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Wednesday, July 25, 2007
Terry Jeffrey :: Townhall.com Columnist
Pay Democrats the Minimum Wage Now
by Terry Jeffrey
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I suspect the way many viewers reacted to this week's Democratic presidential debate co-sponsored by CNN and YouTube depended on whether they generally see themselves on the taking or giving end of government transactions.

For those accustomed to taking from government, it was a tremendous night. For those accustomed to giving to government, it foreshadowed the nightmare to come if a Democrat is elected president.

During the debate, various candidates suggested increasing government by mandating universal health care coverage, health care coverage for illegal aliens, a massive increase in the minimum wage, a minimum salary for school teachers, more spending on public schools generally, cars that get 50 miles per gallon and even reparations for slavery.

They also suggested increasing government revenue by imposing a carbon tax on the U.S. economy, increasing taxes on oil companies, increasing the amount of personal income subject to the Social Security tax, increasing the tax rates on the top 1 percent of earners and increasing taxes for virtually everybody by terminating the Bush tax cuts.

An early defining moment came when former Sen. John Edwards of North Carolina, who became a multimillionaire by suing doctors, tried to establish his credentials as Taker in Chief, the Democrat most likely to use government to confiscate things from people.

"I think the people who are powerful in Washington -- big insurance companies, big drug companies, big oil companies -- they are not going to negotiate," said Edwards. "They are not going to give away their power. The only way that they are going to give away their power is if we take it away from them."

The "we" here, of course, is government. The "them" are the people who own insurance, drug and oil companies. That means stockholders. Edwards, in other words, wants to increase the power of government by diminishing the power of the many millions of citizens scattered all across America who are diligently saving and investing what they can today in the stock market so they won't have to depend on the government and Social Security tomorrow. Continued...

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About The Author

Terence P. Jeffrey is the editor-in-chief of CNSNews

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The Real World of Econ
For some of us who fell asleep in Econ class...here is a question: What is the true min wage? The answer will suprise you. Here is a hint: IT AINT $5.85 per hour. The answer is in "Basic Economics", by Dr. Thomas Sowell.
Min wage laws acutual hurts the poor, it forces business to look elsewhere for cheap labor. Hear that sucking sound...it is India, Mexico and China taking our jobs.


Minimum wage and illegal aliens
First mamadeus makes the point that wages are low and taxes are high. Why not lower taxes instead of raising wages? Keep in mind that a $1.00 increase in the minimum wage costs the employer approx. $1.07 once you include the employer’s share of FICA and medicare while the employee only gets approx $.93 once you subtract the employee’s share of FICA and medicare. So in order for it to be cost effective for the employer to keep the employee at the increased minimum wage the employee must increase productivity by $1.07 an hour while only receiving $.93 of the increase. Why not just make minimum wage workers exempt from the employees’ share of these taxes? This would give them an automatic wage increase of about 7%, (double the percentage increase for the military in the current appropriations bill). I would go so far as to make those making 150% of the minimum wage exempt if they are the primary income earner in their household.
Second, the law of supply and demand is one law that cannot be repealed by anyone of any political stripe. If you increase the supply of something (say, unskilled labor) without the demand increasing proportionally, the price paid for that thing (say, the wage paid to unskilled labor) will decrease. The 12 to 20 million mainly Mexican illegal aliens here in the US are primarily unskilled workers. Their presence artificially increases the supply of unskilled labor, suppressing the wages of legal (mainly American) unskilled workers. The federal government, by simply enforcing laws that are already on the books, could help minimum wage workers by removing this illegal competition for low skill jobs. These aliens do not take jobs Americans won’t do (even in the field in which they make up the highest percentage, agriculture, they are only 24% of the workforce) but they do the jobs at wages Americans cannot accept since Americans actually have to do things like pay taxes. Employers, obviously, prefer to pay a lower wage and pass on or avoid the additional costs such as FICA and medicare.
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