Wednesday, March 12, 2014

Further Proof Most Americans Don't Understand Basic Economics

Sixty-nine percent of Americans, including 45 percent of Republicans, support the president’s call to raise the federal minimum wage to $10.10 over the next three years. Only, twenty-eight percent oppose such action, according to a poll conducted by Bloomberg National Poll.

With such ignorance of the basics of supply and demand and why minimum wage laws never help (SEE: "2+2 = 4"), there is little use in overthrowing the current political leadership. It will only be replaced by different crony, interventionist leadership,


  1. Most people do not understand that inflation is a purposeful government program and not an inexplicable force of nature. No non-libertarian seems to understand the NAP and thus cannot comprehend our proposed strict enforcement of the NAP. Unless you understand that, you cannot understand violent intervention vs. non-intervention and thus you cannot differentiate a voluntary from an involuntary transaction which prevents you from understanding distorted vs undistorted prices, much less prices as the essential source of economic information.

  2. Couldn't agree more. Don't vote it only encourages them...

  3. I think that has more to do with their own self interest than economics. If you follow up the question of do you support the minimum wage hike with "do you feel your wages should rise too as a result of this", you'll find the closer you are to the new minimum wage the answer will be an overwhelming yes. Unionized workers especially see this as leverage for higher wages.

  4. Politics is the science of convincing people that they're getting something for nothing - in exchange for votes, of course. Someone always ends up paying the price, but the average American is too busy watching TV to think things through beyond a superficial level.

    Politics aside, the economics of wage controls is simply awful. A government mandate that increases labor costs will necessarily involve a decrease in the demand for labor. For every lucky guy who keeps his job (his raise will be heralded by the media), there's the unlucky sap who gets a pink slip and becomes a ward of the state.

    The product or service in question becomes more expensive for the consumer, and the taxpayer is now saddled with the additional burden of funding welfare for the long-term unemployed.

    Apply this dynamic across the entire economy and you get widespread outsourcing, preference for automation, a hollowing out of the labor force, a smaller tax base, and ultimately a lower standard of living. If you doubt this, try touring Detroit sometime.

  5. what about max handout?

    Embattled Centinela Valley school district Superintendent Jose Fernandez gives himself pay cut

    Kicking off a wild school board meeting that drew some 300 furious residents, Centinela Valley high school district Superintendent Jose Fernandez — who has come under intense scrutiny for a compensation package that amounted to $663,000 last year — announced he would voluntarily cut many of the perks embedded in his contract, bringing his salary to $295,000.

    Although Fernandez said the amount of last year’s total compensation — which includes perks and benefits — has been exaggerated by the media, he nonetheless offered to forfeit a bevy of benefits, most notably the annual 9 percent raise embedded in his contract as a bonus for longevity.

    “These are significant give-backs,” he said, over a rising chorus of jeers. “I hope they reassure the public and the board that I’m being reasonable.”

    In addition to his pay and benefits, Fernandez also took a $910,000, low-interest loan from the school district to purchase a home in affluent Ladera Heights for the same amount.

    Last week, in response to the controversy, state Assemblyman Al Muratsuchi, D-Torrance, proposed a bill that seeks, among other things, to assign more responsibility to the Los Angeles County Office of Education to police excessive compensation packages for school leaders

    Toward the beginning of the meeting Tuesday evening, Lorena Gonzalez — the newest member of the board — asked the audience why she doesn’t see any of them attend regular school board meetings to commend students for their academic accomplishments.

    She was shouted down by the angry crowd and gave up on trying to finish her thought.

    Several speakers later addressed the comment when addressing the board.

    “Your comment, Ms. Gonzalez, is highly offensive to me,” said resident Melanie Bell. “I take it personally. I have a reason I’m not here. I was working and am trying to raise good citizens in this community.”

    Among the many students to address the board was Lawndale High student Fatima Alvarez.

    “Our parents work two to three jobs to take care of us ... and they expect you to do your job,” she said to loud cheers. “It is not nice to be corrupt, it is not fair for us.”

  6. Even the concept of the federal government "raising the minimum wage," is a reflection of mass ignorance, or willful distortion. The government cannot "raise" wages. All it can do is prohibit employment at less than the minimum. Government can only ban and destroy. It cannot raise or create. The economically correct statement is "Federal government raises the wage level under which it bans all employment.