Category Archives: The Nanny State

The Minimum Wage Lie

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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

Self-Ownership, Voluntaryism , and the Non-Aggression Principle as Explained in 2 Videos

In the course of an election year, its very easy to get caught up in the minutia of the various campaigns and election year issues. This is not to say that these issues are trivial; there were very many issues this election cycle which deserved the attention they received.

That said, I tend to think that immediately after an election is a perfect time for reflection. What is it we believe and why? What are our first principles and are we communicating these principles effectively?

I’ve read from various places that we are coming close to a “libertarian moment” or perhaps one is already underway. I do not know one way or the other to what extent this is true but I find that because outlets like Salon, Slate, and Alternet of the Left and a few anti-libertarian outlets on the Right are spending so much energy trying to convince their readers that such a moment isn’t happening quite encouraging. If libertarian ideas were not gaining at least some momentum these outlets would ignore us as in years past.

Of course these outlets do not make any effort to portray our ideas accurately. Its almost as if they go down the list of logical fallacies and hope their readers won’t do any independent research.

So what are the first principles of libertarianism then? This is a very big question, one which libertarians will often disagree. My view is that the first principles are self-ownership, voluntaryism, and the non-aggression principle (fellow TLP contributor Chris Byrne has a slightly different take worthy of consideration).

The videos embedded in this post do an excellent job illustrating these principles, especially for people who are not very familiar with them. The first video, which I have shared on various other occasions, is called “The Philosophy of Liberty.”

Pretty simple right? Share that video with your friends who get their information from Salon. They may still disagree and say that individuals should be looted taxed to promote social justice and egalitarianism but at least they will be exposed to these ideas.

This second video by Stefan Molyneux called “Voluntaryism: The Non-aggression Principle (NAP)” is slightly more advanced taking NAP to its idealistic conclusion (Molyneux is an outright anarchist and makes no bones about it on his podcasts).

Is this all Utopian pie in the sky? Perhaps. Humanity has a long way to go before we can begin to think about beating swords into plowshares. But this does not mean that we can’t each do our part to move in this direction. Upon closer examination, what it really boils down to is following the Golden Rule, only resorting to violence defensively and as a last resort. This principle remains true whether the issue is foreign policy, local policing, or your own home.

Denver Post Editorial Board Responds to Pot Halloween Candy Paranoia With Common Sense

Supposedly, Colorado parents have a ‘unique challenge’ this Halloween. You see, because enough Colorado voters were bamboozled into legalizing pot for recreational purposes in 2012 (in addition to the already legal for medicinal purposes), now parents have to worry about cannabis laced candy in their trick-or-treat bags. There have even been products made available to test questionable candy of the presence of THC.

The editorial board of The Denver Post’s response? Perhaps parents should be checking their little goblin’s candy anyway.

[T]his year should be no different for parents, who should always employ common sense on Halloween. Throw out any unwrapped candy and inspect all packaging before letting your kids gorge on treats.

If the package looks suspicious, tampered with, torn, unwrapped or in unfamiliar packaging, throw out the candy. That should be the same message every year.

Wow, how hard was that? The board also points out that these ‘edibles’ aren’t cheap. The example they use: a package of 10 pot laced gummy bears retails for about $27 before taxes. Who is really going to be that motivated to spend that much money to get strange children high? I suppose it only takes one to start a new wave of ‘Reefer Madness’ circa 2014*.

My bold prediction: there won’t be even one reported case of a child receiving pot laced candy in Colorado.

*Maybe a bit conspiratorial on my part but who would be more motivated to give children pot laced candy, those who are in favor of its legalization or those opposed?

Ebola: Saving Life As We Know It, But Not You Specifically

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As the first U.S. citizen remains forcibly quarantined over Ebola fears, now seems a good time to revisit the role of government in our lives. Some so-called “conservatives” seem to have undergone a sudden evolution to the position that it is the government’s job to keep us perfectly safe from all risk.

One cannot help but wonder, is this their new position on guns as well?

One person has died in the U.S. from Ebola.

We lose 32,000 times that many every year to guns. Is there no cost too high, no civil liberty that cannot yield, in the quest to defeat that risk?

What about cars?

In 2012, 92 people died every day in automobile accidents. How many civil liberties can be ceded to protect us from death-by-car?

Anyone who thinks there is no cost too high to pay to keep Ebola from tarnishing the pristine lands of America is a statist in sheep’s clothing.

The government’s job is to preserve Life As We Know It. To do that, it does not need to save you, specifically. And it certainly does not so direly need to save you, specifically, that it should declare marshal law and shut down global travel.

In the years since 1976, the U.S. has lost between 3,000 to 49,000 people per year to influenza. By my math, that means we could lose another 48,999 people to Ebola this year and still not suffer much impact to Life As We Know It.

But you know what would impact Life As We Know It?

Massive losses in wealth due to travel bans, “aversion behavior,” quarantines and fear.

For example, Michael J. Casey, writing for the Wall Street Journal reports an interesting study about the effects on the global economy of a flu pandemic:

One study led by U.K economists that modeled the global economic fallout from a hypothetical influenza pandemic predicted only a 0.5% GDP loss from the base effect of the disease itself but up to 8% due to policies intended to mitigate its spread, such as school closures.

Think about it. Tourism to and from Africa ceases. Tourism between the U.S. and the rest of the world slows. Hotel rooms sit empty. Restaurants close early. No one rides the bus or takes taxicabs. A lot of people who would otherwise be working—and spending—are quarantined for weeks at a time. Equity indexes fall. Shares in travel firms dive alongside companies heavily invested in Africa. International financial institutions with interests in the region take a hit. The prices of iron ore and oil rise.

Your job might cease to exist. Your retirement account might be wiped out. The value of your house might plummet.

Is there still no price too high to pay when it is clearer that it will be you who must pay it?

However distasteful it might seem, the government must weigh the lives saved against the cost (in both dollars and civil liberties sacrificed) of saving them. Just like the Federal Reserve has a conflicting dual mandate to maximize employment and keep prices stable, the government has a conflicting dual mandate when it comes to Ebola—to protect us from Ebola and to protect the worldwide economy and our civil liberties from collateral damage in the fight to stop Ebola.

Take heart, gentle lambs.

Just because it is not the government’s job to spare no cost keeping you safe, does not mean you cannot make it your own priority. Disabuse yourself of the notion that only the government exercises any control over the big stuff, the important stuff, the dangerous stuff. You are free, all on your own, to spare no expense keeping yourself safe. Wash your hands more and touch your face less. Drive your car instead of using public transportation. Start prepping.

Stay home from work, like you think all those returning aid workers should.

Well go ahead.

You first.

Sarah Baker is a libertarian, attorney and writer. She lives in Montana with her daughter and a house full of pets.
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