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Old 06-09-2005, 01:47 AM   #12 (permalink)
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Quote:
Originally Posted by MrSelfDestruct
Minimum wage increases lead to layoffs of the workers on the low end of the pay scale, the very people you're trying to protect. Universal healthcare is a nice theory, but raising taxes to pay for it is not a good way to stimulate the economy. Regulating the industry leads to jobs being moved overseas. Once again, you end up hurting the people you want to help.

There are two issues at hand here. First, it makes sense to give a small break to someone who is required to pay half of their income to the government rather than someone who pays a third of theirs. I used to think that it was perfectly fine, but now I cannot ethically justify taking a higher percentage of income from someone who makes more money just because they can afford it. When I used to favor high taxes for the rich, I think it was due to a combination of envy and resentment. I suggest breaking down your opinion and asking yourself exactly why you feel this way and whether it makes sense logically or only on an emotional level. I suffered from cognitive dissonance for quite a while after I did that, but in the end, fair tax makes more sense to me. Second, tax cuts did not only help the rich, they were cuts across the board, and owners of small businesses have benefitted greatly from cuts to taxes that they really could not afford to pay.

In the end, inflation and unemployment rates are inversely related, and both cannot be kept down at the same time unless the country is in an economic golden age. Perhaps if we were able to overproduce to the point that we could flood the market with exports and cut imports to a minimal level, we could manage both, but it is highly unlikely, especially druing a negative global economic trend. In the end, low-tech, high-volume production will have to be outsourced and high-tech pproduction encouraged so that we can keep the cash flowing into the country rather than out. I'm not saying that we should be buying all of our food and basic manufactured goods from other countries, but if we want to stimulate the economy, we mainly need to eliminate trade deficits and outsourcing unskilled labor is the easiest way to do it.

The bottom line is that when foreign manufacturers are able to produce high-volume, low-cost goods (for example, entry-level cars,) that are consistently more reliable and more efficient than domestic versions, people are going to buy the superior product. Without sales volume, cuts have to happen in other places. Blaming a political party that you don't like can't change the fact that domestic manufacturers are fighitng an uphill battle in a free market economy......
The POV that minimum wage laws impact negatively, "the very people you're trying to protect", is a weak one, IMO, and the current stats that I provide below, illustrate that the impact of such laws is not so "cut and dried.

Also, all ten of the states displayed with the higher minimum wages (In both groups, I eliminated smallest pop. states, i.e., Vermont, Wyoming, and remote states like Alaska and Hawaii. The D.C. has an "artificial" economu and no state gov.,) exhibited a majority vote for Bush in 2004, and I'll make an argument that majorities in more affluent states are opposed to Bush tax cuts that benefit them more than the less affluent, "Bush majority" states.

If low wages and no overtime laws were of great benefit in attracting jobs, one would be tempted to surmise that South Carolina and Mississippi would experience lower unemployment. IMO, geography and demographics play a larger role in influencing job creation and economic improvement than minimum wage laws do. Are those in the $5.15 per hour states who work at the marginal jobs that would not be available at a higher minimum wage, better off working for those wages and driving unemployment below 4.5 percent in some low wage states, or would there be a greater chance that they would migrate to a more advantageous area in pursuit of a higher minimum wage mandated by another state's law. In other words, is working at a minimm wage job in North Carolina for $5.15, a better opportunity for a young worker, than having no job available and thus a catalyst to move to Delaware or Oregon?

IMO, this is a complex issue that the stats reveal no easy answers about. New studies show that $5.15 wage earners burden the medical and social welfare systems of many locales to the point where several states are considering Maryland's solution to the burden of Wal-Mart as an employer in their local communities:<a href="http://www.baltimoresun.com/news/opinion/oped/bal-op.fairshare09jun09,1,7106910.story?coll=bal-oped-headlines">Make all employers pay their fair share</a>
Quote:
Sources: http://www.bls.gov/lau/home.htm http://www.dol.gov/esa/minwage/america.htm
<b>$6.00 - $7.25 per hour min. wage states:</b>

DELAWARE Unemployment Rate 3.9%(p) in Apr 2005
Minimum Rate $6.15 Premium Pay After 40
(per hour)

Maine Unemployment Rate 4.7%(p) in Apr 2005
Minimum Rate $6.35 Premium Pay After 40
(per hour)

RHODE ISLAND Unemployment Rate 4.7%(p) in Apr 2005
Minimum Rate $6.75 Premium Pay After 40 hours
(per hour)

MASSACHUSETTS Unemployment Rate 4.7%(p) in Apr 2005
Minimum Rate $6.75 Premium Pay After 40
(per hour)

NEW YORK Unemployment Rate 4.9%(p) in Apr 2005
Minimum Rate $6.00 Premium Pay After 40
(per hour) $6.75 (effective 01/01/2006)

