The New York Times story head:”LA Lifts Minimum Wage To $15 hr” is untrue. Alas, the Times and print journalism generally, is not what it was. It is true that the Los Angeles City Council voted to do that in a preliminary, non-binding action that changes nothing … but spooks many. It is an indication of intention to follow Seattle, San Francisco and perhaps other Lefty-governed places in an Quixotic battle against economics in order to curry political favors.
Print journalism, once the conscience of professionalism for the fifth estate, is degenerate, become a capialistic propagandist. We know that. It was the inevitable economic fallout from the Internet. From the post-Christian evolution of Western capitalism, too.
On the economic stage, the erstwhile leading U.S. has aged out of its role, new younger and sexier challengers have edged it out. U.S. labor cost too much; the work went to cheaper places, followed by the (U.S.) capital; America has been competing against itself, by financing plants elsewhere. Ironic, very human. And it leaves the U.S. in decline.
The Federal government works to lower the U.S. incomes to world standards so that America con compete again, at the cost of impoverishing its workers, at least by prior standards. Of course, it cannot say that; workers vote. So it imports cheaper workers as fast as it can.
But the declining incomes annoy the voters; they demand action from the very government that, unnoticed, is doing it to them. The less confident politicians respond with increased minimum wages; they are “doing something.”
Those politicians know that an increased minimum wage buys off their voters, as those publicly-educated worthies are unaware that the higher wages are paid from their own wages in the form of higher prices. Ignorance is political bliss.
Until two things occur: One, taxes rise to pay the higher wages to government workers. And two, prices rise to cover the increased labor costs. It is a classic Red Queen’s race; they must run like hell to stay in the same place.
But they, unknowing, vote the same helpful politicians back into office.