Wednesday, 31 May 2017

The Liberals War On The Poor

The Ontario Liberal War On The Poor

"the increased minimum wage is waging a War On The Poor."

 Ontario Minimum Wage_Waging War

Raising the minimum wage in Ontario to $15.00/hour will be destructive to far too many Ontarian's and we are observing the Ontario Liberals War On The Poor.  I find little more appalling and offensive to the plight of the poor than well intended but disastrous left wing thought that leads to silly laws.  Starting a discussion on the tenant of, "You can't make it on your own, so you need the government's help to force you to get paid more than you are worth" is a sure way to trap many in a cycle of dependence through establishing a baseline of entitlement: "I am owed regardless of my performance".  Without acknowledging a distinct difference between “Personal Value” and “Performance Value” the brain begins to think increased wage is based on entitlement, not productivity. This will damage the poor and prevent many from advancing because they are looking to the wrong source to advance; the government. This is the Ontario Liberal’s War On The Poor.  Look for more people complaining to the government to be their defender; not their family, faith group, civic charity or heaven forbid, themselves.

Increasing the minimum wage will kill jobs by making them unaffordable.  

"Expect to read … of manufacturers that will leave to the states or abroad ..."

If a job only pays $11.00/hr and now must pay the $15.00 minimum wage, it is likely the job will quite possibly cease to exist.  It is simple economics of supply and demand.  The demand for $11.00/hour jobs that pay $15.00/hour is very low.  Who would overpay $4.00/hr if they could find any way to avoid this?  Expect to read in the news lots of stories of manufacturers that will leave to the states or abroad as economics teaches us the answer is very few will overpay unless absolutely necessary. 

Increasing the minimum wage devalues employees.

"Expect to see worker morale to go down for low income workers, despite the increase of pay."

Not many people feel good about being overpaid.  Forcing an employee to get paid more than they are worth and making it illegal for them to get paid what they are worth should enrage the honorable worker.  Very few people want to take more than they are able to give. The liberals are forcing the honorable worker to earn more than they deserve which would likely cause stress on the worker to overwork beyond their abilities to offset the gap in their wage (what the job is worth, to what they are forcibly receiving).  The message is clear, "you failed and you can't make it on your own and need the government to force businesses to pay you more."  What a divisive and harmful message that speaks hopelessness over the employee! Lots of management will put $15.00/hour expectations on an employee only capable of $11.00 (gotta close the gap somehow). Expect to see worker morale to go down for low income workers, despite the increase of pay.  This will make many of the low income workers more susceptible to the pressures of management for "bad performance", when the reality is management is holding an $11.00/hour employee accountable at $15.00... because that is what they are getting paid.  This will not end well for either management or employee.  

Increasing minimum wage will kill jobs through less investment reducing the ability of business to hire.

"Expect to see company investments to leave Ontario"

The left is enticing business to invest in technology to kill jobs through legally forcing them to overpay! No owner wants to overpay and business by nature seeks to remedy waste. Overpaying is waste! They will take the overpayment hit... then buy technology to eliminate the overpayment problem. The government is digging the grave of many low income workers though giving economic reasons for business to replace humans with technology. There are a portion of jobs where the employer will say, "this job is worth $11.00/hour but I am forced to pay $15.00, dang".  The problem is, the business will not likely be able to pass those costs onto their customer. So that gap of $4.00/hr will be seen somewhere.  Typically, profits are reinvested into the company.  If you are overpaying $4.00/hour per employee, that is approx $10,000, per year, per employee not being invested into new jobs, new technology or improved pay packages, unless specific to eliminate the overpayment.  Expect to see company investments to leave Ontario or be used to replace overpaid workers. Look for government to counter this through corporate welfare (just as bad as raising minimum wage...).

Increasing minimum wage will make it harder to find work.  

"Expect to see more people fighting for fewer jobs and the "higher skilled" workers will beat out the lower skilled workers."

If you accept that there are jobs at $8.00/hour or $12.00/hour (which there are), no corporation can legally hire those people at those rates. The more you overpay someone, the harder it will be for the remaining unemployment pool to find meaningful work. The more you increase minimum wage, the more people will be on the outside looking in.  It's like Harvard making their entry criteria more and more stringent.  The conditions of acceptance broaden and the available pool of applicants meeting the ever increasing conditions, decrease. It is the same with employment.  The more you inflate a base wage, the less and less jobs become available because only jobs worth that higher rate are "in the pool" to be considered. Expect to see more people fighting for fewer jobs and the "higher skilled" workers will beat out the lower skilled workers.  Look for government to recruit these lower skilled workers unable to find work and now spend millions on training to try to help them achieve $15.00/hour (socialism begets socialism).   

Increasing minimum wage will hurt new people in skilled trades.  

"Expect to see frustrated skilled trade workers finding it more and more difficult."

Many skilled trade workers "get a start" through an entry level position. They work the basics of a job and do it well. Through increased productivity, skills are built.  Shutting the door to entry level positions (by destroying them through making it impossible to pay $15.00 for an $11.00/hr job) you limit new candidates able to start a skilled trade. Expect to see frustrated skilled trade workers finding it more and more difficult to find an employer who will give them a chance. 

Increasing minimum wage will hurt training of low income workers.

"Expect to see poverty increase in Ontario."

Businesses will have less money towards training low income employees due to the overpayment from this new law. Expect to see poverty increase in Ontario as a result of this in relation to other points mentioned above.

Increasing minimum wage will not increase purchasing power of low income employees.  

"Expect to see the lower income Ontario workers to continue to struggle."

