The Minimum Wage Kills Jobs, Part 5529

Of all the sounded-clever-but-was-actually-idiotic things Obama said in the State of the Union address, this was the most cleverly-sounding-but-really-stupid:

And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.

As I said, sounds clever. A bunch of liberals in my Twitter feed said the equivalent of, “Oh, snap!” But the reality is that you’re not supposed to be raising a family on minimum wage. Minimum wage is an entry level wage, a wage to get your foot in the door for future better-paying jobs. I made minimum wage once. Actually, I made less than minimum wage because I was paid in cash under the table. But I was a teenager, so it was fine.

The biggest reason to oppose the minimum wage, of course, is the Law of Supply and Demand. If you artificially set the price of something high (low-skill labor), you will find that people learn to live without it (i.e., they stop hiring people). We’ve been told this is a myth, despite clear evidence that it’s not. Well, here’s another example of this thing that supposedly never happens:

In November, San Francisco voters overwhelmingly passed a measure that will increase the minimum wage within the city to $15 per hour by 2018. Although all of us at Borderlands support the concept of a living wage in principal and we believe that it’s possible that the new law will be good for San Francisco — Borderlands Books as it exists is not a financially viable business if subject to that minimum wage. Consequently we will be closing our doors no later than March 31st. The cafe will continue to operate until at least the end of this year.

Many businesses can make adjustments to allow for increased wages. The cafe side of Borderlands, for example, should have no difficulty at all. Viability is simply a matter of increasing prices. And, since all the other cafes in the city will be under the same pressure, all the prices will float upwards. But books are a special case because the price is set by the publisher and printed on the book. Furthermore, for years part of the challenge for brick-and-mortar bookstores is that companies like Amazon.com have made it difficult to get people to pay retail prices. So it is inconceivable to adjust our prices upwards to cover increased wages.

The change in minimum wage will mean our payroll will increase roughly 39%. That increase will in turn bring up our total operating expenses by 18%. To make up for that expense, we would need to increase our sales by a minimum of 20%. We do not believe that is a realistic possibility for a bookstore in San Francisco at this time.

I will point out something else that they gloss over. It’s true that businesses like the cafe side of Borderlands can cover the minimum wage hike by increasing prices. But you know who pays those increasing prices? Primarily poor and middle class people who go to the kind of places — fast food restaurants, cheap bookstores, etc. — that pay their employees minimum wage. So you’re giving them money with one hand while taking it with the other.

This is a liberal bookstore ownership. That’s clear from the way they talk about this. But they point out that the minimum wage hike will increase their operating costs by 18%. Other business will see similar hikes. Do you know how many business are operating at an 18% profit margin? Very very few. And certainly none that are patronized by the poor and middle class.

Minimum wage hikes sound good and make liberals feel good. But they are a nightmare for the job market. If you don’t believe me, believe the guys at Borderlands. They have no reason to spew “right wing propaganda”.

Keeping Their Feet To The Fire

One of the main reasons I was glad that the GOP took both house of Congress in the last election is that now Republicans will chair the various sub committees. A residual benefit is that congress critters (Harry Reid) will not be able to derail the process, run interference for the president, or sit on legislation that deserves at the very least a passing purview. But back to the sub committees, congress will now be allowed to remove itself from the personal bidding of the president and actually do it’s job, separately as was intended. With the GOP at the helm, the administration will not be allowed to sweep things under the carpet or hinder any attempt at fact finding. Although the president and his supplicants have turned manipulation and subterfuge into an art form, it is encouraging to know that folks like Eric Holder, Hillary Clinton, and Lois Lerner should not get too comfy or complacent, retribution (hopefully) is inching toward fruition.

A GOP packed Senate Armed Services committee will make it even harder for Obama to fulfill a 2009 promise that still gnaws at him, closing Gitmo. Even McCain has seen the light;

Just last month, Senate Armed Services Chairman John McCain (R-Ariz.) promised to help Obama close the detention center where terrorism suspects have been held for years without being charged. But on Tuesday, McCain and three other Republican colleagues introduced plans to sharply restrict the removal or transfer of detainees from the facility, which has served as a long-standing target of worldwide criticism.

