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Can America “Minimum Wage” Itself To Prosperity?
Townhall.com ^ | April 14, 2013 | Austin Hill

Posted on 04/14/2013 4:49:57 AM PDT by Kaslin

What happens when the U.S. Secretary of Labor visits a church in Charlotte? If an incident earlier this month is any indication, faulty political promises and destructive economic policies continue to spread.

It took place on April 3rd. Acting U.S. Labor Secretary Seth Harris made an appearance at a Baptist Church in North Carolina’s largest city, along with Charlotte Mayor Anthony Foxx. He was visiting to promote President Obama’s proposal of elevating the federal minimum wage requirement from the current $7.25 to $9.00 an hour.

Harris and Foxx gathered in a large room within a Baptist church building. They sat in a large circle with several “average” (which means “hand-picked, pre-screened, and pre-approved by the Labor Department”) Americans living in Charlotte who work at jobs that pay only minimum wage. As news microphones and cameras caught all the action, Harris facilitated a “discussion” with the minimum wage earning Charlottean’s, and explained how their lives would benefit from the President’s new proposed mandate.

Harris told the group participants that if the minimum wage requirement was raised to $9 an hour, a full-time worker at the current minimum wage would earn an extra $3,500 more per year. A total of 557,000 workers in North Carolina “would directly benefit from that proposal,” he said, noting that President Obama is seeking to “lift people out of poverty” by imposing this new proposed requirement.

It all sounded so good. But in reality, there were problems.

For one, mere laws don’t “lift people out of poverty” – genuine wealth creation does. Using the force of government to mandate that a business owner pays a worker a specific wage does not ensure that wealth is being created. On the contrary, such laws are coercive mechanisms of wealth redistribution, and they only ensure that an increasing amount of existing wealth is taken away from one individual or group and transferred to another.

History, even recent history over the course of our lifetimes, demonstrates this. While roughly half of the world’s population -about 3 billion people - live in measurable poverty today, the other roughly 3 billion are measurably “middle class,” and mostly facing upward mobility.

So what has happened to the more fortunate 3 billion? We have not been “minimum waged” to wealth. We’ve been fortunate to live in countries where we’ve been relatively free to privately own property and advance in the marketplace and amass wealth for ourselves.

The best examples of this have been post-World War II Japan, Singapore and Hong Kong, along with the increasingly liberated economies of China and India. Many Americans seem oblivious to this capitalistic, free market transformation that has taken place over the last few decades – surely if we were aware of this we wouldn’t have elected our current crop of politicians who are taking us in the exact opposite direction – but the transformation is nonetheless real.

Another problem with Harris’ promises is that they are based on the false assumptions that government bureaucrats understand the inner-workings of a business than a business owner does, and that government mandates always produce their desired outcomes. Can every small business in Charlotte – or anywhere else in the U.S. – afford to “absorb” the increased labor costs that will ensure with a higher minimum wage mandate? Harris is frequently asked about the un-intended consequences of his policy proposals, and will frequently say “I reject the notion that this kills jobs.”

Did you hear that business owners? He “rejects” it, so it is obviously not a concern. In fact, Harris promised the minimum wage earning Charlotteans that raising the minimum wage requirement will actually improve wages overall, and stimulate job creation.

Harris, by the way, took no time at all in Charlotte to meet with the business owners that would be impacted by the proposed wage mandate. When you have degrees from elite schools, and your work experience is based exclusively in the worlds of academia and law, and you wield the power of government (these characteristics describe both Harris and Barack Obama), it’s easy, apparently, to believe in the infallibility of your ideas. There’s no sense wasting time on the “non-believers.”

For now, Americans have put their collective trust in politicians who have promised to re-distribute us all to a better, “more fair” existence. Let us hope and pray that we see the error of our ways – before the country is irreparably damaged.


TOPICS: Culture/Society; Editorial; US: North Carolina
KEYWORDS: americans4prosperity; barackobama; departmentoflabor; jobsandeconomy; kochbrothers; minimumwage

1 posted on 04/14/2013 4:49:57 AM PDT by Kaslin
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To: Kaslin

Minimum wage has nothing to do with helping anybody. Union contracts are figured in multiples of the minimum wage. Raise the minimum wage and it’s an instant raise to all union members.


