Saturday, September 07, 2019
The 2 Scams That The Rich (& Media) Run On The Poor
There are two major scams that the rich and corporations engage in to keep themselves on top, and the poor under their boot. One is the "trickle-down" economic theory, which says if you give more to the rich it will benefit everyone in the country. The second is the claim that raising the minimum wage will cost jobs in the economy. Neither is true, but the rich have convinced many Americans that they are, and they have been helped by the mainstream media (who either have been conned themselves, or are just parroting the corporate line).
Here's part of what venture capitalist Nick Hanauer has to say about these scams. He is one of the few rich people willing to tell you the truth.
“Raise Wages, Kill Jobs? Seven Decades of Historical Data Finds No Correlation Between Minimum Wage Increases and Employment Levels.”
The results were clear: Of the nearly two dozen federal minimum wage hikes since 1938, total year-over-year employment actually 68 percent of the time. In those industries most affected by the minimum wage, employment increases were even more common: Fully 73 percent of the time in the retail sector, and 82 percent in low-wage leisure and hospitality. “[T]hese basic economic indicators show no correlation between federal minimum-wage increases and lower employment levels,” the authors write. In fact, if anything, the data suggest that increases in the federal minimum appeared to encourage job growth and hiring. Perhaps even more striking, of the only eight times total or industry-specific employment declined following a minimum wage increase, the U.S. economy was either already in recession (five times), technically just emerging from recession (twice), or about to head into a recession (once). Clearly, this handful of employment downturns would be better explained by the normal business cycle than by the minimum wage. “As those results mirror the findings of decades of more sophisticated academic research,” the authors conclude, “they provide simple confirmation that opponents’ perennial predictions of job losses are rooted in ideology, not evidence.” . . .
The claim that if wages go up, jobs go down isn’t a description of reality at all. Nor, in my opinion, does it reflect legitimate economics. . It is a scam, a con job, a threat—more precisely, it is an intimidation tactic as a legitimate economic theory. I believe this is where being a businessperson and not an economist leads to greater clarity. Very few economists have ever run a business or negotiated wages. But the first rule in the businessman’s handbook on wage negotiation and suppression is always, , when they ask for a raise, threaten their jobs. It works like a charm, and has since the invention of capitalism. You see, the claim if wages go up, employment goes down isn’t made because it is true. It’s made because if people like me can get people like you to believe it is true, I’m going to get richer, and you are going to get poorer. The lower your wages are the higher my profits will be. It’s that simple. . . .