The fixed economy

Aug 02, 2015 23:06

One of the mistakes that Leftists make incredibly often in their thought processes is the assumption of a static economy. You see it in virtually every narrative and proposal. As examples, raising the minimum wage. Sure, in a fixed economy, that has no downside! No stores will close, no employers will cut hours, or replace workers with kiosks, no one will raise prices on products, etcetera, the only change will be the one we want, that low-skilled workers will have more money!

This assumption is *everywhere* in leftist thought processes. From "wealth redistribution", to safety standards, from welfare programs to taxation, ALL of leftist thought proceeds from (amongst others) the assumption that they can do whatever they want, and nothing will change anywhere BUT where they have changed it.

But the economy ISN't fixed. It's constantly changing. The decision to open or close stores is made on the *marginal* case, so even a 10 cent per hour minimum wage hike means that some stores won't open, and others will close. Equipment decisions are made on *razor* margins. Right now, there's a mcdonalds looking at a self service kiosk, or a traditional register making the decision which to get. Even the *threat* of a future minimum wage hike can easily sway such decisions! Every applicant for every job, or hour at that job is considered on the basis solely of "Will having this person work this hour make or lose money?". Every plant location decision considers EVERYTHING, from labor safety requirements, tax consequences, union involvement, transportation costs, etcetera, etcetera, etcetera.

And you can't get around it by preventing them from moving. If you try, what will happen is that American steel, rather than moving their plants to China, will close, and americano steelo will open a new factory in China. Either way, the economy will adapt to work with the changes.

Part of the reason that I mention this is that there is one area in which Conservatives make the exact same error. The *precise* error that is so utterly catastrophic in so many cases to so many people when applied by the left. The area where conservatives make the mistake of the static economy is Immigration. Now, the left makes this error too, I would be hard pressed to find an error the left does not make, but that's not the topic of interest here. The fact that the right does is.

The following sentence is going to be unpopular. You, my reader (well, those in the US), Are living a better life than you otherwise would, BECAUSE Guapo the landscaper hopped the border fence 20 years ago, founded Guapos landscaping, and in so doing, allowed fiberdyne to build a new factory. Entrepreneurs and hard workers do not "take your job", they *create* jobs. So, all the rhetoric that Trump is spouting, and so many of ours are finding compelling is WRONG.

P.S. That does not mean that Illegal immigration is okay. It isn't. This nation is supposed to be a republic, in which we decide, through our representatives, how many people, and who, enters this nation. Illegal immigration, and the acceptance of it, undemocratically short circuits the entire concept of a nation of laws, undermines the rule of law itself, and gives the public no actual say in how many people actually enter the nation. And that's unacceptable.
Previous post Next post
Up