There was a time that this sort of resonated with me, but that was before I started thinking. And it shows where the problem lies with politicians, because these issues are easy to “rally” people around — but that something’s easy to rally people around doesn’t make it right.
Democrats looking to make gains in the 2014 gubernatorial elections are using a possible minimum wage increase as a way to win support among voters, following a wave of protests on the issue this year.
CNBC this morning had folks on talking about it too. Then there is the self-congratulatory crap coming out of the NEP “think tank” intertwined with the bogus “Modern Monetary Theory” folks.
Bill speaks to and participates in local efforts that advocate in favor of full employment and a far higher minimum wage. He writes in NEP in support of these policy ideas and local efforts in support of those policies.
It’s especially-infuriating to hear people like Bill Black argue for a “far higher minimum wage”, because Bill knows full well where the real problem lies — it’s right here:
Nobody cares, in fact, about the number of dollars, euros, or kumquats that they are paid in. They care only about what those dollars, euros or kumquats buy.
Falling behind doesn’t happen because the minimum wage is too low. It happens because various entities emit unbacked credit, often through fraudulent devices. When fraudulent the insult is twofold because the emitter is essentially-always a private entity — banks and non-bank entities, specifically, that are quite-effectively diluting the money supply and thus inevitably making things more expensive in real terms.
Bill Black was responsible for locking lots of people up because they committed that fraud.
Now he advocates for covering it up with political bullshit instead, and in the process of that transformation he has illustrated why “colleges” are no longer worth the price of tuition.
There is one solution to this, and that is to forbid such an act through policy, backed by law, such as One Dollar of Capital. That is, in fact, the only solution that can work on a durable forward basis.
Attempting to drive the minimum wage upward cannot solve this, because the transmission of policy, no matter what policy, is inefficient. This is the lesson of nature that we express in the physical realm in the laws of thermodynamics, which can be restated as the following principle:
There is no such thing as a free lunch, and in fact there is no such thing as breaking even. That is, all transmutations are inefficient.
This is no less true in economics than it is in any other area of our lives.
There is no economic system, and there will never be one, that doesn’t honor this principle. It’s not possible because “unity” (no loss) is the best theoretical outcome and to achieve it you require perfect decision-making and execution.
To believe in that is to elevate your opinion of yourself to that of God.
If you believe in such things, bluntly, you’re an arrogant asshole full of unearned hubris and have managed to get drunk on your own press. Like everyone who does so you will eventually discover, much to your chagrin, that you’re full of crap.
Those who wish to believe in Unicorns are free to do so, but when they try to force their beliefs onto others via laws and regulations they set us up for horrific consequences.
Those who are ignorant of these above facts can only be charged with stupidity.
Those who are not get malice aforethought added to their indictment.