Bloggers say the only promise Barack Obama has kept is that “energy prices will necessarily go up.” Economists say the consequent higher prices are not inflation because it’s not inflation if wages don’t go up. Now the Democrats are calling for minimum wages to go up.
“But it is only 3 percent of the population who will rise to $10.10 per hour,” they say. “That’s too small a number to hurt anything.” What about workers who already proved they can do the job competently and rightfully earned a raise to $10.10? They will rightfully ask for another raise. This raise will trigger other rightfully earned wage increases in an uphill domino effect.
So business owners will either raise customer costs or fire workers. Some jobs will go overseas, creating more unemployed, but most businesses will just raise prices. Then the poorest, who just got a raise, will still not be able to afford their products. It’s a nasty cycle.
To break the cycle we must fix the initial problem: energy. When energy went up, everything that moved by truck cost more. That means everything.
Build the pipeline from Canada. Release natural gas to Ukraine and Europe. These will create high-paying jobs and reduce costs from our heat bills to the gas pumps and to groceries. Break the inflation cycle and give us all a raise by reducing energy costs.