Although it has not been for lack of trying. And no, we will not forget about the 5 high level AQ terrorists traded for the cowardly deserter, or allow them to delay the out come indefinitely. The final report is finished and from what I have read, desertion charges will be filed. Although I don’t expect Bergdahl to serve a single day behind bars, a conclusion to this whole sordid affair is owed, both to his fellow soldiers and the rest of the nation. And a further delay, orchestrated by WH pressure on the pentagon, should not be allowed to stand.

And speaking of Gitmo;

Tom Cotton just achieved Trey Gowdy status.

My opinion of Gitmo has evolved a bit over the years, not because of it’s need or relevancy in caging terrorists, but as with pretty much everything with Obama, we spend way too much money keeping these vermin housed. We all heard about the multi million dollar soccer field, the lavish buffets offered at every meal, and the palatial digs they use for their worship services. Whatever happened to prisoners making little rocks out of big ones, and eating only when they work? This Mottle Coddling of killers is infuriating.

I am starting to doubt the efficacy of keeping any bases open in Cuba and if a better (cheaper) solution can be found for housing captured terrorists, I am willing to listen. But for now Gitmo stays open for business, and bring on a top to bottom analysis of the costs. Prison should be a hardship, this should not be Clubmed.

The collectivists will NEVER let that happen

And by “That”, I mean anything that undermines their centrally planned, leviathan owned, healthcare system destroying, economy crushing Obamacare scheme. The agenda is after all to destroy the healthcare system as we know it in the US so they can then peddle the single payer system they want. So the new republican proposal that actually would make changes to that wouldn’t destroy the healthcare system and the country economically will both be demonized and undermined to make sure it won’t interfere.

Thursday, we are unveiling our vision of policies that would strengthen our health care system while reducing federal spending and taxes. The Patient Choice, Affordability, Responsibility and Empowerment (CARE) Act outlines specific ideas that could replace Obamacare with more choices and higher quality, while protecting those with pre-existing conditions.

And that is why democrats want it to be DOA and will do everything to derail it. Not a fucking chance in the world that they would want something that actually fixes any of the problems they have managed to exacerbate with Obamacare. It undermines their powergrab and would make it obvious that’s what Obamacare was all about once it is implemented and works.

First, our plan would lower health care costs by empowering millions of lower and middle-income families with a refundable tax credit to purchase private health care coverage of their choice. They would no longer be subject to an individual mandate and limited to Washington-approved plans. Workers for small businesses would be eligible, too.

WTF? No central planning? No government meddling and use of force to comply? More importantly, you remove the politician’s ability to get their hands on money they let people borrow and deny them the ability to play with those people’s lives if they refuse to comply? Who is going to make sure insurance companies only make the profits that their masters in government fell are OK, huh? That’s insane!

By scrapping dozens of mandates, we estimate premiums would drop, on average, by double digits. We’d also reverse harmful changes that limited consumers’ ability to save and manage spending through health savings accounts and flexible spending accounts, and we’d encourage small-business insurance plans to give smaller employers better and more affordable options.

Are you fucking insane? Low premiums only help people, not the power hungry nanny state politicians! And why would you ever want to trust people to manage their money? Without the threat of force from government they will make the wrong choices, don’t you know? Affordability is something, according to Gruber in his rare moments of telling the truth, that you pretend you are giving people, but it is of no concern. Did the CBO even score this bad plan? What was the fixed/rigged system you gave them to make it look palatable, huh? We had a doozy when we got them to score Obamacare and make it look good. WTF do you have?

This sort of nonsense is what I expect to hear from them and their lackeys in the LSM. They will then follow it with the “But what about the poor people denied because of preexisting conditions that used to not be covered?”. Well:

What our plan would not allow is a return to the days before Obamacare when insurance companies turned away patients simply because they were sick.

