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Alan Greenspan on gold…in 2014

Posted by Jeff (ILoveCapitalism) at 4:31 pm - September 30, 2014.
Filed under: Debt Crisis,Economy

It’s well-known that the former Federal Reserve chair, Alan Greenspan (KBE, Knight Commander of the British Empire), was a gold-standard advocate in the 1960s. And thereafter muffled his principles, as he rose to become the unofficial king of the world’s banking establishment.

In Greenspan’s multi-decade tenure at the Fed (and, going against his former sound-money principles), he gave us the “bubble economy” we know and love. Including the dot-com bubble of the late 90s and the housing bubble of the mid-Naughties. His intellectual heirs, Ben Bernanke and Janet Yellen, have given us the market bubbles of today.

So his short, new article in Foreign Affairs caught my eye. It promises to explain “Why Beijing is Buying [Gold].” Of course it doesn’t explain any such thing. Its point wanders. Why Greenspan even wrote it is a mystery.

And yet, he did write it. In other words, Alan Greenspan, KBE, felt the need to publicly raise the topic of China buying gold, in Foreign Affairs magazine. And check out his side remarks:

If China were to convert a relatively modest part of its $4 trillion foreign exchange reserves into gold, the country’s currency could take on unexpected strength in today’s international financial system…For the rest of the world, gold prices would certainly rise…

For more than two millennia, gold has had virtually unquestioned acceptance as payment…Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations…a guarantee that in crisis conditions has not always matched the universal acceptability of gold.

If the dollar or any other fiat currency were universally acceptable at all times, central banks would see no need to hold any gold. The fact that they do indicates that such currencies are not a universal substitute…

In essence, the world’s former top banker has just publicly hinted that:

  • Gold is money (at least to the world’s central banks).
  • China will start buying it.
  • China will become the world’s new financial powerhouse.

How Bad Is the Economy in the Blue States? This bad.

Posted by V the K at 12:50 pm - September 30, 2014.
Filed under: Economy

Texas Governor Rick Perry can boast about luring the headquarters of Toyota, Occidental Petroleum, and some sixty other companies from the overtaxed, over-regulated, business hell hole of California to his state. And he can brag about. Apple, HP, Visa, and eBay all expanding their operations in the Lone Star State at the expense of California and other deep blue states.

Meanwhile, the governor of the corrupt, one-party, Democrat cesspool of Illinois is reduced to bragging about… the opening of a single Olive Garden restaurant.

“Illinois’ restaurant industry is thriving and establishments like Olive Garden are helping drive our economic comeback,” Governor Quinn said. “While we have more work to do, more people are working today than at any time in the past six years. This is good news for people across the state and it is thanks in part to companies like Olive Garden who are employing hardworking residents and growing our workforce.”

The new Chicago restaurant brings 170 new jobs to the community.

Under Pat Quinn, the state of Illinois massively increased personal and corporate income taxes (while carving out a few exemptions to keep businesses like Caterpillar from fleeing). Republicans stopped the Democrats from extending the tax increase, but businesses know it’s on the post-election agenda. The state’s pension system in shambles. Forbes ranks Illinois 38th out of 50 states for business.  Others rank it a lot lower.

You’re not spending enough!

Posted by Jeff (ILoveCapitalism) at 9:11 pm - September 29, 2014.
Filed under: Debt Crisis,Depression 2.0,Economy,Liberal Lies

In saner times of yore, people who spent their entire income were put down as spendthrifts, and people who didn’t were praised as savers.

It was well understood that savers financed the world’s productive capital and so helped to create the Industrial Revolution. The IR used capital to boost the productivity of labor, so that human beings could enjoy good stuff like higher living standards, longer lives, middle-class education and retirement, an end to infant mortality and child labor, etc.

In today’s crazy times, language is turned on its head (to keep the craziness going as long as possible). Savers are now called hoarders, people who hoard money.

Earlier this month, the Federal Reserve Bank of St. Louis published an analysis of our moribund economy, called What Does Money Velocity Tell Us about Low Inflation in the U.S.? The key sentences:

…the unprecedented monetary base increase driven by the Fed’s large money injections through its large-scale asset purchase programs [ed: Quantitative Easing, or "QE"] has failed to cause at least a one-for-one proportional increase in nominal GDP… [ed: though it has certainly boosted the financial markets for "the one percent"]

During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession…the sharp decline in velocity…has offset the sharp increase in money supply, leading to the almost no change in nominal GDP…

The answer lies in the private sector’s dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase…has slowed down the velocity of money…

(Emphasis added.) Get it? If only people would spend all their money, again and again – rather than hoarding it because they need it for bills, or worry about the future – THEN the economy would grow. THEN the Dear Obama-Yellen’s plans would work.

