Monthly Archives: May 2015

GOP and Corporate Welfare

The GOP is threatening to eliminate funding for the Export-Import Bank, which provides financing for companies selling US products to foreign buyers.   If you’re not familiar with the workings of this institution, you can learn more at http://en.wikipedia.org/wiki/Export-Import_Bank_of_the_United_States    Why, you may ask are they taking this stance?  Isn’t this good for business and doesn’t the GOP support business, capitalism, entrepreneurs, and the like?   No, the GOP has decided otherwise. http://www.eximexposed.org/news/momentum-grows-to-let-ex-im-expire/

Egads, the world’s turning upside down.  First, Mike Huckabee has become a populist —  http://www.politico.com/story/2015/05/mike-huckabee-2016-wealth-117627.html  .  OK, Joe McCarthy was considered a populist by some.  Ted Cruz is called a populist by some.

But the Republicans coming out against corporate welfare is like the Karl Marx becoming a Born Again Christian.  Haven’t the GOP been in favor of tax breaks for the wealthy, who own most of the corporations, lowering the corporate income tax in the name of double taxation, against raising the minimum wage because it will lower profits and so on?

Maybe it’s only the Libertarian wing of the party that believes that the government shouldn’t spend any money at all so we can cut the tax rate to 0 and private enterprise can run everything, say the wars in Afghanistan and Iraq.  Wait, didn’t the US outsource much of the war to military contractors?  Or did they only outsource the lucrative operations?

This new world is so confusing that  I may have to outsource my thinking to an offshore entity.  That should be OK with the GOP as they seem to be favor cheap labor overseas and it would not require financing from the Export-Import Bank.

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Raising the Minimum Wage Redux

Los Angeles just raised the minimum wage to $15/hour. http://www.nytimes.com/2015/05/20/us/los-angeles-expected-to-raise-minimum-wage-to-15-an-hour.html?_r=0 Havoc will ensue. My previous post — https://bozosphere.wordpress.com/2014/05/01/the-real-effect-of-raising-the-minimum-wage/ — warned what would happen if the minimum wage was raised to $10/hour, but $15/hour?

Remember you heard it here first. Every fish taco stand in LA will go bust as the price of fish tacos will double or triple. Buildings will not get cleaned regularly as the price of cleaning them will double. I foresee empty fish taco containers sitting in trash bins for days. Remember what Ben Franklin said, and I paraphrase: “Office trash cans, like fish tacos, begin to smell in a day or two in LA.” Oops, all the fish taco trucks will be out of business. We need to rethink Ben’s advice in terms of the new economic reality.

People at the lower end of the wage scale will no longer live in abject poverty, but merely kinda, sorta poverty. Will they be able to go out for dinner now? Not likely, as no one will be able to find fish tacos, much less afford them.

As the price of fish tacos rise, economic theory tells us that the cost of substitute goods will also rise. I foresee celery, which many eat instead of fish tacos, will be unaffordable shortly after the wage hikes.

How about the gardeners? Who will be able to afford to have their lawns cut when the minimum wage doubles? Wait, there’s no water available for watering lawns in Los Angeles anymore, so that’s not a problem.

Woof, I feel better already.