Under our proposal, no patient could be denied coverage based on a pre-existing condition. We create a new “continuous coverage protection,” and if you change your job and buy a plan on your own, we would provide protections so you could not be denied coverage or be forced to pay a higher premium because of a pre-existing condition.

We would also ban insurance companies from imposing lifetime limits on a consumer, and we’d adopt age-rating changes, which lower costs for younger Americans. Individuals could stay on their parents’ health plan up to age 26, unless a state chose otherwise.

Oh snap! You have to wonder – no you don’t: I am being facetious – why the democrats didn’t do that and only that if they really cared about these people. People who because of the way Obamacare is set up can’t be denied but now can’t afford the care because of cost. Again: Obamacare was never about making healthcare affordable or available. It was about letting government get its hands on the money and decision making process, with the end game of crashing the existing system and then coming to the rescue with a single payer system they would otherwise never be able to sell anyone. It was just another giant wealth transfer scheme pretending to be something else.

Not only would our policies lower costs for patients, they would be good medicine for taxpayers. By scrapping Obamacare’s Washington-centered approach, we estimate our proposal would cut more than $1 trillion in taxes and reduce federal spending by hundreds of billions of dollars. All of Obamacare’s taxes would be scrapped, including the medical device tax, health insurance tax, pharmaceutical tax and other taxes masked as mandate fees.

In the coming months, the Supreme Court will hear and decide an important case regarding the president’s health care law, King v. Burwell. The justices should uphold the rule of law by overturning the administration’s unlawful decision to tax and spend through the federal exchanges. If they do so, we believe modifying and adopting some of the ideas outlined in our proposal could provide a path toward minimizing the disruption experienced by consumers.

Faster please. Kill this idiotic shit before it destroys the healthcare system and plunges the economy into an even more depressed state. Of course, getting this passed will be a monumental task, because the left will never admit that Obamacare is bad policy and that they had an agenda that wouldn’t be possible if it goes away.

I would not be surprised..

That Iran’s claim that the desperate pussies in the Obama administration are again acting like the pussies collectivist tend to always be, and then for clearly craven political reasons, is absolutely true. This administration is going to eventually be seen, when the historians finally actually get to look at the things they did, as one of the biggest failures ever. No amount of revisionist history, media cover for their fellow collectivists, or even sycophantic pandering by people willing to line up and suck Obama cock, just because of their “My Team,” feelings, will change that reality. They are desperate for something – anything – to show they are not the abject failures they are. Hence the constant stupidity and the dangerous display of absolute incompetence and weakness that leads to things like this. yeah, I bet they are begging Iran for a bone. Any bone.

I am going to rub it in. Back when the fucking leftards were telling us all how stupid Boosh’s cowboy diplomacy was and that what we needed was mature and capable collectivists to take over to fix things, I pointed out this was all bullshit. Leftards suck at foreign policy precisely because they hold such a high opinion of themselves that they believe they can do not just the improbable, but the impossible. Most people don’t remember the incompetence of the Carter years. Carter thought his good intentions and his willingness to do what feelers on the left think is the right thing would garner him the support of people not just with their own agenda, but of evil people. That’s why he was so butt-hurt when the Russians went into Afghanistan. Brezhnev had after all promised him that the USSR wouldn’t do that! Carter was a moron. And the bulk of people that share his idiotic and naive beliefs – which pretty much amounts to all collectivists and the democratic party as a singular entity these days – world view are always going to not only be surprised by the wolves in sheep’s clothing, but end up on the short end of any deal. Always.

Obama however has been far worse than Carter was. His administration has not only been more than willing to drop to their knees to suck the cocks of people that are clearly our enemies, but they have treated our allies, especially those that were considered our closest ones, with scorn and disdain on top of that. I have said it before and will say it again: At the risk of insulting amateurs, this administration’s foreign policy, and for that matter anything else other than their agenda to destroy the country, is amateur hour at the freak show. Not that these idiots will ever get called on it until long from now when historian take a look at the shit that went down and the damage it has caused will we finally understand how bad they were/are.

