Thursday, June 24, 2004
John Kerry would force America into another recession
This comes right out of the Wall Street Journal, one of the foremost sources and authorities on the economic and financial situation: John Kerry's policies would throw many poor people out of work.
In fact, the logic is so basic I don't even need to quote the article. If you raise the minimum wage as Kerry wishes to do (to $7 per hour), that doesn't mean that people who are now getting just $5.15 will suddenly be making $7 and prospering. In most cases, industries and businesses and corporations will decide that the employees making $5.15 aren't worth keeping at $7... and so will fire them. So the end result will be the for many, many poor people, instead of their wages going up as a result of the minimum wage being increased, their wages will decrease to the absolute minimum wage: zero dollars per hour.
What's the lesson in this? The government cannot control the economy. Only the market supply and demand can control the economy.