Category Archives: Economy

$15 Minimum Wage Would Boost 17 Million Workers, Cut 1.3 Million Jobs, CBO Says

The Congressional Budget Office analyzed the impact of lifting the $7.25 federal minimum wage to $15 by 2025. The House is expected to vote next week on a bill to lift the federal minimum.

Raising the federal minimum wage to $15 an hour by 2025 would increase the pay of at least 17 million people and lift 1.3 million Americans out of poverty, but also put 1.3 million (and up to 3.7 million) Americans out of work, according to a study by the Congressional Budget Office.

The CBO predicted much bigger job losses than House Democrats, who have pushed for the $15 minimum wage, expected.

So let me get this straight, the higher minimum wage was expected to lift 1.3M Americans out of poverty but plunge 1.3M (and up to 3.7M) Americans into poverty. Wow! Maybe we should just keep the federal government out of our lives and tell them to keep arguing between themselves while we live our lives in peace and raise our children.

The Paris Climate Fraud

The world signed on to a really bad agreement in Paris and the US mistakenly agreed to part of the charade so that the politicians could feel better.

I am not a Trump supporter, but it was wise for him to reverse the foolish commitment made by Mr. Obama.

The Paris Climate Fraud

Thanks President Donald J. Trump for withdrawing from the Paris Climate Agreement! City Journal's Oren Cass explains that it's even worse than I thought:

Posted by John Stossel on Wednesday, June 26, 2019

Soon Your Phone Will Be Your Driver’s License, MetroCard and More

While digital versions of our credit and debit cards aren’t widely accepted just yet, it’s a given that in the future, the majority of the places where we shop will accept Apple Pay, Google Pay and the like. I look forward to the day when I can increase my personal security and reduce my pocket bloat by only carrying a small computer (my phone) to identify me and conduct my transactions.

From government IDs to hotel keys, the rest of our cards are quickly moving to mobile phones. As this becomes more ubiquitous, it will be harder and harder to justify carrying unique pieces of plastic in your wallet.

I look forward to this image being everywhere!

 

Great reading on this topic: Soon Your Phone Will Be Your Driver’s License, MetroCard and More – WSJ

Many Politicians Are Two-Faced When It Comes To Tariffs

As I write this, POTUS Donald Trump is pledging to begin tariffs on Mexico for its accused lack of assistance in the immigration crisis on the southern border of the US. Here is a quick news account from Politico:

The White House pledged on Thursday to charge ahead on tariffs on Mexico, saying the U.S. position “has not changed” after officials met for a second day to address the steady flow of Central American migrants trying to enter the United States.

Talks between Mexican and U.S. officials at the White House wrapped up without resolution. Several key officials in the administration were unavailable for negotiations. President Donald Trump was in France for the 75th anniversary of the D-Day invasion, and both Vice President Mike Pence and Secretary of State Mike Pompeo were on the road.

High Interest Rates Are Hobbling Growth – WSJ

The problem with growth in the US economy will be immediately be solved the day that we stop the trade war with China. We don’t need the Fed to counter-balance a political battle between China and the US. Mark my words, when this trade war is over, the economy will almost immediately overheat.

Also, you can guarantee that POTUS will turn off the trade war by the first quarter of 2020 so that the economy is running at top speed for the November election. The Chinese know this and they know they just have to hold on 6 more months and our political will for the trade war will vanish.

Source: High Interest Rates Are Hobbling Growth – WSJ

There’s an increasingly strong case that the Federal Reserve should cut interest rates to weaken the U.S. dollar and encourage greater exports—and that it should do it soon.

A tax plan that would promote economic growth

Both halves of Congress are trying to create a more fair tax plan that will promote growth and simplify the code. I am skeptical that anything will get done though as it appears that this Congress is incapable of doing anything significant.

Since Congress will almost certainly fail, I thought I would put my suggestion on the table. As I analyze it, it is probably the most likely plan that I have ever seen to encourage employment growth.

The first step is to not change anything for individuals except to increase the amount of money saved in long-term savings without tax penalty. This should be doubled from its present rate. The government is in the retirement business, and it isn’t doing a sufficient job of managing it. The government needs to get out of the retirement business because the government can rarely do something well. Social Security is a broken plan, and we all know it – we just need to transition out of the retirement business slowly so that we do not screw up the American workers that depend on Social Security.