The poor have no defense against the Fed. Their standards of living continue to drop as the Fed's zero-percent money rolls into the bank accounts of its plutocrat sponsors who in turn make 1 percent of that money available to non-plutocrats at exorbitant interest rates. I'm against having a Fed. It's socialism in its worst form. But until the Fed is gotten rid of the only economic variable the poor have to counteract the injustices of the Fed is the minimum wage law.
By tying minimum wage to money supply the poor's income would rise and fall with the rise and fall in money supply. Had this policy been in effect over the past 40 years, the minimum wage in America would be closer to $100 now, instead of $10. Companies could easily absorb this wage rate and be competitive. In the restaurant industry Starbucks, for example, could have a minimum wage of $100 and still make handsome profits. (Remember, the Starbucks model is to rip off the intellectual property rights of African and Brazilian farmers, so a rise in wages doesn't hit their core model). In the call processing business, paying a minimum wage to call processors of $100 an hour would not stop these companies from making huge profits. And the list goes on... including Apple with over $130 billion in the bank as cash, sitting there doing nothing.
As long as companies can borrow money at virtually zero cost and as long as companies get bailed out whenever they make a business mistake than labor needs to get their ass in the game and demand a minimum wage tied to money supply and start taking home $100 an hour.
This new minimum wage law would kick-in for the Fortune 500 first for any company with huge cash positions or huge credit lines. As the size of the company shrank; heading to companies with 50 or less employees, this is where the connection and relationship to the Fed is key. At first blush, paying $100 an hour for employees might seem onerous but not if you can borrow money from the Fed at zero percent interest like the Fortune 500 can it works.
Minimum wage law is the 'People's Fed.' Tie minimum wage to money supply. If there is push back against this idea then shut down the Fed and its ability to distort the economy; penalizing labor; or make the Fed's distortions available to all businesses and all workers. But having a selective Fed that lends money to supporters at zero percent and bails them out whenever they get into trouble while forcing all others to borrow at extortionist rates without a 'get out of jail free card' is unacceptable.
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