Category Archives: Liberty

The Minimum Wage Lie

fast-food-workers-strike-may

When “progressives” say “the minimum wage hasn’t kept up with inflation”, they’re lying.

Not shading, the truth, exaggerating, or interpreting things differently… they are flat out lying.

… And what’s more, the ones who made up the lie in the first place, know they’re lying (the rest mostly just parrot what they’ve been told).

What exactly would “keeping up with inflation” mean?

The minimum wage has been $7.25 an hour since 2009.

In 1938, when the federal minimum wage was established, it was $0.25 an hour. In constant dollars (adjusted for inflation) that’s $4.19 as of 2014.

So, not only has the minimum wage kept up with inflation, it’s nearly doubled it.

Ok.. well what about more recently?

Minimum wage 15 years ago in 2000: $5.15, or $7.06 in constant dollars

Minimum wage 20 years ago in 1995: $4.25, or $6.59 in constant dollars.

Minimum wage 25 years ago in 1990: $3.80, or $6.87 in constant dollars.

Minimum wage 30 years ago in 1985: $3.30, or $7.25 in constant dollars.

Funny… that’s exactly what it is today… How shocking.

So, for 30 years, the minimum wage has not only kept up with inflation, for most of that time it’s been ahead of it.

So, how are they lying?

The way “progressives” claim minimum wage hasn’t been “keeping up with inflation”, is by comparing today, with the highest level it has ever been; almost 50 years ago, in 1968, when the minimum wage went to $1.60 an hour ($10.86 in constant dollars).

This was a statistical anomaly.

There’s a long and loathsome tradition of lying with statistical anomalies.

At $1.60 an hour, the minimum wage in 1968 was a huge 20% spike from what it had been just 3 years before in ’65, more than 40% above what it had been in 1960, and nearly double what it had been 12 years before in 1956 when politicians started throwing minimum wage increases faster and bigger (again, all in constant dollar terms. The minimum wage at the beginning of 1956 was about $6.30 in constant dollars)

In constant dollar terms, the minimum wage today, is about the same as it was in 1962 (and as I showed above, 1985).

It just so happens that from 1948 to 1968 we had the single largest wealth expansion over 20 years, seen in the history of the nation (about 5-8% annual growth)… Which then crashed hard starting at the end of ’68.

From 1968 to 1984, the U.S. had 16 years of the worst inflation we ever saw, and the purchasing power of ALL wages fell significantly, as wages failed to come even close to keeping up with inflation (we saw 13.5% inflation in 1980 alone, which is about what we see every 4 years today).

It took until 1988 for real wages to climb back to their 1968 constant dollar level, because we were in a 20 year long inflationary recession, complicated by two oil shocks and a stock market crash (actually a couple, but ’87 was the biggest one since ’29).

However, the minimum wage was boosted significantly in that time period, far more than other wages rose, and stayed above the 1962 water mark until the end of that high inflationary period in 1984, declining slightly until 1992, then spiking and declining again until 1997 etc… etc…

By the by… household income in 1968? appx. $7,700, which is about the same as today in constant dollar terms… About $51,0000 (about 8% more than it was in 1967, at $47k). Which is almost exactly what it was in 1988 as well. Household income peaked in 1999 and 2007 at around $55,000, and troughed in 1975 at around $45,000

Of course, income was on a massive upswing from 1948 to 1968 (and in fact had been on a massive upswing overall since 1896 with the exception of 1929 through 1936). In 1941 household income was about $1500 ($24,000 constant), in 1948 $3,800 ($37,000 constant).

Like I said, it was the single greatest expansion in real income and wealth over a 20 year period, in American history.

1968 was a ridiculous historical anomaly… Not a baseline expectation.

So, From 1964 to 1984, the minimum wage was jacked artificially high (proportionally far above median wage levels), and “progressives” chose to cherry pick the absolute peak in 1968 from that part of the dataset, in order to sell the lie.

A living wage?

As to the minimum wage not being a living wage… No, of course its not. It never was, its not supposed to be, and it never should be.

The minimum wage is intended to be for part time, seasonal workers, entry level workers, and working students.

Only about 4% of all workers earn the minimum wage, and less than 2% of full time workers earn the minimum wage.

Minimum wage is what you pay people whose labor isn’t worth more than that. Otherwise everyone would make minimum wage. But since 98% of full time workers can get more than minimum wage, they do so.

What should the minimum wage be?

Zero.

Wait, won’t everyone become poor suddenly?

