Uncivil Rights

A BLOG rife with wit, sarcasm, and the endless joy which comes from taunting the socialistic and unpatriotic liberal left. Logical thoughts and musings ONLY need reply...unless you're really, really funny. You have the Uncivil Right to be an IDIOT. "Give me LIBERTY, or give me DEATH!"

Saturday, November 27, 2004

For the Economically Challenged Part 1

This story represents an example of supply and demand. Here is just a breif portion:

With More Jobs Than People, Prairie Life Has Its Payoffs
Nebraska Appeals to Big-City Fatigue, Hometown Loyalty

By T.R. Reid
Washington Post Staff Writer
Saturday, November 27, 2004; Page A03

SIDNEY, Neb. -- "Here's our problem," says City Manager Gary Person, describing an economic plight that most other cities would love to have. "We've got a town of 6,200 people, man, woman and child. And we've got 6,400 jobs to fill."

Fueled by the explosive national growth of a local retailer and by a general wave of prosperity here on the prairie, Sidney's economy is growing so fast that the town finds itself with more jobs than people. And these days, that pleasant predicament is reflected across Nebraska.

As a result, Republican Gov. Mike Johanns has launched a nationwide recruiting drive to persuade people to come to the Cornhusker State and fill some of those open jobs.

"A lot of states have too many workers and not enough jobs," says Richard Baier, Nebraska's director of economic development. "They're offering all sorts of tax breaks and relocation funding to lure employers. We've got the opposite problem -- we are beating the bushes to fill the jobs we already have."

Here we have a condition in Nebraska of too many jobs and not enough people to fill them. This clearly illustrates supply and demand economics. Now let's look a little deeper into the minimum wage issue here. It is obvious that those businesses that want to hire workers will not be successful if they only offer minimum wage. Since there are more jobs than workers, workers will be able to earn what the market will bear, which will be above the minimum wage level. This situation of basic economics concerns the scarcity of resources, in this case, the resources are workers. The scarcer the resource, the more valuable that resource becomes, and hence, a company will pay more for that resource if that resource is needed by the company to do business. If that resource becomes too pricey (if a comany will spend more on that resource than it can make up in profits) the company will either cease to exist, produce something else, or find an alternative resource.

For those areas that have too many workers and too few jobs, the opposite is true. Businesses could hire workers below the minimum wage if they could. This is an example of government intervention denying the marketplace to set appropriate wage levels. This in turn inflates the prices of those goods and services produced while limiting the number of jobs filled and created. It also stagnates and sometimes prohibits the natural growth and expansion of businesses by creating a false pricing system, thereby altering the value of the goods or services produced.

For the economy to work properly, the market must be allowed to set prices without government intervention. This will benefit, not only businesses, but consumers as well.
totalkaosdave, 7:41 AM