Obama minimum wage edict leads to job losses at military bases

April 29, 2014
"But at least we won the election! Obama!!"

“But at least we won the election! Obama!!”

Democrats and their Leftist allies are desperate to find any issue to run on in the coming elections, other than Obamacare. One of their tactics has been to try to gin up class warfare based on raising the minimum wage. They argue that it will help the poor, raise living standards, and, of course, be more “fair.” Republicans, conservatives, and libertarians, on the other hand, contend that increasing the cost of labor will only mean higher prices to the consumer, fewer jobs for the marginally skilled, and be particularly harmful to minorities. This video is a good example of how minimum wage laws kill jobs.

Needless to say, I come down on the side of those opposed to the Democrats’ demands for a minimum wage increase. But honest, intelligent people (1) can reasonably disagree.  To help solve this disagreement, a real-world, real-time example would be nice. Fortunately (or unfortunately, as the case may be), we have one. As Byron York reports in The Washington Examiner, President Obama’s edict raising the minimum wage for federal contract employees on military bases is leading to the closure of fast-food restaurants on those bases, thus costing jobs:

Obama’s order does not take effect until January 1, 2015. But there are signs it is already having an effect — and it is not what the president and his party said it would be.

In late March, the publication Military Times reported that three McDonald’s fast-food restaurants, plus one other lesser-known food outlet, will soon close at Navy bases, while other national-name chains have “asked to be released from their Army and Air Force Exchange Service contracts to operate fast-food restaurants at two other installations.”

Military Times quoted sources saying the closures are related to the coming mandatory wage increases, with one source saying they are “the tip of the iceberg.”

And increasing the minimum wage isn’t the only way Washington is increasing the cost of labor:

The administration is making it very expensive to do business on military bases, and not just because of the minimum wage. Under federal contracting law, some businesses operating on military installations must also pay their workers something called a health and welfare payment, which last year was $2.56 an hour but which the administration has now raised to $3.81 an hour.

In the past, fast-food employers did not have to pay the health and welfare payment, but last fall the Obama Labor Department ruled that they must. So add $3.81 per hour, per employee to the employers’ cost. And then add Obama’s $2.85 an hour increase in the minimum wage. Together, employers are looking at paying $6.66 (2) more per hour, per employee. That’s a back-breaking burden. (Just for good measure, the administration also demanded such employers provide paid holidays and vacation time.)

As I wrote above, the natural business response to this is to either raise prices for the consumer, or cut back on employee hours — or cut jobs altogether. Well, guess what? York reports that military contracts do not allow the businesses to raise their prices above what’s common in the outside community. So, even though Obama is raising wages well above the prevailing standard, employers are forbidden to recoup their costs. What does that leave?

Closing the business altogether.

If there’s no chance for profit, why stay open? When you add up the numbers for all four major services, we’re looking at potentially 10,000 jobs going up in smoke. Not to mention the ripple effect in the outside communities.

Here we have a current, ongoing example of how raising the minimum wage harms people by killing jobs. (3) How then, is the Democratic proposal a good idea?

I’m waiting. smiley well I'm waiting

 

Footnote:
(1) Thus excluding Democratic pols and activists.
(2) How fitting.
(3) Yes, military contract law made the situation worse by forbidding compensatory price increases. So, increasing costs for the consumer –including minimum wage earners!– is a good thing? And what’s to say the Obama administration, if they got their way on the minimum wage, wouldn’t try to extend price controls when the inevitable complaints arose? We are talking dyed-in-the-wool statists, after all. One bad policy, raising the minimum wage, inevitably leads to more bad policy. Just look at the history to-date of Obamacare.

(Crossposted at Sister Toldjah)


And these are the people who are teaching our children, shaping our future.

December 6, 2012

My blog-buddy ST featured this in her Hot Headlines section yesterday, but I thought it deserved front-page treatment. This video, narrated by wealthy Leftist actor Ed Asner, teaches nothing but class warfare and shows the rich urinating on the poor:

rich-fairytale-video

(Note: Since it first came to public notice yesterday, the video has been made private. I guess the California Teachers Union didn’t want us to know what they really think of those who disagree with them.)

EAG News, which first reported the video, describes it this way:

A new video produced by the California Federation of Teachers – which could be playing in your child’s classroom as we speak – drums up the typical class warfare images we’ve come to expect from Big Labor.

“Tax the Rich: An Animated Fairy Tale,” written by CFT staffer Fred Glass (2011 compensation: $139,800) and narrated by proud leftist actor (and 1 percenter) Ed Asner, advocates for higher taxes on the “rich” as the cure for government’s insatiable thirst for spending.

