“No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.”--President Franklin Delano Roosevelt, 1933,Statement on National Industrial Recovery Act
Urban progressive activists preach that American corporations make a great deal of profit and can afford to pay there employees any salary that they desire. At a crescendo, the social justice provocateurs thunderously raise their tones to exclaim that the American "worker" is entitled to the wealth of nations not by merit but by just cause of living. Their sermons proclaim that corporations morally owe it to the American "worker" to pay them a "living wage". The laws of economics are frail in the individual grasps of mortal men when compared to the social hold of the collective in negotiating the spoils of business. It is the job of government and labor unions to assure the livelihood and the living of those oppressed by the evil American business owner, sitting in his dark room, counting the gold coins amassed upon his desk, locking out the innocent single mothers and "returning" citizens, leaving them to their unsettled activities in the blistering ghettos of the inner city. The Urban progressives settle their beleaguered masses, quelling their vibrant chants with a simple hush. The noble finish is upon their lips. We must solve poverty. It is for this reason that we have been ordained of men. Many will say that we were wrong when we said raising the minimum wage to $7 would end poverty and provide a livable wage. Many would say that we were slightly amiss when we said raising the minimum wage to $10 would end poverty and provide a livable wage. However, today, we stand before you and say that raising the minimum wage to $20 would end poverty and provide a livable wage. We, the American politician and the labor unions, stand before you and say that we must slay the goose that we may all have golden eggs. The choir of voracious and beleaguered entry-level workers say, "Amen".
A think tank backed by the hospitality industry released a survey last month warning that 1 in 5 businesses would consider leaving the District for Virginia.Bowser said she was attuned to those concerns but said that as long as the city remained “hip” and “safe,” “people are going to want to live and work in the District of Columbia.”
“All but the hopelessly reactionary will agree that to conserve our primary resources of man power, government must have some control over maximum hours, minimum wages, the evil of child labor and the exploitation of unorganized labor.”--President Franklin Delano Roosevelt, 1937,Message to Congress upon introduction of the Fair Labor Standards Act
Economics is a social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. While many will focus on the entities--individuals, governments, firms and nations, the greatest focus should be on the action--make choices. In a free market, individuals have the will to reward others by merit based on their abilities, improvements and performances. The individual, using scarce resources and limited profits, invests in their employees based upon what is affordable. In the competitive marketplace of the world economy, the individual business owner realizes that scant resources are expensive and that such costs must be paid by someone. That someone is either the business itself or the consumer or buyer. If the buyer says no to increased costs then, the business suffers. When it suffers, costs are cut and prices are reduced. Fewer profits, fewer funds for wages. In free markets, the individual business owner understands his risk is buoyed by costs to his operations including labor. The employee understands that he must negotiate for himself the best deal possible to secure his portion of the operations' profits, which are limited by overall operations costs, for his livelihood. This is his great risk. Neither the business owner or the employee are guaranteed success or profits. They each risk their livelihood based on what the market is willing to pay.
"Raising the minimum wage will help address the issues of residents being pushed out of the District due to rising costs of living and income inequality..."
Asking them to explain how a robust economy has no effect on the East of the River neighborhoods that possess large enclaves of potential unemployed "workers" merits only a humbling silence among the enlightened political economist elites.
So why only $15 per hour? I mean if $15 per hour makes us all equal, why not $25? Council member David Grosso added an amendment requiring the government to study a minimum income system to help the poorest residents. "Raising the minimum wage is a good thing, but is $15 enough? Or should the number be $35, or $50 an hour?" As an agent, I do not know why so many subscribe to the government to negotiate wages. By merit, I believe an agent of mine would negotiate top dollar because he's motivated to get top dollar for his services. I would dare him to come back to me and say I got you the minimum dollar offer. However, millions of Democrat-Socialist workers subscribe such contractual due process daily.
A household with two adults and two children in Washington, D.C., for example, would need to budget more than $106,000 a year to make ends meet, researchers found. That makes it the most expensive area in the country for a family that size. How much does it cost to live in DC, you may ask. Let's take a look at some economic scenarios:
- Basic lunchtime menu (including a drink) in the business district costs $14 while a Combo meal in fast food restaurant (Big Mac Meal or similar) costs $7.
- Monthly rent for 900 Sqft furnished accommodation in an EXPENSIVE area is $2,586 while the Monthly rent 900 Sqft furnished accommodation in a NORMAL area is $2,022.
- Monthly ticket for public transport is $175 while a Taxi trip on a business day, 5 miles, is $19.
- Dinner for two at an Italian restaurant in the expat area including appetizers, main course, wine and dessert is $87 while Basic dinner out for two in neighborhood club is $49.
The Democrat-Socialist Bowser got the DC "worker" $15 per hour. Based on the just living standard, they need $50.96 per hour to make ends meet. Thanks for the tip Muriel! Stick to negotiating deals for wealthy capitalists like Ted Leonsis. Wealthy Ted got nearly 100% of his arena paid for by the DC Government! In the words of Charles Barkley, the Democrat-Socialists did a "terrible, just terrible" job negotiating a minimum wage for the poor. If the poor have learned anything, it is that they will doing a better job negotiating on their own in the free market .
Who is the winner? It's the government. Yeaaaaaaaaah for more tax revenue from fewer workers and small businesses. Yes, fewer workers. Businesses generally restrain their payroll costs from 15% to 30% of gross profits. Most from the Wharton School of Business to the School of Hard Knocks will tell you that if payroll goes beyond 26% generally you won't be in business very long. Most believe that businesses--small, medium or large-- make extreme profits. The general public believes 36%. The truth is that is way too much. Not to make but to think that they make. Most corporations have small profit margins. Healthcare services net profit is 4.7%. Food retail is 4.4%. Consumer Apparel is 6.7% Yeah, the economics of facts always beats the economics of feelings. Except when people subscribe to government intervention.