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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Monday, September 28, 2009

Let them eat cake.......

In typical despotic style, the US government has commanded every business in the nation to pay its workers a certain pay level at minimum no matter what they are worth. Although this level that now stands at $7.25 seems paltry to some, what happens to a worker if one is really only generates $5.00 an hour in wealth? Well, what happens is that that particular economic activity never happens. In some situations, the demand for the final product exists and therefore the production of this good takes place overseas and then the good is imported to the US. Or, if the end product or service is still in demand, then prices rise to the end the consumer. And also, under what power does the US Congress have the right to interfere in the pricing of labor? Commerce clause? What if a business operates completely inside one state, does the Federal government have the right to intervene in this business?

One of the insidious results of America's completely misguided intervention into private employment decisions is that it has a large effect on teenage and young workers...
The unemployment rate for young Americans has exploded to 52.2 percent -- a post-World War II high, according to the Labor Dept. -- meaning millions of Americans are staring at the likelihood that their lifetime earning potential will be diminished and, combined with the predicted slow economic recovery, their transition into productive members of society could be put on hold for an extended period of time.
From here.

The overlooked in this grandiose scheme are the first time seekers of employment. Like a student that goes to school and learns the basics of reading, writing and arithmetic where the student does not get paid for learning, sometimes the hand-holding and the on-the-job training that is necessary for a young person to gain experience in their first jobs can cost the employer more than they gain from the employment.

As a result, young people are not employed and the 52.2% unemployment rate of these these young workers is a testament that they are being priced out of the market. But even more insidious is that the US central government meddles in this by setting their employment price clearly above their value. Furthermore, these people do not have the liberty to lower their price to potential employers since the level is set by law. Why shouldn't a young person be able to offer their service at a lower rate since their benefit is not only the monetary compensation gained from this employment but also gaining skills that they need that gets their working life started. Why shouldn't a young person be able to offer their services to an employer at say $2.00 an hour until they prove their value to that employer and then after which the employer can pay what they are really worth. More employers will take a chance at hiring a young person if their price is lower. Additionally, it can have an impact where new businesses are started since the price of labor will be lower.

But, some people are outside of the law or write laws that benefit themselves. They want you to do as they say not as they do.....

Let them eat cake.


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