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Dear Lotus King: I’ll see your minimum wage increase and raise you…

Though he may not consider himself an emperor (at least not yet), this last Tuesday, I came to the decisive conclusion that Barack Obama is King of the Lotus Eaters.

With his heavy reliance on his oratory skills, his Marxist allies on the Left, and a well-financed PR machine called Organizing for Action, Obama has a rather uncanny knack of lulling some many people (aka Low Information Voters) into a narcotic-like stupor, throwing the economic consequences of his (and their) decisions to the wind.

Lotus Eaters

Such is the case with Obama’s State of the Union call to raise the minimum wage 24%–from the current $7.25 to $9.00 per hour.

Republicans, as they often do, are going to oppose the minimum wage hike by attempting to rely on intellect and sound economic arguments. This is, of course, in stark contrast to the feel-good Lotus mush that Obama spewed Tuesday night–and that his lapdog allies are already starting to feast on.

While I may be writing this with tongue only partially planted in cheek, I do believe it would be political foolishness for the Republicans to oppose the call for a minimum wage increase based on economic realism. In fact, it would only make the Low Information Voters that Democrats have come to rely on dislike Republicans even more.

Rather, what Republicans should do is to counter Obama’s minimum wage increase demand with a counter proposal…one that could truly have some effects on those LIVs clamoring for an increase in the minimum wage.

Since Obama’s proposal is really nothing more than a campaign ploy, meant to appease his critics and to set the Republicans up to fail in 2014, the Republicans should provide a proposal that raises the minimum wages for certain segments of the economy where an increase will have a dramatic and immediate effect.

Selectively target LIVs…

For example, on the main street in a town nearby, there are no less than a dozen different nail salons, all within one mile. In fact, on one block, there are three nail salons–each competing with one another for the soccer moms and, very often, price gouging one another with “specials” on manicures and pedicures (or “mani-pedis”).

Judging from the low amount the suburban housewives pay to have their mani-pedis done at these low-cost paint booths, it is hard to believe the workers in these salons make much more than the current minimum wage–with or without tips. Indeed, it’s been even whispered that a few of the nail salons are owned by the same person. [Trust busters, are you reading this?]

Advocating for an increase in the minimum wage for nail salon workers–or hair braiders, for that matter–would help raise those workers out of poverty. Right?

But, hey! Why stop at a mere $9.00 an hour?

Why not raise the minimum wage for these workers fifty percent, or even one hundred percent–to $14.50 per hour? [Who, by the way, decided Obama's arbitrary increase to $9.00 per hour was "fair" anyway?]

Why should we care if those greedy nail salon owners can’t rake in as much money? If they don’t like it, they can always raise their prices, right?

Mark Zandi, chief economist at Moody’s Analytics, said the income boost could help some households, although it could, in turn, hurt businesses.

“The president is correct that it would raise the amount of income going to lower income households,” Zandi told The Hill.

“The wage increases to those earning the minimum wage would be greater than the lost income due to fewer jobs and hours worked,” he said.

“However, it would also likely mean lower profits for businesses employing minimum wage workers and higher prices as businesses try to pass through their higher labor costs.”

So, what if they can’t pass along the higher costs? They can always close up shop, right? After all, those business owners didn’t build those businesses on their own anyway.

Besides, there’s an added bonus to not having as many nail salons: Not snorting nail polish all day would be far safer for those nail polish workers. Just think of the olfactory senses saved–not to mention the air quality around town.

Moving on to fast food…

Fast-food workers should have their wages at least doubled, according to the SEIU and other unions. According to fast food workers looking to unionize, they should be making $15 an hour–more than double the current minimum wage.

After all, why should a burger flipper make the minimum wage? I mean, if you think about it, flipping burgers is really a high-skilled job that deserves more than just $7.25 (or even $9.00) an hour, right?

Consider this: If a burger isn’t flipped 180 degrees and the flipper makes a mistake by flipping the burger 360 degrees, that could result in a burger having one side uncooked and we all know what that means…a danger to the public! I repeat…flipping burgers is a high-skilled job. [Repeat that three times and you too might believe it.]

