Raising Wages Artificially Seriously Hurts Jobs—No One Gains

I am not sure if I remember exactly who first touted the $15 minimum wage, but the lawmakers sure have clung to that number with several cities in the US now implementing wage hikes. Bernie Sanders wants to be a champion for the middle class shouting in a Verizon picket line that "corporate America can't have it all." And Dan Price, a Seattle CEO of what was a successful company decided based on some pie-in-the-sky study of a "happiness factor" that his employees should make no less than $70k a year.

The truth is that all of these numbers, all of these promises, all of these demands, are simply done without any thought to who pays the cost ultimately of any of these types of decisions. When people shout out these talking points they are not considering facts such as how much money is really out there for the taking? What are the bottom lines of the companies? What do the balance sheets look like before and after an ultimate decision is made?

The end result, however, is clear. Loss of jobs essentially washing out any potential gain from increasing wages.

Less taxes will be collected, less wealth will be gained, and more doors of companies will be shuttered leaving behind it simply more ruin. Time and time again there are lawmakers and people in the voting public who simply do not understand the basics of economics, and the impact of arbitrarily pulling numbers out of their asses when it comes to what they believe everyone is entitled to. The way to boost the economy, and the way to boost people's wages ultimately is not simply by slapping a number down and saying "let's call it done." It is simply not how it works, and the proof is always in the pudding. People always suffer as a result of unintended consequences. Unfortunately these are the very people these decisions are designed to help.

I am not at all against people making more money. I say a company should pay their employees the most they can reasonably afford to pay. But it's not simply a matter of picking a number. It is a matter of looking at what is reasonable and it is a matter of hiking or paying wages that are conducive not only to the lifestyles of the employees, but to the continuity and profitability of the business as a whole. If people are laid off, if prices need to be raised, if benefits need to be reduced, this helps no one to accomplish the end goal of rising up the middle class and improving anyone's standard of living.

Just like in our own lives, creating artificial spending relief by adding credit cards to our wallet only prolongs the reality that we do not have the money to sustain what we want, a company cannot simply absorb demands without real money to satisfy them and have the expectation that this will somehow make-up for itself somewhere down the line.

When the bills come due, that is when reality sets in, and the smartest people in the crowd begin to realize you cannot create something out of thin air and expect it to work. Those who aren't the smartest in the crowd point to the greedy businesses and the rich as "screwing us over again."

An Open Letter to the Protesters

by Breakfastpop

The Occupy Wall Street Movement is going on and on and all you have to show for your efforts are filthy parks and violent behavior that has completely obscured any message you hoped to impart. You are driving small business from the area and causing unprecedented problems for the people who actually live in the neighborhood. Your focus on corporations is impossible to understand. I assume that many of you have parents who work for these companies. These "evil" corporations have put food on your table, made health care accessible, and helped your family accumulate money in 401k's. If the people at the top earn the big bucks, so be it. They earned it and they deserve it. If you want a bigger piece of the pie you ought to be willing to work hard for it. That is the American way. We have opportunity and we work hard. It is completely un-American to stand there with one fist in the air and the other hand outstretched asking for something for nothing. I agree that we are going through rough times right now, but we will come out of it if we enact the policies that have a track record of working. If you want to raise your voices in protest, I suggest you go to Washington. The trouble started there.

You are demanding loan forgiveness for student loans you received. When you receive a loan, you sign an agreement that requires repayment of the debt. In the real world, that's how things work. You enter into a contract and you are required to fulfill the terms of the transaction. It's not rocket science. What right do you have to ask the American people to shoulder the burden of your education? You borrowed the money and it is your responsibility to pay it back. If you don't have a job, ask the bank to defer the payments until you're working, but don't ask responsible citizens who take their obligations seriously, to solve your problems.

The same is true for home mortgages. When you borrow money knowing that you can't afford to pay back the loan, you become the problem. True, the banks should have never made these loans in the first place, but you can thank the government for that. President Clinton believed that home ownership was a right and he pressured the banks to lend the money to unqualified people. If you are one of these people, ask the bank to work out an arrangement until you get on your feet, but don't expect the American taxpayer to bail you out.

We are at a crossroads in this country. We can choose to turn our backs on history and common sense and suffer the consequences of our ignorance. The only system that works is capitalism done right. If you see capitalism as the problem, then perhaps you don't belong here. If socialism gives you a warm, fuzzy feeling, then you ought to take up residence in a socialist nation. It would probably turn out to be an excellent learning experience. Go to a socialist country and stand in line with your hand out. You will find yourself in a nation that is programmed to fail. Your hands will be empty.

