Posted by
84rules on Thursday, November 09, 2006 10:31:34 AM
Those who cannot remember the past are condemned to repeat it. - George Santayana.
That
will be true throughout all eternity. So, why did I start out with such
a deep philosophical quote? Because it seems that our President does
not remember the past and we already know that the Dems have never
learned from it to begin with.
According to Reuters,
President Bush is prepared to compromise with the Dems on certain
issues, one of which is a Minimum Wage hike. Now, I will get into the
economic ramifications of such a hike in a moment, but first I would
like to guide everyone down memory lane, back to the first Bush
Administration.
Back in
1990, President George H.W. Bush made a deal with Congressional
Democrats. the deal was that Bush I would approve an increase in the
Capital Gains Tax and in return, Congressional Democrats would support
tax breaks in the near future. Well, the Dems got what they wanted and
in return, they thumbed their noses at the President and immediately
weaseled out of their end of the bargain. The Dems have not changed
since then.
Presdient
Bush II is about to make the same mistake his own father made. He is
about to make a deal with an untrustworthy group and actually expect
them to folow through with their commitments.
According to Reuters:
| President
George W. Bush on Wednesday said increasing the national minimum wage
is likely an issue on which he could cooperate with Democratic leaders
in Congress. "I
believe in a lot of issues we can find common ground and there's a
significant difference between common ground and abandoning
principles," the president said in a news conference a day after
mid-term elections in which Democrats gained control of the U.S. House
of Representatives. |
But
this is not the time to be rolling over like a submissive puppy. The
President should be standing firm and telling the Dems they will have
to fight very hard and very publically to get their radical agenda
turned into law. It should be a very public fight so that all Americans
will know exactly where the Dems stand. After all, many Dems ran on
platforms to paint themselves as Conservatives to get themselves
elected. Those Dems should be called out to test whether they were
being truthful during their campaigns or not.
Why
should the President stand firm on the issue of Minimum Wage? Because
every time a Minimum Wage hike has been enacted, the unemployment rate
for the lower class and teenagers has gone up. Every single time. Ask
any reputable economist. Why would that be? Let's look at an example
with specific numbers.
Suppose
an employer has a budget that allows $30.00/hr for hired help and the
Minimum Wage stands at $6.00/hr. That means the employer can pay five
people at $6.00/hr. (5 x 6 = 30) Now, suppose the Minimum Wage suddenly
jumps to $7.00/hr. That means the employer will now have to pay
$35.00/hr for the services of five people. (5 x 7 = 35) But, since the
employer can only afford $30.00/hr to pay workers, one of those workers
is going to have to be released or have their hours severly reduced in
order for the employer to make ends meet.
That is why underclass and teen unemployment goes up after Minimum Wage hikes.
If
the Dems really cared about getting more jobs and work experience to
the lower class and teenagers, they will not pursue this
counter-productive policy. But then, when have the Dems really cared
about the lower class as anything other than votes to be bought?
Feel
free to bookmark this blog entry. If the Minimum Wage hike does become
law, I believe we will see an upturn in umemployment among the lower
class and teens. It will be interesting to see whether or not I am
correct although I am absolutely certain that I am.
You can access the complete article on-line here:
Bush Says Min Wage Hike Area Of Common Ground
Reuters
November 8, 2006
As
the calls for Ken Melhman to step down increase, we can take a look at
the possibilities for his replacement. One of those possibilities is
soon-to-be Former Maryland Lt. Governor Michael Steele.
According to Chris Cillizza of the Washington Post:
| Maryland
Lt. Gov. Michael Steele (R), who came up just short yesterday in his
Senate race against Rep. Ben Cardin (D), is mulling a bid for the
chairmanship of the Republican National Committee, according to an
informed GOP source. ... Mehlman
has made outreach to the African American community a priority during
his time as head of the party, and Steele would be seen as a logical
successor to that effort. |
You can access the complete entry on-line here:
Michael Steele For Republican National Chairman?
Chris Cillizza
WashingtonPost.com's Politics Blog
November 8, 2006