Tag: Democrats

Categories
free trade & free markets national politics & policies too much government

A Teachable Wage

The U.S. President wants to up the national minimum wage to $9 per hour.

Republicans tend to lose at such policy debates, sometimes by daring to tell the truth: That minimum wage laws tend to raise unemployment. But that doesn’t impress politicians, who can’t be bothered to look beyond the surface of such issues.

They present the minimum wage hike as a guarantee that higher wages get paid all around, that wages only go up, rather than what actually happens: some wages go up to meet the law, and others evaporate, as people are let go, jobs downsized, and new jobs go uncreated.

So why would congressional Republicans use the same old rhetoric to balk at the president’s plan?

Sometimes irony works. Republicans should take all the Democrats’ premises — we want higher wages, more wealth, etc., etc. — and up the ante:

“Yes, raising wages would be great! But why are you all such tightwads? Raise the minimum to $49 an hour! Or make the lowest rate comparable with congressional pay: $85 per hour!”

Then compromise and say they will only vote for the raise if the rate hike is a serious amount, not the president’s paltry $1.75 increase.

At that point, a more honest conversation will start up.

For the ugly truth is that the harmful effects of the current and rather low minimum wage laws rest mainly on folks who aren’t very likely to vote, or to notice why it is they are unemployed. But raise the rate to $49 per hour, or even $19, and the scam becomes obvious to all but the most dense.

Even Democrats would insist on a lower rate.

And then Republicans should demand that Democrats explain why. And reveal the perverse logic behind minimum wages for all to see.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

716 Billion Lies

As the campaign for the presidency heats up, we’re going to hear the words “taxes” and “deficit” and “spending” repeated ad nauseam. And this number: $716,000,000,000.

That’s the amount of future Medicare spending that President Obama and the Democrats in Congress (exclusively, without a single Republican vote) cut, slashed, ripped, hacked out of the hands of elderly Americans over the next ten years.

And I thought Democrats loved Medicare, believed in it, wanted to keep it like it is against the bitter schemes of GOP Scrooges!

Now, as Republicans attack the Democrats’ attack on Medicare, Dems have counter-​attacked by charging that in his plan GOP VP nominee Paul Ryan cuts Medicare this exact same $716 billion. Ryan explains that his approach simply took the status quo as the baseline, and, sadly, tragically, that includes Obamacare’s nearly trillion dollar malpractice in gutting Medicare funds.

With older citizens constituting a huge voting block, this fall’s election may hinge on this $716 billion being taken from Medicare. Funny thing is, the number is a mirage. Meaningless. Not real. Medicare will not be cut $716 billion. Not really. Instead, it will grow in leaps and bounds over the next decade.

Nothing in Obamacare stops Congress from spending that $716 billion and more in coming years. In fact, they already plan for Medicare spending to grow by far more.

That’s the problem more broadly with the cuts Democrats offer in exchange for higher taxes. The cuts are illusory because the spending continues to grow. Therefore, any tax increases to plug deficit spending would be pouring water into a bucket full of holes.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies too much government

How Not to Help the Poor

Q. When’s the best time to kick out the bottom rungs of a ladder?

A. After everybody’s climbed it.

So, when’s the best time to raise the minimum wage?

After everybody is being paid at a higher rate.

Contrary to innocent expectations, minimum wage laws don’t guarantee that people will be hired to work at or above the minimum. Instead, they prohibit businesses from hiring (or workers from accepting jobs) below the minimum rate. That is, rates are guaranteed, but the jobs are discouraged.

A recent push by House Democrats to raise the national minimum wage to ten bucks per hour was stalled by leadership. Left-​leaning representatives cried foul. But a report in The Hill explains the reluctance: “Concerns about the economy have increased since last Friday, when a jobs report showed an anemic May during which only 69,000 jobs were added. A higher minimum wage could discourage employers from creating more jobs and that, in turn, could hurt President Obama in the election.”

It turns out that the more clever Democrats are considering, instead, a plan to slowly, gradually raise the rates.

This would mean fewer unemployed right away. The fewer people hurt, all the less likely that voters would put two and two together and blame them, and their minimum wage rate hike.

This is how politicians hurt Americans, most of the time: In increments small enough not to cause an uproar.

