Wednesday morning, I spoke to a group called Success North Dallas on the topic of “Election 2016 and the Impact on Small Businesses.” This is a very astute network of small business owners, and they understand what’s ailing economic growth in America.
Funny thing, I advocated our moving away from the progressive tax code toward a flat tax, lo and behold, there was a fella who admitted to being a tax accountant who disagreed. His dissension centered on this, as he expressed, a flat tax will have an adverse effect on me, regardless of what it may do for economic growth. This sentiment is exactly what ails our nation — self and special interest over the interest of America.
And little did we all know it would not take long for the Obama administration to once again evidence its socialist leanings, creating more adversity for business owners. See, sadly the wage growth situation under Barack Obama has stagnated, so what should one do? Should Obama admit his fiscal policies are a failure, or do you, in your final seven months, double down?
Obama chose the latter and since he has a pen and a phone, he once again took unilateral action.
As Fox News reports:
As the Obama administration cheered “the worker wins” from a newly announced expansion of overtime pay, the directive drew a fierce backlash Wednesday from Republicans and the business community — amid warnings that the move could backfire and hurt workers in the end.
“These rules are a career killer. With the stroke of a pen, the Labor Department is demoting millions of workers,” David French, a senior vice president for the National Retail Federation, said in a statement Wednesday morning.
Policy changes formally unveiled Wednesday would make more than 4 million U.S. workers newly eligible for overtime pay. They’re intended to counter erosion in overtime protections, which require employers to pay 1 1/2 times a worker’s regular salary for any work past 40 hours a week.
In the fast food and retail industries in particular, many workers have missed out on this because they’re deemed “managers” – they work long hours but are paid little more than the people they supervise.
Under the new rules, first released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to nearly $47,500.
That means a fast-food manager making $14 an hour – or roughly $30,000 a year – would now be eligible for overtime for those extra hours.
The White House estimates the rule change will raise pay by $1.2 billion a year over the next decade. In addition, some companies may instead choose to reduce their employees’ hours to avoid paying the extra wages.
“Either way, the worker wins,” said Vice President Joe Biden on a conference call with reporters Tuesday afternoon. He formally announced the rules at an event in Ohio Wednesday afternoon.
First the Obama administration redefined what full-time equivalent work hours are to be — 35 hours –in Obamacare. And now, the Obama administration is redefining overtime pay. This follows the socialist economic theory of “nationalizing production.” Here we have President Obama deciding what private sector employers must pay employees, instead of providing them tax and regulatory policies that enable them to grow and pay good wages themselves.
Here’s what the real result will be: there will be no $1.2B in pay raises over the next year. Businesses who must operate under very thin profit margins will find a way to keep their employment costs down. This means they’ll pass on any new costs to the consumer, or those full-time folks won’t have to worry about overtime because they’ll be part time.
Another affect is that you’ll see more automation and replacement of human labor, or worse case, folks will simply be fired — and be more dependent on the government. And that, folks, is the end state, more folks on welfare and dependent on the government. It’s the obnoxious aspect of the Cloward-Piven strategy that seeks to overload the economic system and in the end, the ensuing result is a collapse due to loose fiscal policy.
It’s not Obama’s intent to see better wages for the American people. If that’s what he truly wanted, he would work with the National Federation for Independent Businesses (NFIB) and ask them what needs to be done. Nope, instead he makes this populist progressive socialist move he thinks will placate the masses whom he’s duped into believing he’s the grantor of their existence — by way of determining their wages. That mentality reflects the delusional mind of a manipulative egomaniacal demagogue.
You know how this ends? Just look south to Venezuela and that’s where it all ends up. And sadly, we allowed a slick version of Hugo Chavez to be our president and set us on the exact same path. America is a Constitutional Republic, it is not a Constitutional Monarchy, and certainly not a dictatorship. A president is supposed to govern under the rule of law, not issue mandates and edicts like a despotic ruler.
Here’s what needs to happen, the House of Representatives, which is where under the origination clause, all revenue generating legislative measures must emanate, needs to cut the Department of Labor budget by $1.2B.
The only way this stops is if Congress asserts its enumerated power of the purse. There has to be a teachable moment when President Obama and his minions on the progressive socialist left realize they are going to get hit back. You do not issue revenue punishing rules upon the private sector by bureaucratic administration fiat, or executive decree. We have a process, regular order, a rule of law as codified in our Constitution. We don’t need any more oversight hearings where the White House flips Congress the one-finger salute. Congress needs to just act, and Speaker Ryan needs to understand, this is why folks have become supportive of one Donald Trump — at least he appears to fight back.
Here we have a bunch of folks meeting with Mark Zuckerberg about Facebook’s fascist treatment of conservative news. The real message should have been the creation of a conservative alternative and to tell Zuckieberg to pound sand, and watch his stock value decrease.
When are we gonna stop playing with these demented socialists and start bringing the pain — let’s find our own pen and phone, and start upholding the Constitution of the United States.