Minimum Wages Hikes Are Actually Tax Hikes

The US federal minimum wage is getting a lot of attention these days. I have no doubt that the current $7.25 per hour minimum wage will be raised soon because american intellect has been diseased and destroyed by a Pelosi-like infestation of terminal ignorance. Americans are no longer capable of examining a problem fully to understand the correct solution. Sound bits, regardless of their relation to truth,  have replaced logic.

Consider this. At the current minimum wage of $7.25 per hour, a 40-hour work week over 52 weeks of the year would gross about $15,000 federal reserve notes in wages. 2015 tax tables, with no deductions, would net the worker about 14,500 after about $500 in federal taxes are deducted. For a standard of comparison, that worker could purchase about 5,800 gallons of gasoline during the year at around the current price of $2.50 per gallon.

If minimum wages were raised as suggested by unions and other groups driven by profound ignorance to the proposed $15 per hour, that same worker would gross about $31,200 federal reserve notes per year. Using the same tax table, the worker would now pay about $2,700 in federal taxes per year for a net of about $28,500. How much gas will the $15 federal reserve notes per hour worker now be able to buy?

As anyone with a a single functioning brain cell knows, wages push inflation. Even an idiot like former fed-head Greenspan knows that. Double wages doubles inflation, more or less. So, now a gallon of gasoline goes from $2.50 per gallon to $5.00 per gallon. With the new raise, the worker can now by about 5,700 gallons of gasoline. 

In this example, a doubling of the minimum wage would result in the worker being able to buy less gasoline than they could before the wage increase. Yes, this is theoretical as we all know tax rates can be changed and other factors can influence the actual price of gasoline. Increasing wages is not a zero sum game. Higher wages do not necessarily equate to a higher standard of living. As long as the FRB works to stoke inflation, living standards will continue to fall for the less-wealthy. 

And, it’s not the fault of McDonald’s. It’s the fault of the FRB. Word to the workers. Stop protesting in front of restaurants. They are not responsible for the loss of purchasing power of the currency. The FRB is. Protest in front of their building!

The truth is the current regime favors minimum wage increases because wage increases result in more tax revenue for a hopelessly in debt gooberment. And, those tax revenue increases are imposed upon businesses that are forced to pay more in wages. Essentially, minimum wage increases are actually sneaky ways to increase tax revenue. The american public remains none the wiser.

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 

For Stocks, Things Are Always Getting Better!

06/2/2015

On Monday evening, May 18, 2015, ECB board member Benoit Coeure gathered together a group of bankers and hedge fund managers. That evening, Mr. Coeure gave them the ECB’s game plan for accelerating bond purchases in the euro-zone. Of course, this was a closed meeting and the general public, the slaves, were not privy to this information that would surely move equity and monetary indexes. This group was given ample time on Tuesday morning to set their positions accordingly. Then, around noon, the public was informed of the new ECB intention. This is known as ‘insider trading’ and it is a felony unless of course the person or institution using the insider information is a banker or bank or hedge fund manager. So, we can all conclude that equity prices are gamed by the same people who rig them. Average investors simply need to understand the criminality.

At the end of May, 2015, the US economic propaganda machine admitted that first quarter GDP was far worse than previously anticipated. GDP actually shrank by seven-tenths of a percent. Given that central bankers had pushed stock indexes to all-time highs, logic would follow that the same stock indexes would quickly be torn apart. But alas, we are not in a logical world. Nor, are we any longer in Kansas. Nobody knows where we are frankly. We now live in some undefined murky world of smoke and mirrors. We seem to be standing but we don’t know what supports us. Instead, stock prices hardly wiggled. Why? 

The pundits and the propagandists went to work on the networks they completely control. Here is the explanation. First quarter is history. It is meaningless. First quarter is in the past. Things are already getting better so stocks should be bought as we should ignore first quarter data.

Hmmm. I wonder if the reaction would have been the same had first quarter GDP been reported to be up 5%? Yes, I think we all know that the Dow would have rallied 500 points on that news. And consider this. Aren’t we told that things are always getting better? Has anybody from the US propaganda machine ever given a warning that the economy was getting worse?

No. It does not work that way when bubbles are being blown of historical proportions. We live in a world of mind control that is hinged on the constant lie. 

Consider this. The FRB keeps interest rates at zero so their bankster conspirators can continue to game the system through thievery. If zero rates spiked inflation, they would have to raise interest rates regardless. However, the gooberment mafia simply lies about all things inflationary. Car sales make up a huge piece of the consumer spending pie. Yet, car manufacturers report an ever increasing rise in the price of new vehicles. Yet, there is no inflation? The average car payment in the US is now $488 dollars per month for average terms longer than five years. 

Housing costs continue to rise. Insurance costs are rising. (Why do insurance premiums continue to rise? Because the cost of medical care continues to rise.) Taxes are rising. In fact, the only thing not rising is human intellect. To even postulate that inflation is low is an exercise of stupidity that borders on Bernie Sanders kind of stupid. Yes, Mr. Sanders is running for the office of White House Occupant (WHO) with the idea of raising tax rates to 90%. Apparently Mr. Sanders has been captured by aliens who took an egg beater and scrambled what little grey matter he had and then sucked it out like a milk shake. The fact is a 90% tax rate guarantees that tax receipts will equal exactly zero. No one will work if they lose 90% in taxation. However, I have no doubt that in america these days, Mr. Sanders will have many supporters.  

Of course, that does not matter. That stuff is history and things are getting better. Car prices are set to begin falling soon. Everyone that wants one will soon have a job that pays more than $15 dollars per hour. And no, doubling the minimum wage will not make prices for the goods produced by said workers go up a bit in price. 

Clearly, the FRB is not going to allow for the stock indices to plunge. That’s why they are so active with the PPT at the 11 AM rally hour. Clearly as well, the FRB is dead set to keep the Dow above the 18000 mark for the time being until they can push it to 20k and beyond. See, things are always getting better!

The bottom line is easy. Buy stocks. Forget the past. Ignore the data. For God’s sake ignore the truth! We have a bubble to carry us higher and higher! Weeeeeeee!

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.