Living wage

Can you just increase peoples wages and the economy will remain stable? In this opinion piece we will compare the policies of the America democrats against what have lead to people no longer earning a living wage like they did just a few generations back.

Factors contributing to the drop in living wage throughout all western countries: Tax, Inflation vs wage increase, stock dividend, credit, monopolies, woman entering the job market , single vs couples, Imports, Immigration, Farming,cost of energy, availability of money, effects of rising the minimal wage and Housing.

Tax

Tax is a vital part of government, the leaders needs to paid for the work they are doing, intel agency are needed to protect the nation against threats, law enforcement and the fire brigade are needed to keep people safe, rubbish need to removed to prevent disease and to protect the environment, the military is required to protect the nation against bad actors and so on. There are 2 types of tax, Governmental Burden Tax: Tax which takes wealth out of the country, like paying off loans to other countries or for projects in other countries like the, so call green initiatives. This type of tax decreases the wealth of a nation, because it send money to other countries. Governmental Social Tax: The you have local Tax where the tax funds citizens, who spends the money in the local economy. Ideally a Government should have zero Governmental Burden Tax, all tax collected should return to the local economy, keeping the wealth with in the nations borders.

Tax over a period of decades, continued to increase. This is how tax drops the value of wages: Tax on business force companies to increase there profit margin in order to stay in business, or to relocate their business to a tax friendly country. In option 1 the cost of living increases, option 2 deceases the job market leading to more job seekers then jobs, which leads to lower wages. Both of these has happened in the USA, killing blue collar jobs.

Sales tax or VAT (value added tax) increases the cost of goods and service, decreasing the purchasing power of each individual. The citizens whom are the most effected is those with low income wages, because they had less purchasing power to start with.

Income tax or wealth tax decreases the amount of money citizens have to spend, which means they can purchase less good and services.

As you can see above all types of Tax contribute to people not earning a living wage, but the Tax that has the most devastation effect, is Governmental Burden Tax. Governmental Social Tax although it lowers the value of wages creates local jobs, which can help to increase wages and reduce the cost of living caused by tax. Good examples of how Governmental Social Tax helps to increase wages is a two year military serves for 18-20yr old’s, during apartheid, this help the South African government to build a first world infrastructure, and strong economy even thou the country was under sanctions. This is because the government created Jobs which the local economy can not create it self. There is money in healthcare, education and middle to high income housing, and that mantel can easily be carried by the business section, and historically it was. In the historic past most skill training was done by business not collage nor university. People would leave school at 16 and learn on the job. The GenX parents was the last generation who could find a good paying job, even thou they never finished school. If one goes even future back into history, you would find that children use to work at the mom and pop store, when they grew older they will either take over the mom and pop store or start a new one of their own using the knowledge they learned from their parents. There was no collage debt to concern themselves about, a big problem in the United States of America today.

Inflation vs Wage increase

Inflation is created in one of four ways. 1) Availability of credit. The easier it is to obtain credit, the more expensive goods and services become. Example: the US government offered student loads to make it easier for young people to go to collage. This availability of credit resulted in education becoming 13 times more expensive over a 40yr period, while household only earns 3.5 times more money. Supply and demand. The demand for education increase which increased the cost. 2) Tax. As seen above tax increase the cost of goods and services. This is inflation, although most government economist will say its not, because they do not want people to associate Tax with inflation. The fear is that the population will use it as a argument against the government raising the Tax rate or introducing a new Tax. limiting the governments ability to collect more money from the population, for what ever new socialist, international or local improvement goal they are pursuing. 3) Printing Money. Printing money on its own does not create inflation. Printing Money leads to inflation in 1 of 2 ways. a) When the debt that is connected to the money that is printed, has to be paid by the Tax payer. b) When more money is printed then the amount of money that is requested by the economy. In other words, when the supply of money exceeds the demand for money. Central banks uses interest rates, to keep the supply of money in control. Its possible that in the distant future if civilization as we know it survives, will create digital currencies, according to population growth. Since debt is a big problem in todays society, it not out of the realm of possibility that it will be done away with in the distant future.

Stock Dividend

Back when Generation X was born, most business was not on the stock market or owned by companies listed on the stock market. It was mostly mom and pop stores. If the business made more money then expected, it would in many cases be paid out as a bonus. These bonuses was normally during the Christmas period, basically a Christmas gift from the employer to the employee. This resulted in the last financial quarter of the year being the most profitable, and resulted in the biggest economic growth period though out western countries.

Today all the extra money made, no longer goes to employee, a big portion is now paid out to stock holders and investors, reducing low income earners year end Christmas bonus.

