Fight For $15 – monoblogue

Losing the middle class

Most of my readers know that, after months of speculation as to his fate, former Delaware Senator and Vice-President Joe Biden entered the 2020 tournament for the Democratic presidential nomination a couple weeks back.

I had the opportunity to find this out a little in advance as I’ve been on his American Possibilities e-mail list for awhile. Of course, that’s morphed into the Biden 2020 mailing list so now I get regular missives from him on a variety of topics. Most of them I ignore, but this one begged for a counterpoint. I’ll pick it up after the formalities and omit the appeals for money as I go point-by-point. He’ll be in italics and I’ll be in regular font since it works better than a blockquote.

Michael, this country wasn’t built by bankers, CEOs, or hedge fund managers. This country was built by the American middle class.

It’s nice that you know my name, Joe, and in many respects you are correct. But most “bankers, CEOs, or hedge fund managers” were once members of the middle class – they just used hard work, talent, and aptitude to rise above the rabble that may not have had those same priorities, abilities, or desire to succeed. And the country needs ditch-diggers, too: there’s no shame in hard work. America was built by this team effort.

But today, the middle class is under attack, and too many families are being left out. They are working longer hours for less pay.

That’s why I’m calling for a $15 minimum wage — so we can build an economy where everyone has a chance to get ahead. (Emphasis in original.)

An hour is really still 60 minutes, but I get the point. But it seemed to me that median wages were increasing faster than inflation was since your successor took office, and government figures bear me out. They also prove that the Trump administration is succeeding much better than your old boss in addressing the situation.

I’ll grant the numbers come in at the tail end of the Great Recession (on the cited chart they begin in 2010) but in constant dollars the time period from 2010-2016 saw a net increase of just $5 a week during that six-year period. Moreover, while women’s earnings increased $10, men’s earnings actually declined $2 a week in constant dollars (based on 1982-84.)

Conversely, under Trump men have increased by a full $10 in nine quarters and women are up $2. Overall, the numbers are up $6 despite a hiccup at the end of 2017 that saw a sharp decrease in all categories. In 2018-19 men are up $11 a week, women $4 a week, and overall we have gained $10 a week. (Remember, that’s in 1980’s-vintage constant dollars. In actual 2018-19 terms the numbers since the end of 2017 are $51 a week for men, $29 for women, and $44 overall. A full $20 of that overall figure came upon the enactment of the Trump tax cuts between 2017Q4 and 2018Q1.)

Given that the average wage is now $23.31 an hour (and has risen about $1.50 since Trump came into office): I think the middle class is doing pretty well in this economy. But let’s soldier on:

And Michael, I’m asking you to stand with me on this, Sign your name to call for an increase of the national minimum wage to $15:

No, you’re standing by yourself on this one, Joe. Aren’t I already on your mailing list anyway? (By the way, that was originally a link to the money page.)

The middle class isn’t a number — it’s a set of values. Owning your own home. Sending your kids to college. Taking care of your geriatric parents.

The cost of all of these things is rising. And wages? Those aren’t.

We need to fix that. (Emphasis in original.)

Didn’t I just prove that wages were rising? Surely not everyone has an equal bump in pay, but as a whole they are.

And let’s talk about these milestones, shall we? One huge issue for the Millennials is the student loan debt they carry thanks to a society (aided by government regulatory policies at all levels) which requires a college degree for most of the desirable jobs. But not every degree is created equal; hence you get the proverbial womyn’s history majors working part-time as a barista at Starbucks while many engineering majors make serious coin. (Moreover, a large percentage of STEM majors are foreign students – look at a list of graduates from any engineering program and you won’t see a lot of common American names.)

And why is college so expensive in the first place? Conveniently, this chart happens to go back to my senior year of college and is in constant 2015-16 dollars – so you can see how the cost has grown so much faster than inflation. It’s been almost twenty years since I set foot on the campus of my alma mater but even in that fifteen years between graduation and my last visit there was a LOT of building on that campus – mainly in the category of student amenities such as a recreation center and complete renovation of the student center. Yeah, there were a couple new academic buildings (and they were gutting and expanding the architecture department building at the time) as well but that’s not what really attracts the kids.

