BlutoSays wrote:I want you to explain to me the ramifications of forcing an arbitrary wage by fiat. Not what you THINK happens, but what actually happens when the business or the larger economy can't support the wage you want.
I want a pony! And?
If the new min. wage is implemented by creating a new Federal Job Guarantee Program, then the unemployed will be earning $25/hr doing socially useful work. My seat of my pants estimate is that this is 3 times as much as they are getting on unemployment now.
All this extra money is flowing into the local economy to support small businesses. Then small businesses can pay $26/hr for their workers.
Because this money being paid to the HGP workers comes mostly from selling bonds, it is adding to the national incomes without reducing incomes like a tax increase does. That is, people can't buy things in the economy with the money they paid in taxes. But, I'm positive Bluto is so deep in his imaginary fantasy world and info bubble that he can never grok all this.
On this site I have also called for laws to keep businesses from increasing prices beyond their costs to suck up this money. My suggestion was to "graduate" the corp income (aka profit) tax, and have a excess profits tax too. I would have 99% corp profits tax on profits over 1/3 of amazon's current profit, to make it break itself up.
Today I also called for protectionism to isolate the US economy from competition from low paid foreign workers like Pres. Washington did in the 1780s.
Today I also called for more aid to poor nations in the form of grants, not loans. For example, the World Bank could give a "grant/loan" where the nation only needs to pay back 10% of the total at 1% interest. The Fed, ECB, BoE, and BoJ, etc. would just give money to the World Bank to do this.
I have also suggested that international corps be taxed on their revenues paid to them in the US with the only deduction being wages paid to Americans in America. The rate might be around 3%, but I'm not sure what it should be. The intent with this is to make them pay on what they earn in the US, and not let them use bookkeeping tricks to move the profits to Ireland.
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