My Economic Plan is Even Better Than Hillary’s!

Hillary-Money

I studied and taught economics but I still could never quite figure out the Democrat’s plan to improve our economy.  But now I think I finally get it.  I listened to Bernie and Hillary at the DNC convention, and it has all become clear to me.  In fact, thanks to Hillary’s lesson in Democrat economics, I think I can now even beat the Democrats’ plan for creating jobs and improving the economy.

Hillary wants to at least double the federal minimum wage to $15 per hour, right?  She says $20 per hour would be even better.  Well, I say if $15 is good, and $20 is better, why not $50?  Heck, why not $100 an hour?  Just think, if all the burger-flippers and lawn mowers and hotel maids made $100 an hour ($208k per year) they could buy so much stuff that there would be millions of new manufacturing jobs to make all the things they want to buy.

Plus everybody could eat their meals at fancy, expensive restaurants.  So those restaurants would have to hire more waiters, and dishwashers and janitors.  They would all make at least $208,000 a year, so they could buy more stuff too!  You see how dollars circulate when a Democrat runs the economy?  Everybody wins!

Wait, if everybody eats at fancy restaurants, the burger-flippers wouldn’t have anything to do.  Oh well, they could play Pokémon Go when business is slow.  Or they could stay home and do tele-work like our federal government employees do when it gets hot outside. Problem solved.  Maybe the federal workers are playing Pokémon Go, too.

Hillary also wants to open our borders and ports so there will be many more immigrants coming to our country.  She says we need more immigrants to do the low-paid jobs that Americans don’t want to do.  She says immigrants are better at starting businesses than Americans are.  She says immigrants add a lot more to the economy than they take from it.  Well, then!  If immigrants are so great for our economy, let’s invite all of the people in Africa to move in with us!  And Mexico, and Myanmar . . . there are a lot of potential immigrants all over the world.  Just think how great our economy will be when they all live here!

Oh wait, if minimum wage is $100 an hour, there won’t be any low-paid jobs for them to take.  Hmm.  But hey, there will be so many new jobs from everybody else buying stuff with their new higher wages, the immigrants can take those jobs.  Hmm.  But then where would the Americans work?

Shoot, this is getting kind of hard.

Well, Hillary says college education should be free for everybody, and student loans should just be written off.  Probably a lot of Americans won’t have to work, then, because they will be going to college full time with free room and board.  So there will be jobs for the immigrants.  That’s how Greece does it.  Oops, that didn’t work out very well for Greece, did it?  And I guess maybe the immigrants will all be in free college too . . .

Dang it, it seemed to make sense when Hillary explained it.  So how are we going to create jobs and grow the economy?

Oh, I know.  Let’s just raise taxes on the rich!

Tom Balek – Rockin’ On the Right Side

Rockin' On the Right SideSaid when this is all over
You’ll be in clover
We’ll go out and spend
All of your Blue Money!

Blue Money – Van Morrison

 

The Government Can’t Force Equal Outcomes

Uneven-BalanceI am NOT an old fuddy-duddy.

I like new ideas and am always on the lookout for something bigger, better, or faster.  But I have to admit I can’t understand why we keep trying to fix things that aren’t broken.  When something is working, why can’t we just let it work?

Back in the “good old days”, a typical family would at some point want to participate in the American Dream.  Mom and Dad would build their savings at a local bank or “savings and loan” for a few years until they could afford a down payment on a home.  Then they would go to the bank and apply for a mortgage.

The bank would judge whether this family was a good “risk”.  After all, they wanted to protect the assets of the bank’s owners and other depositors.  When a family put down a significant amount of its own money, usually 20%, they could be counted on to make the payments to protect their own assets.

This simple little arrangement worked beautifully.  It was a system of checks and balances – free market capitalism at its finest.  Americans were encouraged to work and save, and were rewarded for that good behavior.  Banks were stable, secure, and well, boring.  New home construction and the manufacture of home products ensured full employment and drove our GDP to make our nation prosperous and strong.  Real capital multiplied and our standard of living improved predictably, year after year.  And it was eminently fair.

But then somebody decided maybe it is not so equitable for one family to own a home when another did not.

And look at us now.  The government holds or guarantees over half of all home mortgages, and a good portion of those loans exceed the value of the homes or are in default.  The taxpayers bailed out the banks, allowing them to maintain their exhorbitant executive salaries and bonuses while the bank tellers are on public assistance.  Banks no longer make their living by holding savings (for which they paid interest) and loaning that money (for which they charged interest).  They now bathe in profits by holding cash balances generated by the Federal Reserve, which buys government bonds with artificial cash.   Those profits are invested in the same mortgage derivatives that caused the banking crash and bailouts in the first place.   Savers get zero interest from the banks while the purchasing power of their dollars continues to dwindle.  Unemployment is epidemic as government benefits now exceed entry-level wages.  And the standard of living for everyone (except the bankers and those connected to the government) continues to tumble.  What a disaster – all caused by the government messing up the banking business in the name of “equality”.

