Tuesday, February 17, 2009

The Mind of the Obama Follower does not understand that Tax and Wage Increases on Business Hurts The Middle Class

A few weeks ago I caught a radio program that had a caller that said to the host, "One of the solutions to our economy is to increase wages across the board so that people can have more money in their pocket."

The host carefully explained to the caller how, with increased wages comes an increased cost of doing business. With the increased cost of doing business will come an increased price of products. So, in the end, as the cost of everything goes up, the wage increase loses its benefit.

I realize this is not typical of people to believe such idiocy. After all, this is a largely center-right nation that abhors the idea of worsening the economy any worse than it is. But there are a great many folks that actually think as did this caller. They think about what is on the surface, or what fits their bill the best, or what will help the wallet the most directly in the short term, but they never consider the long term ramifications of such actions, or decisions.

Wages, like taxes, are to a business owner just another cost of doing business. Large corporations will survive the increase of wages and taxes, for the most part, by simply passing the increased cost on to the consumer. So, with increased minimum wages, or wages increased to a "living wage" as the liberals call it, you may be making more in your paycheck, but in the long run, it will all catch up to you in the higher cost of goods, services, and so forth.

Small businesses, however, are destroyed by higher taxes and wages. And small business is the link between the wealthy, and the middle class. Although large corporations create a great number of jobs, move goods, and are essential to our economy, the small business is the life blood of our economy. And this is where the majority of the product and services movement in our economy comes from.

To increase taxes on the wealthy is to increase taxes also on these small business owners too. And to increase wages is to increase their cost of doing business. In more instances, than not, that will put the small business owner out of business; thus, destroying the link between the wealthy and the middle class, as well as the one opportunity you and I have of making a better life for ourselves through our own endeavor in the business world.

Isn't opportunity one of the things this nation is supposed to be all about?

Not any more, apparently, unless it is an opportunity to hold out your hand for a check from the all-powerful and all-controlling government.

No comments: