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Showing posts with label Bernie Sanders. Show all posts
Showing posts with label Bernie Sanders. Show all posts

Tuesday, April 05, 2016

Besides benefiting pandering pols, why have a $15 minimum wage?

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Democrat presidential candidate Bernie Sanders literally screamed through a bullhorn at a campaign event in support of raising the federal minimum wage from $7.25 an hour to $15. “I’ve been pleased to march and struggle with all workers in this country who are fighting for $15 an hour and a union,” he told the crowd. “We are the wealthiest country in the history of the world, people should not have to work for starvation wages.”

The City of Seattle, Washington last year raised its minimum wage to $15 to take effect this month, San Francisco and Los Angeles, California followed suit shortly thereafter, and last week the California State Legislature passed a measure to raise the state’s minimum wage in steps to $15 by 2022, and Governor Jerry Brown pledged to sign it.

Politicians frequently advocate for higher minimum wages, which attracts a lot of positive attention from low wage earners. Campaign speeches focus on how hard it is to live on minimum wage, as if a large proportion of the workforce earns the minimum and that large numbers earning at that level are trying to support a family, and all of these people really are being enslaved by greedy businesses. Facts, predictably, tell a different story.

At the end of 2014 the number of Americans 16 and older earning hourly wages was 77.2 million. Of those, just under 3 million earned the minimum wage, about 4 percent. Among all workers that year, hourly and salaried, those earning at or below the minimum was just 2 percent, and only 1.04 million minimum wage workers held full-time jobs. Of the entire full-time workforce, only 0.7 percent earned at or below the minimum wage.

Who are these 3 million minimum wage hourly workers? Nearly half – 48.2 percent – are between 16 and 24 years of age, and 2.6 percent are 65 or older. More than half work in food preparation and related “hospitality” industries, 31.4 percent are high school graduates, 23.1 percent did not earn the high school diploma, and only 9.1 percent have a college degree.

Most of them are second or third earners in their household; the average family income of a minimum-wage worker exceeds $50,000 a year. Furthermore, most minimum wage workers graduate to higher wages quickly as their skills and experience increase, usually getting a raise in less than a year.

People generally make minimum wage when they get an after-school job, or to help out while they are going to college. They make minimum wage for jobs that require little skill, and are often supplemented by tips. People make higher wages when they gain experience or hold jobs requiring higher levels of skill. Professionals and technically trained workers make more than fast food workers, checkout clerks and grocery baggers, as it should be.

Those who run businesses have to decide how much they can afford to pay for the different types of jobs in their business. Wages are based upon the importance of each job to the business, the experience and skill of individual workers, the number of people available for each job, and the overall cost of labor and other expenses, balanced by business income.

When government edicts artificially increase labor costs, businesses must offset the increase by cutting costs, increasing income, or a combination. Every minimum wage increase of $1 an hour costs a business about $2,500 per employee per year in wages and payroll costs. Other employees making a little more than the minimum will either require a raise, or deserve one, dramatically increasing the labor costs. Something has to change to offset that expense.

Businesses likely will reduce staff, particularly cutting positions where several workers have the same job. Maybe they employ robots or other machines to do certain tasks. Have you been to a restaurant that has a touch-screen device on each table? You can order and reorder some items and pay your bill with a machine.

There now is a robot burger maker that can turn out up to 360 burgers per hour. It can grind, stamp and grill made-to-order patties. It can cut and layer the lettuce, onions, pickles, tomatoes, etc., put them on a bun, and even wrap them up to go. This device would replace three full-time kitchen staff and ultimately cost the business less.

Higher labor costs mean that prices of many items will necessarily go up, some significantly. Even as minimum wage workers get more money, they and everyone else will see their cost of living increase, gobbling up a good bit of the higher wage.

Few Americans earning the minimum wage really “need” a higher wage to survive. Analyzing the coming increase in Alberta, Canada to $15 per hour, Robert P. Murphy and Charles Lammam of the Fraser Institute concluded, “In short, the minimum wage is neither an efficient nor effective strategy for helping the working poor.”

Minimum wage earners need to work their way to higher pay through education, training and gaining experience, like Americans have done for decades. A federally mandated minimum is, and always has been, a colossal mistake. It will reduce jobs among the very people it is supposed to help.

