Wednesday, July 31, 2013

It's About the Mid-Term Elections, Stupid

Everything the Democrats have done before and after the election and are now doing is about the mid-term elections and the media is their weapon - the most powerful weapon of the 21st century. They never get out of campaign mode. Can you imagine if the Republicans lost the House? America would never recover from the massive social changes that would be rammed down our throats. This is not about the massive reforms and changes that must be made in order for America and the capitalism experiment to survive. It's all about politics.

I agree that roads and bridges can create jobs. So, what needs to be cut to pay for it all? The Republicans' stance (again, horribly articulated and miserably marketed) is the right plan: spend for programs that work and eliminate others that do not. Pull back on programs that incentivize people to stay at home and live off the fat of the land, and cut the heck out of the budget far more than the sequestration and drop all taxes to ZERO - 0 corporate, 0 personal and 0 capital gains. [more...]

Bill Glynn is a voice for conservative principles and publishes "On the Money" each week. He appears regularly on radio and TV talk shows across the country sharing his unique views about the economy and our nation. Check out Billy G.'s new site.

The Truth about the Minimum Wage

Every few months you see a movie, a speech, or a picket about so-called "just wages" and a call to elevate the minimum wage.  We call out "greedy employers" for exploitation with the assumption that the minimum wage is never high enough. The assumption is that businesses are exploiting the entry level employees.  As an example, the recent picketers are calling on McDonald's to raise the minimum wage up to $15.00. How can the market determine a "fair wage" when it's not a living wage?

Entry level jobs are not intended to be payrolls for a career to provide for a family.  They are designed as entry level, "get some job experience" training for folks who are new to the workforce. Often, high school and college students take jobs at minimum wage to start their life and make some extra money.  As a parent of two high school students, I'd love them to work hourly for $3.00-$5.00 during the summer to learn the value of money, work, and be productive. After all, many of us have teens who are playing too much X-box who could be much more productive.

When the government comes in and requires businesses to set an arbitrary minimum wage, several unintended consequences occur.  When businesses are required to raise the cost of their labor, they cannot necessarily raise the cost of the product.  Can McDonald's charge $3.00 more per hamburger if they are paying $3.00 more per employee? Usually, they can't.  Why?  Businesses are required to set their price based on the "customers' point of view."   If the price and quality of your product (in this case, a hamburger) is not perfectly balanced at the customers' desire for price and quality, they will go somewhere else.  That will result in cutting jobs and requiring longer working hours. [more...]

Saving America's economy is not a conservative-versus-liberal issue; it's an issue that affects us all. National leaders have failed to pull the country out of its financial tailspin because both major parties are working from the wrong text. In my new book, Godonomics: How to Save Our Country - and Protect Your Wallet - Through Biblical Principles of Finance, I trace capitalism back to its Biblical source.

Wednesday, July 10, 2013

How New York State Can Grow Its Economy

Everyone wants a New York that is economically stronger.  The state government has a major hand to play and it's in everyone's interest to help get the correct public policy interventions in place.  Deep in New York’s history, Albany largely saw itself as improving the state's economic chances with very large public works projects – building the canal, the Thruway, the Olympic venue at Lake Placid, and the state university system. 

The cardinal economic problem New York faces is demographic.  Of course it has depopulating cities, is losing industry, has seriously underperforming schools, and a decaying tax base.  But each of these problems ultimately relates to the dynamics of who is living in New York.  In the last decade nearly two million people left New York, the majority moving to states with lower taxes, less regulation and greater economic opportunity.  How do we know?  Not only do copious anecdotal accounts tell us this; IRS data say the out-migrants went to states without income taxes, or with lower taxes, or, in all cases, with growing economies. [more...]