President Rubber Band Man – Opinions From E. Curtis Johnson

President Obama may have the power to pull on a gigantic economic rubber band. He does not have the power to avoid the economic return snap!

Obama wants to increase the federal minimum wage and change overtime-pay laws. According to the Congressional Budget Office, increasing the federal minimum wage will give some workers more take home pay and may eliminate some jobs. Obama can change the laws of the land. He can’t change the laws of economics, namely wage and price equilibrium.

Put simply: increasing wages eventually increases prices on goods and services. It accomplishes nothing to give some workers higher pay if they eventually lose the increase to higher prices. And why increase some workers pay if the raise causes others to be laid off?

My name is E. Curtis Johnson. Obama’s plan ignores the laws of economics, but follows the laws of politics: trick people into thinking you're helping them just in time for the fall elections.