Saturday, November 18, 2006

Democrats start wrecking the country

The destruction of the country is officially under way and, of course, the Democrats are in the lead and overjoyed. It all seems innocent enough, a hike in the federal minimum wage, but it serves to prove the colossal lack of understanding of how a complex economy functions. Since all of these Democrat "hero's" have more money than they know what to do with it affects them not. No matter how screwed up things get for us, they will blissfully sail on completely unaware of all the havoc in their wake.

Okay..... So what's the big mistake with raising the minimum wage. After all... We all need a "living wage" right? Wrong! The minimum wage is expressly designed to give the entry level worker a base platform from which to progress. As skills, education and length of employment increase so does the wage the employee earns. For the most part it is intended for first time job holders which, typically, are still in school and still living with mom and dad. To assume that everyone working for the minimum wage is supporting a family, paying rent, buying groceries and all that stuff is far from the mark. Granted there are some in that category as there always will be, however, most of those are here in violation of federal law.

What we have now is a government mandated (thank you Democrats) unbalancing of the economic scales. Economies tend to come into natural balance when left alone to work as intended. Ours was in balance and working fine. But now we have this unnecessary tipping of the scales. On the surface it sounds just fine but ponds are deeper than the surface. Who has to PAY this higher minimum wage? It's damn sure NOT the people who say it has to be paid! Nope it's the average small business owner. (Large corporations rarely have anyone working at the minimum wage) So the first effect is to increase the operating costs the small business owner must bear to stay in business. Secondly that business owner also has to pay greater taxes on this higher salary so it's also a stealth tax hike. More money off the bottom line means less tangible income so the cost of goods and services must increase for him to break even. It's either that or cut staff. But let's just assume that he passes along the higher mandated wage in the form of a price increase. That takes more money out of the pockets of the typical consumer and means, once again, higher taxes. (We DO pay taxes on the things we buy, remember?) The other thing it does is give "BIG LABOR" (the unions) a higher base wage upon which to argue for their members. Thus the union wage goes up and that pass through effect kicks in again to elevate the cost of all union produced goods and services. (Oh... and more taxes paid too) So now let's see what has happened.

Tammy was making minimum wage working for Ed and saving money to buy her first car while living at home with mom and dad. The loving Democrats raise the minimum wage and Tammy is pleased to see this! When she gets her first new check she also sees that more money has been withheld for taxes so the increase isn't quite as much as she thought it would be. Blow number one. Still she continues to save for that new car she dreams about nightly. A year later she thinks she has enough for a down payment and will be making enough for the monthly payments so she and her parents head for the dealership. Tammy has been wanting a sane little economy car and had priced it out last year but is now shocked to see that the car now costs $2500 more than it did a year ago! What she thought was enough for the down payment isn't and they leave dejected. Blow number two. Perhaps the Democrats will be kind and raise the minimum wage again! Only this time perhaps Ed runs the numbers and decides he can't stay in business with all the increased costs so he sells out and retires, leaving Tammy unemployed. See how much the Democrats have helped her? Isn't it great?

The economy does not operate in a vacuum. Tweak something somewhere and it affects the entire system. One can mandate a higher wage but someone has to pay that wage and it's not the law makers. One can freeze a price on a finished good but that doesn't freeze the costs of materials or production. All these things tend to float along until they reach a balance that best serves the most people. Notice I did not say ALL people because that is impossible. It is up to the individual to increase their education and elevate their worth to an employer in order to progress up the wage scale. THAT is the natural order of things, NOT government mandated increases. All this amounts to is pandering to a minority whom the democrats hope to sway into voting for them. It's shrouded in the usual smoke and mirrors and supported by the compliant and bias liberal media. No one is being told the true economic impact of this increase and they never will be. To do that would be to educate and open the eyes of the population and that would make this sort of grandstanding impossible in the future. The Democrats fear an informed and educated electorate. That's why they control public "education".

Monday, November 13, 2006

I'm not surprised

Your search - "How do Republicans get their power back?" - did not match any documents.

This search was done nearly a week after the election that vaulted democrats back into the majority in Washington. As you may recall, after the democrat defeats in the two previous election cycles the media fretted for months.... "What do the Democrats have to do to get their power back?" There wasn't a single night that passed without someone in the media posing that question to other pundants or ranking liberals across the country.

Obviously the mainstream media isn't biased in their reporting. Heck... they have told us that they're not for years now..... and naturally we all believe them. (Yeah, right!) So far all I've heard is how wonderful it is that the democrats are the majority again. Everything will now be rosy and bright.... everyone will love us... kum-by-ya. But they have already warned us that they will be "forced" to take tough action to reverse the dangerous trends of the Bush administration.

