In last nights State of the Union address President Obama made a case for raising the minimum wage from $7.25 per hour to $9 per hour. The wailing and gnashing of teeth on the internet this morning was pathetic. “It’s an invisible tax”, “We’ll have to lay people off or go out of business!”, “It will make inflation skyrocket!”, “If those people want to be paid more they should get an education!”. I am here to say an unapologetic BULLSHIT to all of these, but more importantly to address the issue of what wages should be in a capitalist economy and how they should be set. But first I want to address each of these claims individually. Read More
A fundamental problem with using the word “capitalism” is that it has come to be associated with the idea of “favorable to big business”. For this reason large corporations proclaim their love for “capitalism” while simultaneously, intentionally or not, doing everything in their power to subvert its basic principles. Also for this reason, those who are not happy with what they, sometimes correctly, see as bad behavior on the part of large corporations, loudly rail against the evils of “capitalism”. One is just as wrong as the other. I argue that capitalism is not necessarily favorable to big business, in fact if fairly applied, capitalism would never result in the large mega-corporations we see today nor the influence that they have on our economy and government.
Lets forget all the rhetoric about ObamaCare, socialism, and death panels for a minute and think about designing a health care system from scratch. What should the goal of the health care system be? Ultimately that goal should be to produce the best health, for the most people, at the least cost. Before dismantling our own health care system it would be wise to evaluate how it performs in relation to those goals. Read More