To pass another step increase in the minimum wage is just plain stupid!
This column presents a conservative viewpoint about items of interest in our community and our lives. Focus is on items impacting your pocket book, your personal freedoms, and your rights. I hope you will read the column regularly and it occasionally influences your opinions and actions. Now, on to the subject of the week:
“Minimum wage increases help none; increases actually hurt those the increases are pretending to be assisting.”
I heard some brainwashed liberal woman on television this weekend speaking on behalf of the just enacted step increase in the Federal minimum wage to $7.18 per hour. She made the familiar justification, “It cost an individual $7.00 just to buy a gallon of milk and some cereal for breakfast, how can someone live on less than $7.25 per hour?
I remember hearing similarly misguided people arguing back in the early 1960’s when I first entered industry…only then they would have said, “It costs an individual a dollar to buy a gallon of milk and a box of cereal for breakfast, how can someone live on less than $1.00 per hour?” The truth is, even though we have repeatedly artificially pushed wages up by a long stream of minimum wage increases, that individual who is trying to eat breakfast is still no better off. It was all a sham designed to get that poor fellow to vote for those who were enacting these “beneficial” increases.
This “smoke and mirrors” charade has long been used by labor unions and politicians to fool these low wage earners into thinking they are looking out for their needs. In actuality, this deceptive practice has been one of the major contributing factors to the out-migration and destruction of the American Industrial complex. As we can see today, ultimately the results have been disastrous for our national economy, and the group which is suffering the most is those at the bottom of the wage scale.
HISTORY OF MINIMUM WAGES
Year Wage Year Wage
1939 30 cents 1976 $2.20
1945 40 cents 1977 $2.30
1950 75 cents 1978 $2.65
1956 $1.00 1979 $2.90
1965 $1.25 1980 $3.10
1967 $1.00 1981 $3.35
1968 $1.15 1990 $3.80
1969 $1.30 1991 $4.25
1970 $1.45 1996 $4.75
1971 $1.60 1997 $5.15
1974 $1.90 2007 $5.85
1975 $2.00 2008 $6.55
- - 2009 $7.25
HISTORY OF MINIMUM WAGES
Year Wage Year Wage
1939 30 cents 1976 $2.20
1945 40 cents 1977 $2.30
1950 75 cents 1978 $2.65
1956 $1.00 1979 $2.90
1965 $1.25 1980 $3.10
1967 $1.00 1981 $3.35
1968 $1.15 1990 $3.80
1969 $1.30 1991 $4.25
1970 $1.45 1996 $4.75
1971 $1.60 1997 $5.15
1974 $1.90 2007 $5.85
1975 $2.00 2008 $6.55
- - 2009 $7.25
From 1967 when the minimum was $1.00 until today, with the minimum of $7.25, almost everything we buy has undergone a simultaneous increase in cost, increasing by a multiple of seven or eight. Thus nothing changes, and the breakfast for that poor fellow in the example is still as difficult to buy. The unions and politicians actually did nothing for him. A comparison of some of these items is shown below:
Item 1967 Cost 2009 Cost
Hamburger $.20 $ 1.50
Gallon of Milk $.30 $ 3.00
Basic Chevrolet $3,000.00 $20,000.00
Gasoline $.35/gal $ 2.50/gal
Small Plant - Manager Salary $6,000.00/yr $50,000.00/yr
Executive Salary $20,000.00 $160,000.00
Wooden Frame Home $7,000.00 $60,000.00
Brick, Ranch Home 2,000 sq. ft. $25,000.00 $200,000.00
As you can see, all we have done since 1967 is to increase the cost of everything by a multiple of seven or eight, and thus reduce and thus diminished the purchasing value of our money by the same factor, so that nothing changed. We are just printing, handling, and shuffling more money, but bringing home the same amount of groceries.
