Economics, Below Basics

Economics Below 101

This is not taught in schools but I believe all schools should teach economics basics, if for nothing else to help people understand how your government uses them. The people need to know how stupid the politicians think they are. This might also joggle the switch inside the brain that activates common sense. You know the common sense the media and political clubs have taken away from you? Not really taken away, they just threw common sense in the muddy lake of lies, making it hard to find.

Okay, here we go. The politicians are fighting for you to have a decent wage right? Wrong. Here is how it breaks down. The minimum wage is going to go from $12.00 an hour to $15.00 an hour giving you a $3.00 an hour increase! It does for a brief, ever so brief time. Here is why.

Your wage increases, truck driver’s wages go up, grocery people go up, retail workers go up, fast food workers go up, medical staff go up, basically every wage increases. This in turn increases delivery charges, fuel costs for delivery, fuel cost to fill up your vehicle, and so. It costs more to deliver and produce goods, then the increase comes in the price of goods that you pay for, food, gas, clothing, etc.

Now that wage increase goes into effect for service positions, mechanics, waitresses, barbers, nails, dentistry, and so on. Guess what happens now to your $10.00 haircut? Yep, $12.00 now, why? Because they pay the same as you do for food, gas, and service charges.

Now the wage takes effect on your electricity, water, phone, internet, and even gas for heating and cooking. Not much, maybe, ½ a penny per kilowatt, or gallon of natural gas used. Getting the point yet? Well, wait there is more.

Why do they say we get an increase in wages in order to provide a better way of life? Here is the best part. The main reason for the wage increase is taxes. Yes, taxes. The more money you make, the more in taxes you pay starting with your income, social security, and Supplemental whatever it is tax. Then because the price of goods has increased, yes, the taxes on the goods you bought, go up.

Want to fly on vacation, rent a car, hotel room? All prices went up, as well as the tax prices, and docking fees. Oh yeah, you got a raise alright!

Guess what else? In order to keep their business, food producers started reducing the quantity they packaged and raised the price a little. Bacon, 12 oz, lunch meat, and sausages are no longer packaged by the pound, normal for bacon is 12 oz, and sizes vary on other lunch meats. Chips, the bag is mostly air, canned goods from 16 oz to 14 oz.. The cycle never ends.

Now you say, big business just keeps getting richer, on paper and through inflationary numbers, it would seem so but the percentages are lower or the same, and sales are usually down a little. Think of it this way, a 16 oz. A bottle of soda was $.25 cents, now almost $2.00. The size changed also from 16oz. To 20 oz. And the price changed accordingly making the larger bottle more profitable. Now this doesn’t mean you can blame the manufacturer, no this is due to the games played by the politicians that make you believe they are fighting for you while raping your wallet. Cool game, Yeah?

Think back to when the minimum wage was $2.00 and now it is $15.00, yet even through all the years, the minimum wage was still considered lower class pay because it never changed. If I loan you $10 and charge you $11 when you pay it back, did it only cost you $10? No, it cost you $11.

*****

What is the difference between Politicians and Flying Pigs?

The letter f

*****

Okay, we have that down, now is this the end of the story? No, not quite. You see, the government used to go by what they called the “Gold Standard” which meant that so much money was to be printed based on the gold the country had. Now that standard is gone and they print wildly. When they print more money than they had, your dollar is worth less and less. Now your $15.00 may only be worth $14.95. Now take that $14.95 and deduct the new cost of goods and your $15.00 is now worth $12.50.

Okay, so I still have a raise of $2.50!

Economics Below 101

This is not taught in schools but I believe all schools should teach economics basics, if for nothing else to help people understand how your government uses them. The people need to know how stupid the politicians think they are. This might also joggle the switch inside the brain that activates common sense. You know the common sense the media and political clubs have taken away from you? Not really taken away, they just threw common sense in the muddy lake of lies, making it hard to find.

Okay, here we go. The politicians are fighting for you to have a decent wage right? Wrong. Here is how it breaks down. The minimum wage is going to go from $12.00 an hour to $15.00 an hour giving you a $3.00 an hour increase! It does for a brief, ever so brief time. Here is why.

Your wage increases, truck driver’s wages go up, grocery people go up, retail workers go up, fast food workers go up, medical staff go up, basically every wage increases. This in turn increases delivery charges, fuel costs for delivery, fuel cost to fill up your vehicle, and so. It costs more to deliver and produce goods, then the increase comes in the price of goods that you pay for, food, gas, clothing, etc.