In reality, the economy is restrained by excessive debt and even more, by lack of freedom. As government gets bigger and consumes (or takes over) more of the economy, the private sector shrinks. As government plans, regulates and intervenes more heavily, the private sector gets sicker, lazier and more fearful. Just as Big Government creates more problems than it ever solves, the opposite – Freedom – ultimately solves more problems than it creates.

But that’s not what Establishment economists, politicians, bureaucrats and media want people to know. They’d rather blame, in this example, people who “hoard”. Look for the scapegoating of so-called hoarders to become a drumbeat, as the economy continues to languish into the 2016 election.

If we hit a new financial crisis, they’ll also be sure to scapegoat mysterious “speculators”, as President Nixon did in the 1971 crisis. But they’ll never put the blame where it belongs: on 8+ decades of money-printing and Big Government.

Aw, Jeez, They’re at it Again

Posted by V the K at 1:11 pm - September 2, 2014.
Filed under: Economy

A group of people who could be easily replaced by machines, accompanied by paid labor union goons, are planning a nationwide strike on Thursday in an effort to unionize fast food employees and demand $15.00 an hour for the hard work of asking if a customer would like a combo meal.

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Progressivism in action. You want more money? Forget about developing more valuable skills or a better work ethic. Just throw a tantrum until some politician forces other people to pay you more.

It’s a Democrat Thing, You Wouldn’t Understand

Posted by V the K at 9:22 pm - August 27, 2014.
Filed under: Economy

So, the left is completely freaking out over Burger King re-imagining itself as a Canadian company. Among the Democrats freaking out because their anti-business policies are driving US companies to other countries is Democrat congressional candidate Sean Eldridge. Eldridge is running for Congress from New York state after building a personal fortune by starting a successful business that created thousands of jobs marrying a dude who was friends with Mark Zuckerberg at Harvard and cashed in when Facebook went public.

Echoing Democratic talking points on tax policy, Eldridge called Burger King’s attempts to reduce its tax burden “unpatriotic.”

The company announced this week that it will acquire Canadian fast food chain Tim Horton’s and shift its corporate headquarters north of the border. The move, commonly known as a tax inversion, will allow Burger King to pay Canadian corporate tax rates, which are substantially lower than American ones.

Eldridge did not say whether investors in the deal are also unpatriotic. They include his husband, Facebook co-founder Chris Hughes, who owns between $50,000 and $100,000 in Tim Horton’s stock, according to Eldridge’s financial disclosure forms.

Eldridge rejected the suggestion that America’s corporate tax rate, the highest in the developed world, is pushing companies abroad.

“We have the highest tax rate in the world, thirty-five percent, but the average is companies pay in the teens,” he told the Daily Mail, a newspaper in Hudson, N.Y. “Some pay almost nothing.”

So, hold on a minute:

1. BK is “unpatriotic” for setting up shop in Canada in order to pay lower taxes than they would in the USA.

2. The US tax code doesn’t need to be reformed, because companies like BK really don’t pay higher taxes  in the USA.

Come on, which is it?

It Has Come to This

Posted by V the K at 11:55 am - August 26, 2014.
Filed under: Economy

Burger King is buying out Canada’s Tim Horton chain (I am told their coffee is most good) and moving its headquarters to Canada in order to escape the USA’s highest in the industrialized world corporate tax rate of 35%. (Canada’s corporate tax rate is 15%)

Obama economic advisor Warren Buffett is financing the deal .

The Obama Regime and their hard-left base are cursing corporations for acting on their best economic interests. Rather than reform the American tax code to make the USA more business friendly, they actually want to make it even more hostile to business in the policymaking equivalent of “the beatings will continue until morale improves.”

Leftists claim it doesn’t matter that the USA has the highest corporate tax rate in the industrialized world because most companies don’t pay it.  That’s actually a bug, not a feature. The reason many companies avoid that rate is because they have bribed Congress into carving out exemptions for them; which gives big businesses tax advantages that discourage competition and make life harder for smaller, entrpreneurial companies that lack the political connections to have the tax code (and immigration laws, for that matter) written to their liking.

