"Living wage" Mentality Reflects Misunderstanding Of Business Reality.

Stolen from Faultline USA

Fast food workers in seven cities were on strike last week demanding a "living wage" of $15 an hour, more than twice the $7.25 they currently make. Empathy aside, this expectation is a fantasy.

Every job has a value, but it is based not on what the person who has the job thinks it should be worth, or what sympathetic observers think it should be worth, but on its role in the business.

How important is the job to the business, compared to other jobs? Are other people who can do the job a scarce commodity, or are there thousands of them? Some jobs require substantial training, while others do not, and individuals with the required training deserve higher pay than those without training. Minimum wage jobs in the fast food industry require no formal training; the worker can learn on the job, and while the worker is learning to do the job satisfactorily, the boss endures lower-than-necessary productivity.

Who exactly works for the minimum wage? These jobs are entry-level work intended for people just getting started in the workaday world, like students trying to earn a little money while pursuing their education, or people with little or no skills or experience looking to get some skill and experience. About half of the 1.6 million minimum wage workers are under 25 years of age. The minimum wage is not intended to be, and cannot be, a “living wage.”

The minimum wage is, indeed, a low wage, but most of those workers get a raise in less than a year, and there are fewer of them today than in the past. The number of people making at or under the minimum wage today is 28 per 1,000 wage and salary workers, while in 1976 there were 79 per 1,000 wage and salary workers.

Most employers want the best workers they can find, so if most workers produce 10 of something an hour and Joe can produce 12 an hour, or if Mary’s work is of higher quality than other employees, the boss is likely to give them a raise to keep them on staff.

For people in minimum wage jobs with few or no skills, demanding their salary be doubled to a "living wage" is somewhat akin to high school students demanding they be given a college diploma. And anyone earning minimum wage that is unhappy with it can go look for a better-paying job. If they can't find one, do their best at the current job, and get some training that will qualify them for something better.

An organization calling itself Socialist Alternative illustrates graphically the failure of a “living wage" minimum wage in an article titled "Profit is The Unpaid Labor of Workers."

"Hypothetically, lets assume that our job pays $7.50 an hour and our boss wants us to work for twenty hours," the article says. "At $7.50 an hour for twenty hours, that’s a total of $150. In that same period of time, however, the work we do will probably make $300, $400, or $1000 worth of pizza."

And here's where it gets good: "What does this mean? Just for arguments sake, lets assume we only create $300 worth of pizza. After our boss gives us $150 for our week’s worth of work – meaning our own labor essentially pays our wage – he is left with an additional $150 that he did not work for."

There’s a brilliant bit of insight hidden in that paragraph: "our own labor essentially pays our wage." To the socialist mentality, the only cost of running the pizza parlor is what the boss pays the pizza maker. Everything else – flour, sauce, pepperoni, cheese, insurance, rent/mortgage, electricity, water, sewage, trash pickup, taxes, fees, etc. – the boss apparently gets for nothing, and the money collected for the pizza that is not paid to the pizza maker is ill-gotten gains.

The "living wage" strikers similarly do not understand business, and what happens when wages go up. Raising the minimum wage requires a commensurate raise in all wages, to avoid causing strife among the other workers, and that means price increases that make the business less competitive. That could lead to staff cutbacks or ultimately closing the business.

The strikers and the socialists fail to understand and appreciate the investments of the owner(s), who may have mortgaged their home to finance the business, and managers of larger businesses, who usually have spent years in training and working to get where they are, perhaps starting as a minimum wage employee themselves.

Owners get whatever is left over after everyone else – employees, venders, lenders, taxes, etc. – have been paid. Often, particularly in the beginning or during hard economic times, that is little or nothing. And, few employees work as hard as the owner of a small business, and particularly a new business, yet the Socialist Alternative begrudges them making a decent return on their investment of capital and time.

It’s easy to criticize the boss from the sidelines. The best course for these critics would be their forced entry into the business owner’s world. At their own expense, of course. They would undoubtedly see things differently in short order.