In this case, it’s the poorest who are hurt most, those who haven’t yet climbed the proverbial ladder. Democrats, ideologically blind to the results of their regulations, feel nothing.

Besides, they know that, in America, most poor folks don’t vote.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability folly initiative, referendum, and recall

A Modest Proposal for Madison

“Ninety percent of life is just showing up.”

Well, Woody, tell that to Democratic state senators in Wisconsin. Or, should I say, in Rockford, Illinois … hiding from the Wisconsin police.

They’re not wanted for any crime. Wisconsin state troopers would simply take them into custody and deliver them to their worksite: the state capitol in Madison.

Unemployment soars, and folks with cushy jobs go underground. I hate to be so boringly practical, but people should show up for work or let their employer(s) know that they are resigning. Not showing up is irresponsible. (Of course, these are politicians.)

And the whole biz is about responsibility. Wisconsin Democrats don’t want to vote on Republican Governor Scott Walker’s proposals to make government employees contribute 5.8 percent of their pay toward their lucrative pensions and 12.6 percent toward their medical insurance premiums, and to end collective bargaining for benefits and work rules, while keeping it for pay.

These are legitimate issues for the legislature. Democracy is about voting on them — even when you won’t win. But by lurking next door in the Land of Lincoln, Democrats can deny the quorum necessary for the legislature to do business.

Citizens have one immediate recourse: Recall.

Under Wisconsin law, no elected official can be recalled in their first year in office. But eight of the 14 shirking senators could be recalled right now. Were a mere two of them recalled, Republican senators would alone constitute a quorum.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Tire Trade War, Tiring

Political folly comes around, again and again, like a puncture in a rapidly deflating tire as you drive down the freeway. The end is never good.

President Obama and congressional Democrats pushed a tariff hike on China-​made tires, up to 35 percent — and the WTO okayed it. They excuse their action because they wish to “retaliate” against China for its alleged monetary “manipulations” — manipulations that bear remarkable resemblance to our own Federal Reserve’s policies, by the way — which they say cause our current trade imbalance.

And, like non-​economists everywhere, these buffoons judge the trade deficit a horrible thing. The fact that U.S. consumer’s get great benefit from lower-​priced goods coming from China, and can — as a result of less expensive, Chinese-​made tires – afford to replace their tires more often, thereby saving lives and health-​care costs, doesn’t appear in politicians’ protectionist arguments.

It’s the economy that’s making our representatives stupid, of course. Blaming foreign competition is an easy out, when times get tough. It helps you avoid blaming your own country’s regulations, taxes, and (ahem) monetary policy.

This blame game is nothing new. The Smoot-​Hawley Tariff was pushed through early in the Great Depression, and it made a lot of sense to … politicians.

But the the trade wars the infamous tariff engendered became a major factor in making the Great Depression so Great.

Our politicians, reviving tired old policies — regarding tires, no less — merely make matters worse. Greatly worse.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture

Hitler, Ha-​Ha

Monday night on E! network’s late-​night chat show, Chelsea Lately, British comedian Eddie Izzard got laughs with partisan hyperbole:

  1. Izzard identified the Tea Party as “extreme right wing”;
  2. He said, oh-​so-​amusingly, that Sarah Palin and Tea Party folks want to take things back to “1773 when slavery was legal”;
  3. He thanked America for helping Britain out when “we had a problem, in the Second World War, with extreme right-​wingers in Europe”;
  4. He identified the Democrats with the people who’ve pushed progress and “caring about other people” since the beginning of civilization.

He went on. But you get the idea, you see how partisans treat their opponents — in this example, somebody vaguely on the left attacking Tea Party folks as right-​wingers of Hitlerian proportions.

Now, Izzard is a funny guy, and not just because of his funny name. But politics is allegedly serious, and you’d think he would know that Hitler was not a right-​winger. Hitler was a “national socialist” whose policies don’t resemble Tea Party policies at all. He knows that the number of American activists who look back before 1776 and think fondly of slavery is pretty close to zero. 

He may not know, however, that “caring” as such, without follow-​through and principles and a rule of law — and balanced budgets, just to avoid mass insolvency — does the opposite of good.

Except in short-​run politics. And on Chelsea Lately.

This is Common Sense. I’m Paul Jacob.