Yeah, And I *Choose* Not to Be a Professional Hockey Player

Posted by V the K at 8:08 pm - July 20, 2014.
Filed under: Economy,Ideas & Trends

Lefty Investment writer wants you to know, he could be rich, he just doesn’t want to.

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Do economists actually like war? Yes.

Posted by Jeff (ILoveCapitalism) at 12:27 pm - June 17, 2014.
Filed under: Academia,Economy,Liberalism Run Amok

A key fallacy of mainstream economics today is its belief that all economic activity is good activity. Quality doesn’t matter. We must “stimulate” the economy to get those GDP numbers up, and all will be better. It doesn’t matter if we rack up endless debt, only to pay people to dig holes and re-fill them or to re-build cities destroyed in war.

It sounds like I’m exaggerating, doesn’t it? Many economists would scoff that I am. Except I’m not.

For example, Paul Krugman and other neo-Keynesian economists claim often (and wrongly) that the destroy-and-spend of World War II is what pulled the world out of the Great Depression. Krugman has called for housing bubbles and fake alien invasions on more than one occasion, and only half-jokingly at best.

Or we have the recent movement to count illegal activities (drugs and prostitutes) as part of GDP. It got another little boost when Spain signed on. (By counting illegal drugs and prostitution as part of its GDP, Spain can reduce its official debt-to-GDP ratio, making its finances appear sounder than they are.)

I believe that all of this speaks to both the deep Statism and the deep nihilism that have infected modern culture. The implication – that economists never state outright because they know it would sound too crazy, but the implication remains – “Gee, if only the government would spend on destruction, the economy would boom. If only people would buy more meaningless sex and drugs, the financial system would be sound.” As if those are productive activities.

Again, put like that, it sounds like I’m drawing a caricature; but I’m not. A recent example is from the New York Times, a serious opinion pieced titled The Lack of Major Wars May Be Hurting Economic Growth. It begins: (more…)

The Myth of a High Tech Worker Shortage

Posted by V the K at 8:25 pm - June 5, 2014.
Filed under: Economy,Illegal Immigration

The US Chamber of Commerce and a bunch of big business want to import millions of cheap foreign workers (a.k.a. “Comprehensive Immigration Reform”) to replace American workers. One of their claims is that there aren’t enough American high-tech workers to meet demand. This false premise can be destroyed by asking one simple Economics 101 Question.

Rutgers University public policy professor Hal Salzman said that current wages in the high-tech and information technology industries do not indicate that there is any shortage because wages are not going up. In fact, wages are the same as they were when Bill Clinton was president, so Salzman asked, “If there is in fact a shortage, why don’t wages go up?

Inflation: what is it?

Posted by Jeff (ILoveCapitalism) at 1:40 pm - June 5, 2014.
Filed under: Economy,Liberal Lies

I have an “inflation update” post coming. Before that one, let’s review what inflation is.

Most people think it’s price increases. People have been trained to think that way (which I’ll address in a bit). But it’s not. Inflation is depreciation of the money, which may then result in price increases.

In olden times, money was physical metal. For example, the UK’s “pound sterling” was once an actual 12 ounces of 92.5% silver metal.

Over the centuries, they made it a paper note, and then they kept diluting the value of the note, until today it’s worth a tiny fraction of a pound of silver. A troy pound of sterling silver today would be worth about £126 (or about $210). In other words, they shaved off 125/126 of the pound’s value, over the centuries. That’s inflation.

Likewise, the U.S. dollar. It was once defined as about 1/20 ounce of gold. To say it another way, gold was fixed at $20.67/ounce until 1933, meaning that the U.S. Treasury would really give you near-an-ounce of gold, if you demanded it in exchange for a $20 paper note. But today, gold is around $1250/ounce. Today, (1) the dollar is NOT a fixed amount of gold, and (2) if you were to exchange it, on today’s date you would find that a dollar gets you about 1/1250 ounce of gold, or about 1/62 as much as before. That’s inflation.

When the money is depreciated like that, it takes more units to represent another value – a loaf of bread, a gallon of gas, a car you want to buy, medical services, etc. So, inflation tends to mean higher prices. People call the higher prices, inflation. Except it’s not; it’s only a symptom of inflation.

Think of it this way. When you have a flu, your temperature may be 102 degrees. That’s a symptom, not a disease. The flu virus is your disease. Likewise, when the government (or central bank) depreciates the money, prices may be seen at higher levels. That’s a symptom, not a disease. The depreciation is the disease.

