Tom Steyer Proposes to Triple the Minimum Wage

Usually when billionaires run for political office, it is reasonable to expect they have a basic understanding of economics. In the case of presidential candidate Tom Steyer, however, one cannot make that leap of faith. Either Steyer has no understanding of economics whatsoever, which is extremely unlikely, or he does and does not care, or he is a pandering liar.

On February 9, speaking in South Carolina, Steyer said “he would call for a $22 per hour minimum wage if elected president.” This ups the ante on Steyer’s competitors in the Democratic presidential primary race, who are calling for an increase to $17 per hour.

Currently, the federal minimum wage is $7.25 per hour. If Tom Steyer were president, that rate would triple. Examining the consequences of such a move brings into sharp focus the dangerous absurdity of Democrat proposals. It offers additional reasons to vote for Republicans not necessarily because they are Republicans, but because they are not Democrats.

Shown on the chart below is the history of the federal minimum wage since it was first established in 1938. The first column shows the actual, nominal, minimum wage in each year the amount was raised. The middle column displays the consumer price index in each of those years. The column on the right then calculates what the minimum wage was historically, if expressed in 2019 inflation adjusted dollars.

As can be seen, if the minimum wage set back in 1938, 25 cents per hour, were expressed in inflation […] Read More

How Does a California Family Survive?

It’s common enough to discuss the high cost-of-living in California. It’s become a serious topic, at last. But for Californians who are used to paying ridiculous prices for everything, it may be helpful to present a comparison in the form of an annual family budget. How much does it cost to take care of a family of four in Los Angeles compared to Houston?

The choice of Los Angeles is logical enough. One in four Californians live there. And while Los Angeles County may be more expensive than most of California’s inland counties, it is not cheaper than Orange, San Diego, or any of the nine counties of the San Francisco Bay Area. Altogether there are over 25 million Californians living in expensive coastal counties. Two out of three Californians endure the types of prices depicted here.

The choice of Houston is also logical, not simply as a representative of cheaper Texas, but as a proxy for nearly all of the United States, with the only exceptions being those high-tax (usually coastal) metropolitan areas located in states ran by progressive Democrats. In terms of the cost-of-living, Houston is an authentic stand in for most of America.

Reviewing the budget depicted below, the first thing to realize is that most people don’t have a household income of $100,000 per year. The median household income in California is $71,805. That means half of those 25 million people who have to live in places like Los Angeles have a household income that […] Read More