Filed under: Capitalism, Domestic Policy, Economy, Regulation | Tags: Obama Regulations, Overtime Pay, The Way Things Work
When President Obama is not busy with annoying problems of national security and terrorism, he will soon grant millions of workers overtime pay. Just a quick signature with his executive pen. Obama just does not understand how business works. He had, according to his biography one brief job in the private sector as sort of a copywriter, which he hated.
Businesses that pay salaried workers less than $455 a week currently have to pay overtime as well. As a result, many companies, Obama says, are “skirting basic overtime laws, calling somebody a manager when they’re stocking groceries and getting paid $30,000 a year. He wants to raise the threshold to $50,400, which he says will make 5 million more workers eligible for time-and-a-half pay.
Journalists praised Obama’s generosity because he was going to “bring overtime pay to millions,” which assumes that businesses who are employing these newly overtime-eligible workers won’t change anything, they’ll just start paying them time-and-a-half. Journalists don’t understand how business works either, unless they specialize in business or economics.
If those workers weren’t getting a market wage, and were underpaid, given their skill levels and the work they’re doing, they’d get another job. The Left has a view of economics that involves vicious managers who are raking it in, and almost enslaving poor workers who desperately need the benevolent hand of government to force companies to pay them a fair wage.
So in an economy where so many are out of work, businesses are hurting, Obama will fix things by insisting that everybody raise workers’ pay. And he’ll issue more regulations. Some companies will make sure that workers don’t put in overtime, or ban overtime completely. Or they’ll bring in more part-time workers to avoid the wage hit, or perhaps they’ll just lay off some people. Or maybe they’ll just raise their prices, forcing consumers to pay for Obama’s generosity.
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