Friday, July 24, 2009

Flipping on Crack

A Crack in my Windshield, I Had. And this morning, while taking my car to repair this offending spidering welt, weird voices came from its radio. The Nation’s Minimum Wage went up today to $7.25/hour, the voices said in unison. Some praised, the need for Burger Flippers to get a living wage. Others castigated it for limiting the numbers of new Burger Flippers to be added to our Nation’s Economy.

A Crack and Flippers. Great – They’ve all Flipped-out on Crack. Don’t they all know that raising the minimum wage has nothing to do with Burger Flippers, and all to do with padding the pockets of the Labor Unions? You see, most labor wage contracts are predicated on the Minimum Wage as a factor upon which the pay scale is based on.

Say, the United Auto Workers set their wages as a factor of “X” times the Minimum Wage. For example let’s say that they get paid 2.5 times over the Minimum Wage. Minimum Wage is raised from $5.00 to $6.00

Old Wage: 2.5x5.00=$12.50
New Wage: 2.5x6.00=$15.00

But here’s the kicker, thanks to the magic of multiplying factors, a raise in Minimum Wage leverages the pay-raise for Union Workers. Under this scenario, our government has mandated that their pocket liners labor union members are all mandated an additional $2.50 raise from private industry, for every dollar Minimum Wage raised.

And that’s what has me Flipping on my Crack. In this economy, the cost of labor has just shut-up for everyone wishing to hire someone. With real unemployment close to 15%, do not expect for companies help bring it down anytime soon.


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