2 posted on 04/14/2013 4:55:01 AM PDT by Gen.Blather
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To: Kaslin

To really get started good, the inflation must have a strong wage and salary component.

Raising the minimum wage is the method chosen to jump start the general rise. Raising wages when there is 16% or better unemployment is difficult. If there is a national 30% jump, the general wage inflation will be off to a good start.


3 posted on 04/14/2013 4:56:54 AM PDT by bert ((K.E. N.P. N.C. +12 .....History is a process, not an event)
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To: Kaslin

A backhanded query, resolved by an elimination of opposites.


4 posted on 04/14/2013 5:00:06 AM PDT by RedHeeler
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To: Kaslin

Most businesses already pay $9+ per hour. The ninnies that listened to this buffoon don’t even try to understand econ 101. “Dat Big Mac you be lovin’” will go up $1.00. And I’m sure you’re eating more than 3500 per year so there goes the profit! Does that help clarify things a little?


5 posted on 04/14/2013 5:01:17 AM PDT by albie (s)
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To: Kaslin

Minimum wage is a joke. The reality is that every increase in minimum wage creates inflation- the price of everything handled by minimum wage workers goes up to compensate for their wage increase. That rise in price devalues the income of everyone making more than minimum wage. If not outright abolished, then minimum wage should be lowered to some point well beneath the market value of labor.


6 posted on 04/14/2013 5:05:34 AM PDT by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: Kaslin
The raising of the minimum wage, along with gun control and anti poverty programs, underscores the big problem with liberals and what they believe. As conservatives and libertarians, we understand that even free markets and free people does not mean a Utopia on Earth. We know both aren't perfect but they are more likely to lift people out of poverty than any government program ever has or will. Liberals, with their lofty ideas, never consider human nature in their plans. They are so ingrained in their belief in government to solve all problems that even when their ideas fail, it is a guarantee that their solutions will be more government. That's why this Harris “rejects the notion that raising the minimum wage costs jobs.” And that's why liberals can't understand why stricter gun laws lead to more crime or anti poverty programs lead to more poverty. They are so immersed in theory that they cannot admit to the failures of their ideas
7 posted on 04/14/2013 5:17:59 AM PDT by LMAO ("Begging hands and Bleeding hearts will only cry out for more"...Anthem from Rush)
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To: Kaslin
Can (will) somebody tell me how old the minimum wage is? Is the military exempt? Military may not need to be exempted nowadays but when I enlisted, starting pay was $69 per month
8 posted on 04/14/2013 5:21:19 AM PDT by Graybeard58 (_.. ._. .. _. _._ __ ___ ._. . ___ ..._ ._ ._.. _ .. _. .)
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To: GenXteacher

Not only does it create inflationary pressures, but they are artificial pressures at that.


9 posted on 04/14/2013 5:24:06 AM PDT by C. Edmund Wright (Tokyo Rove is more than a name, it's a GREAT WEBSITE)
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To: Gen.Blather
Minimum wage has nothing to do with helping anybody. Union contracts are figured in multiples of the minimum wage. Raise the minimum wage and it’s an instant raise to all union members.

Exactly...

First of all each state should be dictating their wage labor laws, not the federal government

Minimum wage for part-time under 18 workers should be eliminated...the market place will dictate the prevailing wage...

It might suck to work for $4.00 an hour for a few years until you actually learn some job skills, but it would be a nice incentive to learn good work ethics...and "earn" a raise..

It also will vastly improve the teenage unemployment numbers...

10 posted on 04/14/2013 5:38:56 AM PDT by Popman (Godlessness is always the first step to the concentration camp.)
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To: Kaslin
President Obama’s proposal of elevating the federal minimum wage requirement from the current $7.25 to $9.00 an hour.

If the Balloon Head in Chief really wants prosperity, why doesn't he push for $9,000.00 an hour?

Then regular workers could make $360,000.00 per week. That should help for a while.