Brian Williams Caught Out

For years, NBC anchor Brian Williams has been claiming he was in a helicopter that was shot down in Iraq in 2003. Today, he had to admit that he lied.

“I would not have chosen to make this mistake,” Williams told the newspaper. “I don’t know what screwed up in my mind that caused me to conflate one aircraft with another.”

In a post on Facebook, Williams wrote:

“I feel terrible about making this mistake, especially since I found my OWN WRITING about the incident from back in ’08, and I was indeed on the Chinook behind the bird that took the RPG in the tail housing just above the ramp. Because I have no desire to fictionalize my experience (we all saw it happened the first time) and no need to dramatize events as they actually happened, I think the constant viewing of the video showing us inspecting the impact area — and the fog of memory over 12 years — made me conflate the two, and I apologize.”

Williams, the newspaper said, most recently made the claim about being on the helicopter last Friday when presenting his network’s coverage of a tribute to a retired soldier who provided security for grounded helicopters.

Williams is saying he mis-remembered. But I have to agree with Ace. It’s really hard to imagine how someone could confuse being brought to a crash site with having been in the crash, especially as it appears NBC and Williams were making this claim almost immediately.

This is who we get our news from, guys. These are the guys who inform us the economy is good and Obama is awesome. And they wonder why we don’t believe them.

Vaccines in the News Again

Thanks to low vaccination rates, we are currently experiencing a large measles outbreak in this country. I’ve discussed vaccines before. My position is that vaccines are one of the greatest inventions in history, that they should be mandatory for public school students (with medical exemptions) and strongly encouraged for everyone else. And I’m glad to see that after spending a number of years waffling, our political establishment, from Hillary Clinton to Congressional and Gubernatorial Republicans are coming down strongly in favor of them.

But … there’s no public health crisis that the Left can’t try to politicize. You may remember last year when they tried to blame the Ebola outbreak on mythical Republican budget cuts. Well, now they are jumping on comments by Rand Paul and Chris Christie that supposedly embrace anti-vax lunacy. This supposedly represents how “anti-science” the GOP is (numerous pro-vaccine statement from every other Republican on the planet not withstanding).

The thing is, neither of them said anything crazy. Rand Paul supports vaccines, although he did apparently garble a statement about vaccines and autism and does think parents should make the decisions. And Christie’s statement was perfectly in line with the conventional wisdom. He vaccinated his kids, he supports vaccines but thinks mandates should be based on the danger represented. Both of these are well within the mainstream debate of whether vaccines should be mandated or not.

So … not really much there. And given the number of Republicans who are issuing strong unequivocal statements supporting vaccination, support programs that help poor people get vaccinated and support vaccination mandates for immigrants, this isn’t really a club to bash Republicans with. For all the supposed “anti-science” positions of the Republicans, this isn’t one. The only place I’m seeing opposition to vaccines is the fringe of both parties.

And I find this attention to Christie and Paul especially odd given that one of the biggest anti-vax nuts out there is Robert F. Kennedy, Jr., who has often gotten slavering attention from the media as some kind of environmental crusader. But you wouldn’t know that from the mainstream media.

Stop trying to make this a partisan issue, guys. It really isn’t.

Why is this news to anyone?

Here comes the BOOM!

Us Debt Interest vs. Defense & Non-Defense discretionary spending

Take a good look at that graph above. The WSJ created that graph to show how interest payments on US debt will balloon as interest rates finally adjust. The fact of the matter is that our government has kept interest rates artificially low, through a slew of costly tricks, schemes, and scams, in order to keep interest payments low. And their success is debatable. They had to right the interest index, by removing the cost of fuel and food, while throwing billions at the problem in the form of QE and other such stupid schemes, to prevent the interest payment from going over $200 billion a year.

These government games have wrecked the economy and caused serious harm to the middle class, which has been punished for doing the right things. This all has happened while these programs have made the already rich richer and transferred a ton of wealth from the middle class to those that vote for a living. There is a class war going on in the US, but the left has targeted the middle class in order to expand their voter base: the non-productive. But let them keep borrowing despite the fact they are expecting an unprecedented windfall.

