Category Archives: Economy

Minimum Wage ‘Pulverizes The Poor’

Minimum-wage legislation fixes the price of labor above its productivity, making it less likely that the young and the unskilled will be hired. Those who claim to represent the interests of unemployed youngsters—whose labor-participation rate has been in decline—and other unskilled laborers don’t much care that such legislation circumvents voluntary exchanges in the marketplace. Because government has fixed the price of labor, economic actors are prevented from engaging in mutually beneficial, voluntary exchange.

Still less is the hike justified because it impoverishes. Government can set wages above market value (productivity), but it cannot compel business to hire (and lose money), the outcome of which is unemployment among the young and the poor.

USA Today reports that “13 states are raising pay for minimum-wage workers at the start of 2014.” Another site more savvy than the Seattle Times—almost any website on the WWW qualifies—pegs the additional labor costs to the City of Seattle of “a $15 minimum wage” at “nearly $700,000.

Get rid of the minimum wage altogether says Prof. Walter Block, and jail those who pass it for the crime of “pulverizing the poor.”

UPDATED: Chucky Krauthammer’s Keynesianism (Neocon Chucky: Tinkering Technocrat)

Economy, Federal Reserve Bank, Intellectualism, Neoconservatism, Regulation, Republicans

On Special Report today, Chucky Krauthammer could be heard quickly correcting his characteristic Keynesianism when fellow Fox-News panelist neoconservative George Will made him look, well, silly. As she knows nothing about economics, the blond Kirsten Powers, also empaneled to discuss the economy, was none the wiser. Neither did host Bret Baier notice Chucky stumble and recover.

The Fed had set the price of money at zero, Krauthammer noodled. In his opinion, this served as a positive impetus for steady but slow economic growth. The far cleverer George Will jumped on this, pointing out that quantitative easing was the Democratic equivalent of faux trickle-down economics. In other words, the manufacturing of paper money inflates prices on the stock exchange, enriches a few big players, and leaves the rest of us holding devalued dollars and struggling to survive. (Naturally, this is not verbatim. I paraphrase from memory, since few news outlets bother with the written word any longer.)

Like greased lightening, Krauthammer leaped to finesse his Fed demand-creation Keynesianism.

As mentioned, other than the two men involved, nobody (except a few Austrians like myself) noticed.

UPDATE (1/3): EPJ on Chucky’s Nutty Two Tier Minimum Wage Proposal. Our neocon is such a tinkering technocrat.

This is truly goofy. It would result in businesses hiring teenagers over breadwinners. Since the advocate Charles Krauthammer seems to understand that raising the minimum wage causes unemployment, his proposal has to be classified as pathological altruism.

Here’s Philip Klein on the problems with Krauthammer’s proposal:

On a Fox News panel earlier this week, Charles Krauthammer floated a proposal for a two-tiered minimum wage system in which the rate would be raised for individuals who are the breadwinners of their families and remain the same for others. But this would be an absolutely terrible idea.

MORE.

UPDATED: ‘Mixed-Race’ Santa Brings More Money Woes

Barack Obama, Economy, Healthcare, Taxation

As analysts have expected all along, the Obamacare wrecking ball will keep gathering momentum in 2014 and beyond. Reports Gerri Willis:

…the coverage of people under corporate plans will likely change late next year as companies get ready for more changes under Obamacare. Taxes on so-called Cadillac plans will likely result in higher costs for workers and less extensive coverage. We may see even more companies opt to put employees into part-time roles to get around Obamacare requirements.

As one of the tremendously stupid Americans who ushered in ZeroCare with his vote said, “I like ObamaCare. I voted for it—I just didn’t realize I’d be paying for it.”

Yes, the economics of a free lunch for me but not for thee …

As to the additional tax changes, in 2014 those will follow Zerocare as night follows day:

High earners and people with large portfolios will find their taxes rising dramatically next year. Experts say that high earners will find their taxes tipping 50 percent of their earnings in many parts of the country, not just the big cities on the coasts. If you earn more than $200,000 filing singly or $250,000 married, filing jointly, you’ll pay a new additional tax on earned income of 0.9 percent. If you earn above $400,000 as a single filer or $450,000 married filing jointly, you’ll find yourself subject to a new income tax bracket of 39.6 percent. A new Medicare tax on investment income of 3.8 percent will also sting investors.

Courtesy of Joseph Farah comes “the ugly truth about the mixed-race Santa”:

A controversy was ignited by Megyn Kelly at Fox News when she refuted a blogger who found the legend of Santa Claus offensive because he was a fat, old white man.

I’ve got a bulletin for Megyn Kelly at Fox: You are dead wrong.

Santa Claus is not white – nor is he a mythical figure, as you claimed in your clarification of your original comment.

He’s real, and he is of mixed race.

He does, however, currently live in a white house, at taxpayer’s expense. …

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UPDATE: This is an astounding shift toward a welfariat. Sixty two percent of Americans are said to be eligible for subsidies under ZeroCare.

Explaining Austrian Economics And Much More

Economy, Federal Reserve Bank, libertarianism, Liberty, Reason

“First and foremost, Austrian economics is not an empirical science as is mainstream economics, but a branch of logic.” As always, Professor Walter E. Block, friend and mentor, explains Austrian economics beautifully.

Here is the full, behind-the-scenes interview Walter did with a local, NBC affiliate, from which too few pearls were culled for the final segment.

A doff of the hat to EPJ for the story.

MORE.