Credit

The availability of credit drives up demand which leads to higher prices and reduces income, as now you have to repay that credit at interest. In some western countries the interest on the loan to purchase a item over a set period of time is almost the same as the cash cost of the item you bought. In a study we conducted in 2018 in a western country we found that you could buy a fridge, freezer and washing machine in cash for the same cost as a fridge on credit.

In the USA, the government offered student loads to make it easier for young people to go to collage. This availability of credit resulted in education becoming 13 times more expensive over a 40yr period, while household only earns 3.5 times more money.

There are now cases where people are working to pay off debt, not to improve their own lives or the lives of their children, but only to survive. What is the use of rising someone’s wage, if they will only end up paying off more debt, instead of living life?

Monopolies

A monopoly is a business or investment firm which controls the market place and has little or no competition. This allows the business or investment firm to set the cost of goods and services, back politicians financially, who will pass laws to, increase their choke hold on their section of the economy (this is also know as economic fascism), engage in staff training programs to push a ideological goal, like DEI or Critical race theory, (Both those are racist, sexist and more importantly factually incorrect we attended 3 such courses at international USA based companies, during our research.) and most importantly decreases the middle class by preventing more business owners from opening competing businesses.

Monopolies control the pricing and supply chains of goods and services, and can increase the cost of living at will.

Woman entering the job market

During the time period when GenX was born, woman entered the job market, resulting in the term latchkey kid. Another contributing factor was divorce. Logically divorce increased as husbands was spending more time with other woman at work and wives was spending more time with other men at work then they where spending time with each other. This is one of the reasons that we suggested a 6.5hr work day, 6days a week and a weekly family day.

When woman started to enter the work place, the supply of workers increase, resulting in lower wages. Before this time a working husband could support a stay at home mom and 12 kids. Now it takes a working mom and working dad to support just 2kids. One of the contributing factors was, a larger work force, legal shorter working hours, can flip it back and reduce the work force supply removing one of the contributing factors.

Single vs couples

Before Generation X was born, the west had a single based economy, which means a single person who earn a living wage. Allowing mom to stay home and raise the next generation. After Generation X was born, their parents created a marriage based economy, where it requires 2 people to earn a living wage. This created 3 problems:

1) Divorce: Children that come form broken families is more likely to engage in criminal activity, this increases insurance costs, which leads to less profit for business and less money for households. It increases the amount of money the government has to spend on legal fees and jails, which in return leads to more Tax, which its a form of inflation, which decrease the value of money.

2) Children raised by a village and not parents. “It takes a village to raise a child” is a communist saying from Africa. Before Africa was colonized by the west, it had a communist like social structure. This is one of the reason, that Africa did not develop, like Europe and Asia which is connected to them by a land bridge. It has been proven over and over again, with out significant out side investment, communist countries does not develop. Even thou western Africa, traded a estimated 1/3 of the worlds gold to the middle east and north Africa during the 12th century, they still did not develop, all of that wealth in a capitalist country would have made them one of the most develop regions in the world for centuries, but yet because of the communist nature in Africa they never developed. During the 2020 pandemic lockdowns parents for the very first time realist what the village was teaching their children. They never knew their kids where being brainwashed with leftist ideology, because they where never home to see what the children was being taught.

3) Single parent poverty: It has made it difficult for a single person to earn a living wage. Once you increase the fix minimal wage, businesses start to struggle. This is not true for a flexible minimal wage, but not all employment opportunities can offer a flexible minimal wage. for more on minimal wage types click here. When a fix minimal wage is increased, businesses would either close down or they will increase their profit margin to pay higher wages. Which results in less jobs and more inflation.

Inconclusion the only way we can uphold the modern day woman rights and have a living wage, is to encourage marriage, and shorten the working hours. In this regard religion most specifically Judaism and Christianity, can play a big roll as it encourage marriage. Logically shorter working hours will decrease divorce increased as husbands will not spend more time with other woman at work and wives will not spend more time with other men at work then they are spending time with each other.

Imports

The only way you can protect local producers who pays higher wages, from products produced in countries paying low wages is to tax them. Currently that does not happen and the entire west is flooded with cheap products made in China and India. India has a capitalist economy and can join the west, if they pay a living wage.

Immigration

Immigration increases the amount of job seekers. Supply and demand. More workers less pay.

Farming

Farming has only became a big contributor to the value of wages dropping since 2020. Food is the heart of any economy, the more expensive food becomes, the more difficult it becomes to grow a economy. Food supply is currently lowered by war, climate and green initiatives. Russia and Ukraine are major food producers and was at war when this opinion piece was written. Climate always changes, but indoor farming can be used to eliminate climate from the food production equation, but as yet no large scale indoor farming projects. “Green initiatives”, as they are called is reducing food production by banning the use of fertilizer, and attempting to ban animal products, that could lead to the extinction of some domesticated animal species. They also trying to make bugs a protein source, which needs more feed then current farm animals to produce the same amount of food. They also trying to ban real meat for lab grown meat which does not have the same nutritional value and the nurturance needed to absorb the nurturance it does have. Lab grown meat will also be in the hands of a select few, creating a monopoly.

All of this is contributing to people not earning a living wage.

Cost of energy

The more you have to pay for energy to travel or to use at home, the less money you have to live life. The current “Green Agenda” is pushing the cost of energy up, making the goal of having a living wage, even more difficult to reach.

At the moment the only way to have affordable energy is to switch to nuclear, until we have found a better energy source. More on energy source can be found by clicking here.

Housing

The lack of low income housing is driving up the cost of living. There is not much money in building small houses or flats for the poor. There is a lot of money in middle to upper class housing. Thus developers will focus on building only housing for those sections of society and they will limit their projects to maintain a high profit margin. You can learn more on low income housing by clicking here and here Population growth targets

Availability of money

You increase the supply of money by “printing more money”

Printing money on its own does not create inflation. Printing Money leads to inflation in 1 of 2 ways. a) When the debt that is connected to the money that is printed, has to be paid by the Tax payer. b) When more money is printed then the amount of money that is requested by the economy. In other words, when the supply of money exceeds the demand for money. Central banks uses interest rates, to keep the supply of money in control. Its possible that in the distant future if civilization as we know it survives, we will create digital currencies, according to population growth. Since debt is a big problem in todays society, it not out of the realm of possibility that it will be done away with in the distant future.

Effects of rising the minimal wage

When a fix minimal wage is increased, businesses would either close down or they will increase their profit margin to pay higher wages. Which results in less jobs and more inflation. For more on minimal wage types click here.

US Democrat policies vs the factors that creates low wages

Tax – the US Democrat is the party of local tax. The republicans signed a agreement not to increase local tax

Inflation vs Wage increase – the US Democrat is pushing for a minimal wage increase, but they are not pushing to tax countries with low wages whom exports to the US. In fact in a recent state Kamala Harris said import tax will lead to inflation, which is true, but no import tax leads to job loses and low wages.

Stock Dividend – the US Democrat has no plan on capping stock dividend payout, to be fair no US political party does. It was only mentioned once as far as we know on Fox News.

Credit – the US Democrat has no plan on limiting credit, but to the fair no-one does. Neither do they have a plan to refers the inflation it created in the education system. This issue was discussed mostly by the UK Reform party.

Monopolies – Under the US Democrat rule Google was declared a monopoly, at the time this opinion piece was written no action was taking. However other monopolies like Meta, Blackrock and so on has as yet not been taken to court. In fact investment groups like Blackrock are seldom declared monopolies, due to the limited format of what constitute a monopoly. The US Democrat has not show any sign of updating the legal definition.

Woman entering the job market – This can not be undone. the US Democrat however as far as we know have not put any plan forward to decrease working hours to counter the effect woman had entering the job market.

Single vs couples – Single woman is a big voting block for the US Democrat, so its not surprising that members of the democrat party is pushing DEI, Critical race theory, telling woman they do not need men, pushing abortion, pushing sterilization, puberty blockers, sex education for kids, gender affirming care for children, sexual orientation education for young kids, and so on. All factors that contribute to woman staying single.

Imports – the US Democrat has no intention on taxing any imports.

Immigration – the US Democrat wants to cap immigration to 8000 per week. Considering how many came in under the democrat government it should be zero for the next few years and as explained immigration helps to reduce wages, they do not increase wages.

Farming – the US Democrat supports the green agenda

Cost of energy – the US Democrat supports the green agenda

Housing – Kamala Harris said recently she wants to give people $25 000 to buy a house and build new houses. The $25 000 will increase the cost of housing, the new houses would mostly likely not even cover all the immigrants her party allowed into the country. In other words she is handing money out to developers while making live more expensive.

Availability of money – the US Democrat and the US Republican is known for printing money.

Effects of rising the minimal wage – with out addressing the issues above, raising the minimal wage will increase inflation and possibly crash the entire economy.

Conclusion

There is no way the American lower class will ever have a living wage under the US Democrat as soon as they increase the minimal wage, all the other factors mentioned here will drive the cost of living back up above the new minimal wage. In the end US made products will be so expensive that the USA will no longer be able to export anything.