Most of what low income workers buy are provided by other low income workers.  If eggs are $3.00/dozen, they are now $3.50 to account for the increase of minimum wage.  Cost inputs raising prices is basic economics. Raised prices make existing money less powerful because it takes more money to buy less due to higher costs.  Fewer units are bought so economies of scale reducing units sold will invariably further increase costs and decrease employment, because now fewer people are buying the good or service. The left is waging war on the poor.  Expect to see the lower income Ontario workers to continue to struggle. All the hope and messages of love from the Liberals and the hart felt left will not change basic economics. 

Increasing minimum wage exposes how poorly many on the left think.

"Prosperity for the poor is the victim of this liberal minimum wage increase."

Most of the left advocate for the poor. Increasing minimum wages advocates for the rich, NOT the poor!  The rich (Owners / Investors in business) will take their money and make it elsewhere... the poor in Ontario will suffer. The rich will find ways to mitigate the damage to their the expense of the poor through less training, more pressure on the employee, decreased or stagnate purchasing power, elimination of jobs and devaluing of the low wage worker.  The left should be ashamed of themselves for pushing something that is so one sided in favor of business, not the low income worker! The poor will suffer from this. By poorly thinking this through, the left has abandoned the poor and sided with the rich.  Prosperity for the poor is the victim of this liberal minimum wage increase.

Shame on the liberals for further crushing the poor and leaving them in a cycle of poverty. Shame on the liberals for thinking increasing minimum wage will solve anything. Market forces are much stronger then immoral government laws. The left should be outraged they let their leaders demean the poor and crush their spirits. It is too bad that a right wing guy like me is advocating for the poor against a destructive liberal law. Have compassion on the poor and share the message:

"the increased minimum wage is waging a War On The Poor."

 Ontario Minimum Wage_Waging A War

Wednesday, 27 July 2016

Left Leaning Groupthink Is Damaging The Middle Class

Groupthink: a pattern of thought characterized by self-deception, forced manufacture of consent, and conformity to group values and ethics.


      One of my passions is to see wages increase through higher productivity within a free market. To this end, our existing framework is not postured towards serving this goal.

     Ontario Liberals continue to debase the Employer/Employee relationship through destructive policy and laws.  This damages the middle class through businesses having less money to compensate employees for their increased productivity due to forcing businesses to manage these senseless laws. 

     If Sally makes $25/hour for making Widget A and the government forces a new cost, regulation, or law on the Province, the business uses a portion of its free cash-flow to spend on managing said obstruction. Sally may actually improve her productivity resulting in a $26/hour compensation possibility.  Regrettably, that $1/hour available raise was spent on implementing the intrusive regulation and therefore the raise is tied up in regulation land.  Since this is province-wide, all businesses now have that burden.  Law after law and regulation after regulation has taken its toll on Ontario businesses.  

     The constant new laws and regulations are not sensible. They are predicated on a groupthink mindset that the Employer/Employee relationship is dysfunctional and only massive government intrusion into that relationship will protect the employee. The cost of this intrusion damages employee wages.  Capital flows into areas of a return and quickly exits where there is a negative or insufficient return.  The myth that "employers pay for the cost of regulation implementation" is debunked by businesses leaving when the regulation impacts their desired profit level or risk tolerance.   The employee pays through the layoff or absent wage increase.  Businesses look to pass off the regulatory burden however they can: either through reduced wages, terminated employees or moving to a more "capital friendly" area.  There is clear evidence that restaurants are moving towards machines replacing people when ordering food as governments force increased minimum wages on employers. There is evidence of manufacturing plants leaving Ontario because they lose their competitive edge (in part because of the regulations and risks of growth). 

     Groupthink is at work in that the workforce and political landscape of the collective majority have mindlessly accepted this notion that the government will control and govern the Employer/Employee relationship and enforce the relationship with an iron fist.  It is argued that more regulations are the only path to violations of each victim class (and new victim classes are continually being created).  The idea that  excessive government laws can create safe spaces for the purported victim class is an expensive, unrealistic objective that will certainly fail. The lack of opposition to the endless regulations is further evidence that little alternative opinions are accepted and the status quo is the only permissible line of thinking.  The demagogues are hard at work to uphold groupthink and brand the outlier as "sexist", "racist", "greedy" or "a violator of human rights"...etc. to ensure no alternate perspective exists or can gain steam.  If I were smart enough; I would calculate the total cost business pays for each needless regulation and the total cost of the governments to administer and enforce their silly laws and simply communicate to the voter, "Hey, this is how much money the government punitively imposes on you...for your protection. Do you want this protection at this cost?"  I'd imagine that numbers are staggering and most sensible workers would tell the government to jump in a lake if they saw the costs.

     When laws continue to creep towards siding with a socialist society, capital will flee and wages will be suppressed.  

     A just and fair society is created through increasing personal freedoms. Imagine deeming the employee competent to look after themselves (without excessive laws). Imagine the government did not create special victim classes and the lack of regulation could be spent on higher wages because people are responsible for their lives. The massive debt piled on by the McGuinty/Wynne administration is damning evidence as to their overall failure to create this "sharing and just" society.  $180 billion of debt to show for this fairness effort...and we are still having issue after issue resulting in new law after new law.  Liberal Groupthink is a failed and expensive social experiment that has left our province in shambles and intellectually disadvantaged.  Suppressed wages, out of control debt and absurd regulations are making our province less and less competitive.  

      My passion is to see higher wages in the context of increased freedoms and higher productivity.  I will continue to work towards this end. My argument is as practical as it is theoretical.  Raising wages is a beautiful thing: I am calling out the Liberals for causing economic damage with their Orwellian enforced groupthink. 

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