Here’s another good article from Doug French at Laissez Faire. He does a pretty good job of explaining (in simple terms) how the free market works in the job market. He could do a better job of explaining how government interference through regulations always screws things up, but overall he does OK.
I am simply amazed at the numbers of people in America (and around the world) who don’t have even this most basic level of understanding about economics. I guess I shouldn’t be surprised at Americans, considering that most of them are stuck in government schools.
For anyone who doesn’t know the history of government schools in America, the purpose of those schools is NOT to educate the children, but to turn them into ‘cogs in the wheel’. Mould them into compliant workers to fill the factory jobs that we used to have.
Now that we have destroyed those jobs through over-regulation, we have a nation full of people with just enough education to fill those kinds of jobs and none of those jobs to give them.
Along with a number of other subjects, economics was not one of the ones thought important enough to spend any resources on for people intended to spend their entire lives working for GM. 🙁
Our ‘public’ (government) school system has not changed with the times. We are still training people to work in factories when we need to be educating them so they can be entrepreneurs!
In the meantime, because we have not educated them to understand the basics of economics (or much else), we have the situation going on right now (again) where people are clamoring for (another) rise in the minimum wage.
Because they don’t understand basic economics, they think that will improve their standard of living. It won’t. 🙁
Read the article again…
There are so many levels of ignorance and wishful thinking going on in this country, it’s sad really. Yes, it’s true, the poor and middle classes here are not doing as well as the upper class. But the reasons for that are mostly to do with the government and NOT wage rates!
We are all going into debt. More and more and more! THAT is a huge impediment to a high standard of living (no matter what your income). The money supply continues to increase, causing inflation, which steals more of our income every day. Our government keeps on spending money like there’s no tomorrow and raising taxes in order to try to keep that up.
THOSE are the things that are hurting our standards of living. I could go on, but I hope you get the point I’m trying to make. Raising the minimum wage won’t really solve anybody’s problems, it will only delay the inevitable and make it worse in the long run.
I read a post, (“Dead Broke”), this morning by Joseph Rathjen. He writes the “Political and Social Chaos Blog”. It ties right into what I’ve been talking/thinking about. Economic illiteracy. Elites vs the rest of us. Amount of income a person has vs standard of living (personal happiness level).
The fact that ANYONE could believe the Clintons were “Dead Broke” (the way WE mean it when WE say it) says it all. I’m not sure how many people really believe it, or if it’s all just the usual media propaganda, but it seems at least a few people fell for it.
You ought to read Rathjens post. He makes some good points. I would take it even further. People like the Clintons belong to the class of the ‘global elites’. They are not JUST rich. They are rich and POWERFUL.
There is a group of people who are very rich and powerful and THOSE people do NOT care one whit for the rest of us!
THAT is why it is SO important for the rest of us to be educated! We need to know enough about how the world really works so that we don’t fall for their BS! We need to know enough to fight back when someone proposes a plan that might look good on the surface but will eventually work against OUR interests.
The latest minimum wage proposals are just one more example of this. It’s sad. Most people still don’t understand how things work. 🙁