Now we are told that it is unfair for some to have health insurance while others don’t – a federal takeover of the medical care delivery system is required.  And we are told it is unfair that some earn less money than others, so federal laws must force employers to increase their payroll expense.

When will we admit that government can not force equal outcomes for any sustained period?  Every time the government tries to bend and shape the time-tested rules of the free market, the result is butt-ugly.   I know it.  You know it.  Everybody knows it.

Kind of makes you question their motives, doesn’t it?

Tom Balek – Rockin’ On the Right Side

Rockin' On the Right Side

Bend me, shape me
Anyway you want me,
Long as you love me, it’s all right
Bend me, shape me
Anyway you want me,
You got the power to turn on the light.

Bend Me, Shape Me – the American Breed

Aaron Rogers Cost Wisconsin 184,000 Jobs

Aaron Rodgers_Many people are demanding that the minimum wage be raised to $15 an hour.  They complain that some people make too much money, and that’s why poor people earn so little.

You see, liberals believe that wealth is a zero-sum game.  If one person gets more, another gets less.  They think that raising the minimum wage would transfer wealth from the owner of a business, or its high-paid employees, to the poor, hard working lower-paid people.  Simple.

My fantasy football team got clobbered this weekend.  It didn’t help that my opponent’s quarterback, Peyton Manning, scored 7 touchdowns and passed for 462 yards . . . but anyway, some of my players’ terrible performances made me wonder how much they earn per hour, compared to their teammates.

My starting tight end, Anthony Fasano, makes $1.2 million per year.  That places him somewhere in the middle of the expense report for the Kansas City Chiefs.  At the top of the Chiefs report is Tamba Hali, a defensive lineman who makes over $12 million per year.

Fasano had a pretty disappointing opening week, catching only two passes for 8 yards in the first game of the season.  He doesn’t block much, so his value is based on his catches.  My simple math (not the way it is taught in our government schools today) works like this:  $1.2 million divided by 16 one-hour games per season is $75,000 per hour.  Now I know, Anthony is working at practice, and in the off-season, and during time-outs too.  But let’s face it, his value to his employer is only the 60 minutes he is on the clock on Sunday.

If Fasano is making $75,000 per hour, no wonder the kids at the car wash only make $7.50!  Just think, if Fasano didn’t play football, they could divvy up his paycheck!

But darn, business is so complicated.  Fasano was paid one-tenth as much as Chiefs lineman Tamba Hali.  Hali didn’t gain any yards – he is a defensive player.  Still, he got a couple of tackles and returned an interception for a touchdown.  He anchored the defense, who shut down the Jacksonville offense, leading to an easy win.  How do we compare Hali’s worth to Fasano’s?   They both worked an hour.

My fantasy team quarterback, Aaron Rogers, is the highest paid player in the NFL, at $22 million per year (not quite up to Madonna’s pay rate, she earned $125 million).  Using the simple (non-Common Core) math, that’s about $1,375,000 per hour.  Just think, if the Packers owners – who are mostly season-ticket holders – let Aaron go tomorrow, they could hire 184,000 guys for each of their eight home games at $15 per hour to sell hot dogs at Lambeau Field!

But wait a minute . . . if Aaron was not playing, who would be there to buy all those hot dogs?  Maybe it doesn’t matter if the Packers win, or if there is a game at all . . .  People will just go to Lambeau and buy hot dogs from the 184,000 hot dog guys anyway, right?  (hmm, we might need a bigger stadium to hold all of those hot dog guys . . . )

It just seems really unfair that Rogers makes $1.4 million per hour, and the hot dog sellers only earn $7.50.  So, I guess let’s just pay Aaron $15 an hour and then we can hire 184,000 hot dog sellers at $15 an hour and that will even help reduce our high rate of unemployment.  That’s fairness, and unemployment problem solved!

I think?

Tom Balek – Rockin’ On the Right Side

Rockin' On the Right Side

It seems to me
I could live my life
A lot better than I think I am
I guess that’s why they call me
They call me the working man

Workin’ Man – Rush

Here’s a different and really cool version of a classic – by one of the hardest working live performing bands in history – RUSH:  Workin’ Man!