Minimum Politics

The Democrat leadership wants to increase the minimum wage by about 40%.

Since the statistical stuff regarding minimum wage (only 2% of US pop is on the wage, typically less than a year, inflationary pressure etc etc) has been talked about quite a bit as of late, I thought I would look at some of the more hypocritical aspects of those making the proposal.

Outsourcing:

One of the left’s continual drumbeats of recent years has been that we’re (more specifically, Bush) outsourcing all our jobs to countries who provide cheap labor.

So raising the minimum wage will miraculously make that go away?

Typically employers hire entry level folks at minimum and soon provide raises for those living up to expectations. Other employers may seek a pool of labor willing to work at minimum wage but account for very high turnover in their business model. With the increased wage, both types of employers have similar choices: cut the labor force, pass costs to the consumer (charge more for their product), and/or outsource to a cheap labor pool (most located in countries with totalitarian governments or the ever compassionate People’s Republic of China).

Illegal Immigration:

The left (and some linguine-spined Republicans) have also argued that by blocking illegal immigration, our grocery costs would skyrocket (the argument was poor – only approximately 2-4% of the cost of produce is from labor).

They seem to have quickly forgotten this very argument while proposing something that would increase costs throughout the entire market, rather than just sectors utilizing illegal immigrant labor.

Additionally, employers looking to outsource for cheap labor may need not look any further than within our own borders. Employers feeling the pinch of raising labor costs but who can not outsource their production to another country, for various reasons, could to turn to ‘undocumented workers’. Should this occur (and it appears likely thanks to the laws of supply and demand) our illegal immigration rates would jump further complicating the issue.

Lastly, at the eleventh hour many House Democrats ‘found religion’ and voted for the border fence (yes, I know it was an election year vote). The new ‘blue dog’ Democrats also, supposedly, hold tougher views on illegal immigration than their leadership (which sets the agenda). I suspect the blue dogs will have a choke chain, and, possibly, a trip to the vet’s for some ‘tutoring’, courtesy of the leadership, if they drift from the agenda. It will be interesting to see if the dogs will dare to bark.

If successful, it is assured that the Demorctat-MSM machine will blame Bush and Republicans for the increased outsourcing, bland employment figures, inflation, and illegal immigration problems which will follow. And the beat goes on…..

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