If Democrats Really Want to See Wages Increase....

Every good New Hampshire Democrat knows that the best way to have an immediate impact on jobs and the economy is to increase the cost of doing business.  Making it cost more to run a business acts like a tax on the business owner, and Democrats love taxing business.

Enter HB127, An act relative to the state hourly minimum rate.

Rep Tim Horrigan and admitted socialist Peter Sullivan (New Hampshire Democrats), are unsatisfied with the machinations of the Federal government in the value of labor relative to the task at hand and are certain that they know better, not just than their Federal master in D.C., but better than every employer and employee in the entire Granite State, what any hour of labor is (at minimum) worth.

This is an annual affair and every year we have to revisit why Democrats trying to raise the hourly rate is actually a tax on the business owner who must absorb that expense by reducing other costs or by raising prices-passing the labor tax on to you.

If you'd like a nuts and bolts math-based explanation, go here.  NHI contributor Rick Barnes has composed an excellent article that explains the costs of meddling with the cost of labor.

Or, we can go with my observations on Jan 1st, 2011 when Democrat Mike Brunelle proposed a minimum wage increase.

Take 2011-H-0239-R for example.  Mr. Brunelle would like to raise the minimum wage.  But this is a hollow populist act with a real world consequence.  It reduces opportunities for unskilled or under-skilled workers seeking or trying to retain entry level positions.  It adds to the cost of goods and services.  And it increases joblessness, which is a cost borne by taxpayers through unemployment benefits and the loss of economic activity.

How about this for a narrative.  New Hampshire Democrats want to raise the minimum wage to help offset rising electric rates resulting from Democrats forcing RGGI on electricity generators?

Ha!

All you need to know is that when Democrats meddle in the market everyone suffers and the opposite happens.  Every time.

Raising the minimum wage above the current Federal rate will do exactly the opposite of that which Democrats claim for raising it.  Instead of making more take home pay many employees will simply work fewer hours, pay higher prices, or have a harder time even getting a job.

Raising the minimum wage will make it more difficult or teenagers and under-skilled workers to get work.  Learn-while-you earn begins to lose it's value when the State forces employers to pay more for entry level jobs. Where the employers had previously been willing to use their own money to train new entrants to the workforce, artificially inflating the value of that labor makes doing so less cost effective.   It is more cost effective to look for and hire more experienced, older workers, who will take less time to train, mitigating costs associated with a longer learning curve.

And isn't this just the best time ever to make it harder to find work?

Artificially increased labor costs will appear in the cost of goods and services detracting from the point of raising wages while reducing commerce and--ironically--generating less tax revenue for Democrats in Concord.

What?  Oh yeah.  All the factors Democrats rely on for revenue will be negatively affected by forcing labor costs up.

If Democrats really want to do something to increase wages might I suggest that they simply cut business taxes instead?

Over time business owners will use that savings to grow their business and it can attract new businesses and more jobs.  Employers can use tax savings to offer more products or services that attract more customers.  More customers allows them to hire more people.  Greater demand on the labor pool pushes wages higher all on its own.  Entry-level wage rates will go up all by themselves--with the employer still paying freight for teaching job skills when needed.  Existing employees will find themselves getting raises sooner or more often.   Employers will have the option of providing better wages and benefits to those qualified to earn them.  And all while keeping prices stable or possibly driving them lower due to increased competition, all of which will...eventually bring in more revenue to Concord.

Raising the minimum wage will attract fewer new businesses, reduce job opportunities, retard expansion, limit choices, decrease hours, lower benefits, leave youth and unskilled workers unemployed, stagnate the labor pool, increase the welfare burden, increase the cost of goods and services, increase the cost of living, and result in less revenue in Concord, requiring them to insist on rising taxes.

Is that why Democrats like the idea so much?

 H/T Richard Barnes NH Insider

You are reading  "If Democrats Really Want to See Wages Increase…"   by  Steve Mac Donald originally posted at GraniteGrok.com (Home)

Steve has been recognized as the Americans For Prosperity Blogger of the month for December 2012

Laying Some Pipe

The Democrat controlled Senate had the opportunity to create jobs, generate growth, add some tax revenue, and did I say create jobs?  But Harry Reid couldn't bring himself to get the Keystone XL Pipeline project approved before the recess.

According to Human Events-Capitol Briefs (Print edition), the pipeline is a $7 billion dollar project, fully funded with private money.  (That might be part of why Reid is in no big hurray.)  The Project would create and estimated $20 billion in new spending while it created 120,000 jobs and added 200 million in state and local taxes.

Workers would lay 1600 miles of pipe from Canada to Texas.

Private sector jobs, economic growth, no cost to taxpayers, and more tax revenue to states and local municipalities.   

Harry Reid and the democrat controlled Senate just had to work out the schedule and push the start button but Reid can't manage get to it.  Instead the Senate is on summer recess until sometime in September.

