Saturday, March 1, 2014

"Too Good For Minimum Wage"

This video is from Stephanie Shepherd, who runs the blog, Time of Calamity over there on the blog roll on your right.

I know all the economic arguments. In point of fact, I proficienced Introduction to Macro and Introduction to Macro, which the dean of the econ department said was nearly impossible.

I also know that theory is one thing and reality is another.

Supply and demand? The government has interfered with it so much it barely exists.

I have found the autistic geeks who are horrified by an increase in the minimum wage don't understand what corporations really are - government-created entities (who have the legal status of persons) whose purpose is to exploit taxpayers and transfer wealth from everyone to themselves.

I hold corporations such as Wal-Mart and McDonalds in contempt. I know what they are doing, and have for years.

This article was written by Barry Ritholtz, is titled, "How McDonald's and Wal-Mart Became Welfare Queens," and is from Bloomberg News.


"It seems that welfare queens are back in the news these days. The old stereotype was an inner-city unwed mother -- that’s dog-whistle-speak for black -- having multiple babies to get ever bigger welfare checks (throw in a new Cadillac and the myth is complete). Regardless, welfare reform of the 1990s ended that narrative.

"No, the new welfare queens are even bigger, richer and less deserving of taxpayer support. The two biggest welfare queens in America today are Wal-Mart and McDonald's.

"This issue has become more known as we learn just how far some companies have gone in putting their employees on public assistance. According to one study, American fast food workers receive more than $7 billion dollars in public assistance. As it turns out, McDonald's has a “McResource” line that helps employees and their families enroll in various state and local assistance programs. It exploded into the public when a recording of the McResource line advocated that full-time employees sign up for food stamps and welfare.

"Wal-Mart, the nation’s largest private sector employer, is also the biggest consumer of taxpayer supported aid. According to Florida Congressman Alan Grayson, in many states, Wal-Mart employees are the largest group of Medicaid recipients. They are also the single biggest group of food stamp recipients. Wal-mart’s 'associates' are paid so little, according to Grayson, that they receive $1,000 on average in public assistance. These amount to massive taxpayer subsidies for private companies.

"Why are profitable, dividend-paying firms receiving taxpayer subsidies? The short answer is, because they can. The longer answer is more complex and nuanced.

"Both McDonald's and Wal-Mart are engaging in perfectly legal behavior. The system was set up long ago in ways that failed to imagine companies doing this. Yes, they are taking advantage of the taxpayer, but they are also operating within the law.

"Which means it is time to change those outdated rules.

"The simplest solution is to raise the minimum wage. If full-time employees are living below the poverty level -- especially those with children -- its no surprise they are going to need public assistance. Raising the minimum wage over a period of time will eliminate much of this corporate welfare. The costs will be slightly higher prices at fast food restaurants and low end retailers.

"The next proposal is more severe: Charge back the amount of public assistance any employee receives to the company he or she works for. It would be separate from tax filings, and simply be a direct penalty charged to the firm. I doubt there is much political will for this proposal, but I can see some people -- especially on the Left -- supporting it.

"The most radical idea is bit of pure fantasy: Guarantee every person in America a minimum salary. That is a proposal under discussion today in Switzerland. Its hard to even imagine such a concept gaining traction in the U.S. outside of the Great Depression era.

"My politics are pretty middle-of-the-road, and I find myself offended by subsidizing profitable companies this way. As a taxpayer, there are much better things I would like to see my monies go towards. Some rule changes are needed to end this wasteful spending.

"We should get corporate welfare queens off of the public teat. Regardless of your politics, it is an issue that politicians on both the Left and the Right can agree upon."

6 comments:

RobertW said...

Yes, in the rush to excoriate welfare whores we often forget that the biggest ones are corporations. Since the Democrats are completely in allegiance with huge corporations - despite what the Obamatons think (as are the Republican leadership) I don't see this changing anytime soon. The charge back idea would be great though.

Brulet said...

Contrary to the myths of society's managers and their shills, not only would a guaranteed minimum income be much cheaper if all public assistance programs were binned in favor of it, and not only would it achieve a huge reduction in government meddling, bureaucracy, and administration, but also it would likely result in an increase in autonomy, enterprise, and initiative, not a decrease in them. It wouldn't make lazy people into something they're not, but it would help the rest of us be more daring and creative. It would be a valuable usufruct to add to all the others we're already receiving by living in the modern world (for example, does free parking at Walmart or Costco harm anything?). It should be given without regard to other income, no questions asked, and if you blow it, then you are SOL. It will never happen because there are too many control freaks out tbere.

Glen Filthie said...

It is an old and politically incorrect truism:

"You can take the boy out of the nigger, but you can't take the nigger out of the boy..."

Previous to the civil war these people would have been slaves. They would have worked on plantations and in other low skill job markets. The underclass will always be there, and there will always be some mechanism to exploit them. Without such mechanisms we end up with unstable black communities that will eventually need to be taken and pacified with force.

Say what you want, being poor in America is like being wealthy in the third world. Our occutards, progs, and liberals may bitch and whine...but without Walmart and McDonald's...what, exactly, would you have these people do? When they get into political power they turn cultural and economic power houses into derelicts: Look at Detroit, Baltimore and New Orleans. Look at what Obama has done to America in 8 years.

I am quite happy with the marginal underclass working for McDonalds and flipping burgers - which is where people like the Obamas should be. In better times men like Obama were butlers, they shined shoes and they knew there place and everyone was better off for it.

Like it or not the racists are right about a few things. Third world people make third world nations and communities.

Stephanie said...

If you really want to feel the rage you should look up "Crystal Bridges", it is art museum in Arkansas Ole Alice Walton was building during the time of the bailouts. I believe it was finished in 2011.

http://en.wikipedia.org/wiki/Crystal_Bridges_Museum_of_American_Art

Bob Wallace said...

Well, now, that is just amazing. Reminds me of the pyramids built on the backs of slaves.

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