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Government screw-ups

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Wednesday, April 7, 2010

The U.S. economy tanked because of three simple issues, and you don't need to be a genius to figure them out.

The fact is Americans were struggling to make mortgage payments on houses they could barely afford because the Fed raised the interest rate and many had adjustable-rate mortgages.

Then let's add almost $4 gas to take more money out of Americans' disposable income.

Then add an increase in the minimum wage. Raising the minimum wage pushed the economy to destruction because it inflated prices.

For example, the local grocery has employees working right around minimum wage. Now you raise the pay rate and the store owner has to pay them. Where does that money come from• He raises the prices in the grocery store so he can afford to pay these people.

Then the people who are working for him stay for a couple of years and earn a pay raise, but now new employees make the same amount. So everyone pays more for everything in the store.

Just like everything else the government takes charge of, it screws it up.

Also, if my memory serves me correctly, didn't Congress raise the minimum wage to help poor people afford health care•

Brian Durbin


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