No, of course not. Literally 98% of full time workers already get more than minimum wage. If we abolished the minimum wage, most of them wouldn’t suddenly be paid nothing.

Wages should be whatever someone is willing to work for. If you’re willing to work for $1, and someone else isn’t, you get the job. On the other hand, if an employer is offering $10 and no-one is willing to take the job for that, they need to offer $11, or $12, or whatever minimum wage someone is willing to take.

If you don’t want to work for $7.25 an hour, don’t take the job. If nobody offers you more than that, too bad, but that’s all your labor is worth.

If you are willing to work for someone for $7.00, and they’re willing to pay you $7.00, what right does some “progressive” have to tell either of you, that you can’t work for that much?

No-one is “exploiting the workers”, if those workers took the jobs voluntarily, and show up for work voluntarily… If all you can find is a job for less than what you want to work for, you’re not being exploited, THAT’S ALL YOUR LABOR IS WORTH TO THOSE EMPLOYERS.

You may think your labor worth more, but things aren’t worth what you want them to be worth, they’re only worth what someone else is willing to pay for them.

But let’s be generous…

All that said, I don’t think we’ll be able to eliminate the minimum wage any time soon.

So, to those “progressives” who would say “let’s make the minimum wage keep up with inflation”, I agree wholeheartedly… Let’s make it $4.19.

Oh and if you don’t believe me on these numbers, they come from the department of labor, the department of commerce, and the census. If I’m lying to you, it’s with the governments own numbers… the same ones “progressives” are lying to you with. 

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

A Public Service for Our Readers Regarding Federal Drug Enforcement

We are posting this as a public service and informational notice, for our cannabis using, interested, curious, or just plain liberty oriented readers and friends…

Contrary to articles such as this:

Congress Effectively Ends The Federal Ban On Medical Marijuana
HighTimes

It seems the controversial $1.1T spending bill that is preventing the U.S. government from shutting down is chock full of surprises.

As you may know, much to the dismay of marijuana activists and lovers of democracy everywhere, the bill smacked down Washington DCs referendum that legalized recreational marijuana in the nation’s capital. What you may have missed (because those shifty politicians are doing everything under the table) is that the bill also quietly, but effectively lifted the federal ban on medical marijuana.

Let us be VERY clear… NO the federal government has not legalized, or ended the federal prohibition of medical marijuana.

No, really, they didn’t, no matter what High Times says.

Manufacture, distribution, transportation, storage, sale, possession, and use, of Marijuana are all still federal crimes. Further, they are automatic disqualification on a background check, or a drug test, or a security clearance etc… etc…

They also make one a prohibited person with respect to firearms, explosives, and destructive devices.

Yes… even in Washington and Colorado. 

All they did in this omnibus appropriations bill, was to partially defund and deprioritize enforcement of federal marijuana prohibition, against medical marijuana dispensaries only (NOT grow ops, or users) in those states with medical marijuana, between January and September.

That’s it. 

Here is the actual text, of the portion  of the bill in question:

“Sec. 538. None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Washington, and Wisconsin, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana. Sec. 539. None of the funds made available by this Act may be used in contravention of section 7606 (“Legitimacy of Industrial Hemp Research”) of the Agricultural Act of 2014 (Public Law 113-79) by the Department of Justice or the Drug Enforcement Administration.”

There has been no real change in the law, there is just a change in the administration of a small subset of enforcement.

In fact, this action makes getting the changes we need in the law harder and less likely.

Far worse though, it furthers the toxic notion that we can just arbitrarily, capriciously, and disparately, choose to not enforce the law, when we feel like it… But then any time we change our mind we can go ahead and start enforcing it again.

This disrespects and debases the very foundation of rule of law.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Repost: It’s not about Elites or Idiots

Reposting something I wrote back in 2011, because it’s come up again recently in social media… and because it remains true and relevant today.

Over the past few years, there has been a constant drumbeat from “progressives” (and even some non-lefties) that conservative anti-elitism is effectively “anti-science”, “anti-education”, “pro-stupidity” etc…

This is partially in response to the fact that many conservatives use the terms “elitist” or “the elite” (in the political and social context, not in the context of achievement… though that distinction is lost on leftists) as a pejorative.

Their basic comment comes down to “Well, if you don’t want intelligent, well educated people running things who would you rather run them, idiots?”

Thus, completely missing the point.

Conservatives and libertarians aren’t against smart well educated people; in fact many of us ARE smart, well educated people.

…We’re against people who want to run things.