If you expect the government to take care of all of your needs from the cradle to the grave, try Cuba. It won't be long before you are one of the refugees dying in the boats trying to come back to this country that has made you so angry. It wasn't people like you who made this nation so great. It wasn't people like you who created a thriving business, discovered a cure for a disease, or built an empire. Those people knew how to handle adversity. They used their creative energies to get through the hard times. They were not gathered in the park, sleeping in their own filth, groping females, doing drugs, destroying small business and neighborhoods. They were out in the world trying to get a job, and job to hold them until they could secure the position they really wanted. They persevered, and in the end they succeeded. Unlike you they didn't have their hands out. They are the backbone of what made our nation the most successful and generous in the world.

Get out of the parks and get a life. The party is over and now it is time to grow up.

Breakfastpop is the author of the HubPages daily blog of the same name, whose primary focus is on politics and social issues. You can read more of her work at http://breakfastpop.hubpages.com.

EVEN GOD HIMSELF WOULD NOT BE A SOCIALIST

There was an interesting analogy I heard recently to describe one of the major flaws with the whole concept of socialism, and while I cannot recall who made it, I can recall that I found it to be profoundly accurate.

You work hard in class and you study even harder. You do everything you can to learn the materials, and as a result you receive an 'A.' But Tommy, who sits right beside you isn't such a good student as you, and he doesn't spend the time nor does he have the inclination to work hard. As a result of his lackluster performance Tommy receives a 'D.' Seeing this, the teacher thinks this is unfair, and so she says to you that you must give some of your grade to Tommy to level the playing field. It's only fair, right? Why should Tommy be disadvantaged? And why wouldn't you be willing to give up some of your higher score? After all, a 'B' or a 'C' is still a passing grade, and you've got all those extra points. You can afford to give them up so that Tommy can have his fair share.

It sounds farfetched, I'll give you that. It's not exactly apples to apples either. But the underlying message is the same. Socialism rewards those who do not deserve to be rewarded, and punishes those who do. For all of its good intention toward fairness or to the so-called leveling of the playing field, it also leaves behind no real incentive to try hard at anything. Theoretically speaking, it stands to reason that if America would have begun its economic course based on socialist ideals rather than on capitalist ones, America would be a very different place indeed. It's why we must think very long and hard about what our priorities are before we decide to elect Barack Obama to the White House. It simply can't be that the majority of Americans feel that Tommy should get a higher score at the expense of the honor student's efforts. But that's exactly what Americans will be saying if Obama gets elected.

Look, I agree that everyone indeed deserves a fair opportunity to achieve their every wish and dream. Under a capitalist system that opportunity does exist. It is a fair playing field. But opportunity is not a handout. You have to work for it. You have to be willing to take on risk. You have to act instead of talk. You have to commit as opposed to simply wanting. You have to have the guts to do whatever it takes rather than complain about what you don't have. Capitalism is a system that holds one accountable to themselves for the success or failure they ultimately attain. At the end of the day the ball is in your court. You do with it what you will.

Okay, time for a quick joke:

This guy goes to the altar one day and says to God, "I've read every page of the Bible and read a verse a day. I go to Church every single Sunday, and sometimes I even go on Wednesday. Lord, I do your bidding always, being kind and helpful and nurturing and spreading your good word. All I ask Lord is that you let me win the lottery."

Suddenly the man is awash in a most powerful, warm light, and he hears a commanding voice speak to him. "You will win the lottery, my son," the voice says. The man knew it was God.
And so he went home and waited. The first drawing went by, then the second. There was a third and then a fourth. But the man did not win the lottery as God had promised him.
So the man returned to the altar, clearly angered and confused. "Lord, I just don't get it. I've done your bidding. And I asked to win the lottery. You told me I would indeed win. Yet, Lord, I have won nothing at all."
Again the man was awash in a most powerful, warm light. The voice said to the man standing at the altar, "Buy a lottery ticket!"

That said, it is clear that even God Himself would not be a socialist. He cannot give you anything you cannot, or will not give to yourself. I'm not going to speak for the Big Guy in the Sky, but I think it's evident that He would be voting for John McCain this November 4th.

We all should consider to do the same or the word achievement will sadly become synonymous with the word charity.