Raise in minimum wage… increase in unemployment

Posted on July 25th, 2009 by bile
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I forgot to post this yesterday. So the federal mandated minimum wage raised to $7.25. Meaning that unemployment will go up for some of those in who’s labor is valued in the $6.55 to $7.24 range.

God Celebrates Unemployment!!

Well, not exactly, but on the “God’s Politics” blog, they are claiming that “people of faith” can “celebrate” the raising of the minimum wage. According to the People Who Claim to Speak for God, the free market “exploits” workers:

First implemented during the Great Depression, the minimum wage sought both to protect workers and to improve the economy by enhancing consumer purchasing power.  Some argue that the market should naturally determine wages based on supply and demand, yet we have seen how an unchecked market has led to exploitation of workers and an even greater disparity of wealth that is dangerous for the economy as a whole.  A minimum wage treats workers with dignity and keeps our economy on a healthy, sustainable base.

Of course, even this newly-mandated amount is not enough.  No, God is demanding even higher wages:

As the gap between the rich and the poor grows to a dangerous level in the U.S., we must encourage better pay for those struggling to survive at the bottom of this gap.  A leading minimum wage advocacy organization, Let Justice Roll, is asking people of faith to advocate for a wage increase to $10 an hour by 2010.  Click here to learn more about the “10 by 10” campaign and to urge your legislators to bring the minimum wage closer to meeting workers’ daily needs.

What they don’t tell us is that the minimum wage is another way of saying that anyone who is willing to work for less than what the government mandates should not be permitted to work at all.  The role that the minimum wage has played in destroying employment opportunities for black teenagers and other groups who are on the margins is well-documented.

This is an example of Bastiat’s “Broken Window Fallacy” in which people claim that destruction of property and employment actually is a “blessing” to the community.  The idea that it magically increases the overall purchasing power for the economy is an example of the Fallacy of Composition, which is part and parcel to the pro-minimum wage argument.  Of  course, the people at Sojourners simply baptize leftist doctrines and then claim they are from God.  I never have forgotten that Jim Wallis and others at Sojourners enthusiastically endorsed the Mao regime at the height of the Cultural Revolution.  In sheer numbers, Mao was the greatest mass-murderer in history, and Wallis stood behind the killings.

You can learn more here.

House passes bill taxing AIG and other bonuses 90%

Posted on March 19th, 2009 by bile
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Rep. Ron Paul (R-TX) yet again went against the grain in Congress when he
stood up in the House and argued against a proposal that would tax 90
percent of AIG executive bonuses, saying that it was a “disgrace,” a
“distraction” and an “outrage” that undermined the Constitution.

Despite the protestations of Paul and a few others, the House voted
overwhelmingly to pass the bonus tax legislation Thursday afternoon.

Roll Call reports the vote was 328-93 to impose a 90 percent tax on
employee bonuses at companies that received federal bailout funds.

“While the vote was bipartisan, the GOP was split on the bill, with
Minority Leader John Boehner (Ohio) voting against it and Minority Whip
Eric Cantor (Va.) voting in favor of it,” reported Roll Call.

CNN notes that the measure, which now heads to the Senate for
consideration, would tax individuals on any bonuses received in 2009 from
companies getting $5 billion or more in money from the Troubled Asset
Relief Program. Those with incomes more than $250,000 would see their
bonuses taxed at the 90 percent rate.

“We can’t have any concept of we’re getting even, but we must have a
concept that we’re trying to show that Congress … cannot tolerate that,”
said Charlie Rangel (D-NY), chairman of the House Ways and Means Committee
on Wednesday.

Said House Speaker Nancy Pelosi, “We must also protect the American
taxpayer from executives who would use their companies’ second chances as
opportunities for private gain. Because they could not use sound judgment
in the use of taxpayer funds, these AIG executives will pay the Treasury
in the form of this tax.”

It’s just sad. As Paul said it’s just a distraction. They are worrying about a minute amount of money which was unconstitutionally allocated and not earmarked. Then they go and pass this unconstitutional bill of attainer while they sit back and watch as the Federal Reserve System tosses billions of dollars around, debases the currency and further destroys the economy.