# Warren Buffet on the Wealth Gap.



## Chuck Smith (Feb 22, 2005)

Now I don't typically agree with Mr. Buffet on many things. But he hit the nail on the head with this. His comments on raising minimum wages wont do a thing is spot on.

http://www.msn.com/en-us/news/other/buf ... id=DELLDHP



> Improving education, won't work fast enough, or go far enough, he said. And fighting to raise the minimum wage-currently in vogue among many on the left-won't bridge the gap either, he says, and may actually backfire by hurting employment.





> "I may wish to have all jobs pay at least $15 an hour," writes Buffett. "But that minimum would almost certainly reduce employment in a major way, crushing many workers possessing only basic skills. Smaller increases, though obviously welcome, will still leave many hardworking Americans mired in poverty."
> 
> It's an argument that probably won't sit well with many on the left accustomed to blaming employers and the rich for the pain of the poor, but, like most things Buffett says and does, it isn't aimed at being popular. It's aimed at actually getting something done.


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## Chuck Smith (Feb 22, 2005)

Another Article in the Money section talking about minimum wage increases not helping to "close the wealth gap".

http://www.msn.com/en-us/news/money/can ... id=DELLDHP



> Raising McDonald's starting pay to $15 an hour could increase the cost of a quarter-pound hamburger meal from about $6 to about $8, assuming that hourly labor costs increase by about $8 dollars. (That includes add-ons like payroll taxes and unemployment insurance at the franchisees.) If labor costs are 25% of product costs, that's about $1.50 more per meal. And there might be a markup too.


Didn't I say this would happen if minimum wages would increase.....Hmmmm.... I could write these articles. LOL



> That story is playing out in San Francisco and Seattle, where some restaurants and other businesses either closed or reduced hours for workers as new laws hiked the minimum wage to unrealistic levels.
> 
> Simply, the notion touted by liberal activists that a law raising wages will create more spending power and more jobs is supported by neither economic theory nor those real-world experiences.


didn't I also mention this as well???? How people will reduce hours (so they don't have to pay overtimes)? Or will just close the doors!!



> Consequently, the U.S. trade deficit with Asia has grown to about $400 billion annually and the U.S. economy has grown less than 2% a year since 2000. By virtually every measure, wages and family incomes for most ordinary Americans have fallen, while bankers, engineers and other professionals, who can directly market their services abroad, have seen their incomes rocket.
> 
> Now President Obama wants to negotiate a new free trade agreement in Asia, the Trans Pacific Partnership, but more trade with Asia is a fool's errand if the policy is not seeking to erase the $400 billion annual trade deficit with the region -- and that is not mentioned among the president's negotiating objectives.


HMMMM Mr. President??? How will this new deal help the US worker???



> Many of the income support programs for low wage Americans -- such as food stamps, free and subsidized medical care and disability benefits -- are too easily accessible to -- and abused by -- the 7 million unemployed men between the ages of 25 and 54 who refuse to look for work. To assist those still struggling, those programs should be consolidated into the Earned Income Tax Credit to more generously reward work among low-income Americans, instead of paying for indolence.
> 
> For too long, national policies have stacked the deck against working Americans.* We won't get the country turned around until we stop cultivating false hopes with minimum-wage laws *and instead put workers first through realistic international trade policies and income support programs.


This ties into my discussion with health insurance.... and other things. Then re-read the bold print!!!

Another good read in the "Money" section of MSN!!! Tricky media hiding these articles.


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