Looking At The United States By The Numbers

Stolen From Hat Tip Faultline USA

By James Shott

As the end of 2012 draws near, here are some interesting and revealing statistics about our country.

The Gross Domestic Product Growth Rate has been anemic all year, but had its biggest increase in the 3rd quarter, rising 2.7 percent. That was double the 2nd quarter’s 1.3 percent, and beat the 1st quarter’s 1.9 percent. From 1947 until 2012, the United States GDP Growth Rate averaged 3.2 percent.

* * *

In 2011 the population of the U.S. was 313.8 million and 153.6 million Americans were in the labor force. The nation produced total GDP of $15.1 trillion, roughly $49,000 in per capita GDP.

The U.S. Treasury collected tax revenue of a little more than $2.3 trillion and as a percent of GDP the economy is taxed at slightly more than 15 percent. However, the federal government spent about $3.8 trillion, creating a budget deficit of more than $1.3 trillion, or 8.63 percent of GDP. Each man woman and child citizen’s share of the cost of government is more than $12,000.

Currently, the national debt is roughly $16.3 trillion, which works out to about $51,000 per man, woman and child. This year’s federal budget deficit adds $3,500 or so of additional debt per citizen.

* * *

The November jobs report listed 146,000 new jobs and a U-3 Unemployment Rate of 7.7 percent, two-tenths lower than the October figure. Unfortunately, this news is not as good as it appears. To have a truly meaningful effect on unemployment, more than 300,000 new jobs must be created each month. The Labor Department revised downward new job numbers in October from 171,000 to 138,000, and from September in 148,000 to 132,000.

The drop in the unemployment rate resulted not from lots of people going back to work, but because 350,000 people dropped out of the workforce.

The Labor Force Participation Rate dropped from 63.8 percent to 63.6 percent. The 146,000 new jobs have a much greater effect on a smaller labor force than on a larger labor force. If the labor force remained the same as it was in January 2009, U-3 unemployment would be 10.7 percent. The more accurate U-6 Unemployment Rate, which includes not only those working and those looking for work, but also those who have become discouraged and given up looking for jobs, is 14.6 percent for November.

* * *

In June, a total of 142,415,000 people were employed in the U.S, according to the Bureau of Labor Statistics, including 19,938,000 who were employed by federal, state and local governments. By November, the total number of people employed had climbed to 143,262,000, an overall increase of 847,000 in the six months since June. In the same six-month period the number of people employed by government increased by 621,000 to 20,559,000. These 621,000 new government jobs equal 73.3 percent of the 847,000 new jobs created overall.

* * *

Back in July of 2008 candidate Barack Obama said this about the $4 trillion in debt that we incurred under the Bush administration: “The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.”

According to the U.S. Treasury, on July 2, 2001, the national debt was approximately $5.7 trillion. On inauguration day 2009, the national debt stood at $10.6 trillion. Last Thursday, it stood at $16.3 trillion. That means the debt has increased $5.7 trillion during Mr. Obama’s first four years, and that is more than all presidents through Bill Clinton, and the first five months of George W. Bush’s tenure. In the name of U.S. taxpayers Mr. Obama has borrowed more than $49,500 per man, woman and child.

* * *

Inflation in October was 2.2 percent, up from September at 2.0 percent, August at 1.7 percent and July at 1.4 percent. The highest level of inflation since 2000 was 5.6 percent in July of 2008.

* * *

Are we drowning in regulations? Ayn Rand’s classic Atlas Shrugged in paperback has 1,088 pages. The 2011 Federal Register totals 82,419 pages, nearly 76 times more than Ms. Rand’s book. A popular estimate of the cost of regulations on the economy is $1.75 trillion annually, which is nearly 76 percent of total amount of tax revenue collected last year.

* * *

In 1913 the U.S. tax code was 400 pages. Today, it’s more than 73,000 pages, which means we added on average 730 new pages each year. It is estimated that U.S. taxpayers pay $431.1 billion annually, or 19 percent of total tax revenue collected last year, just to comply with and administer the U.S. tax system.