The video claims the rich got rich through tax cuts and tax loopholes and even tax evasion.

But when the 99 percent fought back, the “rich” apparently urinated on the “poor,” at least according to the video. What a classy way to frame your argument for children, Big Labor.

EAG News chronicles the factual errors in the video, but PJM’s Bryan Preston cuts to the heart of the matter:

The video never deals with the fact that the top one percent of wage earners in the United States pay about 33% of all the income taxes, and the top five percent pay more than half of all the taxes. The poor reasoning and dishonesty in the video are made worse by the fact that it was created, evidently, by teachers. By the people who are educating your children and mine.

And California voters, via Prop 32, just voted to give these yahoos more money, in the form of dues take from teachers’ salaries, which are paid for by our taxes. Too bad this didn’t come out before the election.

Meanwhile, this shows how hard the battle to reform the culture will be, when our teacher training programs are turning out “educators” who could have worked as propagandists for the Comintern.

(Crossposted at Sister Toldjah)


Obama’s new budget is a bad joke

February 13, 2012

Just as we expected it would be.

Phillip A Klein takes a look at it and compares it to Obama’s promises on entering office. Here’s his takeway:

Obama spent most of last year lecturing the country on how he supported a so-called “balanced approach” on deficit reduction. Time and again, he said he was ready to make real changes to Medicare, Medicaid and Social Security if only Republicans were willing to budge on the revenue side. He repeated this in a lot of speeches and insisted that behind the scenes he was really, really, ready to cut a deal with the GOP during the debt limit talks. But he never presented a tangible plan that could be scored by the CBO and evaluated next to Rep. Paul Ryan’s plan to reform entitlements and put the nation on a sustainable fiscal course. He had his chance with this budget. Instead, Obama decided to forgo tough choices so he could attack Republicans during an election year.

Bear that in mind: we have a president far more interested in his own electoral fate than the fate of the nation.

Meanwhile, James Pethokoukis accuses Obama of doubling-down on class warfare in this budget:

Here’s pretty much all you need to know about Obamanomics: In 2011, the Obama White House suggested raising the top dividend tax rate to 20 percent from 15 percent. Keeping the dividend rate at a relatively low level, the White House said, “reduces the tax bias against equity investment and promotes a more efficient allocation of capital.” Makes sense, right? Basic economics.

Yet in his brand-new, 2013 budget, Obama calls for taxing dividends as ordinary income, essentially raising the top rate all the way to 39.6 percent. And then when you tack on the 3.8 percentage point Obamacare surtax — and an additional 1.2 percentage point itemized deduction phase-out for high-end taxpayers — the rate rises to 44.6 percent.

So apparently Obama is now in favor of a greater bias against equity investment (and in favor of debt) and promoting less efficient allocation of capital. And this helps create an economy “built to last” in some way?

Of course, it doesn’t. Not at all. More like “built to fail.” Then again, Obama’s new budget isn’t about economic growth or cutting debt or creating a “built to last” economy. The Obama campaign is built around the idea of reducing inequality. So in his budget, Obama takes the populist whip to the wealthy and to business…

And to people who depend on dividends for their retirement, whether directly or through pension funds. Including the middle class.

Why does Barack Obama hate retired people?

(Crossposted at Sister Toldjah)


The Democratic Party: the party of class and race war?

August 31, 2011

I want you to look at two videos, both from Naked Emperor News (1), that illustrate the intellectual bankruptcy and political desperation of what passes for leadership in the modern Democratic Party. Not the average, working- and middle-class rank and file member who’s been a lifetime registered Democrat out of habit, but the career leftist pols who’ve risen to the top thanks to a pernicious combination of seniority and safe districts.

First we have Nancy Pelosi (whose San Francisco idol was avowed Stalinist Harry Bridges) offering an unusual motive on the part of those who oppose economic redistribution and advocate lower taxes: they’re the filthy rich who want immortality!

(via Pirate’s Cove)

Okay, okay. So, she’s talking about “immortality” through getting buildings named after them. It’s still bunkum. Not only are the most vociferous advocates of federal restraint and tax reform not among the filthy rich (2), but, in my experience, most of the money that buys names on buildings comes from rich liberal donors. And what about all the wealthy liberals just screaming for higher taxes, such as Warren Buffet or Stephen King? Are they conspiring for immortality at the expense of the poor and downtrodden, too, Nancy? Do all wealthy people look alike to you?