Now that wage increase goes into effect for service positions, mechanics, waitresses, barbers, nails, dentistry, and so on. Guess what happens now to your $10.00 haircut? Yep, $12.00 now, why? Because they pay the same as you do for food, gas, and service charges.

Now the wage takes effect on your electricity, water, phone, internet, and even gas for heating and cooking. Not much, maybe, ½ a penny per kilowatt, or gallon of natural gas used. Getting the point yet? Well, wait there is more.

Why do they say we get an increase in wages in order to provide a better way of life? Here is the best part. The main reason for the wage increase in taxes. Yes, taxes. The more money you make, the more in taxes you pay starting with your income, social security, and Supplemental whatever it is tax. Then because the price of goods has increased, yes, the taxes on the goods you bought, go up.

Want to fly on vacation, rent a car, hotel room? All prices went up, as well as the tax prices, and docking fees. Oh yea,h you got a raise alright!

Guess what else? In order to keep their business, food producers started reducing the quantity they packaged and raised the price a little. Bacon, 12 oz, lunch meat, and sausages are no longer packaged by the pound, normal for bacon is 12 oz, and sizes vary on other lunch meats. Chips, the bag is mostly air, canned goods from 16 oz to 14 oz. The cycle never ends.

Now you say, big business just keeps getting richer, on paper and through inflationary numbers, it would seem so but the percentages are lower or the same, and sales are usually down a little. Think of it this way, a 16 oz. A bottle of soda was $.25 cents, now almost $2.00. The size changed also from 16oz. To 20 oz. And the price changed accordingly making the larger bottle more profitable. Now this doesn’t mean you can blame the manufacturer, no this is due to the games played by the politicians that make you believe they are fighting for you while raping your wallet. Cool game, Yeah?

Think back when the minimum wage was $2.00 and now it is $15.00, yet even through all the years, the minimum wage was still considered lower class pay because it never changed. If I loan you $10 and charge you $11 when you pay it back, did it only cost you $10? No, it cost you $11.

*****

Today's Humor

A congressman was seated in first class next to a little girl on an airplane.

He turned to her and said, "Do you want to talk? Flights go quicker if you strike up a conversation with your fellow passenger." The little girl, who had just started to read her book, replied to the total stranger, "What would you want to talk about?"
"Oh, I don't know," said the congressman. "How about global warming, universal health care, or stimulus packages?" as he smiled smugly. "OK," she said. "Those could be interesting topics but let me ask you a question first. A horse, a cow, and a deer all eat the same stuff - grass. Yet a deer excretes little pellets, while a cow turns out a flat patty but a horse produces clumps. Why do you suppose that is?"
The legislator, visibly surprised by the little girl's intelligence, thinks about it and says, "Hmmm, I have no idea." To which the little girl replies, "Do you really feel qualified to discuss global warming, universal health care, or the economy when you don't know crap?" Then she went back to reading her book.

*****

Okay, we have that down, now is this the end of the story? No, not quite. You see, the government used to go by what they called the “Gold Standard” which meant that so much money was to be printed based on the gold the country had. Now that standard is gone and they print wildly. When they print more money than they had, your dollar is worth less and less. Now you $15.00 may only be worth $14.95. Now take that $14.95 and deduct the new cost of goods and your $15.00 is now worth $12.50.

Okay, so I still have a raise of $2.50!

Well, if you do not consider interest rates and income tax raises, which when it comes to tax increases is considered guaranteed, your wage is still $10.00.

The good news is that your government has increased its income based on the taxes from your minimum wage increase. Are you out of the poverty zone? No, never were but your politician will continue to fight for you, rather for themselves. Government budgets are a joke that you will never understand because, like polls, successes and anything to do with numbers can be lied about, misconstrued, or reworded into a spin story.

Today’s question: What should be done to control all of this economic spending, and deception?

Need ideas and more input. Remember, this country along with all countries are businesses, they buy, manufacture, sell, and trade and they all need a profit to sustain their country. Keep in mind that the country makes money by selling IDs, registrations, passports, export and import taxes, special waivers, and fees. How would you set up a government based on economics? And do you see why everything belonging to the government as in socialism and abandoning capitalism does not work?

Looking forward to your input