Add to that the multitude (as in growing at a rate twice as fast as student enrollment) of new administrators – who surely receive an upper-middle-class salary and benefit package – and you have the beginning of a rampant increase in costs.

But the kicker was finalized by your old boss. Once the government shifted from guaranteeing loans – a practice for which the modern incarnation began in the early 1990s as a pilot program under Bush 41 – to becoming the sole provider in 2010 as a codicil to the Obamacare act, schools had no incentive to keep costs in line – why not dip your greedy mitts into that sweet manna of taxpayer dollars and keep everyone working on campus fat and happy? They had their money, so who cared if the government didn’t get theirs? That was on the student!

So the graduates (if they finished at all) have no money for a house, which is why many millions still live at home. And since their Boomer parents seldom put enough away (perhaps because they’re still supporting Johnny and Sally) for retirement and old age – believing Social Security and Medicare would somehow be enough to cushion their lavish lifestyles – those Boomers and their kids got a rude awakening when it was time for long-term care: Medicare doesn’t cover it and Medicaid will help itself to your estate for reimbursement.

Maybe it’s time to reconsider how much the government has already “fixed” for the middle class here? And don’t worry, I didn’t forget about ol’ “Creepy Joe.” Here he is again:

We need to restore the basic bargain for Americans so that if you work hard, you are able to share in the prosperity your work helped create.

To do this, we need to start with paying fair wages from the beginning.

Joe, did you forget that the true minimum wage is zero? Chances are, if you work hard and learn the skills needed to succeed in the workplace, you won’t be a minimum-wage worker for long. Yes, you may have to relocate or do tasks you might think are “beneath” you, but there are still paths to success in America – even in states where the minimum wage is set to the federal minimum.

Honestly, if we wanted “fair” wages we would have no minimum wage. That would be the ultimate in fairness as you are paid what you are worth to the employer. Don’t forget: employers aren’t there to give you a job, they are working to make a profit for themselves. If that doesn’t suit you, there are many opportunities to be your own boss – be cautioned, though, that there’s a much smaller safety net underneath you. But you would definitely “share in the prosperity your work helped create.”

I’m asking you to speak up, with me, and call for a raise of the national minimum wage, as the first step of many to have the back of American workers.

I told you no once, Joe. Get the government off the back of American workers.

This is just the first step. I look forward to sharing more about my plan for America in the future. Stay tuned.

Yeah, that’s what I was afraid of. When your plan consists of rightsizing government to conform to the Constitution – that would be a good first step. Until then, you’re just a guy who’s lived on the taxpayer dime for way too long.

You know, Joe, I was only six years old when you were first elected, and in that interim time I’ve worked in the private sector for thirty years or so. (For about fifteen of those I was paying off student loans – and that was only for about $10,000, plus scads of interest.) You made it all the way to vice-president, and I’ll give you props for dealing with the tragedies in your life. But arguably you have less in common with a working man than Donald Trump does, even though you talk a good game and he’s a billionaire or whatever. Trump took risks and had spectacular failures but he’s signed the front of checks for thousands of employees, too.

And comparing his economic record to that of your former boss – well, I don’t think there are too many who want to go back to that malaise. I know I don’t.

I don’t know what your domestic situation is, but I would be curious: what do you pay your hired help? Hopefully it was more than your charity giving once was.

Anyway, it was nice talking to you, Joe. Good luck in the debates – you’ll need it.

Why $15 is the wrong fight

I have seen reports all over social media and the “real” media that the Maryland House of Delegates has passed an increase in the minimum wage that will eventually lead it to $15 per hour by 2025. I’m not up on just who is who in the House these days but I presume a 96-44 vote is pretty much party line – there may have been a Democrat who voted against it, but I don’t know and it likely doesn’t matter in the scheme of things because it’s a vetoproof majority and the way Democrats are ramming this through it will be passed at a time when the veto can be overridden in session. (With Larry Hogan’s record, I can no longer say “inevitable veto.”)

