Some of my Rebel Musings

The Complaint addressed in this article compels commentary. The Costs for Small Business constitute a real destablization of their business format, with real potential loss of Sales competing with the loss of Profits if they leave their Prices unchanged. The real element causing the maladjustment, though, lies in the abandonment of Minimum Wage as a Living Standards control in the 1990s. A standardized Minimum Wage correction formula would have avoided the current debacle, where the Wage Increase is in direct conflict with rising Costs. We left behind the Concept of a justifiable Wage increase long ago, and now, the justifiable Wage Increase is not only very large, but directly set against the Incomes of Patrons of the Minimum Wage services. Steady, efficient Minimum Wage adjustments through the Years would have been as unnoted as the persistent Inflation itself; People attuned to the slow Creep of Prices. The coming Wage adjustment holds all the difference as represented between a Tide and a low level tsunami. We are forever paying for Past Sins in Economics.

Here is another debacle basically generated by a political platform adopted by both Parties. Fannie and Freddie should have tightened Mortgage requirements long ago, so transfer of debt to Banks and Investors would have held high security. The political platform, though, wanted easy Money for Mortgage Credit, and Mortgage brokers went along because of the rapidly accruing Profits for quick Mortgage turnover, no matter how bad the Paper was. Now there is a Mountain of bad Paper. Arnold’s formula of extending laxity to Bank regulation probably will only lead to a greater long-term Credit crisis, but Options are limited, and there may not be alternate venues. I await economic commentary of the possible consequence of a reinstated collapse of the Credit markets–something which in effect could equate to the constricted Credit following the Crash of 1929. The Later was occasioned by a Bank insistence on sound Collateral, the Present will be caused by Mortgage broker resistence to Mortgage renegotiation which abandons the lucrative terms of loan repayment; an Insistence made of debtors who are facing rising Costs in all segments of Household expenditures.

I will leave this article for Readers, and then ask, What is wrong with the fundamental Proposition of the Article? How does it apply to the previous Arguments? Hints: Inciting high Income Personalities to work harder curtails Employment in high Pay occupations; alternative Paper investments had the highest rate of growth, and highest rise in Income, as well as foster the fastest Employment–all enhanced by high marginal Tax rates; the later constrain excessive Work patterns, leading to replacement training of Substitute labor for Off-Periods; higher marginal Tax rates also lowering the Rewards of extensive Training, so that the Costs of such Training reduces to incite a greater number of Trainees. Everyone explains the advantages of low marginal Tax rates extensively, but where is the Examiner of the potential values of high marginal Tax rates? lgl