Why do governments depreciate the money? Because it’s a hidden tax. It means the government can spend more, without having to openly raise taxes. The government is always the number one beneficiary of inflation; always the real reason it’s done.

The government gets the most benefit if people don’t understand inflation, or think clearly about it. If people understood inflation, then everybody would raise the prices of their labor, goods and services, the moment they saw the government (or central bank) depreciating the money. So the government’s added spending would not go as far. The government would still benefit from being able to repay its debts in depreciated money. But overall, the government would get that much less bang for its inflated/depreciated buck.

Thus, the government – and its acolytes in media, Wall Street and academia – have a vested interest in people NOT understanding inflation. And so they spew a lot of crap about it. They muddy the waters with false doctrines – including the one I’m correcting (that inflation-is-about-the-price-increases-and-we-have-not-had-any-price-increases-you-idiot).

Another false doctrine they spew is that we somehow *need* inflation, because deflation (opposite of inflation) is somehow bad for people and scary. Deflation is bad – to the beneficiaries of inflation, namely Big Banking and Big Government. But not to average Americans. I may address that one, in a future post.

Because we can’t let Seattle beat us

Follow-up to V’s post on Seattle, last week the California Senate voted to destroy entry-level jobs:

The state Senate on Thursday approved a measure that would gradually raise the minimum wage in California from the current $8 an hour to $13 in 2017, despite warnings from the California Chamber of Commerce that the bill is a “job killer.”

Warning: Gay Left politicians at work!

Sen. Mark Leno (D-San Francisco) said his bill is necessary to help lift many of the 7.9 million Californians being paid minimum wage out of poverty. “Income inequality has been spoken of by our president as the defining challenge of our time,” Leno told his colleagues.

He said the current minimum wage is so low it allows many who receive it to get public assistance. “It is our tax dollars that are subsidizing the largest corporations paying these poverty wages.” Leno said. No other state has a minimum wage of $13 an hour…

Related: Calif. Senate votes to reduce penalties for sale of crack cocaine

The “Related” was added by the LA Times (when I pasted the text). Fitting, isn’t it? Because the measure would actually keep poor Californians in poverty, increase inequality, and push more people onto public assistance. Is that Leno’s real goal?

And Chicago also wants a $15/hr minimum wage. It’s trendy.

But not trendy enough for the Swiss: in May, they rejected a high minimum wage by a huge margin. (The Swiss proposal would have been $25/hr by exchange rates, or $14 by PPP adjustment.)

Seattle Votes to Eliminate All Entry Level Private Sector Jobs in the City

Posted by V the K at 9:59 pm - June 2, 2014.
Filed under: Economy

Seattle voted to raise its minimum wage to $15 an hour. Despite the misapprehensions of many low information voters, to full wage increase won’t take effect until the start of Hillary’s second term (By which time inflation may have rendered it meaningless. The way the Fed is going, in 2021, $15 will buy you a pack of gum, maybe).

Businesses aren’t waiting around for the axe to fall, though.

After decades in Seattle, Northwest Caster and Equipment recently made the difficult decision to move the business to unincorporated Lynnwood, according to a report by KOMO news.  The owner of the family business blames Seattle’s increasingly difficult business climate for the move:  “It just seems like increasingly the city’s become a more difficult place to do business.”

The city’s proposed $15 minimum wage was tops on the list of complaints.  “If I’m going to bring someone in on an entry level, I’d prefer to start them out where I’d like to start them out, rather than having that dictated to me.”

A commercial property landlord echoes those concerns about the $15 minimum wage, noting several tenants have signaled they may not renew their leases if it becomes law: “It’s just too expensive to operate in the city.”

They already raised the minimal wage to $15 in one suburb. It ain’t working out too well.

“Are you happy with the $15 wage?” I asked the full-time cleaning lady.

“It sounds good, but it’s not good,” the woman said.

“Why?” I asked.

“I lost my 401k, health insurance, paid holiday, and vacation,” she responded. “No more free food,” she added.

The hotel used to feed her. Now, she has to bring her own food. Also, no overtime, she said. She used to work extra hours and received overtime pay.

What else? I asked.

“I have to pay for parking,” she said.

I then asked the part-time waitress, who was part of the catering staff.

