Posted on 02/22/2014 7:31:44 PM PST by 2ndDivisionVet
There’s a Nobel Prize in economics awaiting someone who figures out how to keep their country’s currency lowest coin of the realm and its purchasing power stable during inflationary times. Not resorting to steadily raising an assigned devaluation to it by afixing a “living wage” which sends thjeir currency into an inflationary spiral.
Since the inception of establishing a “minimum wage” the very basic coin of the realm,the cent, has become valueless. Todays penny costs more to make than its assigned value. Even Canada stopped making them..
This is not an argument for establishing a let’s say an assigned valuation of a portion of a stable commodity like gold, to the basic coin being used itself such as a penny, instead of the dollar . Although that might be one idea to consider.
But to point out when a minimum wage rate is raised it affixes a given rate of inflation to the period of time it’s emplaced. All raising the minimum wage does actually is devalue the dollar because costs (purchase prices) eventually get adjusted in time, which is never discussed by those arguing for its advancement. All it does is hasten the devaluation of the dollar..
During Reagan’s time he attempted to deal with this by attempting to establish a bifurcated (two level) living wage. He did so becaise he realized that of those in need of workers.Some were in a financial situation that could not afford to pay the state mandated wage scale the law demanded and would be breaking the law. ..This was of course shouted down by the democrats and some republicans at the time..
What governments should be doing is set policies which maintain or increase the value of their most basic unit of their currency. Not support policies with incremental devaluations of it so that those fractional units of their currency in our case the nickle, then the dime, then the quarter, et-cetera eventually become a valueless.dollar .
A case in point is in the 1940’s a candy bar cost 5 cents when the hourly minimum wage was $.50 per hour. What does it cost today ? Likewise what were the costs of basic goods and services during that period of time as compared with todays basic wage feel good tinkering ? The result is that todays everything for a dollar stores are yesterdays five and dime.
Who gets hurt the worst when these adjustments are decreed by government? As an octogeneran I can testify to this; It’s those living on fixed incomes who’s income and savings value are based on previous purchasing power of previous era wage levels such as social security .
They get whacked by devaluation . Because their savings are not adjusted to the previous current rates of inflation. and that also includes living on government subsidies. Eventually those subsidies eventually get increased.but not those living on what’s known as “Life Savings” .
When these feel good socialists frauds under the democrat party banner propose these increases. That is never considered as they pound their breasts claiming they’re for the little guy. All they’re doing is un-necessarily raising the price on goods and services broadening the demand that those affected seek help from them..
Check out the Big Mac Index. How much does a Big Mac cost in your currency? How long do you have to work to earn the price of a Big Mac? And how do those numbers correlate to the market exchange rate?
Then, of course, there is gold. It has been said that a suit of clothes good enough to wear while being sworn in as President of the United States should cost the price of an ounce of gold. An ounce of gold was $18.93 in 1861, a year when an Illinois lawyer was inaugurated. Since then Illinois lawyers of presidential caliber have decayed at a rate considerably exceeding the impressive inflation rate (gold is now $1326).
Screwing with the currency should not be an option open to policy makers.
I’m sure sissy mathews makes a tidy sum, so yes, minimum wage raises is the best way to screw the other side—that side that makes the least will now make nothing and have to depend on government in total.
I like that idea. $75 makes too easy to explain away for democrats. Perhaps tie the minimum wage to the average prevailing union wage would be better.
I like that idea. $75 makes too easy to explain away for democrats. Perhaps tie the minimum wage to the average prevailing union wage would be better.
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