Okay, I'm going to hand out an economics lesson here. Yes, I know almost nothing of the subject, I am a highschool dropout after all. But I do posses common sense. This is kind of like the women getting pregnant from rape thing, yea, it sounds good when you turn your brain off, but given some thought, the prevailing assumptions make little sense.

First, there is, and will always be, the basic daily living wage. About two-thousand years ago they called it the Denari. We have no name for it now, perhaps because people can no longer grasp the subject.

The daily living wage is the amount of money that a basic worker receives for basic work. The number isn't fixed, but it exists.

We have attempted to quantify this wage in a way by concocting a quasi-fixed concept called the minimum wage. It is less than the daily living wage, perhaps about half of that. It represents the value of less than basic work, ergo, the labor of those with no training and of those in transit who have little training. It is teenager wages. It can have no other meaning since you cannot pay a teenager the same wages of a basic worker and teenagers need jobs and there are jobs that need teenagers.

Those who take these types of jobs from teenagers are an artifact of the concept of the MW. Government intervention creates parasites, that is a simple fact, rich parasites and poor parasites.

Okay, when you raise the MW you destabilized the economy. The factual effect is that you alter the value of the BLW, you lower it. So, if the MW is 5/hr and the BLW is 10/hr and you raise the MW to 7.5/hr, you in fact lower the BLW to 7.5/hr. This is because the value of the unit of exchange (the dollar in the US) is lowered by the altering of the basis of it's value, wages.

So, the boobs that feed on the boob-bate of the Socialists, failed to realize the effect of this type of vote buying. Normally we would tolerate it. Those with the most voice live a good distance from the BLW and have no idea how bad it sucks when someone raises the MW. On top of that, Union people's scale is adjusted by the MW and they feel no pain, and in fact, this action has a secondary effect by increasing the value of Union jobs (since they are in a way immune to the damage of MW bating).

Shock to the economy there.

Then, oil prices soared over this year. Oddly, when those prices began to hurt the Dems, the prices began to decline. Call me a conspiracy theorist, but that struck me as quite odd. I mean, literally, the connection was almost instantaneous. But the damage was done. The value of the BLW was again eroded by the fact that the cost of the BLW to the worker (weekly commute cost) was increased and the buying power of that wage was reduced by the effect on shipping and manufacturing.

Shock to the economy there.

---more tomorrow if I can---

Joel.


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