“Yes, I’ve got $15 an hour, but all my tips are now much less,” she said. Before the new wage law was implemented, her hourly wage was $7. But her tips added to more than $15 an hour. Yes, she used to receive free food and parking. Now, she has to bring her own food and pay for parking.

What they should do, is start counting hookers & blow

Posted by Jeff (ILoveCapitalism) at 7:36 am - May 30, 2014.
Filed under: Economy,Liberal Lies,Obama Incompetence

Despite trillions in economic “stimulus” which have pushed the stock market to record highs, the U.S. economy officially shrank by 1% in the first quarter.

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 1.0 percent in the first quarter according to the “second” estimate released by the Bureau of Economic Analysis…

The GDP estimate released today is based on more complete source data than were available for the “advance” estimate issued last month.

If second quarter GDP does the same, the economy will officially be in a recession.

But surely the problem isn’t with the economy? Now in its fifth “summer of recovery” – yes fifth, so there! – and with the official unemployment rate dropping, surely the economy is fine?

The problem must be that our government officials aren’t measuring GDP correctly. After all, truth is a social construct, right? Just rig the GDP counting methods until officials produce a number that “proves” the economy is growing, and have President Obama declare it’s true, and it will be true.

They did things that way in 2013. For example, when Obama simply declared that his irresponsible budget proposal was “fiscally responsible”. Or when they suddenly declared the GDP to be $550 billion higher after deciding that GDP should include future government pension promises, money lost on failed movies, and so forth.

Italy gets the idea. Italy will start to count cocaine sales, prostitution and smuggling as part of their GDP.

The UK is also working on it. Contribution of drug dealers and prostitutes to the UK economy boosted GDP by £10bn according to estimates.

For the first time official statisticians are measuring the value to the UK economy of sex work and drug dealing – and they have discovered these unsavoury hidden-economy trades make roughly the same contribution as farming.

You see? In this modern world, when a hooker helps a Kennedy get to sleep at night, she contributes as much to national wealth as a farmer growing food for someone’s table.

Obama needs to get on this (so to speak). That way, The Party can prove that the economy is always growing. /sarc

Update: China-Russia’s open dollar bypass

While China, Russia and Iran may not be natural allies, “the enemy of my enemy is my friend” and they’re getting together to oppose the U.S. I’ve suggested before that President Obama’s efforts to isolate Russia are only goading these countries in their ongoing efforts to create a non-U.S. system for world trade and finance, a system that other countries (Germany, other BRICs, etc.) would come to do business with. Eventually bringing about the decline (or overthrow) of the U.S. dollar as the world’s key currency.

For my earlier posts on this, see here, here, here, here and here. The last was six weeks ago. What’s happened since?

The non-U.S. dominated world: bit by bit, it’s coming.

Hat tip to Zero Hedge, which has long covered this story and furnished several of the above links.

Obama Voters Hardest Hit by Obamanomics

Posted by V the K at 7:52 pm - May 21, 2014.
Filed under: Economy

On the WSJ:

“The great irony of the Obama era is that the President’s base voters have disproportionately suffered from a sputtering economy, while the wealthy that Mr. Obama likes to criticize have enjoyed a booming stock market. A new study shows just how difficult this era has been for some of the President’s most loyal supporters.”

Researchers at the Center for Economic and Policy Research, a left-leaning think tank, find that “The Great Recession has been hard on all recent college graduates, but it has been even harder on black recent graduates.”

In 2013, the unemployment rate for black college graduates ages 22-27 was a full 12.4%, more than double the 5.6% rate for all college grads in the same age range.

Now, MSDNC has a theory that opposition to Obama’s policies is based on racism; but if blacks are being hurt disproportionately hard by his policies, shouldn’t racists be happy about that?

Also, 47% of the unemployed have given up on ever finding another job.

Obamanomics: Running Up the Debt to Pay People to Do Nothing

Posted by V the K at 6:33 am - May 19, 2014.
Filed under: Economy

Workers in the old Soviet Union used to describe their economic system this way, “We pretend to work, they pretend to pay us.” The Obama Regime has apparently decided to adopt this system as well.

Employees at an ObamaCare processing center in Missouri with a contract worth $1.2 billion are reportedly getting paid to do nothing but sit at their computers.

“Their goals are set to process two applications per month and some people are not even able to do that,” a whistleblower told KMOV-TV, referring to employees hired to process paper applications for ObamaCare enrollees.

The facility in Wentzville is operated by Serco, a company owned by a British firm that was awarded $1.2 billion in part to hire 1,500 workers to handle paper applications for coverage under the law, according to The Washington Post.

