American Elephants


Democrats Care About “People Like Me.” by The Elephant's Child

obama photo -op

When people express their political preferences, at least according to the polls, they identify the Democratic Party as the one that “cares about people like me,” or “cares about little people,” or “ordinary people.”

Republicans are apt to react to that with jaw-dropping astonishment. Isn’t it obvious that they couldn’t care less, that all the caring speech is just a pose? Well, no it isn’t, and that is a problem for Republicans. It’s pure politics.

President Obama had an op-ed in the Las Vegas Sun this weekend that really demonstrates the problem. And it may well be an essay that represents his sincere thinking. Democrats are not inclined to investigate the economics of a policy, nor consider carefully the unintended consequences. Politicians like to describe their ideas in prose that will make what they want to do as appealing as possible, so you can’t tell what Obama really believes by reading what he says.

“Honest work should be rewarded with honest wages” — whatever that means—if anything, sounds good, but just what is an “honest wage?” He continues: “That certainly means that no one who works full-time should ever have to raise a family in poverty.” And that is true. No one who works full-time at the current federal minimum wage of $7.25 an hour qualifies as being “in poverty.” The poverty level for an individual in 2014 is $11,670.

It is meant to be a “starter” wage for a person with no real skills, and that’s why it’s not worth much. The low-skilled need training. The majority get a raise within six months, as they become trained workers who know what they are doing. The federal minimum wage differs from the prevailing minimum wage in some locations, and states too have “minimum wages.”   The minimum wage where I live is $9.25 an hour. Seattle is debating raising the minimum wage to $15 an hour.

The president’s proposal would raise the federal minimum wage from $7.25 to $10.10 by 2016 in three annual steps. Republicans argue that this will kill jobs, because if government boosts the cost of labor, employers will buy less of it, and it will do little to reduce poverty. The CBO estimates that the higher minimum wage would reduce jobs by about 500,000. Wage increases would raise the incomes of families in poverty by about $300 annually.

Robert Samuelson says: “An administration serious about job creation has to sacrifice other priorities to achieve it.” The CBO has estimated that the health insurance subsidies in ObamaCare will discourage people from working resulting in a loss of an estimated 2.5 million full-time workers by 2014. There are choices. For the most part the White House has voted against job creation, a fact that it tries to hide. The proposed increase is much larger than most of the increases that have been studied, and the minimum would be indexed to inflation, rising automatically with prices. Also new.

The minimum wage has a great advantage as a political idea. If employers are forced to pay a  “living wage” then no one will live in poverty. Low-information voters and reporters will go for that. Easy.

ObamaCare has been eliminating full-time jobs right and left, and transforming them into part-time jobs. A mandated minimum wage set at a level above what unskilled labor is worth, eliminates jobs. Teenage unemployment is now at 20.7 percent, black teenage unemployment is a horrendous 38 percent. The average family income of minimum wage earners is $48,000 a year. Raising the minimum wage accelerates the trend to automation and robotics.

If you can. go back and read the president’s op-ed and see how appealing it is, and how dishonest. That’s a major problem for Conservatives.

The picture above is Obama’s photo-op comforting Donna Vanzant, whose North Point Marina sustained widespread damage in Hurricane Sandy. Obama promised her “immediate” assistance, help from FEMA, and the photo went viral in the days before the election. Donna Vanzant suffered around $500,000 in damages. After his visit, and promise of help on national television, Donna Vanzant sent an email to President Obama. Many days later, she got a response—a form letter that thanked her for supporting the troops—the only response she ever received.  The exit polls after the election showed the vote for Obama’s second term depended mostly on his compassionate response to Hurricane Sandy.




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