At the start of 2007 the Democrats will take control of both sides of congress. Democrats are socialists at the core - their solution for everything is government, and more of it. This month a self-identified socialist became the first to be elected to the Senate! One item they will surely change is the minimum wage.
Democrats like the concept of minimum wage - it's so global - with 90% of the countries of the world dictating its own minimum wage laws. Democrats love global laws - but that's another post for another time.
Minimum wage law first came around by that great socialist Democrat, President F.D. Roosevelt. It was snuck into some legislation called the National Industrial Recovery Act. Now what you might not know is the US Supreme Court declared that act unconstitutional - abolishing the minimum wage. In 1938 it snuck back into other legislation.
Later, another socialist Democrat ruled the white house. Bill Clinton gave states the power to set their own minimum wage above the federal level. Now, business's had to contend with not only the federal government controlling their business but state governments as well.
Now, the Democrats will undoubtedly use the power of the federal government to again raise the minimum wage. Democrats think government knows more about compensation that businesses - and they don't.
Imagine Johnny was thinking about going back to school to learn a trade that would employ him beyond the minimum wage he's been making. Now he hears he's going to be getting a raise, thanks to Democrats. He changes his mind - "like why should I bother I'm going to be getting more money soon!" - and stays in his minimum wage job. I don't know about you but I didn't have a minimum wage job as a career goal - and I made an effort to avoid it!
Expect to see some happy minimum wage earners - at least until they realize that their increase will be eaten up with higher prices because all of the business that employ minimum wage workers are going to be raising their prices to pay for the socialist government mandated wages.
Expect to see higher unemployment because many companies will terminate some of their workers to pay the higher wages mandated by the socialist government.
Expect to see higher prices because of the empowered socialist government.
Expect to see higher inflation because of the empowered socialist government.
This is an issue that I will be saying "I told you so".
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