Monday, June 21, 2004

Kerry is for the little guy, huh?

So, John Kerry believes that George Bush's policies sent jobs overseas. Well, ol' John must be looking to double the number of jobs sent over seas, as well as to destroy the small business, mom & pop shop in America. His proposal to increase the minimum wage is a terrible idea, unless you are a 16 year old looking to work at McDonald's.

By increasing the minimum wage, Kerry assures that many businesses that were teetering on the edge of outsourcing will now have to do so. Additionally, he is going to force a lot of mom & pop business out of business. This is a terrible idea in a recovering economy. If Kerry wants wages to increase, the best approach is to remove barriers to investment and regulation, thereby spurring economic growth. Look at the late 1990's. Places of business that typically pay the minimum wage increased the wages they offered because the job market was tight, and they were making enough money to do so. In addition, an increase in the minimum wage now will effectively wipe out the gains made by those in the $7.50-$9.00 who worked hard to earn their raises. Those individuals will also be hurt, as the pool available for raises will be generally reduced for them, as new $7.00 an hour minimum wagers are added, and employees in the $5.15-$6.99 range get bumped.

Typical Democratic initiative. It discounts hard work, and assumes money grows on trees.