Tuesday, October 28, 2008

What would a gallon of milk cost under President Obama?

Raise the Minimum Wage to $9.50 an Hour by 2011: Barack Obama and Joe Biden believe that people who work full time should not live in poverty. Even though the minimum wage will rise to $7.25 an hour by 2009, the minimum wage's real purchasing power will still be below what it was in 1968. As president, Obama will further raise the minimum wage to $9.50 an hour by 2011, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers can earn a living wage that allows them to raise their families and pay for basic needs such as food, transportation, and housing - things so many people take for granted.

Barack Obama and Joe Biden's Plan

Milton Friedman, 1976 Nobel Prize winner in Economics, called the minimum wage one of the most "anti-negro laws" for what he saw as its adverse effect on black employment.

So then why would Obama want to do that did he fail economics? Perhaps The One knows that the poor and uneducated don't understand the full impact of another minimum wage hike but would vote for him under false hopes of a "raise".

I told a friend not long after the minimum wage was raised that before we got to the final adjustment to $7.25 an hour we would see $5 a gallon of milk. I chose milk just to keep it simple. When the minimum wage was $4.25 name brand whole milk (red top) was $2.99 a gallon. A few months ago I called him from the store to tell him I was buying a gallon of red top for $5.02. It is possible to argue that some of the increase is due to the high price of diesel fuel and the effects of the drought last year on dairy farms but those factors were no alone in this. The same could be applied to just about any other staple. So if you follow Obama's plan of $9.50 where does that leave milk?

How about this scenario: you took a minimum wage entry level job a few years ago and have now moved up to $10 an hour. Suddenly here comes President Obama and now the new hires are making $9.50. Will your company increase your wages? Doubtful that would happen. Now suddenly you were 4 steps up the ladder only to find yourself back on the 2nd rung. As the cost of goods and services go up with the minimum wage suddenly your budget just got tighter.

Who is Obama helping here? Only himself to get elected.

We have not even touched on those seniors living on a fixed income or the job losses that would surely come with this.

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