Given liberal ideology, why don't Democrats just pass a $100/hr minimum wage law? Everyone will be 'rich' right? They can hose the evil rich capitalists and empower the downtrodden working class all in one fell swoop. Answer, because econ 101 and years of empirical evidence teaches us that this would price those that are the most vulnerable; younger workers, workers with less education, minorities constituting large swaths of both of these groups, out of the labor market altogether.
A $100/hr minimum wage job is great if you can get it. But if you can't your just another welfare case. On a certain level Democrats understand this. But somehow, what they don't understand is at what point this dynamic manifests itself.
Obviously $100/hr is too much. But what about $20/hr? What they fundamentally don't get is that it is a free market that will most efficiently set labor costs. If there is a shortage of labor, wages will naturally go up as companies compete to acquire the most efficient and productive labor force. Likewise, if there is a glut of unemployed workers, as we have now, labor costs will come down as there are more workers competing for less jobs and will be willing to do them for lower wages. $10/hr is better than nothing. That is until the government provides a silk safety net that makes it more appealing for workers to opt out of available gainful employment to collect the benefits provided by a government that provides egregiously misguided incentives.
Policies that promote economic growth are the very simple solution to much of what ails our economy today. Unfortunately the Obama administration, for purely ideological reasons, has placed a much higher priority on punishing the industries best able to spur this growth; primarily oil and gas companies positioned to take advantage of recent technological advances like hydraulic fracking and horizontal drilling that put our country in a unique position to be a net energy exporter instead of importer.
Our Pols have been paying lip service for decades to the idea of energy independence but continue to do everything in their power to thwart this endeavor. Mr. Obama, with a single stroke of his pen, could approve the Keystone pipeline which would be a huge boom to both our jobs situation, our energy independence and economic growth in general. To any rational person with the best interest of the majority of the people in the country in mind, this decision would not even be debatable.
Mr. Obama has been claiming jobs as his highest priority from day one, but has yet to implement a single policy, as far as I can see, that would promote job growth or economic growth in general. In fact I would submit he has done everything in his power to reduce employment and to thwart economic growth at every turn.
As stated above, putting more Americans to work will naturally drive up the wages paid to all workers as the availability of quality workers is reduced. This obviously is not Mr. Obama's agenda.
I recently saw a statistic that claimed wages (purchasing power) for the average American family have been reduced more during the Obama recovery than they were during the Bush recession.
Why no one in the media will shine a light on the vast dichotomy between what Mr. Obama says and what he does is treasonous.
There is absolutely no excuse for our country to be suffering the economic hardships brought about by Mr. Obama's policies to promote his social justice agenda and to pay off his big money campaign contributors. The fact that most in his party are 'all in' with this program should be the beginning of the end for today's Democratic party.
Some day honest and independent historians, through the prism of time and distance will chronicle the true story of the Obama years and it will be a massive stain on our history.