Black Friday and Donkeynomics

Many Americans will be working off all those calories they consumed yesterday by pushing and shoving their way through the crowds to spend their hard earned cash on those Black Friday bargains (a traditions I could do without). Retailers typically count on their Black Friday sales for a large percentage of their annual revenues. According to the video at this Fox News link, bargain hunters won’t be the only ones showing up at Wallmart stores. Union protesters are planning to march on 1600 Walmart stores today to demand higher minimum wages from the  purveyors of all those Chinese made consumer goods.

Everyone Democrts know that higher minimum wages stimulate the economy. Monty Pelerin’s World calls it Donkey Economics:

Donkey Economics

obamanomics1

As long as that mind-set prevails, the trend line below, which epitomizes the American Dream will continue.

Homeownership Rate 2014

 

Well, that’s what I’m thinking. What are your thoughts?

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3 thoughts on “Black Friday and Donkeynomics

  1. The minimum wage should be raised to 10 bucks an hour immediately. and go up to 12.50 over the next decade. This country is in big trouble right now. The retail service sector is now the nations largest employer by far, and that’s very bad news for the country. Our trade deficit is now permanently a half tril a year. Take out agriculture and scrap, it would be three times that. We don’t make anything anymore. But these are broader policy issues.

    However, one way I can see to really grow the economy for most Americans right now, turn real estate around, cleaning out the pile of consumer debt, and start growing the middle class again, would be raising the minimum wage, increasing the purchasing power of the largest and poorest and debt ridden segments of the population. Bring them up a little. It’ll be good for everyone. They’ll be able to pay their bills better, go to school maybe, stuff like that. And they’ll spend it all, so there’s no useless accrual. Also, when it comes to inspiring entrepreneurialism, people with less means tend to be greater risk takers than people who are more comfortable. So, it may even spur some innovation.

    No sane person would suggest raising the wage much more than I do here. It follows the same path as the original minimum wage schemes dating back decades, so it’s nothing really new, and there’s no evidence that when it’s does sparingly and incrementally, it does any harm at all, save for a very few anomalies.

    JMJ

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