Oh, and while we’re at it, how goes your own search for life eternal? I mean, you are worth $35 million, after all…

Even more bizarre, however, is her attack on those opposed to raising the minimum wage: it’s all a conspiracy meant to make people dependent on private credit companies and lenders!! Seriously, Nancy? Are you actually arguing that, if we only kept making the minimum wage higher, people wouldn’t need to use credit cards or take out a loan to buy a car? Just how high a “minimum wage” do you envision, O Former Speaker, and what level of taxation do you think would be needed to support it?

Just how much of your $35 million are you willing to give up to save the counter-person at McDonald’s from the evils of the private credit market?

Ignore the fact that a rising minimum wage destroys jobs, this is utterly hypocritical class warfare and pathetic demagoguery that demonizes people who are successful or who are simply concerned about the self-destructive fiscal path this country is on.

But wait! It gets worse!

Earlier this summer, we heard Democratic National Committee Chairwoman (3) Debbie Wasserman-Schultz (D-FL) claim that Republicans wanted to take America back to the era of Jim Crow. Debbie had to walk that back under fire, but the Congressional Black Caucus has decided that the Tea Party is the new Klan and to play the race card for all it’s worth. Just listen:

Ed Morrissey concentrates on Congressman Andre Carson’s (D-IN) claim that Republicans and Tea-Partiers would be happy to see Blacks lynched. That’s outrageous enough as it is — Carson shouldn’t just apologize and resign, he should be expelled from the House. But listen to the rest: claim after claim that Americans advocating limited government and fiscal sanity are motivated by racism (4), are the enemy, and, as the execrable Maxine Waters puts it, can go “straight to Hell.” This is class warfare blended with good, old-fashioned racism — only the racism is coming from the CBC.

(Be sure to click through to Ed’s post for a second video, this time with Congressman Allen West responding to Rep. Carson and making it quite clear that he’s reconsidering his membership in the CBC. I’m also sorry to see featured in the video my former Assemblywoman and former Speaker of the CA State Assembly, Rep. Karen Bass. She should be ashamed.)

Anyway, there you have it. With a dismal record in office and with the increasing rejection of progressive ideology by a majority of the nation, all the Democratic Party “leadership” has left to offer is class envy, ethnic vitriol, and social division.

Now there’s Hope and Change.

UPDATE: Heh. The Washington Examiner contacted Congressman Carson’s DC office to ask if he would identify which members of Congress want to see him lynched. So far, no response.

Footnotes:
(1) How does NEN get these videos? They must have a spy network to rival the CIA…
(2) Last I checked, the Tea Party counted very few millionaires and billionaires in its ranks.
(3) Yeah, I’m un-PC. I shall report to my nearest reeducation center right after lunch.
(4) I’d like to see them pull this crap on Allen West, Tim Scott, Marco Rubio, Susana Martinez, Nikki Haley, and other minority conservatives who’ve risen to political prominence. Or does that call for the related “Uncle Tom card?”

(Crossposted at Sister Toldjah)


Quote of the Day: a question for Democrats

August 13, 2011

Hmmm…

When will we get done with the fool idea that the way to make a party grow is to scare away everybody who has an extra dollar in his pocket?  God forbid that the Democratic Party should become a mere gathering of the unsuccessful! –John W. Davis, Democratic presidential nominee (1924)

Some things don’t seem to have changed.

via Steven Hayward


Bill Whittle: Democrats and the politics of envy

August 7, 2011

Bill Whittle returns to PJTV in a revival of his show “Afterburner.” And he doesn’t come back quietly, sneaking through the backdoor. Nope, Bill kicks in the front door, storms in, and confronts the viewer with the truth about poverty in America: that it’s not nearly as bad as we’re told day after day, whether by comparison to the rest of the world, or to the well-off here at home.

So why are we told these fables? Because, Bill argues, the Democrats and the Left (but I repeat myself) need these myths to stoke the fires of envy and resentment in order to use that anger in their quest for power. In the process, they have created large numbers of people who are dependent creatures of government and who feel entitled to other people’s money — not as charity or help, but as a right. Those who feed that envy are “poor-mongers,” the real exploiters of the poor.

Welcome back, Bill:

By the way, the Heritage Foundation study that forms the basis for this episode is very interesting reading.

(Crossposted at Sister Toldjah)


How to live on $10 billion a day

April 1, 2011

A couple of weeks ago, the infamous Iowahawk penned an essay about how Americans should stop whining about our $3.7 trillion nation budget and showed how we could live on just $10 billion a day. Like everything the Sage of Ottumwa writes, it was hilarious satire.

Not to be left out of the fun, Bill Whittle has provided us this video version. Enjoy:

Happy Friday!

(Crossposted at Sister Toldjah)


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