The whistleblower employee told the station that weeks can pass without data entry workers receiving even a single application to process. Employees reportedly spend their days staring at their computers, according to a KMOX-TV report.

“They’re told to sit at their computers and hit the refresh button every 10 minutes, no more than every 10 minutes,” the employee said. “They’re monitored, to hopefully look for an application.”

Adding to the hilarity, those Serco employees count as “private sector jobs,” because even though they are doing Government work, they do it under the auspices of a private employer. This lets dim-witted Obama cultists brag about how many private sector jobs the SCOAMF has “created.”

So, under Obamacare, you have data entry workers hired at a cost of billions sitting around doing nothing, while hospitals are laying off nurses.

All because progressives believe the Government is so much smarter about how to spend money than consumers or health care companies.

Meanwhile, Obama could permit real jobs to be created by permitting the construction of the Keystone XL pipeline, but that would be contrary to the financial interests of Democrat financier Tom Steyer. So… no.

In other economic news, the people who perform the dangerous and demanding work of asking if you “would like to try a combo today” are still demanding $15 an hour for a job that can (and will) be performed by a touchscreen. In Switzerland, voters rejected a proposal to raise the minimum wage to the equivalent of $25 an hour; because the Swiss are not low-information voters who embrace idiotic economic policies promoted by socialist dunderheads.

Hundreds of Thousands of Unsold New Automobiles Left to Rot

Posted by V the K at 10:36 am - May 17, 2014.
Filed under: Economy

Scenes like this lead one to suspect that the Awesome Obama Economy is perhaps less awesome than we are told. And this is not just a thing in America (where the economy contracted last quarter but since the president isn’t a white Republican, this isn’t a major news story), but around the world. Central banks encourage manufacturers to keep building cars they can’t sell because if they reduced output, they would lay off workers, making the already precarious global unemployment problem much, much worse.

Maybe another “Cash-for-Clunkers,” program. That bit of Obama Economic Genius only cost taxpayers $24,000 per car sold.

cars93

Progressive Regulations Kill Off a Gay Business

Posted by V the K at 8:50 am - May 12, 2014.
Filed under: Economy,Entrepreneurs

Hat Tip: Papa Giorgio

The last piano bar in West Hollywood is closing, it just wasn’t possible to turn a profit while complying with onerous state and local regulations. The Progressive City Government of West Hollywood required the cabaret to comply with a number of perfectly reasonable “common sense” regulations that assuredly existed only to ensure the public’s best interests.

The city did allow DTM to have singing waiters, so long as there were no more than six of them performing at any time. Occasional guest singers, including people from the audience, also were allowed. DTM also was barred from having a cover charge or requiring the purchase of a minimum number of drinks, which are typical revenue sources for cabarets.

And the Minimum Wage Bidding War Continues

Posted by V the K at 3:57 pm - May 3, 2014.
Filed under: Economy,Post 9-11 America

Topping Seattle Mayor Ed Murray’s $15-an-hour minimum wage, and even Native American Senator Elizabeth Warren’s $22-an-hour minimum wage, an even more economically illiterate Democrat… California Representative Barbara Lee … thinks the minimum wage should be $26 an hour.

“Let me ask you this question, you’re a good advocate for this,” Gingrich asked Lee. “The mayor of Seattle is proposing that the minimum wage ought to go up to $15 an hour.”

“Good for him,” Lee responded. “In California — more than likely, from what I remembered — a living wage where people could live and take care of their families and move toward achieving the American dream was about $25, $26 an hour.”

“So would you support that as a minimum wage for California?” Gingrich asked.

“Absolutely I would support it for California.”

This economic program should be very popular among voters who ain’t never seen no plant growing out of no toilet

Seattle to Raise Minimum Wage to $15 an hour

Posted by V the K at 8:15 am - May 2, 2014.
Filed under: Economy,Socialism in America

Seattle Mayor Ed Murray announced a plan Thursday that would give the city the highest minimum wage in the United States, $15 an hour.

Now would be a great time to buy stock in companies that make automated Touch Screen ordering machines and in commercial real estate in the Seattle suburbs.

And now that Ed Murray has raised the bar, some other  Democrat Mayor or Governor with an even more tenuous grasp on economics is going to have to increase his minimum wage to $17 so he can be the Darling of DailyKos. One wonders where this minimum wage bidding war the left is waging will end.