Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Minimum Wage – No debate here

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I am neither Biden nor Trump supporter and believe they are equally bad but Biden is tad less worse and presents optically as a decent human being. Current US Govt. move to introduce minimum wage is very welcome despite the fact that it will decimate many industries. The trickle down theory has its flaws as much as Alan Greenspan’s assumptions that Large Corporations like Citibank are living organisms, they know how to make the best long term decisions and survive. Not they don’t, a couple of rogue CEOs will plunder the organisation and risk its survival. Without resorting to a more restrictive and large set of regulations a single shot of minimum wage will realign and readjust the economy and redistribute wealth better then scores of half witted still born ideas.

In my post in 2018 “Addiction is good for investors” I wrote that the solution to

poverty stricken lower middle class is to solve it with a silver bullet of “Minimum Wage” at least in the developed countries.

Reference: https://lifeandequities.wordpress.com/2018/05/26/addiction-is-good-for-investors/

“As Investors we like to invest in those companies that have “stickiness” for their products which may or may not be a good thing for society. As investors we like to see the company gradually decimate its competition and go on to rule as a monopoly. As egalitarian members of the society we expect everyone to have a respectable living. The easiest solution that I know of removing poverty is to fix a minimum wage, 16.5 $ per hour for example here (https://www.employment.govt.nz/about/news-and-updates/minimum-wage-to-increase/)

In Australia today in 2021, the minimum wage is 19.84$ per hour while in USA it is 7.25$, in country currency. After exchange rate differences and PPP poorest Australians earn double that of poorest Americans. I.e. There is not abject poor working Australian.

I also write in 2016 that income inequality will not be addressed until minimum wage is introduced.

Reference: https://lifeandequities.wordpress.com/2016/11/12/scrapping-5001000-is-good-for-gold/

“Primary loser will end up being un-organised sector. Don’t expect income equality anytime soon until minimum wage bill is proposed.

This is just first of the US challenge to uplift lower middle class. God forbid if you do not have insurance and break you arm or skull you may not survive in the US. That cannot be said of EU countries, Canada, NZ or Australia.

Welcome move on minimum wage without resorting to the perils of communism. In the US minimum wage did not increase since 2009 https://www.cnbc.com/2021/02/01/map-shows-where-in-the-us-15-dollar-minimum-wage-would-have-biggest-impact.html

It is wishful thinking that the rich will take care of the poor via initiatives like Giving Pledge. Probably it might when in 400 years, top 10 people control 90% of worlds assets and are kind enough with giving. Fingers crossed for that one.

Written by amitdipsite

February 27, 2021 at 7:29 am

Posted in Uncategorized

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