However, this deceptive political practice did result in serious damage to our nation’s economy. As long as our industries were protected by protective tariffs, quotas, and the lack of the international communications, banking, and transportation networks needed for controlling international commerce, things at home were insulated since the American public was in effect, a captive market to domestic manufacturing. The producers of manufactured goods could just pass on the extra costs to the consumer as their labor costs escalated and minimum wages rose and pushed up all wages. The domestic manufacturers could still realize their same level of sales and profit margins, regardless of costs.
Then in the 1980’s things began to change. Satellite communications technology, international banking systems, and efficient international shipping networks began to form. Soon it was as easy to manage and produce products from New York offices, in plants on the other side of the world instead of in the Carolinas or Georgia, or anywhere else in the U.S. The American industrial manufacturers suffered some losses from competition during this period, but protective quotas and tariffs still restricted inflow of products from abroad, and created a level competitive playing field. During this era the Department of State frequently used manipulation of these quotas and tariffs for international relationships and favors at the expense of U.S. industries.
Then in the late 1990’s at the urging of international functions such as the G-8 conference, the United Nations, and the international banking and transportation lobbies, the concept of creating a “world order” with “free trade” and “global marketing”, more and more US politicians were enticed to endorse these concepts. This influence led to the passage of trade treaties such as NAFTA, GATT, increased arrangements with most Caribbean nations, and eventually “Most Favored Trade Status” for China…..These arrangements sounded the death knell for American manufacturing.
You see, while we had been deceptively and unnecessarily multiplying our costs by a factor of eight to buy votes, the same game had not been occurring in the rest of the world. During the era from 1967 to 1990 their currencies had remained at the same original, low level. When we suddenly opened our doors to “free trade”, we found ourselves priced out of the marketplace. American producers were faced with an over-regulated, over-taxed, high-cost, over-priced cost structure that was doomed.
Within eight years after these ideas were enacted by our astute political establishment, millions of American jobs were lost, thousands of thriving factories became empty buildings, the foundations of our economy were weakened with the absence of manufacturing jobs, millions of workers were forced to retire, retrain into a lower paying job, or to go on welfare.
This weakening of our basic economic structure was then combined with the evils which led to the rise and fall of the housing markets, crazy unregulated banking practices, and over speculation in the stock markets,…. and suddenly the house of cards fell apart. We are struggling to restart this faltering; weakened economic systems, with its manufacturing engine removed, and are finding the presence of an absence of job opportunities makes the task almost impossible. And I believe one of the root causes of this dilemma was the foolish political games we allowed to be played, using the minimum wage as an instrument of vote buying.
And some politicians in their condition of blind stupidity are still promoting and playing this deadly game as is evidenced by this recent increase to $7.25. They just can’t “Get It Right”.
Rudiments: Odds and Ends Worth Mentioning-
● In arguing for the socialized health plan promoters state that the existing system has extra costs because of extra, unnecessary tests performed by doctors, and due to referral doctors retesting and not using information from tests already performed. Well, the real reason for these actions is fear of a lawyer in a suit using the lack of testing or use of prior tests as a negative that might cause loss of a liability claim. The real reason for these extra costs is the blood sucking lawyers and the crying need for Medical Tort Reforms. The new plan is conveniently skirting this issue.
● This week the FHP and the Alabama Highway Patrol combined in a “wolf pack” at the state line on Highway 231 in a road block traffic check. In my opinion these Gestapo type road blocks where they stop cars for no cause, demand to see your “documents”, question you about where you are going, and inspect the car is all a violation of our rights and is of questionable constitutional validity. All they need is a manacle for one eye, high leather boots they can click together, and one of those counterweighted rail roadblocks to swing up and down…and they would have a German roadblock as seen in the old Bogart movies. If this is for safety as they pretend, and significant removal of unsafe drivers and vehicles are the result, then the practice might be justified…It is not justified if the underlying reason is to help make up the State budget shortfall. This week’s roadblock netted 14 tickets for Florida and over 20 for Alabama. This means we only gain about $2500 in revenue while they gained over $4000. Come on FHP…We can’t let Alabama out-ticket us!
Note: The opinions stated in this column are solely those of the author and do not necessarily represent those of Hatcher Publications.