Monday, October 12, 2009

Democrats: Destroying The Black Community

While I often rant about Jewish loyalty to the Democratic party - even at a time where it's leader is a clear anti-Semite - I really should question black's loyalties to their party as well. After all, look at the cities and states that have full-fledged, lifetime Democratic leadership - from Detroit to Newark - and you'll find places where the lot of the black man has not improved one whit.

So I thought that this little nugget about the federally-mandated rise in the minimum wage - forced through and trumpeted by Democrats nationwide - was especially relevant:

Congress raised the minimum wage again in July, a direct slam at low-skilled and young workers. The black teen jobless rate has since climbed to 50.4% from 39.2% in two months. Congress is also moving ahead with a mountain of new mandates, from mandatory paid leave to the House's health-care payroll surtax of 5.4%. All of these policy changes give pause to employers as they contemplate the cost of new hires....

That's two months, folks. How will the African-American community survive through four years of what will be a Democratic-inspired economic holocaust visited on their population? Are they willing to keep voting loyally for the Democrats on the promise that "once we drive you into poverty, we'll redistribute some income from whatever rich are still left so you can survive on a day to day basis"?

The Democrats have kept blacks on their political plantation for a quarter-century by fear; by telling them that the other guys hate them, and are hood-wearing, noose-carrying racists by night who would surely starve them if they just had a little more power...and then they turn around, of course, and continue to starve the black man by engaging in economic illiteracy such as the minimum wage fiasco. Not to mention such nonsense as teaching "ebonics", urging softer treatment of the criminals who prey on the black community, and the nonstop reminder that they are just victims, victims, victims....

So the Jews and blacks apparently will go down together, ironically, their allegiance to political liberalism being held as more important than their survival. Unless they wake up from their long slumber, and give a try to the other guy...

And while we're on the topic of minimum wage, two points that I'd like to reiterate - first, on how Congress has just wreaked wanton destruction on America's young workers:

Minimum wage jobs are entry level positions. They are the first rung on young workers career ladder, where they learn essential career skills such as self-discipline, accepting direction from a boss, and interacting productively with customers and co-workers. Minimum wage positions provide on-the-job training in career skills. As minimum wage workers gain these skills they become more productive and earn raises – two-thirds of minimum wage workers earn a raise within a year.

Cutting off the bottom rung of this career ladder means that teenage workers delay acquiring these skills. This hurts their earnings and employment prospects for up to a decade later. If Congress hopes to change teenage workers employment prospects it should stop pricing them out of their jobs.

And here's a economic model that small business owners are facing more and more every day; for those members of Congress that think small businesses grow their money on trees, and that it is ripe fruit for the picking(or at least regulating), try this economic conundrum on for size:

Small business - profits $100K/year
4 employees, minimum wage $5-/hr (I'm rounding a bit), 10 hours a day
New government mandated wage $7-/hr.
Extra cost $80-/day, $480/wk (assuming six days), $24,960-year
Profit declines to $75K/yr (incidentally, government revenues decline as a result of lower taxable income, but that's only a side disaster)

Does the business owner:

-take his loss, maybe sell his home, pull a kid out of college, put off buying new equipment/car (that'll help the economy, Nancy!), or reduce his standard of living?
-raise his prices and hope he doesn't lose customers, thus further harming his business?


-Does he fire one of his workers, recovering $22K of $25K lost?

And this is all before health care taxes and energy taxes come into will the black community survive this assault from the Democrats?

Or am I racist just for asking?

1 comment:

Drew458 said...

Actually, to cover the necessary 240 hours per week, the business owner would have 6 minimum wage employees working 40 hours each. Otherwise the overtime pay would be crippling. Given a $2/hr bump in minimum wage, this is the same $480 salary increase you calculated.

While your concept is sound, the situation is more complex than you realize. A small business needs to cover the hours, period, regardless of the type of business that it is. So if the owner were to fire one of the employees (given 6 not 4 so as to eliminate overtime pay) this would only cover 200 hours not 240. Not acceptable.

Fire 1 and give the others 1.6 hrs OT covers the 240 hours, but also raises the payroll delta to $620/wk. Even worse! There is no combination of workers that will increase the payroll less than $480 if the 240 hours must be covered. It can't be done, even if you have 60 employees each working 1 4 hour shift per week.

The only way to keep the payroll the same would be to cut the business hours, which would result in less gross income for the business, thus both generating less tax revenue and making payroll a larger percentage of income.

Bottom line: the business is going to take a hit. Period.