Economic illiteracy reigns supreme

Now that's a real poser

Now that's a real poser

CT minimum wage raises to $10.10 next Monday

It won't be the end of the world, just as the extra $20 a week won't change a hamburger helper's life, but the justification for this inanity reveals a discouraging lack of even basic economic literacy on the part of our governor and his fellow politicians. Either that or they're lying to their voters, but I'm going with stupid; there's an unbroken track record to support it.

“This is money that goes right back into the economy,” Malloy said. “When workers earn more money, businesses will have more customers. This is a modest increase that will give working families a boost while also having stimulative economic effects.”

Where does our boy think that money was before this, if not "in the economy"? Shifting a resource: in this case, cash, from one side of a business to another does not add anything to the economy, it merely diverts spending from one section of a businesses's ledger to another: pay more for labor, then there's less to spend on other costs of doing business; new machinery or computers, for instance, or increased rents and health insurance costs. The money is already there - what it's spent on, a decision that might be left to the person who knows her business best is instead being directed by the very same people who have guided the state's own spending. How's that working out, Dannel?

Connecticut Department of Labor Commissioner Scott D. Jackson said the money will be invested in our businesses and bolster our local communities and economies.

"Investing" is what a business owner does with profits; "consumption" is what someone does with a meagre paycheck. To conflate the two is to give away the game.

 “Additionally, by paying higher wages, employers will be better able to retain skilled and experienced workers, resulting in a more productive and efficient workforce,” Jackson said.

Is there really an employer out there who, faced with the choice of losing a skilled and talented worker or raising his pay, is too stupid to pay that employee more and will lose him, unless saved from his folly by the state?

As I said, morons or liars. Well both, actually, but it's infuriating to listen to these people justify their actions with such nonsense. As Peggy Noonan pointed out recently, we are being patronized by our inferiors.