The fight for a $15 per hour minimum wage is the hottest issue among progressive Democrats today. There has been a lot of progress as cities including Seattle and Los Angeles have passed this as their minimum wage, as has the entire state of New York (but only for “fast food” workers, strangely). It would be a big hike from today’s $7.25 per hour, a 106% increase that swamps any previous jump. President Obama, and many Democrats, favor a smaller $12 per hour rate as something of a compromise.
But where did these numbers come from? Why are they important? What effects would a minimum wage rise have on the economy? It’s worth spending some time looking at the postwar history of the minimum wage, from 1947 to 2015, to see where we are today and what it means.
“It was this administration which saved the system of private profit and free enterprise after it had been dragged to the brink of ruin.”
– President Franklin Delano Roosevelt, bragging a little.
It’s a common belief that the right wing in the US is the political alignment of business. They stand for lower taxes, lower regulation, and a generally lighter hand on the economy. That may work out well in good times, but hard times call for more. It’s when things get dark that the true Liberals, capital “L”, stand up and make things happen.
Hillary Clinton, with a good shot at being the FDR we really need, may just have stepped up to do that.
I am an ethnic Pennsylvanian.
That may not make much sense to most people, but it does to me. This statement goes to the core of what ethnicity is and the strange fascination we have with it here in North America.
“All money is a matter of belief.”
– Adam Smith
Gold is taking a solid beating these days. It’s been slipping for a while, but when China revealed that it’s reserves were less than believed it really fell – quickly slipping below $1,100 per ounce when one mysterious trader dumped everything. It’s now more than a third off its 2010 peak and nearly everyone believes that it’s doomed to slip below $1,000 per ounce by the end of the year.
What happened? Isn’t gold the ultimate money in an unstable world? The short answer is no, and this has as much to do with the rise of the US Dollar as anything. But in the end gold is not as much a form of money as it is a barometer of fear – a commodity that appears to be in much shorter supply today than it was just a few years ago.
Is it just me, or are there a lot of protest rallies these days? Certainly the South has lit up with marches and displays of the Rebel Flag now that the Palmetto State has taken it down from the Statehouse. There seems to always be something going on somewhere and some of them are from groups or people pushing something that others may find offensive.
What to do about it? The one thing you can’t do is let ‘em get to you – the moment you are offended and act out in a way you might not otherwise is the moment they gain power over you. The key is to laugh, to deflate the moment and dissolve the tension in a roaring guffaw.
If you’re having trouble figuring out what’s going on in the world you’re in good company. The global economy has been undergoing rapid change for a number of years but global politics has been a bit slow to catch up to it.
A few items that Barataria has covered recently have entered new phases recently – unpredictable, rapidly changing phases that show that things are indeed coming to a head. We’ve consistently called 2017 as “The Year Everything Changes” for a number of reasons, but the lead-up to that year is proving to be especially chaotic. Here are updates to three stories we’ve been all over that should take surprising turns in the next year and a half. You read it here first!
We’ve spent a lot of time talking about workers – where they have been beaten up for the last 40 years and how the last 15 years have if anything been worse. We outlined a way out of the problem as well by taking on the overhead per employee in an effort to make labor cheaper.
But what about capital? While this has been a good time to be rich there hasn’t been a good place to invest money, leaving much of it parked on the sidelines. Part of the prediction for a big change after 2017 is a big turnaround in investment, which has been low lately. Where will that money come from?