[Vision2020] Fifty years ago today (January 8, 1964)

[Donovan Arnold]

The welfare state is bloated. It is bloated because wages are so low that a family of two working adults cannot pay their basic living expenses.  If we raised wages less people would be on goverment assistance and more would be paying taxes instead. The idea that raising wages only causes inflation is an outdated one. This was when labor was 50 to 90 percent of a business's expenses. Today, because of automation and moving of jobs overseas, labor is only 10 to 25 percent of a business's expense.  Further, the bottom 90 percent of wage earners make up an even smaller percentage of a business's expenses. Therefore, raising wages even as much as 50 percent would only cause a 5 percent increase in prices cover loses by employers. A 50 percent pay raise for 5 percent inflation would be a good increase in quality of life. 

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