This idea is so utterly foreign to the leftist mind, that they literally cannot conceive it, or believe it.

You see, to a conservative or libertarian, it’s inherently obvious… axiomatic even:

The world runs better, when everyone runs their own lives, and their own business, with as little interference as possible; save that which is absolutely necessary for the common good, or to prevent harm to others.

No government official or lawmaker can know more about your life, or your business, than you do; therefore, they cannot run your life or you business as well as you can.

No matter how smart, or well educated they may be, and no matter how many of them there are, they will always be working with less information then you have. Their information will always be less current. They will always have less experience in dealing with the conditions unique to your life and your business.

Since no-one can run your life as well as you can, no-one should.


Note: Economists call the idea that if you’re just “smart enough” “well educated enough” etc… you can make everything run right, the “perfect information fallacy”. If you could have perfect information (that is all information about all conditions and factors that could possibly effect the outcome of a decision) and perfect reason (that is, the ability to analyze all factors correctly at all times), then you could make perfect decisions. However, it is impossible to have perfect information in a complex system (never mind perfect reason) thus all decisions will necessarily be imperfect. This is the primary reason why communism or socialism… or in fact any kind of “managed economy” could never possibly work on a large scale; even if every person participating in that economy were a perfect communist, acting only for the benefit of the collective.

To a leftist, that is simply ridiculous… Impossible even. Someone has to be running things. It simply cannot be any other way.

You have to understand, leftists fundamentally and fully believe, that nothing (or at least nothing good) can possibly happen, without “someone running things”. No matter how “free” or “unregulated” something may appear to be, in reality, there is always someone behind it, really in control, and making sure it goes the way they want it to; favoring some parties and punishing others, exploiting some for the benefit of others.

Note: Conversely, this also means that whenever anything happens, it’s because of the person in charge. Everything good that happens is to their credit, and everything bad that happens is their fault.

It’s called the “daddy” philosophy of government (or more formally, paternalism, or paternalistic government).

As with all leftist ideas, the basic principle of the daddy government is based on what children learn during kindergarten. All money, power, control, and guidance comes from “the people in charge”, like your daddy, or your teachers.

Daddy has authority, and money. From that money, he gives you your food, housing, education, medical care etc… With that authority, he sets rules, rewards you with things when you do well at what he says you should do well at; and punishes you for doing badly, for doing things he doesn’t want you to do, or for not doing the things he thinks you should do.

When you need something, daddy makes sure you get it. When you want something, you ask daddy, and if he thinks you should have it, he gives it to you.

Daddy enforces “fairness”. Daddy makes sure you share, and play well with others. Daddy protects you from the bad people hurting you, or taking advantage of you. When things are bad, daddy will make them all better.

I should note, some people prefer to call this the “mommy” philosophy of government… which may be closer to appropriate, given most leftists have no idea what a father is , or what they are good for anyway.

When you’re five years old, daddy controls the entire world; and there’s nothing daddy can’t do.

Leftists have never really advanced in economic, social, or moral maturity beyond that point. They believe that the world continues to work that way as you grow up; only instead of daddy, or “teacher”, the one in charge is “government”.

In fact, they not only believe it’s the way it should work, they believe it simply IS the way it works, and there can be no other possible way.

Since there is no other possible way, and someone has to be controlling things; it’s absolutely critical that we get the smartest, best educated, most “elite” people to be in charge. If you’re against that, it must be because you want someone in charge who is going to favor you.

Or rather, because they have such a low opinion of the “common man”, they believe that “the people” themselves are idiots, being deceived by the people who secretly want to control everything. The people who want to control everything have convinced the “common man” of the lie of the “free market”, and of “equal opportunity” and “the American dream”. They’re all just lies the secret controllers tell the “common man”, so that the controllers can rig things to favor themselves, and their cronies. Those people are anti-elitist, anti education, pro-stupidity, and want idiots to run things, because they can then secretly control the idiots for their own benefit.

Note the assumption there that anyone who is smart and well educated MUST know that the leftists are right; therefore anyone who disagrees with them is either stupid, or evil.

This isn’t some far out conspiracy theory by the way; this is exactly what leftists think was behind the Bush presidency. Not only do they freely and publicly admit it, they write books and make movies about it.

They completely miss the point.

They don’t understand that conservatives and libertarians have a completely different idea about what government is, and what it should do.

They don’t understand…

We don’t want idiots running things….

We don’t want ANYONE running things.