OCCUPY DC vs. Employment Offers ("We won't do that")

Hat Tip to IggyMom

After more than a month of protest demands for better employment opportunities and benefits, Accuracy in Media saw fit to test their desires with...employment applications. Our "headhunters" were treated to every excuse as to why these jobs aren't good enough for them. We guess middle management opportunities with healthcare and 401k benefits aren't desirable anymore.



If you are really out of work, and need a job, you will take any job that you can find.  If necessary you will work 2, 3 or even more jobs to make ends meet.

These Moonbats want the $100K job immediately.  Not realizing that the person who has that job worked their way up the corporate ladder and EARNED that position.  Nothing was handed to him/her.  But after years of liberal education, these idiots are taught they are entitled to any thing these bastards want.  You must not destroy their self-esteem.

Also in Occupy DC we get this:



I am waiting for what one of these idiots tell us what they want to do with the Jews. Oh wait they have:



"I think that the Zionist Jews who are running these big banks and our Federal Reserve, which is not run by the federal government, they need to be run out of this country."

Ladies and Gentlemen it is 1938 and tomorrow is Kristallnact!

Coming soon to a city near you:

A Chicken In Every Pot, A Car In Every Garage, A Government Job For Every Worker.

This is the the new campaign slogan for the Obama Regime.  That is if Congressman Jesse Jackson Jr. (D Ill) has his way and can get his bill passed.

Rep. Jesse Jackson Jr. has offered his own $804 billion jobs plan that calls on the federal government to hire the nation’s 15 million unemployed Americans for jobs paying roughly $40,000 each, and bail out all the states and cities facing budget crises.

In an interview with the Daily Caller on Wednesday, the Illinois Democrat applauded President Obama for directing his staff to greenlight job-creating initiatives without congressional approval after his $447 billion jobs bill was defeated in the Senate this week.

“Now we’re making some progress,” Jackson said, comparing the legislative gridlock in Congress to the states that seceded from the union during the Civil War.

"We've seen Congress is in rebellion," he said, "determined to wreck or ruin at all costs."

Jackson said the government’s direct hiring of the nation’s 15 million unemployed Americans would cost $600 billion.

“It could be a five-year program,” he said. “For another $104 billion, we bail out all of the states. For another $100 billion, we bail out all of the cities.”

“We put people to work cleaning up communities. We put people to work through a civilian conservation corps, through a Works Progress Administration because the hour demands it,” he said.

“And as more people work, they pay taxes, they pay taxes into the 4th quarter, they buy wares, they buy homes, they meet their obligations and our economy begins to work its way out of this protracted recession,” he continued. “That’s the only way out of this crisis. And I hope the president begins to continue to exercise extraordinary constitutional means based on the history of Congresses that have been in rebellion in the past.”

But not everyone is convinced that Jackson's plan would work. Even a fellow Democrat has criticized it.

“In Rep. Jackson’s entire congressional career, he has never introduced a single jobs bill,” Debbie Halvorson, who is challenging Jackson in the Democratic primary, said in a written statement. “Now, he’s calling on the president to suspend the Constitution? As a representative of the people, you don’t give up when you hit a roadblock and throw the Constitution out the window – you keep working to get something done."

Source

Why bother even creating fake jobs, why not just give the 15 million people $40,000 out right.  No need to ask people to suck on the government teat.  No need to spend at least $804 billion a year.  If you bail out the states, the cities will that make them cut needless spending?  NO.  Will that make them take responsibility for their spending?  NO.  Will that help them to become more fiscally responsible?  NO.  All it will do is tell the mayors, the governors spend to your heart's content and don't ever worry.  Big Federal Government will always be there to bail you out.

What people want are real jobs, not slavery to the Democratic Plantation.  In their effort to increase Democratic voters they will destroy what is left of our Constitution.  This is one idea, one bill that has to be defeated.  The idea of a job, any job will be too tempting to many people.