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Big Government, Unions, and Minimum Wage. Why all Three are Bad for America

07 Jun

Many people know that Big Government, Unions and the Minimum Wage are a drag on our economy, but don’t know how to argue that position effectively. Lets run through the cons of each of these and see exactly how they affect the American economy, in fact, the world’s economy.

We are told how we need more and more government programs to sustain our nation. More food stamp programs, more assistance and job training programs. Now, Jesse Jackson Jr. (D) Illinois, has proposed that the U.S. Congress raises minimum wage to $10.00 per hour, but we will cover that in a bit. What no one will stand up and say is, as a nation we cannot afford nothing more, in fact, we have really been out of money for some time, and we need to cut right away. Government costs money to operate. So, naturally, Big Government costs more. Government is a wealth destroyer, not a wealth producer. So, any time the government grows, it has to destroy more wealth. When wealth is transferred from the private sector into the government treasury whether it be through taxes, fees, regulation, fines and penalties, the only logicical conclusion has to be, the economy slows. Whats even worse, in our country if we run low on money the Federal Reserve just puts out the command to print and digitize more money, and then we monotize that printing by buying our own t-bills and they artificially keep interest rates low. Because they can’t raise them, if they do, the economy stalls. And what if inflation goes up, thats another way for the government to reap more money out of the economy.  You see, they’ve painted us and them into a corner. Summarily, any time you read a story that says “the Government is spending more money” you can replace the word “Government” with your name and mine, because ultimately, the consumer and taxpayer pick up the tab for all! Always remember that, you pay for it! Bad for America.

Public  and private sector unions are also a huge drag on the economy. Not only a drag, their incestuous relationship with the Democrat party is criminal. Their main scheme is money laundering and political campaign donations. Period. Here’s how it works. The Democrat party comes out in favor of pro-union stances and laws, like the Hobbs Act. They try to get as many people hired in union jobs as possible, public and private sector. Union members pay dues, and the union leadership uses the dues to gain even more political power by donating to the Democrat Party. It is truly devious and ingenious. It is a viscious cycle. The liberals that run the unions also like to run a fraternity of those who are always wanting more money per hour.  Since when is it good to have two classes of workers, private and union? It promotes crony capitalism. Not only this, but, anytime a union is involved, prices automatically go up on labor and goods. Start with this premise, if you hired an attorney to represent you at a job you worked at, would that not add cost to doing business? Yes. You would have to pay or the employer would have to compensate the attorney. This causes prices to go up, when the cost of doing business is increased, naturally, the price of consumer goods must go up also. The union stands between the employer and the employee, reaping their dues, and in a lot of cases representing their membership poorly. While doing this, they make the price of labor and consumer goods to rise. When the price of consumer goods and labor costs rise, the economy slows. You pay the added price. Bad for America.

Minimum wage is in the news again. This time, Jesse Jackson Jr. is backing a proposal in Congress that would raise minimum wage to $10.00 per  hour, up from $7.25. Let me ask the question no one is asking, why? Why, does the Congress want to control the bottom level of income in America? Its a great political football, it gives them yet another control or chain on the economy. In order to understand the reason for minimum wage you have to find out who instituted it. The Democrats, in 1938 led by FDR, worked the law through Congress and the president signed off on it. Now, put the current minimum wage into the context of our unemployment problem in America. Most minimum wage jobs are for entry level workers, part time, or high school kids. How many people want to hire an unskilled, untrained green horn at $7.25 an hour? Not too many. The market is perfectly capable of working out how much a job is worth, per hour. So, there is really not a need for the Fair Labor Standards Act. How many more people would be employed if the rate per hour of labor was left to businesses and individuals to mitigate out? There are quite a few jobs in the job market not worth paying someone $7.25 per hour for, sweeping floors, light janitorial work, library worker, fast food labor, etc. As we discussed before, anytime labor costs rise, it ultimately causes the economy to slow, because business owners can only pay so much per hour until it puts them in the red. If the rate goes up to $10.00 it transfers in the first week of its implementation, $4.9 million from businesses to workers using the figures on the governments own department of labor website from 2010. Its the most recent data available, the site shows 4.4 million people worked at the minimum wage level in 2010. Thats an expendature of 1.28 billion dollars just for a weeks of service. If minimum wage went up by $2.75, in just the first week business expenditure would go up to 1.77 billion, for every week. So, in the first year, businesses would spend 254.8 millon dollars. Taking from the private sector and driving up wages, and the economy slows. You pay for the added price. Bad for America.

Always remember, the consumer / taxpayer pays for everything.

Robert E. Stage Jr.

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7 responses to “Big Government, Unions, and Minimum Wage. Why all Three are Bad for America

  1. justturnright

    06/11/2012 at 9:18 pm

    Agreed.
    –Big Government is a given; anyone that argues for more government is not to be trusted with his own money.
    –Unions are not by definition bad, but they have changed drastically from what they were purported to be many decades ago. And you’re correct: their relationship with Democrats often comes at the expense of good faith representation of their members. Between the private and Public sector unions, the Public ones are the worse problem of the two. They are essentially at the bargaining table with politicians, and the “owners” (taxpayers) aren’t. It is a situation certain to give the result we see: wages spiralling out of control, and only arrested when enough of the voters figure out the scam.
    –And you’re right: The minimum wage is insideous, and only serves to drive up prices. Thisis primarily as a result of union contracts that mandate they be a certain % above minimum wage.

    Solid post………..

     
    • The Patriot

      06/11/2012 at 9:23 pm

      Thanks, I think the unions had a place in the work place, a long time ago. Now with a ton of labor laws instituted by the governments, they’re not needed any longer. Government, in a sense ate the union. Just like they consume every thing else they come in contact with.

       
      • justturnright

        06/11/2012 at 9:53 pm

        Ahh, the precious unions. I’ve written about them, as well. What burns me is so many of the union members are the best, salt-of-the-Earth folks you’d ever find, but they are ‘owned’ by the union, and so is their vote.
        That’s why you have blowhard morons like Ed Shultz crying on MSNBC about almost 40% of the union households voting for Walker up in Wisconsin, and Shultz thinks that’s just criminal.
        Criminal?
        It’s criminal that it wasn’t 80%.

        I’ve been seeing it change, slowly. West Virginia has been moving towards the conservative side, politically, and other states are, as well. And the NLRB has lost more than it’s won recently, which is a good thing.

        With the recent win in Wisconsin, anything seems possible right now.

         
        • The Patriot

          06/11/2012 at 10:00 pm

          I agree with you! If you like this post I have some other posts on constitutionclub.org I write under the pen name The Patriot If your interested

           
          • justturnright

            06/11/2012 at 10:20 pm

            Will do, TP. Count on it….
            You’re showing in my Reader now, so I’ll be through regularly.

            If you’d like, feel free to check out the economy / union-themed posts we’ve put in, as well. The abuse of the common member by their union leaders has been a sore spot with me for years….

            Heck, with the decline of union membership over the years, you’d think they’d get the message.

             
            • The Patriot

              06/11/2012 at 10:38 pm

              I’ll check those out definitely! You are also in my reader now, I am following your blog.

               
              • justturnright

                06/11/2012 at 10:44 pm

                We’ll talk soon, brother.
                I’m following Constn Clb now, as well.

                 

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