As more nations become socially responsible toward workers, rampant capitalism is increasing its propaganda campaign to minimize the effects through disinformation

With totalitarian communism existing in only a few small nations, any social activity aiding the human individual has become the new “Evil Empire” of Western capitalism.* Labor and its desires for human conditions have been targeted as the “enemy” of freedom and free markets. Few places around the free world present this disagreement over the minimum wage and social policies more than the United States of America.

Europe

The birth place of the industrial revolution, Old Europe has seen its share of criticism of poor human liberties and care. Charles Dickens portrayed the theme well in 1848-1850 England when writing A Christmas Carol and David Copperfield. “…the story’s origin resides in my impassioned convictions about the rights of childhood, and my equally strong belief that the denial of those rights will lead to social disaster.”

But Europe has changed since the end of World War Two. Social issues have become an integral part of society and monitored by many organizations including the European Union. “The Commission has launched its new Social Agenda for modernizing Europe's social model under the revamped Lisbon Strategy for growth and jobs”

Wages

According to the Federation of European Employers the minimum wages across Europe varies from “…€32 a month in the Russian Federation to €1,570 a month in Luxembourg.” “Old Europe” has a much smaller minimum wage gap while the lower paying countries show the highest percentage increase in their minimums. Still there is an argument about the negative influence of these policies that pits business opponents against governments and labor.

Opponents

The conservative “think tank” Heritage Foundation says: “A minimum wage operates by removing the lowest rung on the economic ladder….” The equally conservative CATO Institute states: “Our conclusion is…that increased minimums raise the cost of hiring…[and] fewer…workers will be employed.”

Proponents:

“The standard argument against…was…that a minimum wage…will cause unemployment and…work against poverty reduction….But empirical research…did not show a negative effect on employment…findings strongly support…that the minimum wage may bring positive results in poverty alleviation by improving the living conditions of workers and their families while having no negative results in terms of employment….”

In Japan the government views raising the minimum wage as “…a part of the government’s economic policy to boost the nation’s growth potential….by raising the lowest wage level, it would help small to mid-sized firms attract able workers and thus increase companies’ productivity.”

Propaganda:

“…the art of propaganda consists in putting a matter so clearly and forcibly before the minds of the people as to create a general conviction regarding the reality of a certain fact, the necessity of certain things and the just character of something that is essential.”**

• According to a July 5th 2006 CATO institute report, “in America, the majority of low-income earners typically move up the income ladder by improving themselves, not because of the minimum wage.” Yet the reality is “…economists and sociologists say…the typical child starting out in poverty in continental Europe…has had a better chance at prosperity.”

• “The goal of price controls like the minimum wage is essentially to repeal the law of supply and demand…” Untrue: in a global economy these laws are controlled by global demand, not national demand.

• “…the reasons given for raising the minimum wage…[are] to assist the working poor. Though it is quite appealing…that everyone should earn a decent wage….If it is possible to mandate high wages, then….” This CATO statement is called - escalating value. A minimum wage is associated with high wages.

• But the final act is in minimizing the stature of an apposing expert by implying guilt by association. “Professor Krueger is currently on leave from Princeton and is…chief economist at the Department of Labor.”

Whatever your view we must think of the immortal words of Charles Dickens: “think of people below [us] as if they really were fellow passengers to the grave.”

* reference to former US President Ronald Reagan’s definition of the Soviet Union.

** Hitler, Adolph. “Mein Kampf” Translated into English by James Murphy Abbots Langley: February 1939 p 155

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