In what many have called “Trumponomics,” the battle lines became even more clearly drawn last week.
At the Harvard commencement speech, Facebook founder Mark Zuckerberg made the call for Universal Basic Income (UBI).
“Every generation expands its definition of equality. Now it’s time for our generation to define a new social contract,” said Zuckerberg.
“We should have a society that measures progress not by economic metrics like GDP but by how many of us have a role we find meaningful. We should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas.”
According to CNBC, Zuckerberg’s comments reflect those of other Silicon Valley bigwigs, including Sam Altman, the president of venture capital firm Y Combinator.
“Because I knew I had a safety net if projects like Facebook had failed, I was confident enough to continue on without fear of failing,” said Zuckerberg.
“Others, such as children who need to support households instead of poking away on computers learning how to code, don’t have the foundation. Universal basic income would provide that sort of cushion.”
Magic Money? Vote Buying Happy Talk?
While the thought of free basic needs money for everyone sounds like a wonderful idea, the inevitable question becomes… how do you pay for it?
Many Democrats have tapped into the “you need help, here you go” ethos for decades. With the revolution of social programs during the LBJ administration, the stage was set for generations that became dependent on social programs, and continued to elect candidates who promised to continue them.
And the perception of the promise has had tremendous value… to them.
Politicians and their media allies have learned a form of vote buying that may not require any deliverable payment… ever.
Promises are made, politicos are elected, and bills are passed…
…but no actual change takes place.
Former President Barack Obama signed a bill into law that was supposed to give equal pay for equal work.
Yet the Obama White House staff, the Clinton campaign and the Clinton Foundation – for all the happy talk of wage equality – were documented NOT to pay women equally to men.
So… How Do You Pay For It?
In a recent radio interview, former RNC Chair Michael Steele posed an important question in response to Zuckerberg’s call for UBI.
“Why doesn’t he start with his own organization and put in a standard minimum income for all of his employees and see how that works for his shareholders,” said Steele on the Sirius XM’s Breitbart News Daily.
“It’s what you say when you want to sound like you’re with it and cool, you know, I’ve got this real progressive view on taxes and everybody owes everybody else. You do your thing, let me do mine and we’ll work it out. The government doesn’t need to be going around setting anybody’s minimum on anything.”
The Trump Effect – The Desert… of the Real
What President Trump started during the campaign, and has continued during his administration, is exposing many of the fallacies that have led to 20 trillion in federal debt, huge trade imbalances, a loss of manufacturing and energy jobs to other nations.
And, as the Band-Aid is now being ripped off… the painful process of revealing and then rolling these fallacies back, those who have politically benefited react in the way that they know best.
Democrats have long argued for $15 minimum wage, yet according to a class action suit filed by DNC campaign workers, the party failed to pay them even the current minimum wage. This past week, Democrats in Congress on Thursday introduced a bill that would increase minimum wage to $15 an hour by 2024, and used their media allies to set the narrative.
“What we are here today to say is that a living wage is $15… if you are working 40 or 50 hours a week, you should not be living in poverty,” said Sen. Bernie Sanders (I-VT.)
“If Republicans and President Trump are truly serious about standing up for workers, they’ll join us in fighting for a $15 minimum wage. … We’re going to continue fighting tooth and nail for this,” said Sen. Chuck Schumer (D-NY).
Meanwhile, President Trump has just returned from his first overseas visit, closing billion dollars of business designed to deliver hundreds of thousands of good paying jobs to U.S. shores.
“President Trump’s triumphant visit to the Middle East is likely to be remembered as the occasion that changed not just United States foreign policy, but potentially the balance of power in the region,” a statement from the White House’s 1600 Daily email read.
The Bottom Line
President Trump and his administration are working to get to the root cause of the multi-decade long problem of flat wage growth, which can be summed up in the widely approved phrase, “the law of supply and demand.”
By addressing and attacking low wage worker inflow, unfair trade deals, taxes and regulation, repatriation of billions offshore, public private partnerships and energy independence, the administration is using the law of supply and demand to deliver solutions.
The markets are betting that Trumponomics is already working and will continue to work, as record growth continues.
The NFIB, MHARR and others are calling for, and support, many of these same changes.
The Daily Business News will continue to monitor and report on the various groups – including advocacy media – that attempt to shift or spin the discussion from the realities that are necessary to properly understand and act upon needed changes for sustained economic growth. ##
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Submitted by RC Williams to the Daily Business News for MHProNews.
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