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Huge minimum wage increase in Venezuela forces businesses to fire employees or shut down

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Huge minimum wage increase in Venezuela forces businesses to fire employees or shut down

Socialism rears its ugly head once again in the failed nation of Venezuela. As the country’s leaders attempt to slow their free fall to oblivion, businesses and their employees are being forced to make tough decisions.

The 3000% increase in minimum wage, announced last month by President Nicolas Maduro, went into effect this week. As a result, the economic woes for the citizens of the nation have spiked once again.

Venezuela Raises Minimum Wage 3,000% and Lots of Workers Get Fired

https://www.bloomberg.com/news/articles/2018-09-14/after-getting-3-000-wage-hike-workers-are-fired-in-venezuelaStarting this week, 7 million employees are guaranteed 1,800 bolivars a month — worth about $20 at the black-market rate. President Nicolas Maduro intended the mandate as political boost, but it’s having the opposite effect as companies, already hit by Venezuela’s epic economic contraction, tell workers they can’t afford to keep them.

While there have been many similar moves in the past, never has one been so disruptive, arriving amid hyperinflation, depression and devaluation. Some employers are restructuring costs, rejiggering pay scales and negotiating settlements with workers. Others are simply dismissing people. Much of the action happens secretively as companies try to avoid punishment by the government, which has been jailing those it believes are flouting the rules.

My Take

The failures of socialism are an easy target. If you’re reading this, chances are strong you already recognize how disastrous socialism is for any economy, even one access to more oil than any other.

Not even America could withstand the detrimental effects for long.

In lieu of attacking the easy target, it’s time we start looking for solutions. Venezuela must throw in the towel. They’re way beyond the need for aid and they can’t pay back loans. At this point, someone needs to step in and take over. This is, of course, unlikely as the socialist regime has no intentions of ever relinquishing power. They’ll allow their people to starve on the streets before they give up power.

Is a coup the only solution? Is it even possible without outside help? Where would outside help come from if it did? Can the United Nations do anything? How about the United States, China, Russia, or the EU? All have problems of their own and while the oil is an interesting enticement, nobody would risk making a deal in a country with such disarray.

Perhaps the only solution is to wait for the suffering of the people to become so pronounced they have no choice but to organize and take their country back by force. Unfortunately, this is not the type of event that is likely to yield positive results. What could they do if they were somehow able to win?

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Democrats

TIL the famous bar AOC worked at shut down over rising costs, minimum wage increase

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TIL the famous bar AOC worked at shut down over rising costs minimum wage increase

Today I learned something that surprised me, not because of the event itself but because so few people have talked about it. Representative Alexandria Ocasio-Cortez (D-NY) is known for being a leader of the socialist movement in Washington DC after rising from the humble status of bartender to the Congresswoman of the 14th district in New York. Her policies include a push for a “living wage” of $15 per hour. I’ve always thought the wording was odd considering Senator Bernie Sanders (I-VT) and others have been calling for a rise in “minimum wage.” Today, I found out why she’s shying away from that phrase.

When New York City raised their minimum wage $15, many businesses were hit hard, especially in the hospitality industry. Restaurants and bars started cutting hours and often even closing their doors over the increase. One of those hit hard by the massive bump was The Coffee Shop. Owner Charles Milite blamed the closure on high costs, with the rise in minimum wage as the last straw.

“The rents are very high and now the minimum wage is going up and we have a huge number of employees,” he said.

The Coffee Shop is the bar where AOC once worked.

Keep in mind, this wasn’t some random bar. The Coffee Shop in Union Square was considered a high-end establishment, buzzing all the time with “A-list” patrons. It was featured many times in the HBO show Sex and the City and had built a reputation as an “it” spot for Manhattan residents and tourists alike. In other words, this wasn’t a hole in the wall hanging on by a string. It was a vibrant, successful business for almost three decades before New York City’s untenable leftist policies, including a $15 minimum wage, became more than the bar could bear.

On the surface, many voters may see the very basic math of “oh, Democrats want to pay me more” and assume there’s no repercussions for such actions. This is why Democrats prey on those people who currently make lower wages. They feel if they can promise them something that sounds good even if they know with 100% certainty based on empirical evidence that it will actually hurt them, these new socialists are willing to make that trade. They figure they can blame the conservatives later for why the place they were working at before cut their hours, removed their jobs, or shut down because of raising the minimum wage.

As usual, socialists rely on ignorance and emotion as the driving forces behind their plans. They’re not stupid. They know their ideas won’t work. But they’re willing to push them on people anyway in hopes that ignorance will keep them in power.

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Economy

Thomas Sowell makes a clear point about Medicare-for-All

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Thomas Sowell makes a clear point about Medicare-for-All

How was the left able to take heat away from their Medicare-for-All proposal, and more specifically the estimated $32 trillion price tag over a decade? They tripled down with the Green New Deal, which some estimate would cost upwards near $100 trillion.

So, the price tag of the Democrats’ desired replacement for utterly failing Obamacare is to take current government control over healthcare and put it on a regiment of steroids and methamphetamine. When you’re going through Hell, keep going, I suppose.

But all of this could be alleviated if voters and politicians took a moment to think about the prospects of Medicare-for-All logically. Let’s erase, for a moment, the Utopian notion that taxing rich people extreme amounts will give us enough money to make healthcare free for everyone while also improving the quality. That’s the goal, right? Cheaper, better healthcare is what most people want. Conservatives believe it’s best to pull government administration out of the equation and put it all on a competitive capitalist model that has worked for nearly every other industry for over a century. Hyper-leftists want to add more government control.

Conservative commentator Thomas Sowell has some thoughts on the matter. One in particular can be wrapped up into an eloquent quote that should be ideological checkmate allowing us to win the healthcare debate.

“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.”

Of course, our version of checkmate requires common sense, logic, and basic math skills. These attributes aren’t as readily present on the left, therefore they might hear this logic and still think single-payer makes sense.

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Democrats

Bernie 2020, the union: How organized labor is the latest play for primary points

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Bernie 2020 the union How organized labor is the latest play for primary points

When one Democratic candidate goes to the left, the other candidates lurch to match. We’ve seen it in support for the Green New Deal, Medicare-for-All, and super-high tax rates for the rich. We’re about to see it in regards to organized labor as Bernie Sanders’s campaign has become the first group in presidential campaign history to form a union.

My Take

Whether this was a decision by campaign leadership to demonstrate their boss’s leftist credibility or of they’re simply being the leftists that they are, we can’t be sure. In fact, we’ll almost certainly never know. Either way, it’s done and now all of the other leftist campaigns have to respond.

Expect every major campaign team to unionize soon. It’s not because it will make them more effective. It won’t help them get better benefits or retain their jobs for longer term since the organization will fundamentally change following the election. All it will do is allow them to make the claim they’re so pro-union, they’re willing to accept the lost productivity associated with organized labor.

This is quickly becoming the most symbol-driven primary election season we’ve seen in decades, perhaps ever. It would all be very entertaining if it weren’t so dangerous to the American psyche.

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