So what if you pay twice what you’re paying now for that Big Mac or Burrito Supreme? If you can’t afford it, your waistline will probably thank you.

In fact, instead of eating fast food, maybe you’ll stop going to those fast food joints and switch to something more healthy–something that Michelle Obama or Michael Bloomberg would approve of.

Who cares if those fast food workers become the highest paid people on the unemployment line?

A higher minimum wage has the biggest impact on those with the least experience or the fewest skills. That means in particular those looking for entry-level jobs, especially teenagers. And sure enough, as nearly all economic models predict, the higher minimum has wreaked havoc with teenage job seekers, well beyond what you would expect even in a recession.

[snip]

Artificially raising wages for unskilled workers reduces the demand for those workers at the same time that it increases the number of unskilled workers looking for work, which results in an excess supply of unskilled workers. Period. And another term for an “excess supply of unskilled workers” is an “increase in the teenage jobless rate.” Despite the wishful thinking of politicians like President Obama, the laws of supply and demand are not optional.

As the debate over raising the minimum wage becomes more heated, true to form, Republicans are going to wrongly go out and argue facts…to their own peril.

Instead, Republicans need to think and act differently.

One way for them to do that would be to negotiate targeted minimum wage increases aimed at the LIVs that Obama counts on for support.

If the law of supply and demand is somehow flawed and there is no resulting unemployment, the Republicans can share in the glory.

If, however, the law of supply and demand are, in fact, immutable and LIVs unemployment increases, not to worry…

The Lotus King will still take care of them.

By the way, in case you missed the link above, here it is again: Dems to use minimum wage against GOP in 2014.
_______________________

“Truth isn’t mean. It’s truth.”
Andrew Breitbart (1969-2012)

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COMMENTS

  • storminwgfp

    Why not $50/hour; then everyone would be making a 100 grand a year and all would be wonderful! It’s truly a win-win.

  • Mario

    It might also be worth keeping in mind that tying the minimum wage to inflation is ensuring that it grows faster than inflation. Not only because the government is unlikely to let it fall in times of deflation (if the law, as written, would even allow for that), but also in times of low inflation we are likely to see arguments that inflation is poorly measured, and that the mw should be increased anyway, like what happened with Social Security. Once you start on the habit of annual increases, it will never end, regardless of the merits.

    On a tactical note, if the inflation chaining looks like it might go through, Republicans should insist that the change take place monthly, rather than annually. It might sound counter-intuitive, but I believe that if very tiny changes happened each month, people would more easily accept downward revisions and the occasional zero month. An added benefit is that Democrats would find it hard to argue against it.

  • rennyangel4

    Reps. need to find EMOTIONAL (crying nemployed, moving trucks leaving boarded up factories, yadda) appeals to their positions.
    Arguing from the rational, monetary, and common-sense is a loser in this “How do you fell about that?” society,
    and Reps. need to get rid of ALL of their current consultants and advisers who have proven tone deaf, insensate, and dead wrong in confronting a relentless and winatallcosts oppostion..

  • gawken

    It would be disastrous for young people seeking entry level jobs. Take the idea of a $15 minimum wage for fast food workers. It would immediately DISPLACE many who now hold those jobs. There are millions of retired, or part time workers, many with skills, AND a good work history and work ethic, who would not consider flipping burgers at $7, or even $9 and hour, but if it pays $15/hour..well…that’s a whole new ball game.

    So now you’re a McDonald’s franchisee. You employ many young, marginally skilled youths. You constantly deal with turnover, absenteeism, poor work habits. All of a sudden, you can easily hire mature, stable, workers, and likely most of them will be part timers, looking to add another 20 hours or so of work each week to their regular employment. (Which immediately saves you from another whole bunch of problems.) Who do you want working for you?

  • bobmark

    (While I don’t believe in the full out Let it Burn of some folks, an occasional controlled burn does prevent larger forest fires.)

    (Boehner) “Republicans agree with the President that the ravages of this slumping economy have brought pain to many Americans. In fact we have drawn up legislation to raise the minimum wage a full $2, to $9.25 per hour. The “0bama Minimum Livable Income Act” wii be on the Majority Leader’s desk next week.”