11 posted on 04/14/2013 5:40:53 AM PDT by stevem
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To: Kaslin
Not to prosperity, but to election win after election win.

We passed the tipping point long ago.


12 posted on 04/14/2013 5:50:52 AM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Gen.Blather

“Minimum wage has nothing to do with helping anybody. Union contracts are figured in multiples of the minimum wage. Raise the minimum wage and it’s an instant raise to all union members.”

Exactly. In New York they just passed a 9 dollars an hour minimum wage. BUT its raised incrementally three times before it reaches 9 dollars. As a result, the unions get raises three times in a row.


13 posted on 04/14/2013 6:04:29 AM PDT by lowbridge
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To: Kaslin
Since private sector union participation rate is at 6% of the workforce so raising the minimum wage tied to union labor rates will not have the same effect it had in the 70s, 80s.

The only way to make minimum wage work is to make it regional, the minimum wage in LA should be at least 30-40% higher than in Omaha NE.

Also the minimum wage should be tied to creating a CLOSED border.

14 posted on 04/14/2013 6:17:00 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: LMAO
And that's why liberals can't understand why stricter gun laws lead to more crime or anti poverty programs lead to more poverty. They are so immersed in theory that they cannot admit to the failures of their ideas

I once had a relative who was a liberal. Harvard educated (taught there too) and very theoretical. But I don't think those exist anymore. Now we have left wing statists (who want to ban guns and free enterprise) and stupid people who automatically buy into any emotional argument put forth by the leftists.

15 posted on 04/14/2013 6:34:29 AM PDT by palmer (Obama = Carter + affirmative action)
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To: Graybeard58
When I enlisted in June 65 basic E-1 pay (under 4 months service) was $78.00/month. Subtracting the $2.83 FICA tax, and the $10.90 Federal income tax I netted a whopping $64.27.

I actually had more disposable income then, than I do now.

16 posted on 04/14/2013 6:53:57 AM PDT by ASA Vet (Don't assume Shahanshah Obama will allow another election.)
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To: Kaslin
Can America “Minimum Wage” Itself To Prosperity?

Sure, just like spending borrowed money to get out of debt.

We are doomed.

5.56mm

17 posted on 04/14/2013 7:11:53 AM PDT by M Kehoe
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To: Kaslin
This is a great way to fuel inflation, so the Obama team is all for it. Never mind the fact inflation hits the poor and the elderly the hardest.

Prosperity is built on productivity and wealth creation, which are concepts foreign to the Democratic Socialists of America.

18 posted on 04/14/2013 7:12:39 AM PDT by Senator_Blutarski
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To: Kaslin

America cannot “minimum wage” itself to prosperity, but it can export jobs and drive itself down to nothing.

Wake up people.

Bring back US jobs. Now.

That means you Republicans. Hire Americans.


19 posted on 04/14/2013 7:14:41 AM PDT by Cringing Negativism Network
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To: Kaslin

Uneducated unskilled workers that do not speak English well are not worth $9/hr.


20 posted on 04/14/2013 7:52:34 AM PDT by Mike Darancette (And winter is coming.)
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To: Kaslin

The minimum wage itself doesn’t require a wage increase for anyone. It simply bars anyone from being hired for less than a certain amount…

Said another way:
It just makes it illegal for anyone who lacks the skills to generate more than a certain dollar amount of worth from being hired at all.


21 posted on 04/14/2013 8:32:26 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Kaslin

“Harris is frequently asked about the un-intended consequences of his policy proposals, and will frequently say “I reject the notion that this kills jobs.”

AKA: I reject this reality and substitute my own! ...And condemn anyone in this reality - like the poor - to pay the price for it.


22 posted on 04/14/2013 8:38:33 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: GenXteacher

“The reality is that every increase in minimum wage creates inflation-”

That’s not entirely true. When the typical starting wage is above where the minimum wage is increased to, such as happens when there’s full employment, the minimum wage in that particular circumstance doesn’t cause inflation or immediate unemployment increase. By cherry picking these time periods the left to get studies which show a lack of negative effects of minimum wage increases. On the other hand, during the specific time periods there’s also no benefit for the minimum wage increase.

