If there is a Republican wave building momentum heading into the 2010 election, our state GOP caucus seems intent on doing everything possible to sink its own ship. First they kicked off the session with a parade of tentherist nonsense, and now they’re repeating Dino Rossi’s single biggest mistake from the 2008 gubernatorial election by introducing a bill that would reduce Washington’s minimum wage.
I mean, are they stupid, or what?
Yeah, sure, the last thing our state’s families need in the midst of this crappy economy is a cut in wages, but that simple logic aside, as a political strategy, this bill is just plain dumb. Voters overwhelmingly approved our current minimum wage statute via a citizens initiative, and it was Rossi’s public support for the notion of reducing the minimum wage that proved a turning point in the election, and provided Gov. Gregoire with one of her most potent political attacks.
As long as Republicans continue to stick to this losing strategy, it’s hard to imagine them seriously threatening the Democrats’ legislative majorities.
Actually, I don’t think this bill is very radical, at least not on its face (but see below; you can’t take anything at face value where Republicans are concerned).
Nominally speaking, Washington’s minimum wage is already pegged to inflation, so pegging it to deflation is, on its face, simply the flip side of the same coin (but see below). It’s not as crazy as, say, reducing the minimum wage to $2.13 an hour or making waitresses hand over their tips to the boss. In a deflationary scenario, wages buy more, so a reduction in nominal wages equal to the fall in prices doesn’t reduce a worker’s purchasing power (but see below).
The introduction of this bill does raise a couple of questions, though. We know Republicans are continually trying to squeeze more work out of workers for less pay, so the first question you want to ask is, What are they up to? We know the CPI can be (and, in fact, is) manipulated; so, maybe they think a future Republican administration could effectuate a cut in real wages at the bottom of the wage scale by manipulating the CPI index to show deflation when in fact there’s inflation (been in a grocery store lately?). In any case, anyone who trusts Republicans needs his head examined.
The other big question you should be asking is, Are Republicans expecting deflation? Their economic policies, if they won the 2012 presidential election and implemented them, certainly would produce deflation (and another Great Depression). They can’t not know this, at least their think tanks can’t, so maybe they want a depression? This bill certainly makes it look like they’re planning for one.
The stock market is having another triple-digit down day on the heels of yesterday’s decline — last time I looked the Dow was down 222 points. I’m doing okay; the overall market is down over 2% but my portfolio is down only about 0.5% today, so I’m doing 4 times as well as the market. I sold some of my most exposed stocks yesterday, and two others on my “sell” list are both up today, so I’m holding onto them for now. My broker and I disagree on whether this is the start of the correction; he doesn’t think so, but I think it’s Already Here. I’m in good shape; most of my holdings are now in high-yield blue chips that don’t fluctuate much and I have a large cash hoard with which to buy cheap stocks. As for gold, it’s getting whacked another 10 bucks today, on top of yesterday’s double-digit freefall; Cynical should’ve bought guns, ammo, and survival food instead of gold. I feel sorry for his goats; they’re facing a long, cold, horny winter while Klown mopes in his cabin crying into his coffee.
Social Security and minimum wage are both pegged to the Consumer Price Index, and Republicans hate both SS and minimum wage, so the temptation for a Republican administration to manipulate CPI data is irresistable. And we all know how little respect GOPers have for truth, and how willing they are to fix data around policy. If you’re a Social Security pensioner or a minimum wage worker, think about that before you vote in 2012.
I guess voters response to initiatives is the new litmus test, huh Goldy?
So, this is why you’re calling your local representatives and telling them to leave Eyeman approved initiatives like tax raising and car tabs alone…..
It’s well to keep in mind that low interest rates produce asset bubbles, so you would be wise to assume the current stock market is at least a mini-bubble on top of last year’s 60% market rise, and all bubbles pop. Only safe stocks are safe bets right now. Speculative stocks and momentum stocks are dangerous as hell at this moment. I don’t like growth stocks (because there’s no growth) or consumer stocks (because consumers don’t have money), either. I also think popular perceptions of how much the GOP’s stock has risen since yesterday’s election are grossly overrated.
The GOP is riding a bit higher right now, but any increase in the GOP’s apparent fortunes has to be regarded as a bubble, when you consider the underlying fundamentals.
