Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Counterproductive Minimum Wage Mandates

Economics / Economic Theory Oct 10, 2012 - 06:34 AM GMT

By: BATR

Economics Best Financial Markets Analysis Article

Working for wages has never been the path for significant wealth. Most people are not equipped nor do they have the inclination to be engaged in business endeavors that will earn them a viable living. The reluctance that most workers bring to their occupation stems from their inability or unwillingness of properly understanding the related components that are essential in creating wealth. While many view work as a curse, the indispensable reconciliation for a practical and tolerable acceptance of universal plight is that no one is owed a living.


In a world of Totalitarian Collectivism, the powers that control international economies, seek to pacify the laboring hordes with crumbs from substandard minimum wage mandates. The foolishness that guarantees minimal scale for hourly toil can and will never produce a prosperous society. The entire economic interdependent scheme to destroy the last vestiges of a bona fide "free market" economy is at the heart of minimum wage mandates.

Corporatists love higher minimum wage increases because small business is least equipped to absorb added costs in their operations. Corporatists are in the business of monopoly formation. Competition is a cardinal sin to the globalists. Any governmental imposition that creates added strain on the very viability of potential contenders, eagerly sought by crony capitalism, is destructive to labor.

Wall Street conglomerates intentionally hire few people, when compared to the total work force. The trend to slot part time positions with modest or no benefits or contract employees is the new model. This framework offers little opportunity for the unskilled or first time job seeker.

BalancePolitics.org offers reasons pro and con about minimum wage.

The motivation to impose minimum wage conditions for employment is to control the workforce. Helping the downtrodden is a myth or an outright lie. Functioning businesses must be able to balance their books to survive. Employing productive labor translates into paying a scale that benefits both the business and the worker. In the age of systemic social welfare, it is insulting to claim that minimum wage laws grow the economy or increases labor opportunities.

Talk Of Liberty, in Abolish Minimum Wage makes the point:

"If you make minimum wage, most likely you are on government housing, food stamps, Medicaid, fuel assistance and all the other government goodies. My point is if this is the group you are worried about, you shouldn’t. That is the point of this countries welfare system. This is where the Liberals want to have their cake and eat it to. Get rid of welfare and its massive costs if you want higher wage laws, get rid of welfare."

The proper way to hasten a true domestic economic revival is to adopt a "right to work" policy that allows independent businesses to hire people based upon the free exchange and responsibilities of agreed remunerations. Without profitable incentives and relief that small business can secure, taking the risk of employing additional "hired help" is purely academic.

Thomas Rustici, in his scholarly Cato paper, A PUBLIC CHOICE VIEW OF THE MINIMUM WAGE, identifies the nature of the impasse to achieving free markets.

"Before one can hope for the abolition of the minimum wage, the influence of the well-organized, special-interest groups that receive the bulk of the benefits from it must be reduced. There is, however, little chance that such groups as Northern unions and businesses, or interest groups in general, could be barred from the political process in the near future."

The problem with any acceptance of government imposition of compulsory wage scales into private employment negotiations destroys opportunities for employees. A job presupposes that a business has a reason to hire added help and can afford the costs of a day’s pay for a day’s work.

A socialized economy inevitably ensures a stagnate workforce. People need to be encouraged to learn the skills that small business demands as the basis for injecting worth and value in order to earn a paycheck.

The answer to the Corporatists/State oppressive economic stranglehold is a workable free market of exchange, barter and consensual business relationships. Liberate your thinking before you can fatten your pocketbook.

James Hall – October 10, 2012

Source : http://www.batr.org/negotium/101012.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2012 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in