Arkady's Thoughts

Due to Colorado's minimum wage being tied to inflation, lawmakers are looking at doing something that has not been done in about 70 years .  Although this drop is marginal, amounting to a paltry 4 cents it is a step in the right direction to break down one of the most economically foolish federal mandates in the country.  Beyond being grossly unconstitutional the minimum wage like my other politically attractive solutions hurts the very people it seeks out to help.  Minimum wage laws are just another form of price control and price controls always without exception lead to the same result - shortages.  Whether it is price fixing food in Russia, energy in California, insurance premiums, oil from the Middle East the pattern is always the same and it's another beautiful example of politicians ignoring economics.  Consider the following scenario and see how often you can apply this pattern to everyday life.  - A consumer agency, special interest group or an organization clamors

In all too predictable move , Olympia Snowe allows for passage a bill threatening to cripple 1/6th of the nation's economy with the following words. “Is this bill all that I would want?” Ms. S nowe asked. “Far from it. Is it all that it can be? No. But when history calls, history calls. And I happen to think that the consequences of inaction dictate the urgency of Congress to take every opportunity to demonstrate its capacity to solve the monumental issues of our time.” Really?  You are willing to sign off on the most expensive bill in history because history calls while admitting this is a far from perfect bill?  No Senator, only Obama calls and you heed like the sellout dog that you are.  Congratulations, you are set for life in whatever circle of Democrats you wish to grovel to while we are saddled with crushing debt and rising insurance premiums. Reid has a powerful weapon now and a weapon he will most likely use.  After blending the bill with a version from HELP committe

After significant adjustments in a last ditched effort to avoid bankruptcy California's legislature is looking at more red .  How could all those service cuts, tax increases and suspicious accounting fail to stem the bleeding?   Politicians failing at economics?  No, say it ain't so!  As the article suggests, tax receipts from California's richest families fluctuate wildly resulting in unpredictable revenues for the state.  California's population problems are well known as the middle class and other wealthy families seek alternative living accommodations in other parts of the country.  Eventually Sacramento will run out of people to tax, but if one willing to examine the source of the problem then a solution can present itself. Revenue in the three months ended Sept. 30 was 5.3 percent less than assumed in the $85 billion annual budget, state controller John Chiang reported yesterday. Income tax receipts led the gap, as unemployment reached 12.2 percent in August