@4 Initiatives may be passed by voters, but the legislature is elected by voters, too. Initiatives can’t be quickly adjusted for changing conditions, so the people who pass initiatives expect their legislators to do that job.
Nice. So minimum wage for actual working folks should be cut. But banking CEOs should have NO limits placed on their profits or bonuses after getting billions in free tax payer money.
This is beyond tone deaf.
#4 True. I love how one election supposedly is turning everything. As if the country has wildly swung in the exact opposite directions from 12 months ago. Politics does shift, but not THAT fast. Obama was in office about 2 months when I heard the first lunatic talking about ‘taking back’ the country. Uh dude, we just DID…2 months ago! Even now, 12 months later. NO major changes in our lives from the way it was under George W. Bush (same EPA, NSA, same gay marriage laws, same abortion laws, same tax rate, same gun laws), but the lunatics out there act as if our country has totally changed and we need to do something. Uh, the reason most of the Obama voters stayed home in the Massachusetts election was BECAUSE we haven’t changed YET….because Obama hasn’t implemented any of the liberal ideas he said he would and got elected to do…oh well.
Odd how, being a Democrat, Goldy is so obsessed with Republicans…
Odd how, being an wingnut asswipe, Lost is so obsessed with Goldy and the progressives here on HA.
This will obviously fail, but wow if this isn’t a supreme act of pure political petulance and “Look at me!” naivety.
i can’t keep up with which party is committing suicide today. i blame the bloggerz.
The parties of Tweedledumb and Tweedledumber?
It seems more like the Democrats are committing political sepeku! I can even see a GOP majority in WA legislature by 2013!
Washington Republicans are hardly even worth making fun of any more.
The financial press are saying that today’s big 200+ point drop stems from president Obama’s proposal to regulate banks. I find that hard to belive, given that it’s just a statement from teh president with no legislative action whasoever beiond it.
I think it is a continuation of yesterday’s drop in the wake of Scott Brown’s election. Our investor community, I surmise, are selling both because health insurance reform is further imperiled and also because the outlook is now worse for other Congressional action on urgent issues.
14 Crusader
You see, we’re not awfully worried by people who can’t spell seppuku. Use words you know.
ANd Obama won Washington state in 2008 by 17 points. We have two multi-term Democratic US Senators, and a two-term Democratic Governor who succeeded a two-term Democratic Governor. The most populous county in the state by far has a Democratic County Executive who succeeded a Democratic County Executive. The Pierce County Executive is also a Democrat.
So which legislative districts do you predict will flip from blue to red and what data do you have to support your view? Because if you can’t answer that you’re just pulling things out of your teabagging, wishful-thinking ass.
@17…so what your saying is that this state is under the control of Democrats and has been for a while…ok then – I guess we know who to blame for our state’s budget implosion.
Thanks for clarifying that.
perhaps its time for some REAL change in WA state.
“[T]he labor-market consequences of graduating from college in a bad economy have large, negative and persistent effects on wages. Lifetime earnings are substantially lower than … if the graduate had entered the jobs market in good times.” — Business Week, citing academic studies
http://www.businessweek.com/ne.....lower.html
Roger Rabbit Commentary: Speaking of stupid Republican tricks, cheap labor conservatives persist in peddling the myth that “working hard” is how you get ahead, and rich people deserve their money because they “worked hard” for it.
That’s bullshit.
As the above quote illustrates, success is a lottery. Simply graduating at the wrong time can ruin your prospects for life, even if you worked hard and did everything right.
Most of tomorrow’s rich will be children of today’s rich. The best predicter of how well you will do is who your parents are.
Work doesn’t make money. Money makes money. Working hard doesn’t make you rich. It makes your boss rich. You need money to make money. Most of the rich get that way by having rich parents, or at least parents rich enough to provide them with capital to start their climb up the economic ladder. Without that head start, most people can’t even reach the first rung.
Conservatives argue that taxing the rich “punishes” success. I say it’s the just dues the rich owe society for being born lucky.
An article about banks in Business Week projects the federal government will end up losing about $117 billion on the bank bailout. That’s roughly 1% of America’s $11 trillion economy, or roughly 3 1/2 days of GDP. (President Obama’s proposed $90 billion of taxes on large banks is designed to recapture most of this loss.) Yet, many conservatives would rather let the entire economy collapse than bail out the banks. They would sacrifice trillions to pinch billions. Another stupid Republican trick brought to us by the idiots of the extremist right! Why would anyone vote for these people?
