Buffalo News columnist Donn Esmonde has a column today calling for an increase in the minimum wage law because the working poor cannot make it on the current minimum wage. Exhibit “A” for the progressive cause is a lady who almost certainly attended government school for 12 years, a fact not mentioned in the column.
Actually, many facts are left out of the article such as: the economy in this area is depressed because WNY has the most expensive government in the United States and this lady is heavily taxed and regulated as is her employer, all of which combines to greatly reduce her take-home pay. (Regulations are taxes on non-monetary wealth.) Also, the cost of everything she buys is greatly and artificially inflated by the government through taxes and regulations and because she is, in effect, forced to buy all sorts of things she could surely do without such as the war on drugs and various and endless Asian land wars (the list is truly endless but my time is not). (I call this the forced purchase theory of the state.)
Point being, this lady is poor in large part because of government policies, however, Esmonde’s solution is more government action. Thus, we have proven once again that government creates its own demand.
Another principle at work here is this. As pointed out in the Free New York publication, Economics in Five Lessons, in a free market, people are encouraged to produce wealth to improve their lot. In a mixed economy tending towards socialism such as ours, people are encouraged to produce force, that is government force in the form of an edict to employers, backed up by men and women with guns if need be, to raise their wages.
For ideas that would actually help the working poor, see this Free New York study.
Posted in Uncategorized | 2 Comments »