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Community Conservatism – Choosing Education that Works

MortarBoard

Making Education Work for the Middle Class

A) Simplify the Department of Education by Block Granting Most of its Budget to the States

Ron Paul, Rick Perry and Herman Cain all tried appealing to conservatives in the primaries in 2012 with the simple-minded proposal that we should simply abolish entire Federal departments. There is a certain libertarian appeal toward deleting expensive and useless departments with good-sounding mandates but bad results. We get that. But the public – the conservative public – rejected such notions and elected the guy that wanted to streamline the government and increase state power in an attempt to make government work properly, rather than giving up on government entirely. We believe most in the middle class want to see their government achieve results, rather than gambling that the results will happen naturally without government interference. We believe the GOP must embrace the notion of governing. One way to do that, is to let the states make decisions about education policy by handing them the money and reducing the role of the Federal department to that of balance sheet management and effectiveness monitor with a mandate to make sure that state programs are producing results and striking state policies that fail. We recognize that much of the spending is already block granted to the states – we are proposing to further shrink the Federal budget and return that money to the states with fewer restrictions on how it is spent.

B) Pass Federal Legislation Protecting the Right of Parents to Choose Homeschooling

There is a move afoot in some states to ban homeschooling – we have seen the same sort of movement in the EU and elsewhere in the developed world and it has led to some frightening limitations on liberty that no one should wish to see replicated in the US. The middle class, in particular, is interested in new and innovative education solutions including massive open online courses (MOOCs) at all educational levels and a variety of other homeschooling models – let’s get on the right side of history and liberty before we find ourselves unable to act decisively.

C) Incentivize States to Enact School Choice Laws

It is not within the appropriate jurisdiction of the Federal legislature to mandate open school choice, in our opinion, but we can encourage the states to accept that school choice is in high demand by the lower and middle classes by increasing federal awards to states that back successful public charter, public magnet, private, parochial and homeschooling alternatives monetarily and favor successful schools over bad ones in the distribution of education budgets, and by giving states bonuses that are efficient with their education funds (generate better performance to dollar ratios).

D) Back Trade Schools, MOOCs and Private Colleges with Oversight

One of the biggest problems with the alternatives to public colleges that prevent employers from giving much value to job applicants who obtain certifications and technical degrees from private technical schools, MOOCs and trade schools is that it’s the wild west for these colleges and they are under no obligation to provide a useful and quality education. Take a note here – because you will rarely see us asking for more federal regulation, but this is one such case. The Federal Government must promote alternatives to expensive public colleges to help ameliorate the growing higher education bubble and keep young people out of debt (and, in so doing, grow the future middle class). In order for us to break our addiction to student loans, we must empower high school kids to choose high school and college curricula that lead to technical certifications and trades, and we can’t do that until we can guarantee that our private and technical/trade colleges meet basic standards of educational value that will convince employers to hire people certified and degreed by such institutions. The standards need not be identical to the public system, but quality assurance should be required.

E) Encourage States to Enact Reforms that Limit Public Degrees that Do Not Produce

Here again, it would be beyond the scope of Congress to start outlawing college degree programs that do not produce expected revenue that justifies their existence – what we can do, however, is increase the available federal assistance for students who are majoring in a STEM, manufacturing, or technical field (and any other degree program with a solid history of wealth creation), decrease federal assistance for less productive or overrepresented majors, and tie interest rates to risk (a risky degree like puppetry or cultural studies should come with much higher interest rates than a STEM degree). Federal student loans should be treated like the investment they were billed to be, not like a pipeline of money that students may use and abuse to heart’s content. College degrees should improve the US economy, not burden it.

F) Pass a Law Requiring a Government Census of College Degree performance and Making Info Available Online

Openness and transparency in financial outcomes and expenditures usually has the immediate impact of change the demand for products based on rational financial decision-making. College degrees are a bit more emotional than the average investment opportunity, so having good data on which degrees are good investments and which are not will not stop bad degrees from existing, but I believe it will alter the number of students falling for them (because it will cause parents to deny their children’s requests to attend expensive colleges in order to study something that has a poor earning potential, along with making some students think twice about choosing bad or, at least, over-saturated, degrees). So require the department of education to conduct a census of colleges and universities and their various degree programs and report information such as the default rate on student loans for each school, each degree program and each combination of the two, the graduation rate, the employment numbers, and the net earnings of students (per capita) by degree program at each school. If a college degree is an investment, we should know what the investment is worth.