It should be pointed out first of all that the “fight for $15” is sort of a misnomer because the raise from the current $10.10 per hour – a rate established last July – to $15 an hour would not be complete until January, 2025. This is a significant change from the original bill, which mandated the raise be in place by July, 2023. (The House bill has been amended while the cross-filed Senate bill remains as it was originally intended, so it works well for comparison.) But since the state began regularly raising its minimum wage in January, 2015, workers have already received a 26.3% bump in four years – well beyond the rate of inflation and a far cry from the normal 2-3% annual raises many workers receive if they are lucky. Whether it takes eight years or ten years, a salary increase of 87.5% for gaining absolutely no skills is far more than the market would naturally allow.

I’ll circle back to that point in a moment, but it’s also worth considering that union workers who have their wage rates tied to a point above the minimum wage will also get a raise. And when workers get a raise, guess who else does?

In today’s climate of dramatic minimum wage increases of 50% or more, unions — predominantly in the service sector — can also directly benefit from minimum wage increases because their members’ pay is less than the new minimum. Take California, for instance, which passed a $15 minimum wage last year. The Employment Policies Institute (EPI) usedCensus Bureau data to estimate that roughly 223,000 union members in the state will receive a direct pay increase by the time the law is fully implemented.
It’s bad news for taxpayers, but a solid investment for unions. A powerful California-based SEIU local spent about $1.6 million to collect the signatures needed to qualify the $15 ballot measure that forced Gov. Jerry Brown to back such a mandate. EPI estimated that California unions can expect a return on investment of roughly $9 million in additional dues per year.
“Why Do Unions Fund The Fight For $15 Minimum Wage? Because They Gain A Financial Windfall In Return,” Ed Rensi, Forbes, January 19, 2017.

You can bet your bottom dollar that Big Labor here in Maryland has similar deals with business owners held hostage to these union contracts.

Now circle back with me if you would and think about who earns minimum wage from a job. Generally they are people just entering the job market or those who don’t develop their skills beyond the point of being barely hireable. My first “real” W-2 job was working in the on-campus dining halls at college, and it was a minimum wage job – just as my roommate who snagged a cushy library job made. Since I was essentially a temporary worker, it didn’t matter to the school that I was making $3.35 an hour to run a dishwasher. And since most of my money went to the local sub shop or to buy the occasional 12-pack when I became legal, I didn’t much worry about it, either. In fact, my first job out of college at a department store was minimum wage – but this college graduate quickly parlayed his degree into a 49% raise when the architectural firm I interviewed with a few weeks earlier offered me a position less than a month after I started working at the store. More skills and a little bit of work experience = higher wages. I created more potential value from my labor.

This is the problem with minimum wage as I see it. Do you think Maryland workers are going to instantly create another 75 cents to a dollar’s worth of value to their employers each hour just because the calendar flipped from 2020 to 2021 or 2024 to 2025? Of course they won’t – but if a business owner had 20 minimum-wage employees who worked an average of 20 hours a week, it’s an extra $300 or $400 they need to clear.

I’ll grant there’s a bit of merit to the argument that raising the wage creates people with more money to spend, but what are the chances enough people will take their extra money and spend it at the business in question? When the percentage of workers who make minimum wage hovers in the low single-digits, there’s not enough of an impetus for that so-called “extra” money to make much of an impact on the economy at large but, at the same time, it can be devastating to a business that requires a lot of unskilled labor.

There’s also the impact on workers who make slightly to significantly more than minimum wage to consider. They won’t get an automatic raise, but their standard of living declines by the amount that businesses have to raise their prices to cover costs. It may only be an extra percent or two in scattered businesses, but eventually that adds up. Note that amendments to Maryland’s most recent minimum wage bill not only slowed down the increase by 18 months but also scrapped the automatic increase based on inflation – probably to make it an issue for the 2024 or 2026 elections.

