Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Living Wage Idiocy and Free Money Experiments

IMG Auteur
Published : January 09th, 2017
658 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Crisis Watch

“Free Money” experiments are underway in several places: Canada, California, and Finland.

“Living wage” advocates are elated.

Ongoing Free Money Experiments

The alleged studies are all fatally flawed because they do not scale. It’s one thing to give a few hundred people or a few thousand people free money, but it’s another thing to scale the experiment across an entire nation.

Free Money – Dauphin, Canada Experiment

Huffington Post author Zi-Ann Lum proclaims A Canadian City Once Eliminated Poverty And Nearly Everyone Forgot About It.

The problem with superficial analysis by Lum and others is they only focus on half the equation. Yes, citizens of Dauphin benefited, but it was at the direct expense of everyone in all of Manitoba that had to contribute “free money” to the residents of Dauphin.

Were the same scheme available to everyone in Manitoba, the money would have had to come from all of Canada.

And for all Canadians, the money would have had to come from Martians.

Nonetheless, in spite of such obvious flaws, economic illiterates have latched on to the free money scheme.

Living Wage Idiocy

Reader Gary asks: Why does everyone deserve a “living wage”?

His own answer, widely believed, but easily rebutted follows: “Because without it the nation is weakened. Our nation is getting weaker. Automation will kill labor, but it will also kill capitalism. Without labor, you have no customers.”

Rebuttal

  1. If you pay people to do nothing, there will be masses of people doing nothing and getting paid for doing nothing.
  2. The globe is already overpopulated with people doing nothing productive.
  3. The necessary “living wage” would increase monthly, along with the number of people getting free benefits. Imagine giving everyone in Africa, India, and China a “living wage”.
  4. People from Africa, the Mideast and anywhere else not getting a “living wage” will all want to migrate to places paying a living wage for doing nothing. Look no further than Syrian refugees all wanting to go to Germany and Sweden because those nations offered the most free benefits.
  5. Any living wage experiment purported to have worked, didn’t. The experiments were flawed because they did not scale and will never scale.

Redistribution Nonsense

The idea that the government needs to redistribute money to make things affordable is ridiculous in both theory and practice.

Thousands of affordable home programs, tuition programs, and Obamacare prove the ridiculousness of the concept.

If the Fed and governments would just get the hell out of the way, prices would naturally find the right level.

But no! The Fed does not want prices to go down, and when prices go up, economic illiterates scream for “living wages”, attacking a symptom of the problem.

The problem is not insufficient wages. The problem is fractional reserve lending coupled with a Fed hell-bent on creating inflation in a technologically deflationary world.

Misguided minimum wages hikes, public unions, and political corruption all exacerbate the problem.

Challenge to Keynesians

My Challenge to Keynesians “Prove Rising Prices Provide an Overall Economic Benefit” remains unaddressed.

The BIS did a study and found routine deflation was not any problem at all. For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?

Anyone wishing to rebut my challenge to Keynesians also needs to address the detailed BIS study.

Meanwhile, economically illiterate writers bemoan deflation, as do most economists, central banks, and academia. The final irony in this ridiculous mix is central bank policies stimulate the massive wealth inequality all of the above rail about.

It would behoove “living wage” advocates to consider the possibility the real problem is central bank sponsored inflation, not a failure of government to provide a “living wage” to those doing nothing.

Mike “Mish” Shedlock

 

Source : mishtalk.com
Data and Statistics for these countries : Canada | China | Finland | Georgia | Germany | India | Sweden | All
Gold and Silver Prices for these countries : Canada | China | Finland | Georgia | Germany | India | Sweden | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Republicans Craft the Next Great Healthcare Failure
28 JunJ.-1
Peter Schiff's new nick name, The Nail Gun, 'cause he nailed it over and over again. Blam, blam, blam.... Every point, spot on. The last two...
Leaked Police Report: There Are 23 Muslim-Controlled “No Go Zones” ...
25 Junkevthorne1
I do not know how anyone could take an article like this seriously. It is garbage of the worst kind. 'Anonymous sources' 'unidentified leaks' - not...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
22 JunDavid C.2
Yes Mish, but bitcoin and the wealth and debt burdens of the world are fully backed by electrons which are very light. Unlike that 68 ft glob of m...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
23 JunDynoman0
Valuable potential is what's currently offered by digital currencies. It makes absolute sense to have a global digital economy based upon borderles...
Absent Without Leave
21 JunS W.
Bail ins for sure. It was agreed at the G20 in Brisbane. You are not really a share holder. You are an unsecured creditor to the bank a...
Absent Without Leave
19 JunJ.3
Perhaps all the international shenanigans are the smoke and mirrors intended to obfuscate the view of the looming financial catastrophe. When the ...
Gold Price Cuts Post-UK Election Loss, ETF Investors Sell, Nasdaq D...
16 JunSam Maher
"the SPDR Gold Trust (NYSEArca:GLD) – saw its sharpest liquidation since March in the week-ending Thursday, with shareholders cutting the fund's si...
Things To Come
13 Junkevthorne3
If voting for 'parties' actually made a difference they would have not legalised it. Since 1914, it's been the supply of currency that has governed...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS