Minimum Wage… President Obama, where does the extra $3 come from?

It’s a very honest question, but my guess is nobody – not one person – will dare to ask President Obama when he arrives at my alma mater on Wednesday. When you arbitrarily increase the minimum wage one, two or three dollars per hour, where does the money come from?

On Feb. 4, Gov. D.P. Malloy (D-Conn.) put forward the notion of a $10.10 state minimum wage. He says phasing in the increase over three years will “move as many people as rapidly to the middle class as we can.” Malloy’s lieutenant, Nancy Wyman said the change “will not put any kind of burden on our employers and it will start to really help those people that work the hardest.” Got that?

  • You people who make $20 per hour don’t work as hard as those making minimum wage,
  • there will be zero burden on employers, and…
  • the result will be to move people “rapidly” to the middle class.

Hail the utopia! But the same question must be asked of Malloy and Wyman. Where does the money come from?

I know where the money comes from, and I’ve written about this multiple times. When you raise the minimum wage one quarter from the current $7.25 federal minimum, that’s a payroll increase of at least 3.5 percent, and for a small business with 20 teenagers working 20 hours a week in the summer, that’s “only” $100 per week, or $433 per month.

But where does it come from? Businesses can and will end up doing a combination of the following.

First, they are going to see if they can increase prices for their goods and services. Of course, you can’t blindly increase prices as a result of higher costs, because demand is changed by price. It would be nice if you could tell customers your price is higher because your costs are higher and they buy anyway, but consumers make decisions on price, quality and service. You’re not guaranteed they will buy, and some will go elsewhere.

Of course, higher wage costs for low-wage employees effects those making more than minimum wage. Union pay scales are based on a minimum wage. If the minimum goes up, everyone’s wages go up. When consumers are paying more for goods and services, isn’t a portion of their wage increase flowing right out of their pocket for the higher prices? That’s what we call inflation don’t ya know? Nobody wins.

Second, the business owner can take a look at their own salary. Some will certainly be willing to take a cut in pay and hand some of it over to employees, but business owners have bills to pay and a retirement to plan for too. Remember, the entire sales pitch from Obama, Malloy and other Democrats is people making minimum wage are not being treated fairly by business owners, and the government must step in to solve the issue. That theory ticks me off to no end.

That $433 per month (or whatever) could be money the employer planned to use to expand their business through a variety of means. Maybe now they won’t do that? Maybe they wanted to start increasing the staff from 20 to 22 to 24 to 28 to 40? Maybe they wanted to increase hours and make more employees full time? Maybe that won’t happen now?

Third, they have to look at the value of the employees they currently have on staff. If the minimum wage goes up – let’s say from $7.25 to $10.10 like Obama did with a stroke of a pen for federal employees a couple of weeks ago – can the business owner get a higher quality employee for $10.10 as compared to $7.25? We know they can. You might be worth $7.25 per hour to the business, but you might not be worth $10.10. If you’re not, you get laid off and replaced by someone with more experience.

Fourth, they look at their total payroll. Can a business owner cut the payroll costs of those making minimum wage and get the salaried employees to pick up the slack? Give more hours to the more experienced employees making more than minimum? Would the business owner be willing to step in and work more hours? Would it make sense to open the business at 10 a.m. instead of 9 a.m.? Those are all real-life examples of what small business owners look at!

Finally there is benefits. What benefits are necessary? What benefits are mandated? What benefits can be cut? Those training programs small employers offer employees to improve their value to the workplace costs money, and a small business might just cut the funding for training and development of employees.

That’s where the money comes from, and it’s an honest evaluation. What good comes from those changes? If you claim more money will allow you to contribute more to the economy, get a nicer apartment for your family or maybe buy a home, you totally missed the point of the previous seven paragraphs. Let me make it clear, if you don’t think there is a connection between the rent you pay and the minimum wage, you’re head is buried in the sand. By no means is it a one-to-one connection, but when a landlord or property management company is mandated to pay a higher wage to employees and contractors, your rent goes up.

Got that?

The left’s argument is specific to “raising people out” of poverty, and that it’s impossible for a family to earn “a living wage” when they only make minimum wage. Pulls on the heart-strings does it not? Yet, they know it’s not that simple, and they refuse to discuss where the money comes from, and you should know why.

Don’t let emotion rule the day. It’s an election year, politicians want to hand out candy for votes. Don’t be a low-information voter. Share this post with someone who thinks the minimum wage will improve the economy for individuals and start a conversation.

All of a sudden, gun control legislation is a race for Connecticut’s Malloy

When Connecticut Gov. D.P. Malloy (D) formed his task force on gun violence prevention early in the year, the governor set a deadline of March 15 to deliver preliminary reports with suggestions. Now Malloy wants to ignore the working groups and push his own legislation through immediately.