It is a sad but predictable outcome from the leaders in the democrat party who still control what gets done (and does not get done in) our nations Capitol.  The White House is not interested in the bill so Reid is doing what he has continued to do since November 2010.  He is using the Senate to shield Mr. Obama from having to deal with anything that might make him look bad in the run up to the election.

So do not expect those  120,000 jobs to be created with rich people money.  Forget about the boost to local economies and increased tax revenue from more domestic commerce.   Instead of getting oil from an ally like Canada, since we still can't seem to find a way to drill our own, well get it shipped in on giant diesel powered tankers, across our pristine oceans, and trucked across the fruited plain to refineries.  While we're a it, lets make sure we keep giving as much of that money and commerce as possible to people likeHugo Chavez of Venezuela.

We can call it the Obama Plan for American Energy in-Security.

Note: If you contact NH Senator Shaheen to ask her position, Greene Shaheen will probably tell you the following:" Canadian oil is more corrosive and there is some concern that it would corrode the pipes and cause a catastrophic spill." 

This is the Green Lobby talking point.  They also say, according to the electronic version of the article, that US oil is less corrosive.  (Wouldn't it be great if they let us drill for some of that?)

Human Events

Audrey Hudson

Obama/DNC Announce New Jobs Program

To Help Americans better understand President Obama's Jobs Program VII - The Return of The Laser Like Focus,  the Democrat National Committee has released this image for the DNC/Obama "Ladder to Success" jobs program.

Ladder to Success is a Department of Labor initiative to keep America moving.  The subtle implications of the hamster wheel as indicactive of your future on the government dole were dismissed by the Administration as nothing more than regurgitated rhetoric--talking points handed out by Rush Limbaugh, the voice of the Republican Party.

The man pictured, Benjamin Dover, has exhausted his 199 weeks of unemployment and is currently one of the record number of citizens relying on government hand-outs like welfare and food stamps for their livelihood.

As part of the work for the future "Ladder to Success' program, participants can earn sanctioned "extras" like 30 minutes of additional heating or cooling in their Government funded Community Environment Luxury Living (CELL) accommodations,  in any given month after enough credits have been accrued, pursuant to the Department of Energy Standards and limitations for Household Environmental Management rules, and only if they have commited to six hours per day of kinetic perambulatory engagement with the Manster wheel,  at least five days per week, over the required contract period, without days missed in excess of the minimum participation agreement.  This particular wheel powers the automatic, low volume flush toilets at Obama's new National Labor Relations Board -Ministry of rules administration for left handed albino homosexuals in work-place crisis.

The credits can also be exchanged for wood chips, or time to deploy a semi-porous retractable covering over the manster wheel in the event of inclement weather or other unanticipated rooftop conditions.

Installation and maintenance of the wheels, is said to have created or saved over one million union jobs, which party officials insist has absolutely no relevance to a marked increase in union campaign donations to Democrats and the Democrat party of close to 300 million annually. 

Mrs. Obama has gotten involved as well, dovetailing her anti-obesity "Let's Move" initiative with the new 'Ladder to Success' Program, providing fresh vegetables from the White House Garden ^TM (WHG) to participants during work hours.  Bits of carrot and celery, broccoli sprouts, and fresh lettuce leaves, as well as water are hand fed to program participants by public union employees from Homeland Securities new Division of Domestic Motion Enforcement--The Department of Sustenance for A Stronger America (DDMEDSSA).

The Agriculture department and DDMEDSSA estimate that The Garden will continue to yield produce for the millions of Americans the Administration hopes to eventually "place" in the Ladder to Success program, despite the drought conditions in (redacted) where most of the WHG vegetables are actually grown.  A spokesman for DDMEDSSA claims there will also be plenty of opportunity for Photo-Ops with the First Lady, Jillian Michaels from the Biggest loser, and Jared from the Subway commercials, handing fresh WHG produce to grateful participants as they climb the Obama Ladder to Success.

But the benefits to the nation don't stop there.  Health minister Kathleen Sibelius, and the CDC, in a joint report designed to encourage participation in Ladder To Success, noted that the program should improve health outcomes for obesity, saving the taxpayers 245 trillion dollars over ten years.  Not mentioned, however, was a DHHS memo released the same week requesting 245 billion per year in budget increases, for pain killers, knee braces, other orthopedic devices and even crutches.  Inside sources would not confirm if their was any relationship between the program and the new budget request.

Not pictured is this image, but critically important to the initiative, is a small flat panel television, affixed in a weatherproof enclosure, on which participants must watch MSNBC for the duration of each shift.  This has improved the networks otherwise abysmal ratings and while not everyone was thrilled by the programming limitation at first, most participants agree that watching this programming has made the work in the wheel seem less tedious by comparison.  Their is also general agreement that the networks ad campaign, Lean Forward, has served as a helpful reminder to maintain a proper forward body position during their shift, and is a suitable synonym to describe their new working relationship with the Federal Government, Bend over.

