No, dear world, Mukesh Ambani doesn’t sleep on his millions.Joe Biden says he will raise minimum wage to 15$ per hour from 7.5$ per hour now.
Why not, if you can make it 15, why not make it 100$ Mr President, and make everybody rich in America?
The Leftists thugs believe that wages can be increased without destroying the economy because the increase will come from the reduced profit of the owner of the business. Firstly, most businesses do not have that kind of profit which the Leftists believe can absorb the increased cost of labour. Balance sheets of businesses can be checked and this can be verified. When wages are increased by the government, businesses which actually employ lowest paid workers simply shut shop, and unemployment increases. If the business doesn’t shut down but only lays off some workers, some have their wages doubled, and many simply see them reduced to zero. Creating a new aristocracy of minimum wage earners, and new oppressed class with zero earnings.But for the sake of discussion, let us assume that what the Leftists say is correct, that all increase in wages will come by reduction in the profits of the fat-cats. But what exactly the fat-cats were doing with their profits till now? If they were simply burying it in vaults, they were reducing money in circulation, thus increasing the value of money in everybody else’s hands. That is, they were enabling others to buy more with the same money. If they are now forced to circulate that money by paying higher wages, the value of money of everybody in the country will go down, so everybody will get to buy less with the same money. Everybody has become poorer. Inflation has ensued.But in reality, fat-cats do not bury the money in the vaults. Nor they sleep on it. They either spend, or invest their profits. When they spend, they give somebody his income (your spend is somebody’s income). With no profits to spend, those who received their incomes from the spendings of the fat-cats go out of business, become unemployed. Or the fat-cats invest their profits, thus creating more jobs, increasing the total wealth of the society even more. With the profits confiscated through minimum wage mandate, no new investments will happen, soon everybody will become poor. America will go Venezuela.
All this has been taught in the American universities for last 100 years. But it has always been ignored.
America tells us why India felled to barbarians even with Taxila and Nalanda. The universities become helpless, or get infiltrated and truth tellers are silenced, shouted down, thrown out. America has world’s top universities, it has cutting-edge research, it wins Nobels, it puts man on the Moon, yet it can be and has been convinced to destroy itself at the hands of utterly corrupt ruling elite in bed with the Leftist thugs.
(Wages increase with increase in productivity. Productivity increases with increase in the Capital Goods. Capital Goods increase when entrepreneurs get to invest and reinvest profits.)
