Posts Tagged ‘taxes’

Lies?!?!

Tuesday, August 15th, 2006

Recently the question was asked, “Why does the Globe-Republican (Amarillo Globe News) allow letter writers to blatantly lie?“  I would like to ask the newspaper the same question in regards to Jayne Farris’ recently published letter.

Ms. Farris makes many outlandish claims that can be construed as lies, willful ignorance, brain washing, or just plain mental deficiency.  Of these claims one of the most outlandish is this: “Democrats believe there should be fair and equitable taxation. Republicans believe that only the dwindling middle class should be taxed and the rich should be exempt.”

I wonder what fair and equitable taxation would be? Would that mean the current regressive tax system we have where the top 50% of wage earners pay approximately 96% of all individual income taxes, or does Ms. Farris want a flat tax for all wage earners?  I am curious where she would set the bar. 4% would be just as fair as 100% just as long as everyone is taxed that way.

Another gross misstatement by Ms Farris is this: “Democrats believe workers should be paid for their production. Republicans believe all workers should remain in bondage and CEOs should have golden parachutes.”

I would like to see where she draws her conclusions.  I have never heard anyone on the right say that people should “remain in bondage” in any form or fashion.  I would also like to know what her problem with “Golden Parachutes” are.  Wouldn’t it be nice to receive a $400 million retirement package?  Golden Parachutes and high executive salaries are what makes junior executives and lower employees productive.  CEO’s high earnings and large benefits packages are what people set their standards and goals by.  I learned this in my economics class this summer.  I am open to hear other opinions on the subject.

Somewhat out of sequence Farris makes the claim, “Democrats believe everyone should have access to health care. Republicans believe only the wealthy should have access to health care.”

This statement comes despite the fact that anyone can walk into an emergency room and receive more than adequate health care, no matter their income.  Everyone has access to healthcare and I am unaware of any legislation or talking points from any politician that says anyone but the rich should have access to healthcare.

Continuing, Farris writes, “Democrats believe there should be an energy policy. Republicans believe that what is good for the Bush family and Dick Cheney is good for the country.”

Now I could be missing something here, but voting to keep ANWR closed is not much of an energy policy, not to mention these lines leave “non sequitur” lingering in my mind.  I bet the mentioning of Bush and Cheney has something to do with Haliburton or “War for oil” rhetoric.  Come to think of it, Bush and Cheney, if the war really is for oil, have done far more to ensure our energy independence than any democrat has.  Maybe she is referring to Ted Kennedy’s Nantucket Sound energy policy.

So really, why does the Amarillo Globe News allow letter writers to blatantly lie?”

amarillo, Bush, Cheney, democrats, globe, healthcare, lies, news, republicans, rich, taxes

Democrats and House Republicans are Racist

Tuesday, August 1st, 2006

Yes, that headline is just an attention getter. Neither party actually intends to be racist or discriminatory but raising the minimum wage has the unintended concequence of causing primarily women and blacks to lose their jobs.

How you ask? Simple neoclassical economics of course. Raising the minimum wage increases the price for labor. Increasing the price for labor will decrease the current amount of labor employed and also increase the demand for labor. Basically, people get fired because the labor is too expensive and more people are seeking jobs now that the new minimum wage is at an attractive level.

Minimum wage polices are discriminatory because, generally, women and blacks are last hired first fired. Now before you label me as a racist, I gained this knowledge at WTAMU. As with anything I learn I do question it, but this premise seems fair given current societal norms. If anyone has any facts otherwise please post them.

The left will argue that the supply and demand curves are inelastic and a change in price will have little effect on the market. Basically this means only a few people will be fired and the greater good will have been served.

This notion is foolish. First of all, the job markets are not the same across the nation. The supply curve could be inelastic in some areas while very elastic in others and elasticity can even vary from company to company. Given this, minimum wage increases wil have little or no effects in places like San Francisco where the minimum wage is far above what anyone in the federal government wants to increase it to and other places with already low unemployment will suffer greatly depending on the amount of the increase.

Other problems with the minimum wage increases would be that it encourages outsourcing, offshoring, and replacing workers with machines. Also, raising the min wage will still have minimum wage earners beloe poverty. Consider the proposed 7.25 an hour would only gross 14.5k a year. This is a good argument for a living wage, but elasticity wouldn’t matter and mass unemployment would occur.

Unfortunately with situations like these we will only have to wait for time to tell to see who is right and who is wrong. I would prefer to be cautious, but with pandering rwpublicans on the house it looks like we are going to choke this stuff down and see what happens. If unemployment increases after the law is enacted, without pther controls in place, then that is proof min wage increases are a bad idea.

I am fully open to the idea that I could eat my words. America has done just fine with a minimum wage and it very well could continue to do so.

The worst part about these situations is that both party’s last interests are the people. Both sides are simply pandering for votes and are ignoring long term concequnces.

If anyone is wondering about pandering claims, note that many unions have their hourly wage tied in with the minimum wage. This means that if the min wage increases so does the union’s. Unions have considerable political power as well, primarily for democrats, which is why they are the biggest proponents for a min wage increase. What seems odd to me is why Republicans would want to pander to the unions when, chances are, there is no possible way the unions will endorse the GOP. I bet their motives have something to do with the tax cuts for corporations mixed in with the bill.

My solution is to not increase the minimum wage and let the local governments enforce their own minimum wage laws. Local governments can better manage their job markets and account for whatever elasticity that market might have as opposed to the federal minimum wage throwing everything out of whack.

minimum wage, econimics, taxes