However, even if the minimum wage increase doesn’t cause any immediate rise in unemployment, it has a strong tendency to down the road when the economy turns bad, ensuring that the downturn affects the poor and the young even more than it otherwise would.


23 posted on 04/14/2013 8:46:44 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Popman

No, the gov’t should be out of the employee-employer contract negotiations entirely.

It’s bad enough knowing with SS, unemployment ‘insurance’ and the plethora of other TAXES, one can be bringing home SO much more $$.

Get 3rd payer out of the picture as well, deduct from your overall taxes; same IMHO that life insurance should be done, and the Citizen and market go back to their FREE status.


24 posted on 04/14/2013 9:24:56 AM PDT by i_robot73 (We hold that all individuals have the Right to exercise sole dominion over their own lives - LP.org)
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To: i_robot73
No, the gov’t should be out of the employee-employer contract negotiations entirely.

Disagree...9th amendment gives the states the power to regulate labor relationships...Federal government should have no say so at all in individual labor relationships...

You seriously don't think certain employers would not abuse that relationship in certain economic conditions ?

Labor laws were enacted for that reason...The state has a role in protecting the working class of people...from inscrutable organization...bear in mind I'm not proposing overbearing regulations like we have today...just some reasonable regs to keep employers honest...and fair...

25 posted on 04/14/2013 10:27:52 AM PDT by Popman (Godlessness is always the first step to the concentration camp.)
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To: Popman

Sorry, I see nothing in the 9th to suggest such.

Oh, I firmly believe, especially in this day and ago, that word of mouth and those employers who would disparage their employees would soon be out of business.

If one if Free, one is able to enter into any contract of their choosing for the exchange of ones mental/physical abilities for anthers’...whatever (money, jewels, barter, trade, etc.). Gov’t has no control nor obligation to get in the way of that exchange


26 posted on 04/14/2013 2:18:10 PM PDT by i_robot73 (We hold that all individuals have the Right to exercise sole dominion over their own lives - LP.org)
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To: i_robot73
Sorry, I see nothing in the 9th to suggest such.

Correct

I meant to post the 10th amendment

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

The states (not federal) does have a compelling interest in the way it's citizens are treated...

I see you have an Rand objectist tinge to your post...Been there, done that..

Not all men are created equal...some are stupid, dumb beasts that will be easily manipulated and abused by men with power...there should be a low benchmark in the law where the state has a interest to protect those stupid dumb beasts...

Unless you would like to the power of the unions grow exponentially by corporations abusing people...like happened in the early 19th century...

27 posted on 04/14/2013 2:52:49 PM PDT by Popman (Godlessness is always the first step to the concentration camp.)
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To: Popman

Sorry but the Contract clause dis-allows the States (I think it’s Lochner vs. New York). RE: ‘compelling interest’. Too much of a slippery slope there for me. All Power is inherently of and from the People; the designation of tasks to gov’t are far and few. We already see the numerous Laws already on the books ‘for the good of all’ that are neither enforced nor followed.

I’m def. of the Rand/(L) bent. You are correct RE: intelligence of some People. We see too much with the current 49%+. In that instance, it is gov’t itself that is the source of manipulation/coercion. Though, ONLY gov’t has the power of FORCE. Some Men will always be a willing slave to have some semblance of security, regardless if it is gov’t or other Men doing the enslaving.

And, I must disagree again RE: Unions. Fake constructs given monopoly power by gov’t (IMHO, the ONLY way a monopoly can exist). The jobs/wages belong to the employer.


28 posted on 04/14/2013 3:57:06 PM PDT by i_robot73 (We hold that all individuals have the Right to exercise sole dominion over their own lives - LP.org)
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To: Kaslin
Can America “Minimum Wage” Itself To Prosperity?

No, of course not but this administration has convinced the low information Americans that they can tax the nation into prosperity. It is sad to realize how many Americans believe the nonsense.

