Bachmann theory on minimum wage
Faulty and simplistic logic
Michele Bachmann believes that if there was no minimum wage unemployed people would take jobs for less pay and employers would be able to hire more people for less money.
What are some of the faults in this logic?
1. Companies hire more people when the labor rates are lower – Companies hire people when they have the work for them. Right now they don’t have the work and they can’t hire at any price.
2. If companies were permitted to hire for less, they might just get rid of higher paid workers and hire on the cheap. That would create an enormous problem as people would lose their jobs, some would be hired, and in the end, everyone gets paid less.
3. Poor workers would get poorer.
If there is a national labor rate problem with regard to competing in the global marketplace, then that problem deserves much more rigorous study and consideration as it is complex and affected by many other factors.
Michele Bachmann’s suggestion underscores her simplistic approach to problem solving. It is a callous one representative of an insensitive wealthy class that has become the Republican Party and the Te Party fringe.
“Bachmann Says She Would Eliminate Minimum Wage to Spur Growth
June 26 (Bloomberg) -- Representative Michele Bachmann, a Minnesota Republican planning to seek the party's presidential nomination, said she would stoke U.S. economic growth by cutting taxes on corporate income and capital gains and considering elimination of the minimum wage.
Corporate tax rates should be significantly reduced from a maximum 35 percent and capital gains taxes should be eliminated, Bachmann said in an interview on CBS's "Face the Nation" today. Congress should also reevaluate the federal minimum wage of $7.25 per hour, she said.
"Whatever it takes, that's what we need to do for job creation," said Bachmann. She said President Barack Obama "doesn't seem to have an understanding of how to do the job."
Bachmann, who plans to formally announce her campaign tomorrow at an event in her hometown of Waterloo, Iowa, is nearly tied with former Massachusetts governor Mitt Romney among prospective Republican challengers in a poll of likely Iowa caucus voters published today by the Des Moines Register.
Romney is the preference of 23 percent of Republican voters and Bachmann was second with 22 percent, according to the newspaper. Other candidates trailed by 12 points or more.
Bachmann said her experience founding and running a pair of mental health clinics qualifies her for the presidency.