April 2012
37 posts
turtlekillspeanut replied to your post: You…. don’t believe you’re entitled to healthcare. Dude. A basic human right is to be healthy, and how on earth do you manage that without healthcare?
youtube.com/watch?v… could you answer Wolf Blitzer question in a post?
So what Ron Paul…
Why is the veterinarian office like a normal business and the human doctor’s office more like an quasi-governmental experience by comparison? Simple: there is virtually no government provision, regulation, and fiduciary involvement of bureaucracies. There is licensing, but otherwise the consumer rules, just like in normal business. By contrast, the human doctor is embroiled in a complex maze of government regulation, managements, funding, mandates, and it gets worse and worse year by year.
If you want to see how free-market medicine works, you have to visit the veterinarian office. Then you wonder: why are we as humans treated worse than the animals?
It is common sense economics that when a product isn’t selling you lower the price. Unfortunately people can’t sell their product (labor) at a lower price because government mandated minimum wages. Which is one of the reasons unemployment is so high and people can’t advance in jobs. It is hard to advance when you can’t get a job in the first place.
Unemployment remains high; job growth is sluggish; and millions of Americans have given up hope of ever finding work. So how do creative legislators propose to generate new hiring? Easy: Make it more expensive.
That’s right. In Congress and several states, some lawmakers want to increase the legally mandated minimum wage. They think employers should have to pay more for labor. They say it should be illegal to hire people who are willing to work cheap.
This amounts to a stubborn defiance of simple reality. A recession puts strong downward pressure on wages and salaries. A slow recovery has the same effect, only milder. It’s an unfortunate consequence of a weak economy.
You can’t blame anyone for wanting incomes to grow. But trying to achieve that in this manner is like trying to start a campfire by aiming a hose at a swimming pool.
Still, the idea has no shortage of fans. Some supporters think it should be increased to $9.80 an hour by 2014. Sen. Tom Harkin, D-Iowa, chairman of the labor committee, told The New York Times a raise would “help hard-working families make ends meet, join the middle class, and help move the economy forward.”
New York Mayor Michael Bloomberg favors increasing his state’s floor. Even Mitt Romney thinks the federal minimum wage should climb automatically with inflation.
No one will deny that the minimum wage provides for a meager income. Under the federal requirement of $7.25 an hour, a full-time worker earns just $15,080 a year. Illinois’ $8.25 minimum wage yields an annual income of $17,160. The federal poverty level for a two-person family—say, a single mother and a child—is $15,130.
It would be nice if every worker were worth $9.80 an hour. But not all workers are. If you tell a company it has to pay $9.80 to someone who produces only $7.50 in value, the company may choose to pay that employee an even lower wage: zero.
That’s one way a higher minimum destroys jobs. Another problem is that by increasing labor costs, the change would inevitably tip some companies from profitable to unprofitable. A fast-food restaurant that can stay afloat paying $7.25 an hour might sink under the weight of a 35 percent increase. Some businesses would disappear, taking their jobs with them.
It’s a time-tested axiom of economics that when the government sets a minimum wage, it causes unemployment by pricing some workers—particularly marginal ones—out of the labor market.
I love reading the story of an idea, the people who developed it and the circumstances under which it was developed. It’s like a biography of culture.
A tribute to the individuals who did not sit back and wait for others when adversity was encountered.