Economic Realities Prove What I have Been Saying
I have been talking about the reality of economics and how they intertwine with reality. We can advocate and talk about the perfect scenarios and what we wish to happen when it comes to businesses paying more taxes and wage increases. The application of our wants rarely if ever can be implemented in the real world and work. This is something that people who consider themselves the intelligentsia do not seem to understand, their college classroom theories do not work in the really world when implemented.
I often talk about the fact that businesses do not pay taxes, we the consumers of their products and services ultimately pay those taxes. That means when a politician tells you they do not want to raise your taxes but they want to raise taxes on businesses, they are really saying they want to raise taxes on you.
These politicians either do not understand the private industry and how they price their products and services or they are not telling you the truth.
I have found two examples that prove the economic realities of which I speak.
One is an article I found written by Bloomberg News and published in the Detroit News, which reports that companies are looking to pass any new tariffs/taxes on to you their customers.
The article informs us of a cooperative in California’s Central Valley called Pacific Coast Producers, this cooperative cans produce from 168 family farms which belong to their cooperative.
Dan Vincent runs the cooperative and he stated that the increase on steel tariffs will increase their cost by 9% because of that they are looking to pass those increase costs on to the consumer. He was quoted in the article stating:
We’re going to have to try to get these increases in the markets…As with all tariffs, ultimately the consumer pays the bill
The other example is an article published in Thehill.com that addresses our very low unemployment rate. In fact they inform us that 14 states have hit record low unemployment rates.
In that article they state:
Such a tight job market means businesses are competing for workers, rather than workers competing for scarce jobs. That has some economists combing through data in search of evidence of rising wages, which have been largely stagnant since the recession
Using common sense what do you believe will happen in these states with record low unemployment rates, they will have to raise wages to attract and retain their future and current employees?
I recently reported about the State of Hawaii having this very same issue.
The Honolulu Star Advertiser recently reported on this issue and stated:
A low unemployment rate is certainly better than a high one. And many employers are responding to the worker shortage by offering higher pay
That being said let us attempt to not listen to the people who consider themselves the intelligentsia and start listening to the people who actually run businesses. Or professors who teach and work in or have worked in the real world.