I have often said, and will continue to say because it’s true, that the real minimum wage is zero – the amount you make when the job you may have secured when the minimum wage was $8 an hour and you weren’t a significant risk to the employer if you didn’t work out is the job that’s no longer available at $10.10 an hour.

Regardless, it’s all but certain that a minimum wage increase will pass in Maryland this year. The Left needs that victory and many others in order to try and tank the state and national economy for the 2020 election. (Notice the lack of enthusiasm over the 2.9% GDP increase despite the fact it’s our best since 2015 – losing by a fractional .0009% – and close to the first 3% annual calendar year growth rate since 2005. One could argue the Schumer-Pelosi-Trump shutdown may have cost us that 0.1 percent.) Apologists for the Obama economic record (“Analysts have called into question just how much a particular president actually impacts the economy during his tenure”) now expect a recession to hit by the next election (“While the fourth-quarter cooling isn’t quite as extreme as some economists feared, the metric does little to placate existing concerns about a global economic slowdown.”)

But someone believes in magic, as in that people will magically produce more value through an arbitrary wage increase. Cue the pixie dust and unicorns.

Odds and ends number 92

The more regular than it used to be look at the pile that’s my e-mail box and dredging out items worth a few sentences to a few paragraphs starts now:

A private fight for $15

My friends at the Maryland Public Policy Institute recently pointed out that there are a number of Maryland companies who are already paying starting employees $15 an hour (or soon will be.) MPPI’s Carol Park notes that, “The main goal for Maryland government should be to incentivize businesses in Maryland to grow larger and more profitable, so that they can become the new Amazon and Target and not only pay their employees $15 an hour but employ hundreds and thousands of Marylanders who are looking for a job.”

While Park is right, she also misses a point. Using that argument, larger businesses may be comfortable latching onto the so-called “Fight for $15” because it allows them to throttle back prospective competition. Small companies running on tighter margins won’t be able to pay the higher wages, so they won’t be able to compete.

Listen, if the SEIU and big business are on the same side (and, according to Leonard Robinson III of the Capital Research Center the SEIU is greasing a lot of Democrats’ palms to get this enacted at the federal level) it just can’t be good for the rest of us.

Returning to the subject of MPPI, they have also recently asked the state to “resist” raising taxes in the wake of the Kirwan Commission report advocating an additional $3.8 billion in school spending – none of which is slated to follow the child as it should. They cite prospective income tax increases on the middle class as well as possible expansion of the sales tax to include more services and business tax hikes as possible outcomes.

Knowing how the Kirwan Commission came together, is it any wonder higher taxes are on the docket? Resist we must.

Did Trump really cave? Or is it “fake news” from the dividers of Indivisible?

This probably deserves its own post, but we all know Indivisible will take credit for anything that’s a loss to America or makes President Trump look bad – naturally, that extends to the end of the recent Schumer-Pelosi shutdown. So this was their “state of play” after the furlough ended.

Pay attention to the “ask” – Republican Senators are asked for “No new wall money. Keep the government open.” It sounds to me like the Democrats have already determined they will shut it down again and try to blame Trump again. Nope, that one would be on you – particularly since Democrats have the majority in the conference committee.

In another Indivisible-related item I found interesting, they laid out a fundraising wish list in an e-mail I received in the wake of the shutdown:

$1,475,000 for “doubling our organizing team,” adding 14 state-level organizers, 3 digital organizers, and 3 training organizers.
$80,000 for Hubdialer, which, as the name implies, assists volunteers in making phone calls.
$114,000 for Mobile Commons, which is a text messaging system.
$1,315,820 for digital ads. More money for Mark Zuckerberg.
And $140,000 for ActionKit, a “mass e-mailing tool.”

All told, that “ask” is a little over $3 million, which I’m sure they’re going to invest in pushing more propaganda for 2020. Yep, that’s some grassroots for you.

