Our politicians have been talking non-stop about pay inequality. They drone on about how the Middle Class is not only disappearing, but losing purchasing ground. The claim that this is because of deficiencies in our Republic's practice of capitalism.
For the purposes of this discussion, I will ignore that the classifications of "Poor", "Middle Class" and whatever the name is for those above the middle class but not a "one percenter" fail to recognize that the membership in these defined areas is always in flux; that people move up and on all the time. Unlike Europe, any classification is not one that you remain in for your entire life...at least not in most cases.
But, back to the discussion of assuming that inequality needs to be "fixed."
I will tell you how to do it almost instantly. Really!
Simply index the prices of everything that people buy. You get a card from the government that identifies you "class" and that is based on your income. All prices are indexed. Food, cars, houses, vacations, insurance, bus rides, taxi fares,...everything...is indexed so that everyone pays the same percentage of their earnings for everything. As an example, a Ford sedan doesn't cost $18,000. For a poor family it might cost 5000, but for a millionaire it might cost $200,000. The same approach with food too should apply; a Middle class family might pay $400 for a weeks food for 4, while a rich family of 4 would pay $2,000 for the same amount of food. That way everyone would be equal, right?
So the "problem" is now fixed.
I don't pretend to discuss or identify how, under this kind of approach you would motivate people to work harder to earn more money. I have no idea...but today's politicians seem to discount that as being important to our country or our individual well-being, so I won't spend time even considering it. Tell you representatives about my idea...bet they love it. Of course, I strongly suspect that if they enacted it as law they would exempt themselves from its application, just as they exempted themselves from application of the RICO statutes...they aren't 100% nuts.
Showing posts with label Middle Class. Show all posts
Showing posts with label Middle Class. Show all posts
Tuesday, January 12, 2016
Wednesday, August 19, 2015
Only the government wins...
Our President, and the current leading contender for the Progressive Liberal Democrat Party nomination for President in a year or so, Mrs. Clinton, have come out in favor of increasing the minimum wage for all workers in the United States. They claim that this would at least partially solve the pressure of the cost of living for people who are apparently "stuck" in entry level positions historically known for their minimum wage levels.
They suggest two things: 1. That the plight of these workers is the fault of the opposition; and 2, that this increase will benefit the poor and the middle class. Both assertions are demonstrably wrong.
As to the first assertion, for the last 22 years, Progressive Liberal Democrats have held the Office of the Presidency for almost 64% of the time (14 years). During most of that time, they controlled the Congress and had the opportunity during that period to both discuss and create an action plan to solve the now declared plight of the Middle Class. As our current President stated with such smug, quiet impudence when he first took office and was rejecting the suggestions of the opposition regarding the health care plan, "We won." Yet, the Middle Class has not progressed during his time in office either. Looking, as an example, at the plight of the Black community we see that the unemployment rate for them is higher than when Mr. Obama took office. Previously, Mrs. Clinton's husband held the office of the Presidency yet the middle class did not increase or gain economically. The same is true for Mr. Carter's sojourn in the Oval Office. Yet, with all that opportunity, Mrs. Clinton wants the nation to believe that the fault lies with the opposition! That is patently absurd.
The second assertion is similarly flawed. And the reason is so obvious that one is tempted to call the assertion a purposeful deceit. Consider the following:
When the minimum wage is forced higher by government action, all other pay levels must be adjusted to keep the step system defensible to all employees. When the cost of labor goes up, prices rise. This increase in the price of goods and services, eliminates any apparent gain in wages. It is a wash.
Well, that is not actually true...both the business sector and the Middle (and all other working) Classes lose. Why? Because the Federal Government Income Tax is a graduated tax...as you earn more money, you pay a higher percent of your income to the Federal Government. So everyone but the Government loses when wages go up. But the Federal Government wins big time! And they have the nerve to tell you, "Hi, I'm from the Federal Government. I'm here to help you!"
Hypocrites all...and in this case, especially Mrs. Clinton.
They suggest two things: 1. That the plight of these workers is the fault of the opposition; and 2, that this increase will benefit the poor and the middle class. Both assertions are demonstrably wrong.
As to the first assertion, for the last 22 years, Progressive Liberal Democrats have held the Office of the Presidency for almost 64% of the time (14 years). During most of that time, they controlled the Congress and had the opportunity during that period to both discuss and create an action plan to solve the now declared plight of the Middle Class. As our current President stated with such smug, quiet impudence when he first took office and was rejecting the suggestions of the opposition regarding the health care plan, "We won." Yet, the Middle Class has not progressed during his time in office either. Looking, as an example, at the plight of the Black community we see that the unemployment rate for them is higher than when Mr. Obama took office. Previously, Mrs. Clinton's husband held the office of the Presidency yet the middle class did not increase or gain economically. The same is true for Mr. Carter's sojourn in the Oval Office. Yet, with all that opportunity, Mrs. Clinton wants the nation to believe that the fault lies with the opposition! That is patently absurd.
The second assertion is similarly flawed. And the reason is so obvious that one is tempted to call the assertion a purposeful deceit. Consider the following:
When the minimum wage is forced higher by government action, all other pay levels must be adjusted to keep the step system defensible to all employees. When the cost of labor goes up, prices rise. This increase in the price of goods and services, eliminates any apparent gain in wages. It is a wash.
Well, that is not actually true...both the business sector and the Middle (and all other working) Classes lose. Why? Because the Federal Government Income Tax is a graduated tax...as you earn more money, you pay a higher percent of your income to the Federal Government. So everyone but the Government loses when wages go up. But the Federal Government wins big time! And they have the nerve to tell you, "Hi, I'm from the Federal Government. I'm here to help you!"
Hypocrites all...and in this case, especially Mrs. Clinton.
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