Thursday, June 07, 2007

Maybe I’m missing something, but when did the minimum wage become a matter of national security? In a classic move typical in Washington politics, the Dems have finally come to an agreement on a war-funding bill that does not include a date of surrender and retreat. However, attached to this bill is a minimum wage increase of $2.10. Unbelievable. At a time when Americans are feeling the pinch of astronomical gas prices, we now have to deal with this.

Raising the minimum wage is cheap and superficial. It makes the Dems look like the "friend to the poor" that they love to portray themselves as, but below the surface we see something quite different. Raising the minimum wage puts strains on small businesses and retailers. As a result, these businesses either, 1) cut jobs, or 2) increase prices of consumer goods, or both. This effects all citizens, but especially hits the middle and lower classes the hardest. Of course, the Democrats don't care about that, because the average voter doesn't know these things. All they know is "the Democrats are giving me more money!" They have no idea that in the long run the Dems are taking money out of their pocket. But that's how that party works, folks...on deceit and keeping the voters uninformed.

It won’t be immediate, but what we will see is a gradual rise in unemployment, and a slow down of economic growth. Of course, by the time it’s in full effect, someone else will be in the White House suffering the consequences. So watch the economy. May-June 2007 is when this went into effect. Two years from now, we’ll see how the unemployment rate and the economy is doing.

2 comments:

Yankee Doodle said...

Thanks for the link to the Yankee Commentary. I also included a link to your blog on my sidebar.

www.yankeecommentary.blogspot.com

Robert M. said...

It's a matter of political security. If they raise the minimum wage, they get more votes. They're protecting someone all right, themselves.

You did a great job of assessing the typical minimum wage raise solution by the way. Not only will people lose jobs, but there's also inflation.