Our problem is twofold. First off, we have a shitty economy. Despite whatever they tell you that the numbers represent, the truth is that most new jobs are going to illegals, with over 18 million illegals now flooding our job market, and the 5.6% unemployment rate is a gross exaggeration that masks how bad things really are. If there was any reality to the claim of steady job growth and low unemployment, consumer spending wouldn’t be at its lowest since 2009 and there wouldn’t be a gloomy view of the future. But them is the facts.

Secondly, we fucking spend too much, mostly because the political class wants to buy votes from people impacted by the damage caused by the legislation enacted as a result of the vote buying agenda. Socialist paradises always end up with the same play book and results, and we are heading that way. We need to get spending under control, and the only way that happens is if we cock-block the vote buying schemes. Time is running out on us, and we have a choice between the people that think the answer is a bigger economy and less government spending, especially to improve the quality of life of people not working in the first place at the expense of the middleclass and those working, and those that feel the problem is government and government spending isn’t big enough because people are keeping too much of the government’s money.

They Don’t Want a Welfare State; They Want a Plunder State

The strange thing about the 2014 election is that Obama seems to have taken it as a mandate … for more liberal polices. In addition to unilateral immigration “reform”, he has just released his budget proposal, which has massive tax hikes and spending hikes, no hint of entitlement reform and claims it will find $640 billion in deficit reduction (a paltry amount over the time frame) from tax hikes, immigration reform and, I believe, money imported from Narnia. It’s a fantasy budget that is making the hard-core liberals at Vox swoon but has connection to reality. And it puts the lie to the idea that Obama is a “conservative” as one newly-retired blogger has argued.

Here’s the thing, though. Liberals have long said that what they favor is a European-style welfare state (such as the one that imploded in Greece). Obama says this and his budget makes noises in this direction and is being praised as a step in that direction.

But the Democrats do not want a European welfare state. As much as they claim they do, that’s not what they want and not what they are advocating. If they really wanted a welfare state, they would be proposing something very different: huge tax hikes on the middle class.

The United States has one of the most progressive tax systems in the world, being very reliant on the wealthy for revenue. The European welfare states, by contrast, are more regressive, having flatter taxes and relying on VATs and sales taxes that are regressive. They have to be that way because you simply can’t finance a welfare state by taxing the 1%.

A welfare state financed by the rich doesn’t even work politically. When everyone is paying taxes, there is more support for a welfare state because everyone is pitching in. The perception is that you’re getting out something related to what you paid in, which is why Social Security and Medicare are popular in this country (both financed by a regressive tax that is denounced by Democrats for not soaking the rich enough). But a system that is dependent on taxing the rich isn’t a welfare state, it’s a plunder state. And as I’ve pointed out before, most people don’t want that. They don’t want to feel like they’re living on someone else’s dime or on stolen property. The Communists discovered this 70 years ago when they tried to “redistribute” estates to the commoners only to discover that the commoners didn’t want that wealth if it was stolen.

The gripping hand, of course, is that there isn’t any support for a huge middle-class-funded welfare state either, which Vermont discovered when they had to abandon their experiment in single-payer healthcare. And so the Democrats keep trying to sneak their welfare state through the backdoor. First it was taxes on the savings in 529 plans, which was quickly killed. Now it’s a tax on overseas earnings. Tomorrow, it will be more sin taxes.

(And if that fails, I expect them to embrace Modern Monetary Theory, currently being pushed by Bernie Sanders. This theory says that government shouldn’t worry about deficits; it can just print money. Taxes only exist to keep the rich from getting too rich. Seriously, that’s what it says. It’s like a politician’s wet dream: spend whatever you like and never worry about the bills.)

Thankfully, none of this is going to fly with the Republican Congress. But Obama’s absurd tax-and-spend proposal is a sign that we are still running out of other people’s money.