And speaking of Astroturf…

If you wondered why Obamacare has hung tough despite its unpopularity, maybe this is why. From CRC’s Hayden Ludwig:

At least thirteen pro-Obamacare organizations aren’t independent organizations at all, but websites hosted by a handful of mega-funder nonprofits: the Sixteen Thirty Fund, New Venture Fund, and Hopewell Fund.
Those three funds are in turn managed by Arabella Advisors, a mysterious consulting firm based in Washington, D.C. Arabella Advisors advises wealthy clients on what it calls “strategic philanthropy.” In practice though, Arabella’s strategic giving involves philanthropic investments to left-leaning causes and organizations.
“Who is Behind the Groups Pushing Obamacare?”, Hayden Ludwig, Capital Research Center, January 10, 2019.

Nor should we forget this tangled web the Left weaved.

And people thought the TEA Party was Astroturf because Americans for Prosperity printed up a batch of signs? Okay then, feel free to be wrong.

More wasteful spending

Another winner from the CRC comes in this investigation by Robert Stilson – employment programs that make work for connected non-profits. It’s yet another case of low-hanging fruit to be plucked and another score for the Capital Research Center, which is beginning to become a (sorely needed) bulldog of the Right. Don’t miss their look at the Census controversy either.

The state of American energy…is strong

At least according to the lengthy (over 120 pages) and colorful annual report from the American Petroleum Institute. It should be required reading for environmentalist wackos, including one Larry Hogan. Maybe he’d learn something and get back to what he promised.

If you want something a little more “official” the far less colorful Energy Information Administration Annual Energy Outlook 2019 is out as well. Both documents are chock full of good news for the energy industry as long as government stays out of the way.

So is the state of American manufacturing

Fresh off “another strong month of job growth,” the folks at the Alliance for American Manufacturing believe, “This strength in factory and overall hiring gives the administration considerable leverage headed into the final leg of trade talks with China,” according to AAM President Scott Paul.

But they’re never quite happy, always wanting something more. On the heels of a Trump “buy American” executive order, the group wants it expanded already. Here’s what it covers, in a nutshell:

Within 90 days of the date of this order, the head of each executive department and agency… administering a covered program shall, as appropriate and to the extent consistent with law, encourage recipients of new Federal financial assistance awards pursuant to a covered program to use, to the greatest extent practicable, iron and aluminum as well as steel, cement, and other manufactured products produced in the United States in every contract, subcontract, purchase order, or sub‑award that is chargeable against such Federal financial assistance award.
“Executive Order on Strengthening Buy-American Preferences for Infrastructure Projects,” issued by President Trump January 31, 2019.

While the additional jobs are good news, I’ve always been a little leery of “Buy American” orders such as these just because it’s gaming the market and making American products just that much less competitive on a global scale. Why invest in new technology and better facilities when you have a captive customer?

Having said that, I do believe President Trump is trying to level the playing field a bit as other nations subsidize their industries to varying degrees, too. For several years I received missives from AAM and others decrying the “dumping” of steel on the American market by Asian competitors, and that’s a case where a “Buy American” law can be of assistance. But I would rather see fair trade as a part of free trade, and there can be instances where “Buy American” may not be the best option.

Fighting the last war

In terms of total votes, the most popular politician in Maryland isn’t Larry Hogan. Instead, the top vote-getter in 2018 was Comptroller Peter Franchot, who drew 1,620,264 votes in winning a fourth term in office. Peter carried all but three counties (Cecil, Garrett, and Washington) in defeating the vastly underfunded Republican challenger Anjali Phukan. (Her campaign, beginning in May, 2017 and ending last December, raised a grand total of $2,051.25. The remaining $460 was donated to charity.)

But Phukan remains convinced that Franchot’s victory was achieved through underhanded means. Recently she attempted to convince the Maryland Board of Elections that an investigation into Franchot’s campaign finance was necessary, but to no avail. So she took the next step:

With no administrative options left, at the suggestion of some fellow Republicans, I filed a “Writ of Mandamus” with the Circuit Court in Anne Arundel County, to make the Board of Elections investigate my concerns, and act accordingly, as required by Maryland law. In this writ I also requested an injunction and declaratory judgement. I had presented my concerns before the election board as I discovered things in the process of reviewing his campaign’s financial records, and yet the account was still deemed compliant enough for Franchot to be certified!
Anjali Phukan, newsletter to supporters, January 27, 2019.

