jobs and give them extra cash in their pocket, but if you erase 'feel-good economics' and stick to real-world economics, mucking with the minimum wage is a bad thing. Most economists would show how raising the minimum wage would lead to mroe hurt than benefit, but this is a political issue, and it seems to make sense, hence no one will care about the true ramifications.

Basically the minimum wage is a veritable price-floor, with the product being labor. That would pollute the economic equilibrium, and lead to less demand for labor. Hence those employed in minimum wage jobs would indeed get paid more, but there would be many that are either let go or not employed in those same jobs.

Why not try something radical! For example ....umm......letting the MARKET take care of things?

Sadly politicians love such issues ......they strike at the heart and not the head, and this is a perfect case example (outsourcing is another). I am sure Lou Dobbs will be salivating over this.

[rdb3]

Raising the minimum wage seems like a nice warm-hearted thing to do since it would 'uplift' the masses who 'toil' in low-wage jobs and give them extra cash in their pocket, but if you erase 'feel-good economics' and stick to real-world economics, mucking with the minimum wage is a bad thing. Most economists would show how raising the minimum wage would lead to mroe hurt than benefit, but this is a political issue, and it seems to make sense, hence no one will care about the true ramifications.

Political solutions to economic problems are bad medicine. The market should take care of itself.

Minimum wage laws must be abolished.

A.K.A. Sleepy Brown

[gakrak]

I really get tired of listening to these Hollywood dolts.
Here we have another actor that has never held a job other than acting with barely any education beyond high school addressing the congress of the United States. What amazes me is that through acting one can become a expert authority on everything from foreign policy, economics,health care and all things political. Another Teddy (splash) barf alert.

[ScarTissue]

"The problem with Mexicans is that they are here reaping the benefits and paying nothing..."

That is why they should be legalized under the Bush plan.

"Meanwhile... the MEXICANS breed like rabbits under an AMERICAN subsidy and the ordinary American is lost in the process."

That is racist nonsense. Do you know what the Mexican birth rate is? Hint: it is below average and is at a healthy level. Not every group has a birth rate of 1.3.

"What does it mean to be an American?"

To live in a free country that is democractic and guarantees equal rights for all, where you can be as rich as your talent will allow you.

"Cross the border and unless your a terrorist, you get afforded EVERY right of an American without actually being one."

So what? It has always been like this. Immigration just wasn't selective in the past. The US had de facto open borders for most of its history.

[R. Scott]

Ben Affleck came to the Capitol today to testify on behalf of Sen. Ted Kennedy's bill calling for a hike of $1.85 in the nation's minimum wage.

If he’s just a rich Hollywood type, what can he possibly testify to? Will he swear that his maid, chauffer, bodyguards, groundskeepers etc. are grossly underpaid?

[bvw]

Mexixans are not a "race". Sorry.

Ignorance is found in all races. Including the ScarTissue race.

[CDHart]

I sent the following to Farah -- be interesting to see if I get a reply.

Carolyn

One more point re minimum wage -- take the # of people who are on minimum wage times the dollar amount of the proposed increase. Then multiply that answer by 2080, which is the number of working hours in a year. Take that answer and multiply by 15.3%. That is the increased amount that the government can expect to take in for FICA and Medicare.

You may be surprised how large it is. I figured it out once -- but don't have my almanac handy that gives me the number of workers on minimum wage.

You see, an increase in MW doesn't really help the employee, because prices will go up correspondingly and things will level out again. But it really helps government by putting more money into their coffers.

Also, when the minimum wage is raised, other employees usually get an increase because it's "not fair" that the new people make close to what the current employees are making. So across the board, the only beneficiary of the minimum wage increase is government.

I would be interested in hearing your take on this.

[kdot]

Now that Arnold left, Affleck is Ted's new dog.

[Capitalism2003]

ugh, the stupidity among the left never stops...

Some big leftist arguments get debunked very nicely at the links below. I don't want to advertise but we could always use a few more Freepers to debate the DU morons who have infiltrated this board. Check these threads out.

economics

http://www.conservativeunderground.com/forum/phpBB2/viewtopic.php?t=4566&sid=42591f9597b5006af06bd63e368bfbe6

minimum wage

http://www.conservativeunderground.com/forum/phpBB2/viewtopic.php?t=4651&sid=42591f9597b5006af06bd63e368bfbe6

[Capitalism2003]

Why don't we knock out the 7.5% FICA tax along with the employer's 7.5% matching "contribution" which comes directly out of people's paychecks? Every worker in America would get an instant 15% raise if we did this. How would that help with your retirement savings?

I recall reading an interesting book a while back..It had some statistics in it about what the average person COULD have had they not been forced to 'contribute' to social insecurity throughout their workinglife. Assuming you make an average salary of $20,000 from age 16-65...adjusting for inflation, had you invested your social insecurity taxes in a conservative mutual fund averaging 10% a year, at retirement you would have a private account worth roughly 1.2 MILLION DOLLARS. Drawing 5% interest on this account would equal a $60,000 annual pension, and you will NEVER touch the principle!!! Every penny in the account could be passed to your children or to charity. Of course, if we were to do this, every worker in America would be better off. They would OWN their retirement, rather than relying on government handouts. People would be completely independent, and a major piece of the welfare state would no longer be needed...an absolute NIGHTMARE for the socialist left.

[Aquinasfan]

Sounds like Walter Williams doesn't he? Except he didn't mention making his wife wash his car or anything.

LOL!

[ClearCase_guy]

through acting one can become a expert authority on everything

That stuff always reminds me of Ginger on Gilligan's Island: "I was in a movie once, and we faced a problem just like that! What we did was ..."

[Capitalism2003]

"So across the board, the only beneficiary of the minimum wage increase is government."

Aside from government, the only other group that benefits are union workers who already have secure jobs. By increasing the cost of labor, they seal out potential competition who are willing to work for less. Those who the libs supposedly want to help (low skilled, unexperienced workers) are the ones who don't get hired because of bad legislation like this. Employers only hire skilled workers...the overall labor force decreases, and the result is the same with every supply/demand situation. Fewer workers = greater pay for those lucky enough to keep their jobs. Those who DON'T get jobs they would otherwise have are the invisible victims of this legislation.

[DC Packfan]

I like the idea of portraying victims of social security.

[Modernman]

Why not try something radical! For example ....umm......letting the MARKET take care of things?

What, you thought this was still a capitalist country?

[Modernman]

I recall reading an interesting book a while back..It had some statistics in it about what the average person COULD have had they not been forced to 'contribute' to social insecurity throughout their workinglife.

Social security is a terrible investment. If we want to ensure that everyone has money saved up for retirement, we would be much better off scrapping SS and expanding the 401(k) program. The money I put in my 401(k) grew nearly 20% last year. I would have loved to have been able to take all of the money that was sucked out of my paycheck and put into SS and put it into my 401(k) instead.

[Mad Dawgg]

"You see, an increase in MW doesn't really help the employee, because prices will go up correspondingly and things will level out again. But it really helps government by putting more money into their coffers."

I had a guy with a PHD in Economics explain it to me with the best analogy to date dealing with the futility of raising the minimum wage to help those on minimum wage.

"Raising the Minimum Wage so as to bring prosperity to those receiving minimum wage is akin to attempting to raise the water on just one side of the bathtub."