Connecticut Unemployment Rate 4.9%(p) in Apr 2005
Minimum Rate $7.10
(per hour) Premium Pay After 40

CALIFORNIA Unemployment Rate 5.4%(p) in Apr 2005
Minimum Rate $6.75 Premium Pay After 40
Over 12 hrs in one day (double time)
7th day: First 8 hours (time and half)
Over 8 hours (double time)(per hour)

WASHINGTON Unemployment Rate 5.5%(p) in Apr 2005
Minimum Rate $7.25 Premium Pay After 40
(per hour)

Illinois Unemployment Rate 5.9%(p) in Apr 2005
Minimum Rate $6.50
(per hour) Premium Pay After 40

OREGON Unemployment Rate 6.5%(p) in Apr 2005
Minimum Rate $7.25 Premium Pay After 40
(per hour)
Quote:
<b>$5.15 per hour min. wage states:</b>

NEW HAMPSHIRE Unemployment Rate 3.4%(p) in Apr 2005
Minimum Rate $5.15 Premium Pay After 40
(per hour)

VIRGINIA Unemployment Rate 3.6%(p) in Apr 2005
Minimum Rate $5.15 Premium Pay After (no OT law)
(per hour)

Oklahoma Unemployment Rate 4.5%(p) in Apr 2005
Minimum Rate $5.15 Premium Pay After (no OT law)
(per hour)

MINNESOTA Unemployment Rate 4.0%(p) in Apr 2005
Large employer (enterprise with annual receipts of $500,000 or more) $5.15 48
Small employer (enterprise with annual receipts of less than $500,000) $4.90 48

NORTH CAROLINA Unemployment Rate 5.3%(p) in Apr 2005
Minimum Rate $5.15 Premium Pay After 40
(per hour)

SOUTH CAROLINA Unemployment Rate 6.5%(p) in Apr 2005
Minimum Rate (No state minimum wage law.) Premium Pay After (no OT law)

Ohio Unemployment Rate 6.1%(p) in Apr 2005
Minimum Rate (Below Fed. Min.) Premium Pay After 40
(per hour)

TEXAS Unemployment Rate 5.5%(p) in Apr 2005
Minimum Rate $5.15 Premium Pay After (no OT law)

Mississippi Unemployment Rate 6.8%(p) in Apr 2005
Minimum Rate (No state minimum wage law.) Premium Pay After (no OT law)

Michigan Unemployment Rate 7.0%(p) in Apr 2005
Minimum Rate $5.15
(per hour) Premium Pay After 40
U.S., Japanese, and European automakers do not make enough profit on "entry level", economy cars, to attract their interest in that segment. They make those vehicles as "loss leaders", and depend on the sale of larger, higher end vehicles for offsetting profits. I disagree about quality and state of technology issues regarding GM and Ford products, and apparently, so does the market.
Quote:
http://www.autospies.com/article/ind...articleId=4590
JD Powers top survey performers by category
5/19/2005

Top performers by category

Compact car

Winner: Toyota Prius

Runners up: Kia Spectra, Honda Civic, Toyota Corolla

Entry midsize car

Winner: Chevrolet Malibu/Malibu Maxx

Runners up: Hyundai Sonata, Volkswagen Jetta

Premium midsize car

Winner: Buick Century

Runners up: Chevrolet Impala, Pontiac Grand Prix

Full-size car

Winner: Buick LeSabre

Runners up: Mercury Grand Marquis, Ford Five Hundred
To keep this post on topic, I'm including a picture worth a thousand words:
Quote:
http://www.kitco.com/ind/Schmidt/jun072005.html
<img src="http://me.to/images/svr030.gif">
<img src="http://me.to/images/svr031.gif">
The "numbers" and the current government tax, spending, foreign, and military policies clash to the point that informed individuals can easily argue that the fate of the dollar's value lies in the hands of foreign debt holders and buyers, that cutting taxes and increasing military and medicare prescription costs contribute to the dollar's demise, and ironically, the ability to maintain military spending at even current levels, along with the farce of the constant Bush roadshow that pushes the dismantling of SSI, under the disguise of an advocacy for private SSI accounts, that distract from that dismantling agenda, and the immediate influences on the rising deficit, Iraq war, military spending, ineffective pork barrel spending under the guise of "Homeland Security", and most ominously, a U.S. trade deficit headed for $900 billion per year as soon as in 2007. IMO, there is no guarantee that economic slowdown will trigger deflation.
Quote:
http://www.morganstanley.com/GEFdata...i.html#anchor1
....The next downleg of the dollar should be very different from the first one. The euro has borne the brunt of the dollar’s decline over the three years ending January 2005. Most Asian currencies -- especially the yen and renminbi -- were completely unscathed. If the dollar resumes its downward descent, as I suspect, that will have to change. Not only do I look for a politically driven change in Chinese currency policy that would allow for an RMB revaluation, but I also suspect that the yen-dollar cross-rate could move into the mid-90s.........
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