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NY Gov’s Proposes Wage-Price Spiral, Destroying All Small Businesses: Wants a Law to Tie Minimum Wage to Rate of Inflation
Frontpage Mag ^ | 01/15/2023 | Daniel Greenfield

Posted on 01/16/2023 7:08:47 AM PST by SeekAndFind

Gov. Kathy Hochul, after crawling to a first formal term, announced a plan so brilliant that it could have only come from Elizabeth Warren or a drunken Marxist. And I don’t mean Groucho.

“Gov. Kathy Hochul on Tuesday used her second State of the State address to unveil a wide-ranging agenda for 2023, vowing to tie New York’s minimum wage to the rate of inflation”

Brilliant plan.

Then every time the cost of goods and services rises, so will wages, which will increase costs and lead to a rise in the cost of goods and services, which will increase wages which will increase inflation.

If only there were a term for this? Oh right, wage-price spiral.

Don’t worry, as Bernie Sanders would say, we’ll just pass another law banning excessive spending, raises, profits or freedom.

Hochul is too dimwitted to even understand the consequences. And even if she weren’t, it’ll scope some woke points which is all that she cares about.

New York’s small businesses are already on the ropes. Now Gov. Hochul is telling them they can’t control payroll which leads them to think that they won’t be able to make payroll.

But it’s okay. I’m not sure there was much of a future for small businesses in New York anyway.


TOPICS: Business/Economy; Government; News/Current Events; US: New York
KEYWORDS: inflation; jobs; katiehochul; minimmwage
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1 posted on 01/16/2023 7:08:47 AM PST by SeekAndFind
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To: SeekAndFind

That kinda removes one of the brakes on runaway inflation.


2 posted on 01/16/2023 7:11:56 AM PST by farmguy
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To: SeekAndFind

She is a malicious imbecile.


3 posted on 01/16/2023 7:12:58 AM PST by BenLurkin (The above is not a statement of fact. It is either opinion, or satire, or both.)
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To: SeekAndFind
No. How about no state, federal, or local taxes on anyone who makes less than 60K per year, how about that pay raise?

4 posted on 01/16/2023 7:13:24 AM PST by Governor Dinwiddie (LORD, grant thy people grace to withstand the temptations of the world, the flesh, and the devil.)
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To: SeekAndFind

That’s one way to cause Hyper-Inflation. Can you say Weimar Germany?


5 posted on 01/16/2023 7:15:12 AM PST by EvilCapitalist (81 million votes my ass.)
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To: SeekAndFind

6 posted on 01/16/2023 7:16:04 AM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: SeekAndFind

No.


7 posted on 01/16/2023 7:23:14 AM PST by GrumpyOldGuy
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To: farmguy

Or puts NY out of business.


8 posted on 01/16/2023 7:31:03 AM PST by AndyJackson (.)
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To: SeekAndFind
I’ve had this argument even with some here on FR. We must not allow wages to start increasing in response to increasing prices. Demanding that wages increase just because prices are rising would make things far worse by driving exactly the destructive spiral that is mentioned in this article. And it would be devastating to anyone on a fixed income, such as retirees. If we ever want to get a real long-term handle on inflation, wage increases must ONLY occur in proportion to increased productivity.

I know it’s very tempting in the horrible Brandon economy to demand more pay to keep up, but that’s the worst thing we can do. As harsh as it sounds, since the good guys don’t yet have the power to stop the democrat price inflation, the only thing that will keep inflation from running totally out of control is to take some money out of people’s hands until (if) the situation can be stabilized. That will probably mean a recession and many lost jobs, along with wage stagnation for those who retain their jobs, but it’s currently the only option.

Inflation is caused by “too many dollars chasing too few goods.” Putting even more dollars artificially into consumers’ hands (without increased productivity) by raising wages is exactly like handing them COVID relief checks, only much worse because the effect of the wage increase ripples through the economy forever. In a rational economy, no one would ever receive a pay increase unless they took on more duties and were promoted, or they increased their productivity. That would also require, of course, the government to stop spending money it doesn’t have. If those two things could be achieved, there would be no reason for prices or average wages to increase…EVER, and that would be a GOOD thing. We’ve gotten used to the idea that everything, including wages, should go up over time but that just isn’t true. That only occurs because we and our elected officials can’t seem to resist the urge to spend tomorrow’s money on what we want today, which is also why we are in so much debt.

9 posted on 01/16/2023 7:34:55 AM PST by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.)
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To: SeekAndFind

How about put an end to the dole for any able-bodied citizen, and nothing at all for illegal aliens.


