Last Sunday night, January 12, on John Stoessel’s program (Fox News), income inequality was discussed. Bob Beckel, a liberal, was one of the panelists. He wants the minimum wage raised to $15 per hour. Here is my take on the topic.
First, I believe in a free marketplace. Free enterprise is now, always has been, and will remain the growth engine for the American economy. It’s the ticket; the less government intervention the better. There are too many people who look for government to help them get along in life instead of trying to do it themselves.
Income inequality is a byproduct of the free marketplace. The market places a value on your services. It rewards those whose services are deemed to be more valuable, who persevere and have a commitment to improve themselves. There are CEOs of companies who command large salaries in comparison with company workers who command much less. Many people complain that this is not fair. But the shareholders of the companies, who own them, elect the directors who set the salaries of the officers who run the company, and if the company is going in the right direction and is profitable, the directors have the right to compensate those who are responsible. Conversely, if the company is not profitable, the directors have the right to make changes in the company officers. Decisions by the directors are approved or disapproved as the case may be by the shareholders. This is the way it works in a capitalistic, free enterprise economy.
I have attended many business opportunity meetings where people from all backgrounds have provided information as to their successes. People from all races, religions, ethnic backgrounds, and both sexes have testified as to their commitment to success. These folks make huge amounts of income but they got there by perseverance and dogged determination.
Bob Beckel argued that raising the minimum wage is the answer to income inequality. But I suspect that he has never run a business. It has been reported that 92 million people are out of work today, an historic high. How many more people would lose their jobs if the minimum wage was raised? How many employers would decide that cutting payroll is the only answer to rising labor costs, or that part time workers would be less expensive than full time? How many businesses would fail because costs of operation are too high? How many prospective new businesses would be thwarted because of increased labor costs? Increasing the minimum wage when so many people are out of work is not going to put them back to work. Increasing healthcare costs for businesses is not the answer either; this will only add to the current economic woes.
This is not to say that some government intervention in the economy is not necessary. Business can grow too big making some government regulation appropriate. Monopolies in restraint of trade are not in the best interest of economic growth. Neither is abuse of workers. Moderation is the key.
The current economic malaise is the result of an incompetent and inexperienced administration in Washington. A strong and growing economy with a vibrant work force would put more people to work and result of a better living standard for everyone. I think that’s the best answer. There may not be complete elimination of income inequality but I don’t think that’s possible under any system except communism. And if you think those folks living under communism are happy, take a look at conditions in North Korea and Cuba. Ask those folks what they think of their standard of living.
As I have emphasized before, work to improve your writing skills. Clear writing skills will go a long way to increase your earning ability, lessen income inequality, and improve the skill set of the work force. More skilled workers in the workforce will help improve the economy, so improvement of your writing skills will benefit yourself as well as the country. As President Kennedy said at his inauguration in 1961, “Ask not what your country can do for you, ask what you can do for your country.”
All of the clear writing techniques and guidelines discussed on this blog are available in one place in my book, “The Art of Clear Writing,” available on amazon.com/kindle and in print.
Copyright © 2014. Arnold G. Regardie. All rights reserved.