I’ve been giving a lot of thought to the concept of a “living wage.” A living wage is the minimum hourly rate needed to adequately support the wage earner and when combined with another adult, raise a family. The rate varies from state to state and region to region within a state.
In Connecticut, the wage for two adults raising one child would average about $12.00 an hour for each adult. (http://www.livingwage.geog.psu.edu/counties/09003) About $1.75 of each adult’s wage (15%) goes to child care and therefore it is one of the most costly components of the living wage after housing and transportation. An expansion of public education services for universal preschool and childcare programs could be implemented allowing a lowering of the living wage accordingly therefore eliminating a higher than required rate for people who do not incur that costly component. Healthcare is another costly component accounting for about $0.81 per hour (6.8%). All workers could be required to participate in a private insurance plan and providers could be solicited to offer minimum plans providing basic coverage at a predetermined contractual cost to the participant.
The living wage could be used to properly put our society’s true cost structure in order and instill personal accountability and responsibility. With a living wage, welfare benefits and their associated bureaucratic support structures could be significantly reduced and/or eliminated. Social assistance could truly be limited to those who need it, the seriously disabled and the elderly. Everyone else would no longer have any excuse for not working because even the high school dropout and the unskilled worker could find employment that would provide them with a means to take care of themselves. When coupled with another working adult, the living wage allows even those at the bottom of the wage spectrum to support raising a child. Without the availability of welfare, the incentive to have more children than one can afford would be removed and if bigger families were desired then one would be motivated to improve their skill set and look for opportunities to move up the wage scale.
In my opinion, if constructed properly through appropriate vetting, research, and debate the living wage could result in smaller government, a lower of tax rates, incentives for self-improvement, and a higher degree of global competitiveness.
Sunday, February 8, 2009
Sunday, January 18, 2009
The Fed and the Treasury Team Up to Bully Bank of America into Buying Crummy Assets
According to several news reports released Friday, Bank of America CEO, Ken Lewis, became concerned about going forward with the Merrill brokerage acquisition shortly after the deal was approved by shareholders on December 5, 2008. Mr. Lewis met with Federal Reserve Chairman, Ben Bernanke, and Treasury Secretary, Hank Paulson, on December 17, 2008 and according to the Wall Street Journal told them that he had concerns about closing the deal because Merrill's losses were "monstrous" and he was considering canceling the deal invoking a material change clause or repricing the deal to reflect the lower value of the company.
According to Mr. Lewis, both Fed Chairman Bernanke and Treasury Secretary Paulson told him that he needed to close the deal as is and failing to do so would have negative systemic consequences on the fragile banking system. Both government officials provided assurances that they would provide backstop funds to help Bank of America.
One thing that Bernanke and Paulson couldn't provide was assurances to the shareholders, you know, the people that CEO, Ken Lewis, is supposed to represent? This backroom deal didn't include the interests of the shareholders as they watched their stock plunge over 30% Thursday and Friday alone. Now comes the slew of lawsuits, investigations, and finger pointing. Of course this is exactly what Hank Paulson knew was going to happen explaining why his original plan for the $700 billion-dollar "Friends of Hank Bailout Plan" had provisions in it that his actions were not subject to review, criticism, or criminal prosecution. A government sanctioned Godfather so to speak. It appears that now our banking system and stock market have become nothing more than one giant Ponzi scheme. The only difference between Bernanke and Paulson and Bernard Madoff is that Mr. Madoff''s scheme was limited to the clients he could con and undetected by regulators and Mssrs. Bernanke and Paulson's actions are ripping off all Americans with the approval of regulators!
The fraud, corruption, and cavalier attitude by the same people who got us in this mess continues. It's time to say no more! If my money is going anywhere I want it to go to creating jobs repairing our country's infrastructure, creating our energy independence, and protecting our natural resources, that is, tangible assets that we can see, touch, and use.
President-elect Obama, throw out the bums and take no prisoners!
According to Mr. Lewis, both Fed Chairman Bernanke and Treasury Secretary Paulson told him that he needed to close the deal as is and failing to do so would have negative systemic consequences on the fragile banking system. Both government officials provided assurances that they would provide backstop funds to help Bank of America.
One thing that Bernanke and Paulson couldn't provide was assurances to the shareholders, you know, the people that CEO, Ken Lewis, is supposed to represent? This backroom deal didn't include the interests of the shareholders as they watched their stock plunge over 30% Thursday and Friday alone. Now comes the slew of lawsuits, investigations, and finger pointing. Of course this is exactly what Hank Paulson knew was going to happen explaining why his original plan for the $700 billion-dollar "Friends of Hank Bailout Plan" had provisions in it that his actions were not subject to review, criticism, or criminal prosecution. A government sanctioned Godfather so to speak. It appears that now our banking system and stock market have become nothing more than one giant Ponzi scheme. The only difference between Bernanke and Paulson and Bernard Madoff is that Mr. Madoff''s scheme was limited to the clients he could con and undetected by regulators and Mssrs. Bernanke and Paulson's actions are ripping off all Americans with the approval of regulators!
The fraud, corruption, and cavalier attitude by the same people who got us in this mess continues. It's time to say no more! If my money is going anywhere I want it to go to creating jobs repairing our country's infrastructure, creating our energy independence, and protecting our natural resources, that is, tangible assets that we can see, touch, and use.
President-elect Obama, throw out the bums and take no prisoners!
Sunday, January 11, 2009
Synopsis on the Economy - Not Much Going On.
The synopsis on the economy is bleak. Report after report rattle off depressing statistics of severely diminished economic activity, growing jobless rates, and worse statistics to follow into the year. It's a vicious cycle that only can only be broken by renewed confidence in the stability of our economy, most notably jobs.
In the waning days of George W. Bush's presidency there are now murmurs of attempts to disperse the second half of the nearly 3/4 trillion dollar TARP funds before President-elect, Barack Obama is sworn in. http://money.cnn.com/2009/01/10/news/economy/bush_request_restoftarp/index.htm?postversion=2009011012
In my opinion, the key component of the President-elect's economic stimulus plan are the jobs components. Jobs are what is needed to rebuild confidence and get people confident enough to resume their lives. The stimulus funds are not unlimited. Any further dispersing of the TARP funds needs to be specifically targeted and carefully monitored to ensure that our tax dollars are not being squandered by their recipients.
Right now too many Americans, even those gainfully employed, are severely afraid to do anything. The hemorrhaging of job losses needs to be cauterized. There has been a great deal of blood lost and the reserve supplies are low. Let's not deplete the blood bank on cosmetic celebrity surgeries while new patients are flooding the ER!
In the waning days of George W. Bush's presidency there are now murmurs of attempts to disperse the second half of the nearly 3/4 trillion dollar TARP funds before President-elect, Barack Obama is sworn in. http://money.cnn.com/2009/01/10/news/economy/bush_request_restoftarp/index.htm?postversion=2009011012
In my opinion, the key component of the President-elect's economic stimulus plan are the jobs components. Jobs are what is needed to rebuild confidence and get people confident enough to resume their lives. The stimulus funds are not unlimited. Any further dispersing of the TARP funds needs to be specifically targeted and carefully monitored to ensure that our tax dollars are not being squandered by their recipients.
Right now too many Americans, even those gainfully employed, are severely afraid to do anything. The hemorrhaging of job losses needs to be cauterized. There has been a great deal of blood lost and the reserve supplies are low. Let's not deplete the blood bank on cosmetic celebrity surgeries while new patients are flooding the ER!
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