US Households ‘ net worth has typically declined by one third, according to the New York Times. Our Presidet sees this as: “Recovery” and takes credit for it. Our ‘opposition’ Republicans have objected to the President’s policies but have nevertheless funded them in a succession of spending bills since our Prez took office. Yeah! And Wage Growth is nowhere. The President’s definition of ‘recovery’ must differ quite a bit from ours.
Our caring Prez wants now to raise the minimum wage and of course, taxes. The minimum wage will help the ‘middle class’ and the taxes will help the poor and the middle both. And they will be paid by the ‘rich.’ And, you can keep your doctor …
Let’s analyze: First, raising taxes; taking money from the economy when it has already failed to employ as many folk as it once did seems an odd means of ‘helping’ it. And if one stops to think, increasing the minimum wage also takes more money from the economy, the effect is the same as raising taxes, in that regard. While said money goes to a different place, it will have to be spent buying stuff at higher prices resulting from higher labor costs, right? We’re running in economic circles here. The only genuine beneficiaries will be the politicians, who will be able to spend more of other people’s money. While claiming to be ‘helping’ folks.
This is why high schools no longer produce grads ready to operate a real farm or business as once they did. No high school grad in those old days would buy such obviously silly economics. Back then, they didn’t graduate without mastering the material, either.
In New Mexico just now, the recently more Republican legislature faces a bill favored by the Republican Governor; it would force New Mexico schools to hold back third graders who have failed to learn to read at third grade level. Good luck with that; the state legislature is still controlled by Democrats whose majorities on schools boards around the state resulted in ‘social promotion’ in the first place. In real life, you compete successfully or die; it’s only in government-controlled places like schools or government contracts that reality fails. At of course, great cost. One must wonder too, the ultimate cost of such issues being ‘fixed’ in piecemeal fashion by a state legislature?
New Mexico is the second poorest state. Folks wonder why, as they go to vote for more Democrats. Back when the ranchers and miners had political control, they also wondered why they were poor. Seems to us, the reasons were the same; just the beneficiaries differed.
But we’re mulling the entire country here, not just New Mexico. And it used to be generally, rich. With a very comfortable middle class; a freakish development in history, which is much more used to a small wealthy class and a large, poor one. That seems the goal, whether or not intended, of an administration intent upon ‘helping’ the middle by impoverishing the rich. If those “rich” don’t invest capital, the economy doesn’t grow.
We suppose that most would not justify some middle class folk going to rob the towns’s wealthy; we wonder why government doing it for them is suddenly acceptable? America became wealthy via economic wealth creation in the private sector, not by wealth transfer through government. There is an ancient phrase to describe that: It is called, “robbing Peter to pay Paul.” An illusion, and a nefarious one at that.
Nevertheless, here we are. In, for New Mexico, the second poorest state. We suppose that the susceptibility in that place may be a result of its Spanish founding; examination of modern Spain’s condition supports the idea. But we’re guessing. It may just be human nature, as we see the whole country following the path. And Europe as well.
It all seems rather hopeless, with only TweedleDem or TweedleGOP to choose from. And inevitable, until the voters start to pay attention.