Obama’s notion of how to improve the nation reminds me something Churchill observed. "We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

29 posted on 04/14/2013 4:23:39 PM PDT by MosesKnows
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To: i_robot73
RE: ‘compelling interest’. Too much of a slippery slope there for me. All Power is inherently of and from the People;

so per se you are terminated from a job unfairly...because they wanted to hire the bosses nephew.... To whom do you turn...?

Since in your world the State has no compelling interest in fair labor practices ?

30 posted on 04/14/2013 5:24:40 PM PDT by JZoback
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To: JZoback
so per se you are terminated from a job unfairly...because they wanted to hire the bosses nephew.... To whom do you turn...?

Since in your world the State has no compelling interest in fair labor practices ?

You actually expect the federal government to intercede in a small business hiring decision like this?

Should the federal government actually stand in the way of an employer wanting to appoint his nephew to a job?

What if my nephew is qualified? What if the guy I terminated is actually a lousy worker? Should I have to endure an EEOC lawsuit under those circumstances?

Do you really hate your boss that much, that you would subject him to federal regulations regarding his employees?

31 posted on 04/14/2013 6:02:56 PM PDT by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: okie01

When I said the “state” I meant it as literally the state as in one of the 50....not the federal entity....


32 posted on 04/15/2013 12:36:14 AM PDT by JZoback
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To: JZoback
When I said the “state” I meant it as literally the state as in one of the 50....

I wouldn't want Austin deciding whether I was "fair" to my employees, either.

Whether I compensated them properly (minimum wage, overtime, etc.), didn't expose them to unsafe working conditions fine -- the state can regulate those things.

But whether I was "fair"? No, they shouldn't be allowed to regulate that. If the boss wants to hire his nephew, that's HIS business.

33 posted on 04/15/2013 12:49:09 AM PDT by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: JZoback

‘Unfairly’?? The position was NEVER owned by the employee. The employer can fire and hire anyone whom they choose. They own the business, pay the taxes, pay the employees, are hounded by EEOC/OSHA/etc.

Are there no paper shuffling positions in corp. America? Of course there are...is that ‘fair’?? Or should gov’t start validating all positions of employment? Maybe determine how much each position should make? In your thought process, where does the Constitution, Freedom and Liberty take a back seat so that the STATE/gov’t can get their ‘compelling interest’ in business/labor practices?

Job site unsafe? They can be sued. Wages too low or position too demanding? People stop working there. Biz adopts to the market, else they go under.

Life is not equal nor fair. Gov’t is there to support our Rights and ensure our choices are made with the best information possible (OK, the last part is my wish). It has no basis to interfere with any of the above, let alone how much rain falls on your roof, what’s veg. grow in your garden and/or the milk came straight from the cow.

Supply the information for the People to make their own decisions and let the Free market dictate. Don’t like what’s out there, do it yourself, create your own business, grow what you want. Get gov’t OUT of our lives.


34 posted on 04/15/2013 9:00:40 AM PDT by i_robot73 (We hold that all individuals have the Right to exercise sole dominion over their own lives - LP.org)
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To: Cringing Negativism Network
"Bring back US jobs. Now. That means you Republicans. Hire Americans."

They aren't going to hire Americans when they can hire Chinamen for $0.17/hour ($2/day 12hr/day). And Americans aren't going to buy American made when China made is 50% cheaper.

We need import tariffs and pretty heavy ones to suck the profit out of offshoring and to get Americans to buy American again. That will put Americans back to work. We can lower tariffs once unemployment has dropped.

But until you do something about trade policy, minimum wage increases will just accelerate offshoring.

35 posted on 04/15/2013 9:18:51 AM PDT by DannyTN
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To: ASA Vet

Younger soldiers still can save a lot of money if they’re frugal and live sensibly. Had you joined a jump unit you would have doubled your pay, no? How did you enjoy Fort Devens?


36 posted on 04/16/2013 6:47:51 PM PDT by MSF BU (n)
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To: MSF BU

Devens was okay as a student. As an instructor and Senior NCO it was good duty.


37 posted on 04/16/2013 8:58:25 PM PDT by ASA Vet (Don't assume Shahanshah Obama will allow another election.)
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