Posted on 05/22/2015 8:27:17 AM PDT by SeekAndFind
Wise words from Warren Buffett. The Oracle of Omaha predicts how the rush to sharply raise the minimum wage will end. (Spoiler: badly for the people the policy purports to help.) And Buffett also offers a smart alternative to help low-income workers:
In my mind, the country's economic policies should have two main objectives. First, we should wish, in our rich society, for every person who is willing to work to receive income that will provide him or her a decent lifestyle. Second, any plan to do that should not distort our market system, the key element required for growth and prosperity.
That second goal crumbles in the face of any plan to sizably increase the minimum wage. I may wish to have all jobs pay at least $15 an hour. But that minimum would almost certainly reduce employment in a major way, crushing many workers possessing only basic skills. Smaller increases, though obviously welcome, will still leave many hardworking Americans mired in poverty.
The better answer is a major and carefully crafted expansion of the Earned Income Tax Credit (EITC), which currently goes to millions of low-income workers. Payments to eligible workers diminish as their earnings increase. But there is no disincentive effect: A gain in wages always produces a gain in overall income. The process is simple: You file a tax return, and the government sends you a check.
In essence, the EITC rewards work and provides an incentive for workers to improve their skills. Equally important, it does not distort market forces, thereby maximizing employment.
The existing EITC needs much improvement. Fraud is a big problem; penalties for it should be stiffened. There should be widespread publicity that workers can receive free and convenient filing help.
(Excerpt) Read more at businessinsider.com ...
Then everyone will be on welfare, just like the Won wants.
And if they aren't willing to work then they should still receive income that will provide him or her a decent lifestyle, right?
The liberals quote him on his views on raising taxes. Let’s see how they respond to this.
I'm always amused by media types who ask people starting up new businesses in my area how many people they plan to employ... many times as their first question. I'd love it if one of the new business people told them "as few as I can get by with."
Because that's the truth...another worker is an extra cost to run a business. The extra worker must be justified in a cost analysis. But most media people being libs they can't comprehend that.
somplicity evades such minds entirely
The better answer is a major and carefully crafted expansion of the Earned Income Tax Credit (EITC), which currently goes to millions of low-income workers. Payments to eligible workers diminish as their earnings increase. But there is no disincentive effect: A gain in wages always produces a gain in overall income. The process is simple: You file a tax return, and the government sends you a check.
...
Good old Warren wants to shift the burden from himself to the taxpayers.
The real solution is to control unchecked immigration.
he problem is many libs/Dems believe businesses exist to provide jobs. They don’t understand that businesses exist to make money.
...
Yes they do, but the best businesses have a goal other than money. When money is the top priority above all else, there is always trouble.
His support for Obama did not work either.
Yep, you understand the situation.
However as plan B, if he wants to raise the EITC then a special tax s/b crafted for people like him.
As Billionaires like him are the ones who benefit the most from the current system. They should pay for it.
If businesses existed to make money, they wouldn’t be giving millions to leftist causes.
so, he wants taxpayers to subsidize his employees by 50%?
“Hey, he’s a multi-zillionaire...”
He’s also a Marxist!
> The problem is many libs/Dems believe businesses exist to provide jobs. They don’t understand that businesses exist to make money. They make money by providing things people need...period.
Because they’ve never owned a business or desired to. They just want to o to work and have someond hand them money for it at the end of the day. Mny would just rather you hand them money and not work while they get high...
Around here, I'm appalled how many people get $10 or less an hour for jobs they've had for the long term, jobs where they're doing work that not any low skill worker could do.
Low income workers who are loyal and do good work should make $12 and hour and have the opportunity to work 35 or more hours a week. Then they can become tax paying self sufficient contributors to society.
In a free rational society, average money wage rates depends on conjunction of the demand for labor and the supply of labor. It does not depend on what someone wishes would happen or fantasizes about.If the number of workers competing for a job that requires little skill or knowledge is high, then the wage rates for that job will be low due to the law of supply and demand.
Warren, How bout you just offer to pay the taxes for anyone that doesn’t want to pay theirs.
That’s called the “labor theory of value.”
Not willing to work, capable of work. If they're capable but unwilling, they get nothing.
-PJ
Blah...blah...blah, Warren.
Sit down, shut up, spin some
Jimmy Buffet tunes, and cut
more support checks to the
asshat politicians who keep
pushing for higher minimum wage.
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