While we’re on the subject of stupid Republican tricks, let’s not overlook the upstanding executives who run America’s gun industry:
“The setting was Las Vegas, but no one was expecting fireworks at this year’s Shot Show, the annual gun industry trade convention. …
Then the feds crashed the party. The FBI used the convention to round up 21 industry executives who allegedly fell for an undercover sting in which they agreed to pay illegal kickbacks to the defense minister of an African nation. In exchange, the small arms marketers thought they were securing the opportunity to sell millions of dollars in weapons and body armor. Unfortunately for them, they were transacting business with FBI operatives posing as middlemen, according to indictments unsealed by a federal judge in Washington. A 22nd suspect was picked up in Miami.”
http://www.businessweek.com/ma.....370242.htm
Roger Rabbit Commentary: Waytago stupid fucks! This will do wonders for the credibility of your industry. Just not in the direction you expected.
What ignorant logic. Increasing wages by state dictum only causes more middle class to slip down as prices go up for goods and services. Only a complete retard can believe that increasing the minimum wage is somehow lifting someone up long term. These jobs are designed to be starter jobs for HS students or possibly those attending college or just out of college. These aren’t careers you fucktards.
Yes, yes, I understand some people are lazy and don’t pursue other opportunities that would better enrich, literally, their lives, but that’s their problem. It’s not mine, yours, nor the states obligation to lift them into the middle class. That’s done through dedication, hard work and accountability.
Though, I’m not surprised liberals insist on this foolhardy philosophy because that is what liberal enablers promote, the idea of “learned helplessness”, a mental disorder. Makes sense now.
Goldy–
Timing is everything son.
Big new taxes??
Here is a sample of response–
Wednesday, January 20, 2010
Goldy, WAKE UP!!
It’s now 2010.
2009 was a complete bust for the Progressive Jackass Movement. 2010 is starting out even worse.
Glen Beck is yanking the covers off you KLOWNS today @ 2PM and 11PM.
Tomorrow, it will be worse for y’all.
Seems like the Tea Party, that you ridiculed, has their foot on your throat Goldy.
You mistakenly believed and continue to believe that Tea Party members are Republicans in disguise. I have been to numerous events. Nothing could be further from the truth.
The R’s will benefit because they have embraced the movement while Obam-Mao and the Democrats ridiculed it.
Now Obam-Mao is literally on his knees begging for a do-over!!!
No Way!!
The pressure will stay on you KLOWNS until you are no longer a factor…or then a little extra for good measure.
How does it feel Goldy??
How did you feel in December, 2008 and early 2009???
Things going according to plan Goldy????
Sure Goldy. Better to keep people unemployed than allow them to accept lower pay. No one would force them to take a job that offers below the current minimum wage pay. That’s their choice.
But I forgot you and your friends don’t give a rat’s ass about what individuals think is best for their own lives.
@14 You can see bugs crawling over the surface of the moon if you smoke some hash and squint hard enough.
@16 Anyone who follows financial news knows most pundits believe the stock market is overvalued. It only needed an excuse to go down, and China provided that excuse on Wednesday. I don’t think domestic politics has much to do with it. Stocks had a huge runup last year despite weak fundamentals, and overvalued markets always fall back at some point. What triggered the correction is beside the point.
@18 “this state is under the control of Democrats”
No, it’s under the control of voters; and Washington voters prefer Democrats. Considering that we have the governor, both houses of the legislature, and 8 of the 9 statewide elective offices, how’s that “real change” working for you?
HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR HAR
@22 Why should taxpayers subsidize private businesses’ labor costs so cheap labor conservatives can get even richer?
Minimum wage is less than subsistence. Taxpayers make up the difference with housing subsidies, food stamps, and Medicaid.
If a business can’t charge enough for its goods and services to support the cost of producing them, then those products shouldn’t be on the market.
Using tax money to support goods and services that don’t pay for themselves makes the economy less efficient and lowers the standard of living for everyone.
The law should be changed to require all businesses to pay their labor costs from their own revenues.