Do you honestly think the government can legislate wealth? Can they somehow, with the stoke of a pen, make everyone rich? When you say it that way it seems ludicrous but the President seems to believe it. He doesn’t seem to understand the relationship between unemployment and minimum wages.
I just came across a perfect real life example that illustrates what happens when the government tries to legislate wealth. My friend Jeff just posted this on Facebook. “My job was cut from 40 to 25 hours a week so that my employer will not have to pay health insurance due to the (UN) Affordable Health Care act. My insurance went up $100 so that the IRS can enforce the (UN) Affordable Health Care Act. Thank you Mr. President.” So this is how the government “helps” the poor through legislation… cut their hours and raise their taxes.
In today’s article Jeffrey Tucker gives another example from his experience.
The Basement Beneath the Wage Floor
There are certain sounds that tend to make people crazy. Think of nails on a chalkboard. An infant screaming nonstop on a long flight. A piercing whistle that won’t go away.
Now we need to add another: a U.S. president who thinks he can legislate high wages into law. For anyone who knows the basics of economics — not distorted by a bogus central-planning mentality — hearing this is like torture. It’s painful. It makes you crazier and crazier until you finally want to yell, “Make it stop!”
This is how I felt when President Obama said the following:
“Let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. This single step would raise the incomes of millions of working families.”
Why stop there? Let’s also declare that everyone should make $9,000 or $9 million per hour. If all that stands between us and total riches is the word of a president and an action by Congress, let’s get on with it!
Does Obama really not get what’s wrong with this approach? I’ve long disagreed with him, but I’ve never really thought he was ignorant. But even from the earliest interviews I’ve read, he does seem to have a tin ear on economic topics. He doesn’t seem to get where wealth comes from. He doesn’t seem to understand how prices work. And now we can be certain that if he understands how wages work, he isn’t willing to let on. [Read more…] about Minimum Wages vs Unemployment
Thankfully, there is a solution to this worry that ensures you can meet your bills and maintain your current standard of living should you be made unemployed through no fault of your own.
Purchasing a home has long been a big financial undertaking. For many, the thought of a looming home loan becoming more and more swollen with interest over the next 20-30 years isn’t exactly the most alluring aspect of having your own hearth to decorate each holiday. In short, it’s a decision you can drag your feet to make; combine that with the fact that the market is currently tipped in favor of buyers who have more time and reduced pressure to find a quality, affordable home without fear of their options disappearing. In this buyer’s market, families looking for a new home know they have the luxury of more and better options when it comes to financing and overall home prices and they’re taking their time. According to CNN Money, home prices are down on a national average of 34% (although 