Tuesday, October 20, 2015

Things confirmed and learned at the first Democrat candidate debate

Most people seem to think Hillary Clinton won the first Democrat debate, and she did put forth a good showing, even if the atmosphere and comments from her opponents were decidedly soft and friendly. The other debaters did not challenge the top-rated candidate.

However, fans of Bernie Sanders disagree, believing the Vermont senator was the best of the five. Sanders is the only candidate who admits to being a socialist, a “democratic socialist” to be precise, although he found little opposition to his socialist views from the rest of the group, illustrating that the entire Democrat field shares his affection for socialist dogma.

Reviewing the comments during the debate it was confirmed – if, indeed, there was ever any question – that the Democrat Party is the party of exchanging free stuff for votes, their largess made possible by those of us who pay taxes. There was so little disagreement among the debaters that some observers think that the other four candidates have realized that Clinton will be the nominee, and they seemed to be campaigning not for the nomination, but for a position in the Clinton2 administration.

The “party of diversity” is far less diverse than the Republicans, who have 1 woman, 1 black man, 2 candidates of Cuban descent, 1 of Asian descent, some older candidates and some young candidates. The Democrats, the party of people who are around 70 years old, have 1 older white woman and 2 older white men, and two middle-aged white guys.

Based on questions, comments and crowd response, Democrats do not object to Clinton putting national security at risk by shunning the government email communications system employees are expected to use in favor of her own private system for official government communications. In order to defend the former Secretary of State one must ignore that her decision to do so was “inconsistent with long-established policies and practices under the Federal Records Act and NARA regulations governing all federal agencies,” according to congressional testimony of Jason R. Baron, a former director of litigation at the National Archives. To the Democrats, it is merely a distraction from the business of getting Clinton the nomination.

Reports say that “journalists” in the pressroom exploded in applause and laughter when Sanders said the American people are sick and tired of hearing about the “damned emails!”

It was confirmed that the Democrat candidates and audience members believe the deaths of four Americans in the Benghazi assault are not important. It’s old news; just another distraction. Apparently those of us who think Benghazi is important, or ISIS, or the economy, the national debt, or the millions of potential workers driven out of the workforce by the lousy job market created by the slowest recovery in 80 years are clearly on the wrong track. Climate change, gun control and giving away free stuff are clearly at the top of their agenda. They seem not to understand that nothing is free.

They all think pretty much alike, and believe that any diversion from the “party line” is wrong, whereas the Republican candidates have divergent views about important issues. Their diversity causes a great deal of consternation and disagreement among GOP supporters and conservatives, but reflects the sense of our Founding Fathers that robust debate of contrary ideas is a foundational principal of good government.

Sanders scored points with the statement that the United States “should not be the country that has … more wealth and income inequality than any other country.” Factcheck.org found, however, that the U.S. ranks 42nd in income inequality, according to the World Bank, and placed 16th out of 46 nations in the share of wealth held by the richest one percent of the nation’s citizens. Sanders’ vision of a socialist utopia cannot stand up against the glare of facts.

Clinton gave an interesting answer to the question, “Which enemy that you’ve made during your political career are you most proud of?” In addition to the NRA, the drug companies, the health insurance companies, and the Iranians, she said that the Republicans were her proudest enemy. Interesting that she compares insurance companies, drug companies, the NRA and Republicans to the Iranians.

Jim Webb, by contrast – the former Marine Corps First Lieutenant and Navy Secretary – said he was most proud of having dispatched “the enemy soldier that threw the grenade that wounded me” during the Viet Nam War. While killing that enemy soldier, Webb saved a fellow Marine, and won the Navy Cross. Clearly, his answer wasn’t as appropriate as Clinton’s.

She told viewers that what separates her from being a third term of the Obama presidency is that she is a woman, and mentioned being a woman as a good reason to elect her more than once during the debate. Remembering what happened after the manic drive to elect the first African-American president, we should be very wary of electing someone president because that person is a woman.

That is especially true of one who thinks she deserves to be elected, and cites her gender as the only reason she won’t be a continuation of the disastrous Obama presidency.