Where Does Money Come From?

Or, What Are The Consequences?

I can't believe, in this day and age, that we still have politicians who believe in the tooth fairy, who seem to think you can make a string longer by cutting off one end and tying it on the other end.

There are plans afoot to raise the minimum wage. Seems like a no-brainer, right? The little folk get more money, which stimulates the economy, and everybody's happy, right? That politician would surely get elected, no? No.

What happens when you raise the minimum wage? Well, that money has to come from somewhere, right? So the employer might raise their prices. Which means that everybody has to pay more, so the extra money comes right back out of the pockets of the people who got the raise. Or the employer, unable or unwilling to raise rates, moves the jobs out of the country to someplace that pays a lot less, and now the people who had a raise are out of work and on unemployment.

What, you expected the employer to just pay the raise out of their profits? Then their stock would fall and the senior citizens living on the dividends from those stocks would lose money.

Raise the minimum wage, and you're waving a flag to every underpaid worker across the border, saying, "Hey, come work here! Even the lowest paid job pays more in one day than you make in a week there!"

I know, we'll tax the rich. They have too much money, anyway. The harder you work, the more money you make, the more we'll take away. Now there's an incentive plan. And if you don't work at all, we'll give you money! Oh, and those jobs we were talking about? Take away more money from those who have it, and they have less money to invest in new jobs. A lot more jobs are created by rich people than poor people.

And let's not forget, with more people trying to buy the same number of goods, that drives up the price of the goods. This is known as inflation.

When politicians are required to have a PhD in Economics, then I'll have a little more faith in their ability to tinker with a free economy.

Yeah, like that's gonna happen!


Blog Tag: Opinion