The MSNBC headline: Obama: 'Millions of jobs' in danger next year, but there's not a word about the almost 10% rise in the so-called minimum wage slated for the summer of 2009.
He noted turmoil on Wall Street, a decrease in new home purchases, growing jobless claims and the menacing problem of deflation.That implies that the president-elect seems to be aware of one negative side-effect of the so-called minimum wage: it tends to increase unemployment. The reality is that there has always been, is now, and forever will be a minimum wage of $0. This minimum wage will be paid to more an more American workers as they queue up for unemployment benefits. Meanwhile, companies will invest in capital that improves productivity and reduces labor costs (ie: results in layoffs).
"I will need and seek support from Republicans and Democrats, and I'll be welcome to ideas and suggestions from both sides of the aisle," he said. "But what is not negotiable is the need for immediate action."Of course he'll reach across the aisle. He doesn't want accountability when he can blame the Republicans. As for "the need for immediate action"... I'm glad to see that the president-elect has learned that expanding government power a la the $700 billion bailout need not benefit the country to benefit our betters in Washington!
"We have acted boldly, bravely, and above all, together," Obama said. "That is the chance our new beginning now offers us, and that is the challenge we must rise to in the days to come. It is time to act. As the next president of the United States, I will."That's it? That's the end? Not a word about government regulation, slated to go into effect Jul24, 2009, that will increase unemployment? There's talk of a "deflationary spiral", but never any explanation of what that is. No indication that the real value of the so-called minimum wage has been rising the past couple of months; no acknowledgment that the real value of $7.25/hour will drive up unemployment.