How the Free Market Solves Basic Economic Problems
Free and open competition coupled with the American Spirit can and will rise to any occasion.
There are more than a few areas in our society that have begotten some sort of social programming. These areas continue to underperform while taxing the populace in exuberance.
Let's start with the minimum wage…
You want to know what I think?
I think that there shouldn't even be a minimum wage.
King Cuomo just raised the minimum wage here in New York.
Boy, is he really going to feed his minions now!
"With the historical increase in the minimum wage, New York continues to set a national example in the fight for economic Justice." - Governor Andrew Cuomo.
‘National Economic Justice.’
Hoo boy - Sounds like a social Progressive campaign slogan for PRESIDENT.
This Andy might just prevent me from getting a raise!
This Andy is going to make it hard for my son to find his first job.
This dear Governor of New York is going to continue to stall the anemic, although intrepid economy here in New York, if not entirely crash it!
If an employer is hiring, it is because business is good, and he or she needs help meeting demand.
The employer needs you, the job seeker, as much as you need a job!
If you feel like a prospective employer’s offer is below you, you don't have to accept the job.
No one is holding a gun to your head!
If the employer is currently hiring, it is likely that his competitor is also hiring.
If no one accepts a job offer from a prospective employer, that company is deemed not worthy in the marketplace.
As a result, the employer will be forced to up the ante on both salary and perks associated with the position they’re looking to fill should they wish to hire someone that’s up for the job.
You’re free to negotiate with any prospective employer.
Isn't that awesome? America is great! Capitalism is cool!!
Good employees are good for business.
Good employees don't deserve the minimum -They deserve to earn more!
I read an article in the The Daily Gazette by Barry Ritholtz that argued that government can and should raise the standard of living.
All I could do is shake my head…
When we’re in a true free-market economy, the individual can raise his/her standard of living much higher than any other conceived methods of commerce and economics.
This is fact: Free-market capitalism has lifted more people out of poverty (and even into great wealth!) than any other system known to man - Ever!
A starting wage is a starting wage, and not a career wage.
What happens to the experienced and skilled workers’ wages when a high-living minimum wage is enforced by the government?
Why not encourage growth, drive, and innovation, instead?
If you want a raise, then earn it! T
he sense of satisfaction and self-esteem that comes with earning is unparalleled in this world.
Then there's this: With artificially-inflated wages, the cost of goods invariably goes up.
The cost of labor is then transferred to product sales, and the cost of living goes up.
It's a sick cycle carousel that just keeps going up and up, and one never really catches the other…
If, perhaps, we stopped raising the cost of doing business with unnecessary government intervention, we could have a better wage-to-market ratio.
The free market could, should, and would set a fair market value to all levels of employment.
Companies do fight for good employees.
There is a competitive market for labor in a strong economy.
Believe me - American entrepreneurs know the value of a good employee, and it's sad to say it's been a little rare lately.
The guy and gal who get hurt in this minimum wage scenario is the guy or gal who gets to work on time every day - Early even!
They bust their butts.
They go well over the Call of Duty so they can get that raise, or get that promotion.
In the free-market, they are driven and motivated.
Their work ethic benefits them, their families, their employers, and their country.
In a government program, it benefits nobody.
Hear that sucking sound?
A forced minimum wage is like holding a gun to the employer's head, and basically asking them to pay more than they can produce.
Not an economically viable plan, is it?
The employer's resources are tapped, as they’re paying more in payroll taxes now.
The employer is paying entry-level and under-skilled employees almost (and maybe) the same as both the experienced and the skilled employees.
Now there is no money left for growth, promotions, or even new hirings - The only new hiring being done might be replacing a new hire who couldn't perform enough to warrant his/her wages.
The guys and gals who are striving and performing are getting crushed.
How's that for social justice?
Now, neither are the employee, or the employer driven to get or to give raises - If the employer is no longer paying based on performance, the employee has no incentive to perform.
Pretty soon, everything stagnates: Small businesses close up.
More social programs and economic stimulus packages come in to help the poor.
If the free market was allowed to work in its entirety, there would be no need for a ‘living wage.’
Stand up New York