Another Welfare Cliff Example

A small business owner having direct experience with employees, hiring, and welfare schema, wrote in his Letter in a recent Wall Street Journal:

We are seeing a segment of the workforce, usually single mothers, who want to work but can’t work too many hours because they would lose their federal, state and local subsidies.

This is by the design of the Progressive-Democrats: their goal is to keep these unfortunates trapped in their welfare cage, dependent on Progressive-Democrat politicians’ handouts because…votes.

The letter-writer went on:

Government assistance programs should be designed to allow people to make progress, earning more and building up savings so they can eventually be financially independent. Instead, many of these capable people are locked into a cycle of dependence.

Of course assistance programs should be structured that way rather than locking capable people…into a cycle of dependence. However, letting those people out of the cage would be a reduction of Progressive-Democrat political power.

Minimum Wage Mandate Outcomes

A National Bureau of Economic Research-sponsored Georgia Institute of Technology study by Sudheer Chava, Alexander Oettl, and Manpreet Singh tells a tale.

For each $1 increase in the minimum wage, the authors estimate that loan amounts dropped 9% more in the affected states. The risk of default was 12% higher. The average credit score for small companies in those states showed “a sharp decline.” Business entries fell 4% in the year the minimum wage went up. A year later, business exits rose 5%.
These results, the authors say, hold throughout various statistical analyses, such as while controlling for local economic conditions. The effects are stronger in businesses like restaurants and retail, which rely on low-skilled labor. Smaller and younger companies are more severely affected as well. In short, the authors conclude: “We find that increases in the federal minimum wage worsen the financial health of small businesses in the affected states.”

It’s not only the loss of jobs and harder-to-get loans, though; a minimum wage increase has more broadly reaching outcomes.

It’s also the loss of job opportunity, the loss of entry-level experience as a necessary item for moving up, the loss of spending money and/or a taste of college money for teenagers.

It’s the loss of a second income for a family that needs—or just wants the flexibility of—a second income.

It’s an increase of welfare cost to Federal and State governments as those additional unemployables—now due to Government mandate—are driven out of the labor force and into the welfare force.

But, hey—future votes to be harvested from that last bit’s crop planting.

 

The study can be seen here (paywall for the whole article; the abstract is freely available).

Head in the Sand?

Volkswagen is building cars in Xinjiang, People’s Republic of China.  You know Xinjiang, the “semi-autonomous” region of the PRC that’s home to tens millions of Muslims and to President Xi Jinping’s “reeducation” camps, Mao-ist internment camps for millions of those Muslims, a people of whom Xi disapproves.

VW thinks all of that is jake.

Speaking with DW on Tuesday, the company said its 2012 decision to open the Urumqi facility was “based purely on economics.” VW says it expects “further economic growth in the region over the coming years.”

Sure. Because economics isn’t just important (such considerations are), it’s all that matters (because principles, apparently, are for academics and parlor small talk).  And: economic growth in the region for whom?  The camp inmates?  Volkswagen?

Never mind the likelihood that Volkswagen’s facility uses forced labor.

We do not assume any of our employees are forced laborers.

Well, alrighty, then. A forced labor force is assumed away, so it doesn’t exist.  It’s all good.

How Terrible Is That?

Jeremy Corbyn, British Labour Party’s MFWIC, has “accused” British PM Boris Johnson of pushing for US-style deregulation of health care.  The horror.

As the UK election campaigns got underway, Corbyn said his rival wanted to “unleash Thatcherism on steroids” once the country was no longer bound by EU trading treaties and regulations.

Channeling our own Progressive-Democratic Party Presidential candidate and Senator Bernie Sanders (I, VT), Corbyn thinks “capitalism” is a dirty word.

He went further:

Corbyn also said…that Johnson wants to strike a trade deal with US President Donald Trump to sell off parts of the UK’s National Health Service, or make it easier for US pharmaceutical firms and medical companies to sell into the UK healthcare market.

Because all that foul capitalism would lower health costs to British citizens and deprive Government of control over their health choices.

Then Corbyn made plain the breadth of the wicked that the Brits’ way comes:

They want to move us towards a more deregulated American model of how to run the economy.

It’s clear that Corbyn—and his fellow Labourites—think British citizens are just too blind stupid to make their own health decisions; he and his insist those unwashed masses must be led by his Know Betters.  Just like our own Progressive-Democrats.

Boeing and Foolish Questions

In a Wall Street Journal article on the tortuous path to criminal prosecution that prosecutors would have in bringing Boeing to criminal trial over its 737 MAX crashes, Andrew Tangel, Jacob Gershman, and Andy Pasztor asked what seems to me to be a very narrow, short-sighted question.

Should prosecutors weigh Boeing’s importance to the economy and national security when deciding how to proceed with a criminal case over the 737 MAX crashes?

Of course prosecutors should—must—not. What’s truly important is the concept of weighing the risks to liberty and to national security of criminals being too big to be punished. We can never allow such a thing to enter even the run-up to criminal prosecutions.

If criminal actions can be seriously alleged against Boeing—based on the company’s behaviors—the company must come to trial. Only if found guilty, so there’d be a criminal sanction phase, could Boeing’s importance to our economy and our national security legitimately be considered—and then, not on the magnitude of the penalty(s), which absolutely must fit the crime(s), but only on the penalty(s)’s schedules of application, with interest accruing on any fiscal penalties not paid “promptly.”

The question of criminal trials for various individuals of Boeing’s management (and its aircraft testing function?) is an entirely separate matter.  The company’s importance to anything is wholly irrelevant here; the company can easily survive any number of its managers being locked up in a Federal hoosegow.