Officials claim that they should be able to put every American back to work with the Ladder to Success program, while reducing dependence on foreign energy, noting that simply letting the government tap their labor directly in exchange for services controlled entirely by the federal government was easier than Democrats continuing to pretend that anything anyone else earns is or has ever actually been theirs in the first place; or that they are capable of knowing how best to invest their labor output in the economy to achieve a proper socialist utopian superstate.

Authorization and administration details for the program are available in a 56,000 page report with links throughout to the 245 thousand page rule book used by relevant departments to administer the program. All documentation complies with the Reducing The Paperwork Reduction Act.

Note: The administration continues to defend program waivers given to Democrat women, illegal immigrants and non-conservative African Americans.  Spokesman with DoJ have indicated that they will use anti-bullying legislation and anti-discrimination suits against the misogynists, racists, and anyone fomenting misleading attacks by the right wing tea-party terrorists and those who want to take women's health back to the 1700's and redistribute wealth to the richest Americans.

Photo Credit: Stephane Mahe, Reuters/ USA Today Travel

 cross posted

There's Been An Uptick In Interest In New Hampshire

From the mouths of state bureaucrats, or more specifically that of Michael Bergeron, a business recruiter for the State Department of Economic Development:

There's been a general uptick in interest in New Hampshire, I would say since late-February," he said.  Certainly more people are looking than last year."

The quote comes from a front page story in this mornings Union Leader, Thanks Globe; New Hampshire couldn't have said it better.  (You have to go to page A4 of the dead-tree edition to find the quote, third paragraph from the end in the digital edition as well.)

The UL article explains that the Boston Globe ran a front page story on Bergeron, characterizing him as a thief for encouraging companies to move northward.  The problem appears to be that pesky New Hampshire advantage is responsible for that uptick in interest.

It is an advantage which gets even more pesky for the socialist tax-and-spend New England states when New Hampshire has a Republican majority in power that is committed to avoiding debt, reducing spending, and cutting back the size of government.  They are cutting taxes and fees and looking to further improve a business climate to make Mr. Bergeron's job even easier.  And the long term signals are that we no longer intend to commit to the democrat party plan to spend first and  add debt and taxes later; debt the business community and its investors and risk takers are always forced to pay; investors and risk takers who are maligned and scorned by the class warfare left.

Remove that threat and the investment will come bringing jobs and growth with it.

Mr. Bergeron, by the way, is the state level equivalent of a business head-hunter.  As far as I can tell, he visits companies in other states who might be convinced that New Hampshire is a better place to set up shop.  The GOP is clearly making New Hampshire more appealing to business.

And businesses create jobs.  Jobs, even the lowest paying jobs, provide people with an opportunity to increase their own economic freedom.  A paycheck empowers you, makes you feel better about yourself and it presents an opportunity for upward mobility.  If you work hard you can advance, take your learned skills to better paying jobs with more opportunity; you can go as far as your personal drive and desire for a better lifestyle can take you; that is something that the government welfare state can never offer you.

The obvious lesson is that being more like Massachusetts, the trajectory that New Hampshire's democrat party was and is committed to, is not more desirable for business and job growth and thanks to Mr. Bergeron we have more evidence of that.

 cross posted

New Hampshire Got Jobs!?

How about some jobs?  New Hampshire is reporting an April unemployment rate of 4.9%.  I don't have the exact numbers but using previous months figures as a guide this should be the result of both another slight increase in workforce population and a shift from the unemployed column to the employed column.   This is unlike last year when the initial "improvement" we saw was actually the result of workforce decline--people had stopped looking or receiving benefits and dropped out of the equation.

This is encouraging given the national employment numbers; we are also still best of breed in the North East, though Vermont is not too far behind us.  But the bigger news id that John Lynch was so excited he blamed low taxes.

"The reason New Hampshire is outperforming virtually every other state is because was have a successful economic strategy in place. New Hampshire is one of the most business-friendly states in the nation, with the lowest state taxes, and we must continue to follow the principles of our strategy if we are to continue moving New Hampshire forward.

Former Democrat house Speaker Terie "Billion Dollar Deficit" Norelli must have puked in her mouth when she read that.  Low taxes? She just spent (literally) the past four years digging us into a billion dollar deficit so democrats would have an excuse to raise taxes.  The damn voters screwed that up by showing the tax and spenders the door, though for how long is anyone's guess.  People who have jobs have short memories.

But for now we have the lefts only toe hold on power--small toe that it is--announcing that low taxes stimulate job growth.  Maybe Governor Lynch forgot but we watched him sign off on dozens of taxes including business abuse taxes like the Tent, and LLC tax to name just two. 

Did he forget that the Republicans were the ones trying to keep the taxes low all along?

That's something we can never get tired of hearing.  Republicans are for low taxes.  Low state taxes help create more jobs. There.  It's etched in Granite.  Thanks Governor Lynch.  We agree. Now how about you get with the program?

 Also available on the Grok