Below is an article on Senator Al Franken’s vapid and misguided bloviations. He lacks an understanding of Economics and clearly does not understand how businesses work. He is out of touch with the real world, but he is not alone….
Franken may be a comedian, but his ideas are not funny.
If America had Tax Laws that promoted business rather than attacking success, International Companies would be flocking to America and INCREASING our Tax Revenue. The issue is that Democrats don’t seem to understand even the simplest Economics. Quite frankly… neither do most Republicans….
I will explain….
Businesses must find a mechanism to create Competitive Advantage in order to thrive and grow. The better a business is able to do that, the more money they make for their investors… but also… the more jobs they create… and the more Income Tax those employees pay… which creates Tax Revenue… while decreasing the Economic Burden by reducing unemployment… while actually improving the Quality of Life starting at the community, local area, State, region and also America. The investors also typically invest their profits in other companies who do the same thing… again help many people.
The model of taxing individuals and companies excessively restrict the money that would go to make the communities and world better in order to redistribute the wealth of those who work to produce it to many who are consumers of wealth rather than creators. Government intervention impedes financial growth… in every single model known to man…. Government intervention KILLS competition and leads to stagnation… rather than encouraging competition and stimulating growth. Raising the minimum wage is nothing more than a political stunt that is not supported by ANY legitimate Economic Model. The issue is that SOMEONE has to pay for the increased expense… because the expense does not lead to a proportional increase in productivity. Companies must make profits to remain in business. Only governments can perpetually remain in deficit because they have the legal authority to take money from people without providing fair value- meaning governments have the authority to demand whatever they desire from whomever they desire through whatever means they choose. The only protection citizens have is the Constitution and other laws… if the government chooses to abide by those laws. The idea that raising the Minimum Wage in any way improves the Standard of Living for anyone is ludicrous. All it does is increase the pressure on the employer, who will be forced to transfer those increased costs onto the consumer or to reduce expenses by eliminating jobs or reducing benefits to the employees- or go out of business. That, of course, drives the workers to Unionize… which is really what all of this is about. The issue is that the Cost of Living is driven up for everyone else… so they are taxed to pay for the increase in the Minimum Wage of people who choose not to educate themselves and work towards a career that affords them the opportunity to live a lifestyle to which they would like to become accustomed. Increasing the Minimum Wage also decreases the profitability of companies because of the trickle up effect- EVERYBODY has to now be paid more proportionally to remain in the same economic position… but the increased expense also means that less money is available for investment… so fewer jobs are created… and because some jobs are inevitably lost because operating expenses have increased and labor is the greatest expense of essentially every business… the only way to compensate for higher wages without an associated increase in productivity… is to eliminate jobs…. Which places further strain on Economic Health… and drops the Standard of Living…. But… a government who desires to tax it’s productive people profits disproportionally… because the higher wages… lead to higher taxes… which are passed on to the Middle Class disproportionally….
So… is raising the Minimum Wage really a good thing for most American’s… especially those in the Middle and Lower Classes…? Not. At. All. And… I am SURE that the Democrats know this… because Ben Bernanke’s Macroeconomics book is where I am getting most of my information…. Even he says that Keynesian Economics are only possible if the government pays back the debt in times of plenty… which we didn’t do….
America is being driven relentlessly towards Communism….
Very few Americans will benefit from such a move, just like very few Russians or Chinese or North Koreans or Yugoslavians or Cubans benefited….
That’s why our children are being indoctrinated in schools….
The only way out is radical application of laissez faire economic principles: encourage education and create opportunity for ALL stakeholders so that they will ALL be rewarded by participation in productivity proportionally through sound economic decisions by government….
That will require serious change in America’s Political Milieu… and significant education of our politicians….