Tuesday, October 08, 2013

No One Said Michigan Democrats Have To Be Economically Literate, And They're Not

Democrat Representative Rashida Tlaib is more illiterate than most.

In Michigan we have a rescission economy at best, businesses aren't hiring, business costs are forecast to sharply rise due to the Obamacare mandate due to requirements to make business pay for health insurance or be fined, and what is Tlaib's solution?

The Detroit Free Press: Rashida Tlaib: Help fuel Michigan's turnaround by raising minimum wage

Yes, she actually thinks that businesses, when faced with higher costs for low-level employees will run out and go on a hiring spree because the employees will now cost a lot more.
A stronger minimum wage will help restore the consumer spending that powers our economy and that local businesses need in order to grow.
Really?  Increasing a business' costs will encourage them to hire more employees and help them grow? Brilliant!

The sad thing is, a lot of Michiganders believe this and are as economically illiterate as she is:
In a poll of Michigan residents conducted by Google Consumers Survey, commissioned by Oakland county Commissioner David Woodward and Progress Michigan, more than 70% of Michiganders would support an increase to $9 an hour. This represents a clear mandate.
No, it represents economic ignorance, not a mandate. The minimum wage is not a middle class wage, and was never meant to be such, but she seems to think it should be raised until the lowest-level job guarantees a middle class standard of living:
Unless we can pay our workers more, our most vulnerable citizens will continue to suffer the most. Increasing the minimum wage has the potential to create good-paying jobs that build a strong middle class, attract and retain workers, and alleviate poverty.
Democrat magical thinking is rather beautiful isn't it?

Step 1. Raise the minimum wage.
Step 2.   . . . . .
Step 3. Hooray! We've built a strong middle class!

 Of course, Ms. Tlaib is free to pay her employees whatever wages she wishes, regardless of the minimum wage.  But wait, she's not running a business, nor has she ever ran a busienss. She's a Democrat representative and she isn't paying her staff with her money, nor does she have to face the reality of the economic effect of her ideological meanderings.

Even more interestingly, Ms. Tlaib's other Democrat policies are if anything depressing wages in Michigan and ensuring the poor never rise to become middle class.  She's all in favor of illegal immigrants coming in and depressing wages.

Rep Tlaib, you can't have an increasing low-level labor supply creating an excess of low-level workers at the same time that you try to raise the prices for hiring these same workers, further reducing demand to hire these workers, and then expect an economic revival of the middle class to result.


Scott said...

Aaron, you just aren't seeing the next step. Now we have the government mandating a minimum wage, and employers are not hiring people. Well, we'll just fix that with new government mandates on minimum staffing levels.

There - problem solved. The magic continues.

Aaron said...


Don't give them any ideas, although I'm sure they've thought of that by now...