Friday, August 11, 2006

Economics 101: The Two Dogs Way (cont)

Damn, damn, damn. More about increasing the minimum wage? When will politicians ever learn math? Here we go.....

You see, the people who employ workers have to make a damn profit or otherwise they go out of business. When their lowest paid employee gets a forced government raise, everything that the employer relies on to make a profit increases in the exact same ratio as the rate of the labor increase. This is called "covering your overhead."

Most people, even though they attended government schools, can understand that if a product is produced with a labor cost figured in, the producer has to charge the consumer for that labor cost or lose money.

Whenever the minimum wage is increased, employers cut down on jobs because they cannot afford to pay more for labor that is not worth what they have been paying in the first place. Therefore to maintain profits, they cut workers. Rainman could understand that. G_d how I wish he would run for political office. "Congress sucks."

Now, here's the insult to injury part of raising minimum wage. The people that were making more than minimum wage actually receive what amounts to a pay cut. That means that every employee that is getting paid more than the lowest rate has to spend more of their salary to purchase the same amount of goods or services simply because of a feel good policy that does absolutely nothing to enhance the life of the poor.

Now to add even more injury, the overwhelming majority of minimum wage employees are students living at home with their parents. So to make sure that Buffy and Scooter get to buy more ecstacy, we have to pay more for a Big-Mac.

And even more insult, who do you think that the evil Capitalists will turn to for the labor? Why of course, Earlene, the damn illegal immigrants, because they will do the "low paying" jobs that our deadbeats refuse to do. And they will not get paid minimum wage or contribute to our economy.

So, every time some slack-jawed politician saids "we need to raise the minimum wage", what he really means is that he hates the person that actually works for a living.

Ponder this a moment, how many minutes do you have to work to purchase one Big-Mac? You'd be surprised.