    Add a provision reducing the employers share of the various payroll taxes by a point or two to give them some relief as well as some kind of language that will prevent the IRS from raising the minimum income to file and the EIC, and dare the Dems to pass it. If it works, Reps did it, if it doesn’t it’s got his name on it. Either way, Reps were acceding to the wishes of the country by acting in a bi-partisan manner to assist the President with a portion of his agenda.

    Added bonus is more state and local sales taxes as well as additional state and federal income tax revenue. They voted for it, twice, let them have it.

  • OhioHistorian

    When you say “McDonalds” you say that like it is some obscene corporation. You need to add the word “franchisee” to the end, because a large number of the restaurants are owned by people who actually work one or more shifts in their own store and compete with the franchisee down the street. If you think that McDonald’s makes obscene profits, you are welcome to go buy stock and try to influence it. Or you are also welcome to not buy their product. What you are NOT welcome to do is to criticize their business practices unless you are on the inside. You make comments but possibly are not impacted by the ignorance ;that spews from your mouth.

  • OhioHistorian

    Recognize that at least some unions have their labor contracts tied to the minimum wage. The result is that Obama is playing to his base to have automatic cost increases in labor unions built into the contract. You also then guarantee that built-in inflation will continue because the wages will go up, so will costs. Here is a link to a People’s World story where Clark Brown admits it is true for SEIU. http://www.peoplesworld.org/missouri-activists-unions-say-yes-to-cost-of-living/

  • CJB68

    I’ve given up calling them “low information voters”. The best analogy would be the masses in Rome who cried for bread and circuses to keep their minds off of the squalid conditions they found themselves living in under the emperors and their ruling class. Lotus-eaters, indeed.

  • keepcoolwithcoolidge

    Its a good point. most of the impacted small businesses would be in Dem communities. Attach a sunset provision to it.

  • http://www.laborunionreport.com LaborUnionReport

    How’s the status quo going so far, flyover?

  • raginpatriot

    More than valid point on the futility of Republicans arguing on the merits.

    I’ve come to the conclusion that Obama is deliberately engineering a declining economy and upcoming fiscal collapse — using a variation of Cloward-Piven, this time via macro-economics and Andy Stern’s corporate campaign “death of a thousand cuts.”

    Run up the money supply at (ultimately) hyper-infationary rates; unilaterally weaken our military (e.g., massive declines in nuclear arsenal); overwhelm the free market with taxes and regulations; drive what remains of the middle-class into distress and disillusionment (e.g., long term unemployment, “under my cap and trade plan utility costs will necessarily skyrocket”), etc. etc.

    Our country might survive a few of these, but not all simultaneously. Cumulatively these are either the acts of a deranged fool / incompetent, or the intentional acts of a long-game plan being pursued by a man (and his acolytes) with an evil agenda.

    Obama may be many things, but he is not deranged. Read the book “Radical in Chief” by Stanley Kurtz and you will gain insight into “non-reformist reforms” developed by Obama’s predecessors that are intended to sabotage our country — developed by his predecessors, and now being deployed by him.

  • flyovermark

    Not too great, LUV, but unless Republicans start thinking and acting like conservatives, the status quo is a good as its gonna get.

  • Jim_Riggs

    You raise many valid points against the minimum wage increase. I completely agree, it’s a bad idea. However, I’ve always found the low-information-voter complaint to be sour grapes.

  • funwithknives

    Use my own cribbed term from The Latin : [ 'Pig', that is]
    ** Boobus Americanai **
    Works for me and lesser terms have become much more popular.
    (see : Extremeist Republicans, Racist Conservatives and Plantation White-Voter Mindset as examples)

  • bananapouch

    Why not just propose a minimum wage increase to $20, or $100 for that matter and see what Obama says about it. Then everyone could see its negative effects.

  • joshinca

    Dude, I was being facetious in responding to gawken’s assertion that a higher minimum wage will be better for any business (McDonald’s in this case) because the higher wage will attract a higher calibre workforce, by pointing out that the business is free to do so already, if it makes financial sense to do so.