She’s also began plugging an obscure electoral watchdog website that’s had barely 700 visits in the last 2-plus years (as there is still 2016 information on it.) A GoFundMe campaign for it has raised a grand total of $5. But while it seems Phukan is tilting at windmills, she brings up some very troubling concerns about the Maryland campaign finance system.

Having written and read a few campaign finance reports in my time, I’m sure I’ve pointed out the weaknesses in the system. But a glaring one is how one very minor change in information submitted could conceivably allow an entity to donate far more than the prescribed limit, and seldom does the Board of Elections act on these irregularities. Since I haven’t heard of them overturning any elections due to unlawful campaign finance, I presume the punishment is generally making the campaign return the donation and perhaps a modest fine to the candidate and/or treasurer.

I glanced through Phukan’s summary of Franchot’s issues and, while it wasn’t a vast percentage of his campaign funding, you would think a person who is charged with being an accurate collector of revenue wouldn’t have such large accounting errors. It seems to me that the Board of Elections is just putting these self-reported records out to present a fig leaf of accountability but not really checking into them. (And let’s face it: most campaigns in this state don’t involve enough money to pay the mortgage for a year.)

And, by extension, the lack of interest in checking Franchot’s campaign finance seems to be echoed in their lack of interest in (or utter contempt regarding) cleaning out voter rolls. The erstwhile watchdog group Election Integrity Maryland found thousands of duplicate registrations in a May, 2014 survey. (Third release here, from an archived web page.) It’s now February, 2019, and something tells me that number is twice as high. Just wait until they get the automatic voter registration!

In passing

I couldn’t let this post go by without mentioning the recent passing of my former colleague on the Wicomico County Republican Central Committee, Dave Goslee, Sr. Sadly, the 78-year-old Goslee had just in November won a seat on an institution he’d been fighting to reform for the first ten years of his twelve-plus year tenure on the Central Committee, the Wicomico County Board of Education.

Dave showed the value of getting out the vote as he won that Board of Education seat by one vote after a December recount showed that vote was incorrectly credited to his opponent. But the fourth-term WCRCC member couldn’t beat leukemia, and it’s likely his opponent will get the seat back anyway as a 14-member panel mainly comprised from the local schools will select Goslee’s successor – that committee selected William Turner, who Goslee defeated for the seat, in 2017.

Dave and I were not the closest of friends on the committee when we first started, but over the years we developed a respectful relationship as we each came to understand what the other brought to the table. He was also a devoted season ticket holder for the Shorebirds, so I saw him often even after I left the WCRCC. He will be missed, both at the games and certainly in local politics.

Coming up…

I almost put this into the odds and ends, but decided I would devote a stand-alone post to those who would tell me how to do my job. I may use that as the light-hearted stack of stuff to start the weekend.

I also have the third in a quick batch of record reviews to do for Saturday, but that may be the last for a short while. Or it may not.

Longer term, a suggestion I’ve had placed in my hopper once again was to bring back something I tried for a couple seasons in 2014 and 2015: predicting the 25-man Delmarva Shorebird opening day roster. (My 2014 guesses had 10 correct for Opening Day and 5 coming along later in the season. In 2015 I had 11 on Opening Day and 6 later on. That year I did it a week before the season, but it didn’t help.)

This year’s roster may be even more tricky because of the new management for the Orioles – players who may have been favorites under the Duquette regime may not catch the eye of Mike Elias, who will presumably prefer a player more like those in the Astros organization from which he came. (And who am I to argue with their success? Not only was the major league team a division winner in 2018, so were four of their top five farm clubs – the other was a close second. On the other hand, the Shorebirds were barely a .500 team but that was still best among Baltimore’s full-season affiliates last season.)

But since my situation is a little better than it was back in mid-decade I think I’ll give it a shot. Still not going back to Shorebird of the Week but at least I’ll enhance my coverage this way.

So the mailbox is emptier and you’re up to date.