G) Pass a Law Guaranteeing the Right of Refusal to Parents

One more thing that Congress cannot tackle directly, but must move to address in what ways it can is ‘Common Core’. The concept of a Federally mandated curriculum is not compatible with liberty and the GOP should move to guarantee the right of all families to refuse to participate in common core and choose a different standard. This won’t help parents who are currently stuck in public schools and don’t have a viable alternative, but as GOP governors work on the problem of school choice, it will be crucial that alternative programs have the right to opt out of common core and use different teaching methods and standards.

Education is a state problem for the most part, as it should be, and in spite of efforts by leftists to nationalize and further institutionalize learning – but that doesn’t mean the legislature can’t take certain steps to lead on education policy and encourage the states to be bold and innovative o their own. Middle class families are aching for a better way forward for their children ad Congress should show that this is a priority for them as well.

Oath Keepers Protect St. Louis Until Being Disbanded By The Police They Effectively Replaced

Oath-keeper-patch-in-english

In response to the looting that has damaged numerous businesses in Ferguson, MO since last Monday’s announceemnt that former police officer Darren Wilson would not be indicted for killing Michael Brown, a group called the Oath Keepers descended onto Ferguson to protect businesses from being damaged or destroyed by rioters, oftentimes by setting up armed sentries on rooftops. Over the long weekend, St. Louis County’s police officers demanded that the group disperse.

Threatened with arrest for operating without a license, the volunteers argued but eventually left their positions early Saturday, Rhodes said.

“We are going to go back as protesters,” Rhodes said Saturday afternoon.

(…)

“We thought they were going to do it right this time,” Rhodes said of government response to the grand jury decision released Monday in the Michael Brown case. “But when Monday rolled around and they didn’t park the National Guard at these businesses, that’s when we said we have got to do something.

“Historically, the government almost always fails to protect people,” he added.

The Oath Keepers were started in 2009 as a militia-like force that advocates military and law enforcement personnel disobey orders that are in violation of the Constitution of the United States. Despite accusations of racism, they were started in 2009 by a Mexican-American, Stewart Rhodes, who graduated from Yale Law School and once worked for Ron Paul. They have dodged criticism for years and are regarded by some as extremists or domestic terrorists, though they maintain a 30,000 strong member base and are highly regarded among libertarian parts of the Tea Party movement.

I am personally sceptical of the Oath Keepers because I feel their tin-foil, Alex Jones-like views on the government are extreme to say the very least. Any group that gains traction due to the election of one man and finds common cause with the birther movement tends to draw scrutiny. With that said, I find it very hard to blame anyone locally for being very happy to see them. Whatever one’s views on Michael Brown’s killing – I was very dim on the “no indictment” ruling – the fact is that St. Louis County has handled the entire situation in Ferguson and surrounding areas in an illegal, borderline evil fashion. They instigated an already edgy populace from moment one, turning military-grade weapons on the citizens they “police” in a method of crowd control so poorly conceived it raised legitimate questions as to whether or not the police were intentionally trying to rile their citizens.

As the grand jury’s announcement approached, the mistakes continued. It was announced at 8PM CST, with advance warning and a preemptive call for National Guard support. They gunned for a fight, prepared for a fight, and then stoked a fight. Since then, the overly militarized police, and the actual military, guarded the police station but left local businesses to burn. After blaming the failure to indict a man who shot at an unarmed teenager twelve times on social media, they proceeded to protect their own stuff while totally abandoning any pretense of protecting anyone locally. The failures of the Ferguson and St. Louis County police departments are so legion, so flagrant, and so damaging that multiple people involved in them should never hold jobs in authority again. Their treatment of those doing their job for them only exemplifies what has been a clown car.

In light of that, is it any wonder that the Oath Keepers – at heart, an anti-government organization that is convinced martial law is imminent – would show up? This isn’t just why they were conceived; it proves all of their fears, all of their statements, and all of their actions to be legitimate, or at the very least to have a degree of truth to them. “The government is against the people!” isn’t just the cry of a guy who failed Western Civ; in this case, it’s a provable fact. The police in this area have shown more effort in going after football players than they have in any form of police work.

In striking down the Oath Keepers, the local authorities might have made them more powerful than they could ever imagine. I expect membership to spike, hard.

Christopher Bowen covered the video games industry for eight years before moving onto politics and general interest. He is the Editor in Chief of Gaming Bus, and has worked for Diehard GameFan, Daily Games News, TalkingAboutGames.com and has freelanced elsewhere. He is a “liberaltarian” – a liberal libertarian. A network engineer by trade, he lives in Derby CT.
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