×

Warning

JUser: :_load: Unable to load user with ID: 9592

Tuesday, 19 March 2013 13:03
Elizabeth Warren, Obama: how about a $1M minimum wage, instead?
Written by 

obama-smileYesterday, in a hearing of the U.S. Senate Committee on Health, Education, Labor and Pensions, U.S. Senator Elizabeth Warren (D-MA) asked why the federal minimum wage was not $22 per hour.

 

 

 

Warren said “If we started in 1960, and we said that, as productivity goes up — that is, as workers are producing more — then the minimum wage is going to go up the same…And, if that were the case, the minimum wage today would be about $22 an hour. So, my question … is what happened to the other $14.75?” Obviously, Senator Warren believes that the greedy capitalists stole the missing wages. With her insane comments, the Senator sounds perfectly suited for a position in the next communist Politburo.

 

In contrast, President Obama’s proposal to increase the minimum wage to $9 per hour seems reasonable. Of course, economic reality is not something liberals like Senator Warren and President Obama care to understand. The current minimum wage is $7.25 per hour and our nation’s employment situation is downright scary. There are currently about 90 million Americans not participating in the nation’s workforce. In the last labor report, while 236,000 new jobs were created, 269,000 people left the workforce entirely. In effect, even though the media sang a positive tune about the numbers, we fell further behind. 

 

Mandated higher wages will just make this employment situation worse. In our economy, the vast majority of jobs are created in small businesses. With a higher minimum wage, $9 or $22 per hour, many small businesses will be forced to close their doors.

 

The typical small business owner operates on a very tight profit margin. Additional labor costs will be prohibitive for countless small businesses throughout our country.  Those that are able to remain open will only pass on the increased costs to their consumers, leading to higher prices on everything from a hamburger to a Big Gulp.

 

A higher minimum wage will also result in diminished hiring, thus increasing the already high unemployment rate. Other workers who are currently employed will lose their jobs as business owners try to adapt to the higher minimum wage.

 

While Senator Warren’s proposal seems outlandish, others are advocating even higher minimum wage levels. A University of Massachusetts professor, Arindrajit Dube, recommends a $33 per hour minimum wage. Yet, if a higher wage level is so beneficial, why should our nation’s leaders stop at $22 per hour? Why not mandate a minimum wage of $220 per hour or $2,200 per hour? Better yet, how about a million dollars per hour? Let’s create a nation of billionaires!

 

This kind of economic insanity occurs when liberals try to solve problems like “economic inequality.” The best way to help people succeed in this economy is to dramatically reduce government regulations and allow American business owners the ability to operate without undue interference. Less bureaucratic red tape will lead to more economic activity in the private sector, more jobs and ultimately higher wages. We should let the free market set the minimum wage level, not the government.

 

There is ample evidence that this type of government mandate clearly does not work. The three states with the highest unemployment rates (Nevada, California and Rhode Island) all have state minimum wage levels which are higher than the federal rate.

 

The next year will be very challenging for small business owners struggling to deal with higher income tax levels and the increased costs associated with the Affordable Health Care Act.

 

The last thing we should do is burden these business owners with a higher minimum wage.  Instead, we should remove the minimum wage entirely. 

Jeff Crouere

Jeff Crouere is a native of New Orleans, LA and he is the host of a Louisiana based program, “Ringside Politics,” which airs at 7:30 p.m. Fri. and 10:00 p.m. Sun. on WLAE-TV 32, a PBS station, and 7 till 11 a.m.weekdays on WGSO 990 AM in New Orleans and the Northshore. For more information, visit his web site at Ringside Politics.

Visit Jeff Crouere's Google Plus Page

Visit Bayoubuzz's Google Page

Website: www.ringsidepolitics.com
Login to post comments
  • A July 4th Fact of Facts: America is Land of Immigrants
  • Poll: Trump strong on jobs, weak on tweets, viewed as reckless, thin-skinned, sexist
  • President Trump, It doesn't feel like Independence Day
  • YIPPIE! The naked truth about free speech, cherished especially on Independence Day

mass2On July 4, 1778, George Washington doubled liquor rations for the soldiers quartered in Princeton, NJ, as a way to celebrate Independence Day. It’s fitting, therefore, that the Fourth of July is America's top-selling beer holiday, according to the Beer Institute. It estimated, in 2013, that sales of beer on the 4th could total $1 billion, doubtlessly higher today. “In moderation,” claims a CA brewery investor, Grover McKean, “beer is tasty and healthy.” Who could disagree?

Read More

joe mikaAs Donald Trump faces the top world leaders this week, including a face-time with Vladimir Putin, and as his healthcare proposals face an uphill climb, his poll numbers for how the nation views him could be better.

According to a morning Consult/Politico poll released Wednesday morning, his tweets, including that against MSNBC's Mika Brzezinski, and his personality are not helping him, at all.

Read More

indy dayII know the calendar says we are approaching the 4th of July, but, it just doesn’t feel like Independence Day.

Perhaps it should.  It’s hot as heck.  The airlines have been packed. The hot dogs are ready for grilling.  The umps are saying, "play ball". The patriotic activities are scheduled. The fireworks are ready-for-blasting. 

Yet, it just doesn’t feel like independence day.

Read More

bill rights2To President Thomas Jefferson, July 4th celebrated more than the signing of the Declaration of Independence. He thought it was a link to the future. The message prominent colonists sent to King George III led to the Constitution and the Bill of Rights, the initial and most prominent feature of which is the First Amendment that guarantees free speech. It’s part of the country’s fundamental essence that each man and woman can say what they feel about government, or anything else, proving President Donald Trump needs some civics lessons.

Read More

latter-blum2

Dead Pelican

Optimized-DeadPelican2 1 1