Attention Washington wonks, hack and enablers: The way to raise the minimum wage and create jobs is very simple. It doesn’t take an act of Congress or an executive order; it doesn’t take a bi-partisan commission; and it’s wholly, 100 percent, ultra-constitutional.
I know the idea that it’s constitutional probably worries you, but hang on and hear me out.The way to raise the minimum wage is to get out of the way and let the economy create jobs.
Bing! Both problems solved.
The economy is very good at creating jobs and wages. The private economy has been creating jobs and wages since the profit motive was introduced to the colonies.
And here’s the awful truth about you: all of you guys have proven to suck at creating jobs
But even worse, looming over the economy, like a menacing storm—a storm created by the great gobs of hot air that always seem to follow him-- is your Dear Leader who wants us to adopt another of his can’t-miss, sure-fire 5-Year Plans.
The new plan is so great that the Obama administration won’t even tell us how much it will cost. I think people call that “priceless.”
I call it “jobless.”
Whatever else it will produce, it won’t produce jobs or increase wages.
All previous Obama “jobs” plans have produced so far is increasing misery and a wholly artificial crisis in capitalism.
The quantitative easing (QE) program is indictment enough of his job prowess, if people care to look at it.
While producing records amount of money stock through QE, the velocity of that money has plummeted under Obama. A whole bunch of money does no one any good if you can’t spend it.
And this is a political phenomenon not economic. Despite what commentators, liberals and Ezra Klein tell you, money isn’t moving robustly within the financial sector. The broadest look at monetary velocity, MZM, which includes financial assets, also has been plummeting for years.* In fairness it started under Bush, but accelerated under Obama.
Above: The Velocity of Money (M2) is Plunging.
So, the idea of speculation run amuck with jobs stuck in neutral because traders are making money is just a far left fantasy, not a reality.