Some individuals are finding the attempts of Progressive Liberals to increase the minimum wage extremely offensive, stating that it will be a job killer. To understand this, we must look at some very difficult historical events. Inflation, deflation, and the good old standby rationalization that going off the Gold standard is the cause of all of these problems.
The Gold standard was a dying financial system long before Nixon took us off it. The Gold standard was a failing financial system by virtue of the worlds population. The number of people on earth verses the amount of gold on earth doomed the gold standard way back in the 1700’s. There are currently less than 9 grams of Gold for every person on earth. Making the Gold standard a physically impossible financial system.
In order for the Gold standard to function, there are 2 basic conditions that absolutely must be present and in effect.
1) Physical Gold must be in circulation as a currency.
2) Gold must have a arbitrarily set value.
You cannot hold the Gold in reserve represented by a symbolic transfer agent. The second that you do that you are engaging in fractionalized banking on a national or even international scale. This automatically makes the currency far to volatile to be employed as a currency.
Gold cannot be traded on any exchange for the same reason as it automatically allows any nations currency to be subjected to outside or artificial manipulation. (Think George Soros and the Bank of Scotland only several orders of magnitude worse).
Moreover, you cannot dilute the percentage of Gold in the circulating currency, as that also constitutes fractionalization and will automatically result in massive manipulation of international currencies.
Those opposing the minimum wage hike are failing to address what the minimum wage hikes really amounts to, or the reasons that it is taking place.
It is one thing to oppose a minimum wage hike from a knee jerk position that it will result in massive job losses. But simply making that argument without addressing why the left is demanding a minimum wage hike fails to address the issue or its inevitable consequences.
I’ll make this simple. Minimum wage hikes are the inevitable consequence of 2 physical realities. 1 is runaway hyper-inflation, the other is the inescapable consequence of runaway hyper-inflation, its evil twin sister as it were, the deflationary spiral.
Minimum wage hikes are the physical and indisputable evidence that you are in a deflationary spiral. Just as are negative interest rates.
Most people not only cannot understand the math involved, they can’t even be bothered to try. Here is an analogy for inflation. Take a chess board, (64 squares on it) on the first square, place a single grain of rice, on the second, place 2 grains of rice… double the number on each proceeding square. By the time you get to square 64, the weight of the grains of rice, is greater then the weight of the planet earth.
In short, it only takes a couple of decades of inflation before no matter how much currency you have in circulation, everyone except the 1% of the top 1% of the wealthy are stone cold broke. It takes $24,000.00 in 2016 to have the same purchasing power that $1000.00 had in 1913.
The minimum wage hike is an attempt by the progressives to keep the hyper-inflationary system which allows only the hyper wealthy to retain any wealth functioning. It straight up amounts to a deceitful form of currency devaluation.
Since the industrial revolution, the true monetary standard is and has been based on the value of one hours labor for an unskilled labor. Let that sink in as you contemplate the information revolution.
Quit thinking “But hey,I’m educated, or I am a skilled worker”. You do not have any education or job skills that cannot and are not right this second being handed off to automated systems. You are obsolete, redundant, no longer needed except as a end consumer.
You worry about the impact of a minimum wage hike for unskilled or semi skilled laborers, when what you should be worrying about, is why can’t those unskilled or semi-skilled labors earn enough to pay their bills. You should be worrying about that, because you, like them, do not have any skill that cannot and are not being replaced by a worker who neither needs nor cares about getting paid for their labor.