Yesterday an economic report showing that 18% of young people looking for a job were unemployed. Notice it says "looking for a job." one in five young people who want a job can not find one. It is not a surprise to me knowing the current situation we have in our nation and the laws that are in place to help that 18 percent as well. You say "What Jess"? What does the laws that are in place to help them got to do with the situation? It have everything to do with it... It is causing it!
Wages is a cost to an employer. The employer pays rent, wages, interest, capital, etc... Wages is by far the highest cost to most employers. In other words the pay that a person gets is a cost to the employer. If vehicles had a new tax put on them that raised the price what would be the consumers reaction? If you said buy fewer vehicles then go to the front of the class your right as Professor Walter Williams would say at George Mason University. The same is true to employers. If the cost of wages goes up then he will buy less and instead save that money or buy more capital (machines) as a substitute for it.
With minimum wages recently rising to well above $7.00/hr the cost to employers is significant. When talking about a company that employs 100,000 employees and 90,000 work at minimum wage, the price to the employer per hour of work has increased over $180,000/hr. That is well over $1,000,000/day if those employees are working 8 hour shifts. It is understandable that those employees would love high wages and we would love them to have them. But why not make it $12.00/hr if $7.50 is good? The fact is the market (employee/employer) is in the best position to decide how much pay is needed to do a job. If the employee wants more he can ask for it the employer can deny or comply. If enough employees believe they are worth more then the employer will have to comply or will risk losing his/her workforce. But when government takes that job then bad decisions can come about without the cost being seen... until the news comes on and reports: "18% unemployment among young people" who typically work at those low wages.
Tuesday, September 29, 2009
Thursday, September 17, 2009
Freedoms???
A comment that was left on an old blog yesterday and a recent news story that has made some recent headlines has awaken a very important topic that I want to point out to people. Everyone always talks about how it is America where we have the freedom to protest, speak, free religion, etc. But I do not understand where the bases of that argument comes from. I believe it is great that in America we allow freedom of religion and speech and press, etc. But there is nothing in the Constitution that gives us those freedoms. Everyone says "Yes there is!! it is called the Bill of Rights!" Where in the Bill of Rights does it say that you have the freedom to do this or that?? You will not find it.
What you will find is that Congress shall make no law restricting... The Constitution limits government and what the FEDERAL government can or cannot do. The Federal government cannot throw you into jail for disagreeing with its government. But that does not mean you can stand up in school and rant about the evils of whatever and think that you have the "right" to do that and should not be stopped. That would be ridiculous to think that you can disrupt anything at anytime. Two boys were asked to leave a Minor League baseball game recently because they refused to stand up during "God Bless America". I don't care what race these boys were or if they were girls or of a different religion. They had the right to do that. They have the right to sit down and not stand up during the pledge of allegiance or anything else. But the Minor League baseball club as a private organization also has the right to force them to leave the stadium and never come back.
When we think of rights we always think of the individual or this "I" idea. But businesses have rights too. They are not granted in the Constitution but endowed by our Creator. CEO's might be overpaid at some industries but that corporation has the right to pay their CEO whatever they want. You, nor I, nor Uncle Sam should be allowed to do anything about it.
So please stop calling into radio shows about how America is great because we have the freedom of expression blah blah blah blah blah.... Tell me something I don't know... America is also great because a private business owner has just as many rights to throw you out of his stadium for disrespecting our country and can pay their employees whatever he or she wants. Then you can tell that employer to shove it where the sun does not shine and not work there if you would like as well. That my friends is what makes America so great.
What you will find is that Congress shall make no law restricting... The Constitution limits government and what the FEDERAL government can or cannot do. The Federal government cannot throw you into jail for disagreeing with its government. But that does not mean you can stand up in school and rant about the evils of whatever and think that you have the "right" to do that and should not be stopped. That would be ridiculous to think that you can disrupt anything at anytime. Two boys were asked to leave a Minor League baseball game recently because they refused to stand up during "God Bless America". I don't care what race these boys were or if they were girls or of a different religion. They had the right to do that. They have the right to sit down and not stand up during the pledge of allegiance or anything else. But the Minor League baseball club as a private organization also has the right to force them to leave the stadium and never come back.
When we think of rights we always think of the individual or this "I" idea. But businesses have rights too. They are not granted in the Constitution but endowed by our Creator. CEO's might be overpaid at some industries but that corporation has the right to pay their CEO whatever they want. You, nor I, nor Uncle Sam should be allowed to do anything about it.
So please stop calling into radio shows about how America is great because we have the freedom of expression blah blah blah blah blah.... Tell me something I don't know... America is also great because a private business owner has just as many rights to throw you out of his stadium for disrespecting our country and can pay their employees whatever he or she wants. Then you can tell that employer to shove it where the sun does not shine and not work there if you would like as well. That my friends is what makes America so great.
Monday, September 14, 2009
Baseball and Economics
A couple weeks ago I was watching the Atlanta Braves and heard a very interesting statement that the Braves Organization had made that.. well struck the economics nerve in my body (running throughout my entire body). Post season is around the corner and the rosters can expand for post-season purposes. The Braves usually call up a couple pitchers and catcher from Triple A and then maybe a utility infielder and possible outfielder. But at this point in the season they had only brought up the first three. The announcers then explained that during these economic times (where the Braves revenue is not what it use to be) that they can not afford to bring up the amount of players they would like. That was not the end of the statement. He said that due to the increase in the minimum major league baseball salary that they could not afford to bring those players up.
That is really sad to me a former baseball player that at one point going into college had aspirations of playing minor league baseball and if all goes well maybe having that rare some say 10% shot at playing major league baseball. 10% because that is the percentage of minor leaguers that ever get to suit up in the "Big Show" or major league team. A couple players missed out on this chance not because of bad economic times but because major league baseball and the players unions etc.. do not know enough about economics that they make rules that do not allow the market to adjust to current economic turmoil. Those players being left off of any major league team due to this would probably be willing to come up for a raise of ZERO. They would take the league minimum that was in effect in the 80's. But they do not have that choice. They have to be paid the league minimum or can not play. That is sad but yet that happens everyday.
The National minimum wage is over 7 dollars. Many businesses do not think that certain employees are worth over 7 dollars so they do not hire those prospective employees. We complain that they can afford it but they care only about profits. That is true but with so many businesses barely staying out of red ink and others losing jobs don'y you think they might have a point. Most people being paid minimum wage come from middle class families and are children that would like to work and maybe afford a car to drive around instead of the family automobile. Yet politicians ruin their chances everyday with careless political laws that the population as a whole likes because they know so little about economics. Our unemployment rate would not be this high if a person who was laid off could be hired for $4.00/hr. You might say "he is worth more". Well let him or her make that decision but telling the employer "thanks for the offer but shove it..." Or the person might say to his wife "I found a temporary job till I can get my old one back when the economy recovers. At least we can afford food without food stamps."
That is really sad to me a former baseball player that at one point going into college had aspirations of playing minor league baseball and if all goes well maybe having that rare some say 10% shot at playing major league baseball. 10% because that is the percentage of minor leaguers that ever get to suit up in the "Big Show" or major league team. A couple players missed out on this chance not because of bad economic times but because major league baseball and the players unions etc.. do not know enough about economics that they make rules that do not allow the market to adjust to current economic turmoil. Those players being left off of any major league team due to this would probably be willing to come up for a raise of ZERO. They would take the league minimum that was in effect in the 80's. But they do not have that choice. They have to be paid the league minimum or can not play. That is sad but yet that happens everyday.
The National minimum wage is over 7 dollars. Many businesses do not think that certain employees are worth over 7 dollars so they do not hire those prospective employees. We complain that they can afford it but they care only about profits. That is true but with so many businesses barely staying out of red ink and others losing jobs don'y you think they might have a point. Most people being paid minimum wage come from middle class families and are children that would like to work and maybe afford a car to drive around instead of the family automobile. Yet politicians ruin their chances everyday with careless political laws that the population as a whole likes because they know so little about economics. Our unemployment rate would not be this high if a person who was laid off could be hired for $4.00/hr. You might say "he is worth more". Well let him or her make that decision but telling the employer "thanks for the offer but shove it..." Or the person might say to his wife "I found a temporary job till I can get my old one back when the economy recovers. At least we can afford food without food stamps."
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