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Amazon will collect Connecticut sales tax starting in November

For those of you who have been purchasing stuff on Amazon, ensuring you track all of your spending so you can properly pay your Connecticut Use Tax, we have fantastic news! Later this year, Amazon will start collecting it for you and pay the state so you don’t have to do all the work!

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Connecticut Republican Legislators Gearing up for November 2012

Like the federal budget the state of Connecticut’s debt keeps rising.  At the time of this
writing the states debt is  $40,629,690,000+ and rising despite tax hikes and new taxes
levied on services such as pet grooming, hair cuts.

The states debt clock can be found here:

The Connecticut Republicans are now asking
“Can you afford more of the tax and spend policies pushed by Gov. Dannel Malloy and majority Democrats in Connecticut’s legislature?”

In the latest video post by the CHRCC  (Connecticut House Republican Campaign Committee)
points fingers at just who the leaders of the Democratic Controlled Legislators are and who followed them down the
path of increasing taxes.

As the state of Connecticut faces another year of deficits, unemployment and a bus-way to nowhere you really
have to ask yourself , “Are our state leaders really listening to its citizens?”

You can watch video here:


Union schemes and scams: notes on the forced unionization of daycare workers and health aides.

Driving home tonight, I had some thoughts on today’s announcement of the unionization of Connecticut daycare workers and personal care attendants for the disabled and senior citizens:

  1. Did all 6,200 care workers actually receive ballots?   Were they alerted about the importance and arrival of the ballots ahead of time?
  2. Did they all know that it only took a majority of the RETURNED ballots to trigger a union?
  3. Who counted the ballots?
  4. Did they know that the legislature refused to vote on this due to the uproar raised by the recipients of this care?
  5. Do they know that their dues will siphon about $2.5 million away from their incomes, directly deducted from their  Care 4 Kids state reimbursements?  Directly from the mouths of children directly into the coffers of SEIU 2001, which effectively means laundered and delivered for Malloy’s next election?

Consider how easy it would be to fill out ballots “for” people that were supposed to receive them in the mail.  Consider how easy it would be to make the mailings look like junk mail so they would be missed.  Consider how easy it would be to mobilize a mere 1,600+ people to vote for the union (they recently pulled their stealth scheme in Wisconsin and Michigan, and they are perfecting their deviousness with the aid of complicit politicians.  Is it any wonder that they hate Scott Walker so much!).  Consider that this is the most unAmerican, unpatriotic thing I have seen the Democrats do in a while.  To wit: how different is state sponsored and required membership in a union from state sponsored and required membership in a particular religion?  Think about it.  State sponsored and enforced participation in what should be elective activity is unconstitutional, immoral and unfair.

One has to wonder if Malloy would be equally quick to issue an executive order to make Connecticut a “right to work” state?  I think not, given his incestuous relationship with the unions.  When the unions control, and in this case, own, their alleged employer, or that employer is essentially hired by the employees, what happens to the adversarial relationship that unions and employers are expected to have?  It merely demonstrates why public employee unions should be, at minimum, highly restricted in their economic or political relationship with the administration.

This is merely a sneaky implementation of “card check”, which is a sleazy, smarmy, unAmerican way to coerce workers to join unions who may not want to otherwise.  Right to work, secret ballots and free choice are the antithesis of the modern union.  It makes you wonder why the so called “Democratic” Party would embrace organizations based on such thuglike, undemocratic tactics.  The bottom line: would unions have to hatch all of these deceptive schemes if people were clamoring to be in a union?

These indentured union workers should take a page from the unions and go on strike.  From SEIU and their lickspittle lapdog, Dannel (formerly known as Dan) P. Malloy.

Document Drop – Connecticut governor releases layoff numbers to meet $1.6 billion in cuts

This afternoon, Connecticut Governor Dannel Malloy’s (D) office released their suggestion to lay off about 5,466 state employees and leave 1,000 open positions unfilled.

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Chris Christie to Dan Malloy: I got the job done. How ’bout you? Video

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Thanks Connecticut – Amazon terminates associate contracts due to tax law interpretation

Connecticut is open for business! The Democrats have had their greedy hands out since they took control of both the state legislature and the governor’s office. Today, thousands of Amazon associates living in the Constitution State received notice Amazon was terminating the agreement they had with them effective immediately.

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Malloy To Hospital CEOs: ‘I Know You All Want More of My Money’

This is what I live for. This is why talk shows are successful. This why Democrats are on the ropes. Well … except in Connecticut. From Bless her heart. Read more

Connecticut budget – Spend more, tax more … maybe some cuts

The State of Connecticut’s leaders feel it is appropriate to spend even more money during the next couple of years. No cuts at all. The budget Gov. Dannel Malloy (D) proposed increased spending almost 2 percent and 2.4 percent over the next two years. Sure, they are going to try to get state employees to give $2 billion up …

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