10 posted on 01/16/2023 7:35:30 AM PST by bk1000 (Banned from Breitbart)
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To: AndyJackson

The faster NY crashes the better and I live here. The crash needs to be so painful that that even the lefties notice.


11 posted on 01/16/2023 7:36:39 AM PST by Dutch Boy (The only thing worse than having something taken from you is to have it returned broken. )
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To: SeekAndFind

Sounds like a great idea to me so long as they also tie Social Security benefits as well.


12 posted on 01/16/2023 7:44:07 AM PST by upchuck (When you never took the vaccine or boosters: Still alive and healthy with no chance of side effects)
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To: SeekAndFind
Destroying All Small Business

From Klaus's lips to Kathy's ears.

13 posted on 01/16/2023 7:44:38 AM PST by lizma2
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To: Dutch Boy
The crash needs to be so painful that that even the lefties notice.

The crash needs to be so painful that no one is any doubt as to the cause of the crash.

14 posted on 01/16/2023 7:44:51 AM PST by AndyJackson (.)
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To: AndyJackson

That too.


15 posted on 01/16/2023 7:47:54 AM PST by Dutch Boy (The only thing worse than having something taken from you is to have it returned broken. )
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To: noiseman

While I agree government shouldn’t be involved or printing more money, there have been a lot of things done to protect “retirees” over the last many decades that benefited no one but them and frankly the whole concept of being able to retire at some fixed aged without having accumulated a substantial amount of wealth is a very new and unnatural concept


16 posted on 01/16/2023 7:50:28 AM PST by Manuel OKelley
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To: SeekAndFind

The WuhanFlu lockdowns were DESIGNED to kill off small biz as they are predominantly run by non-commie trash. This plan is just another tool with the same goal.


17 posted on 01/16/2023 7:53:31 AM PST by bobbo666 (Baizuo)
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To: Dutch Boy

Agreed.


18 posted on 01/16/2023 8:02:53 AM PST by Shady (The #JihadJunta: "We are now a nationThat of Men, Not of Laws. You are not as equal as we are...")
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To: noiseman

5 Developed Countries without the Minimum Wage

Sweden

Sweden is often touted as the poster-child for abolishing the minimum wage. However, the Nordic nation using a Nordic model is certainly no free-market free-for-all. Instead, minimum wages are set by sector or industry through collective bargaining. Their currency of choice is the krona.

Nearly all Swedish citizens belong to one of about 110 trade unions and employers' organizations that negotiate wage rates for regular hourly work, salaries, and overtime.

Swedish law limits the workweek to 40 hours, just like in the U.S. However, it also dictates that all workers are entitled to 25 paid vacation days and 13 additional public holidays each year, far more generous than the U.S. standard.

Denmark

Relations between workers and employers in Denmark have been deemed downright harmonious due to the lack of a federally mandated minimum wage.

Trade unions negotiate for workers to be paid a reasonable wage.

Iceland

Iceland does not receive very much attention except for its breathtaking scenery. However, this tiny island nation consistently ranks among the happiest countries on earth, along with every other nation listed here, because of its low crime rates, high wages, and happy, healthy populace. People like to retire there.

Employees in Iceland are automatically enrolled in trade unions, which are responsible for negotiating baseline salaries for the industries they represent.

Norway

Norway is yet another northern nation that has eschewed a federally mandated minimum wage in favor of having union-negotiated wages set by industry. Norwegians enjoy good job security, healthy wages, and ample vacation time.

Basic hourly wages vary by industry. However, unskilled workers in the agriculture, construction, freight transport, and cleaning industries, for example, earn minimum rates ranging from $16 to $21 per hour, with increases based on experience and skill level.

Switzerland

Switzerland did not have a minimum wage until recently. On September 27, 2020, Swiss voters approved the minimum wage of 23 Swiss Francs (CHF) per hour for all industries.


Here's more:

SINGAPORE

Generally, the Ministry of Manpower (MOM) does not prescribe minimum wages for all employees in Singapore. The MOM has stated that wages are best determined by market demand and supply for labour. Employees should thus be paid based on their skills, capabilities and competencies.

However, Singapore adopts the Progressive Wage Model (PWM), which prescribes minimum wages for certain economic sectors.
19 posted on 01/16/2023 8:17:07 AM PST by SeekAndFind
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To: SeekAndFind

Isn’t it a wonderful thing to watch progressive liberal politics, destroy their own tax base they just think they can legislate prosperity for everyone


20 posted on 01/16/2023 8:18:39 AM PST by Captain Peter Blood
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