Those "Dangerous trends" include the highest stock market in the history of the nation. Over 12,000 and doing fine.... so far. Another "dangerous trend" is the lowest unemployment in the history of the nation.... 4.3%. That's a full point lower than at any time under Clinton. At 5.4% unemployment Clinton was lauded for his efforts and praised for his concern. President Bush has a larger number of potiential workers and a full percentage point better unemployment statistic figure and the press calls his results "A national embarassment." (Obviously an objective and UNbiased opinion) Another dangerous trend is the increasing revenue to the federal government because of the Bush Tax cuts. Yes it's true. Cut peoples taxes and the revenue to the government actually goes up, folks. It's a very mysterious truism that the democrats will never admit to understanding too.

See.... there are two ways to get money into Washington. The Liberal way is to simply tax the hell out of everyone and everything. When Clinton was in office I'm sure you "Seasoned citizens" were thrilled when he increased your taxes right along with everyone else. The conservative way is to lower taxes and let the economy do the rest. When people have more money to spend they often do! When money is spent, taxes are paid and goods or services are purchased. That means an increase in demand. Increased demand means an increase in production to meet that demand or an increase in price. If production goes up then more supplies are ordered and perhaps more workers are employeed. At each step there is a reduced tax to be paid BUT it's being paid more often and by more people. Ditto if only the price of a good or service goes up. The result is obvious. Taxes were cut, the economy stimulated, production increased, employment increased, investments increased and tax paid into the federal government increased. This is the 800 pound gorilla that the democrats refuse to see in the room with them. Tax cuts work every time they are tried.

The other dangerous trend that they will reverse is our success in Iraq. Already we are starting to get "polls" out of Afganistan telling us that only a week after the democrat victory.... why.... things are suddenly much better there! The People now have hope and faith in their elected government. Actually this is the very same hope and joy over the improvements in their lives that they have had since we ran the Taliban out of Dodge..... or Kabul...... but because the liberals now have a clear stake in things... the news gets better! No more doom and gloom. (Again..... clearly UNbiased reporting going on here) Iraq, however, will be different. That is a sticking point for the democrats and they will not be happy until every American life that has been lost there is validated as an official waste. You will not suddenly see stories about how the infrastructure of the country has been rebuilt. (It has but you'll never get that story) You'll not see happy children going to a new school built by US forces and using supplies given to them by those same troops. (This happens every day but you'll never see that story either) At last count over 480 schools have been built by our troops and our valliant media has somehow not been able to locate even one. But let ONE car bomb go off anywhere.... and by God (Wait... they hate Him too) well.... by some magic they will find that flaming hulk and plaster it all over the news that night.

Germany (Yeah.... the nice folks who gave us a couple of World Wars to deal with) wants to put Donald Rumsfeld on trial for war crimes! Well if anyone ought to know a war crime when they see it, it's the Germans. Speaking of when they see it..... I wonder if they ever got to watch those delightful videos of captives having their heads sawed off with dull knives while on their knees with their hands tied behind their backs and outnumbered six to one? I guess there is nothing criminal about treating captives that way, huh? How about the video of people being drug through the streets, tied with chains, tossed off a bridge, soaked with gasoline and set on fire? Yeah..... on second though... no possible crime against humanity there. But the evil Rumsfeld...... the guy trying to bring acts like those to an end...... HE needs to be put on trial. More proof that the liberal left is and always has lived in an alternate reality.

America..... get ready for a feeding frenzy. While the vast majority of democrats that won office did so by running on a conservative agenda the leadership only sees it as a democrat victory. They think that they have a mandate now and they are going to go on a rampage, drunk with power. Under the guise of "oversight" they are going to tie the hands of the President with endless hearings and subpenas. Next, with the help of the media, they will set about destroying everyone who does not get into lockstep with them and their agenda. Remember when the Republicans took control and the democrats said..... "You have to share power with us"? Like fools we actually made that deal and gave them equal footing on committies and panels. DO NOT expect to see any such power sharing now. Republicans care about how they are preceived...... democrats only care about their power and, like spoiled children, they are not about to share anything. From here on out.... it just plain gets ugly, folks.

Now... the good news! After watching them do their best to rip this country to shreads and destroy everything we stand for.... there will be another election. Prehaps by then the Republicans will have learned that THEY lost this time around, NOT conservatism. Perhaps by then the Republicans will have found a leader with the voice and character to hold the party together in a unified front like Reagan did so very well. Right now the brightest light I see on the horizon is Newt Gingrich. I am free (so far) to hope.