In the form of falling minimum wages:
Colorado will become the first state to reduce its minimum wage because of a falling cost of living.
The state Department of Labor and Employment ordered the wage down to $7.24 from $7.28. That’s lower than the federal minimum wage of $7.25, so most minimum wage workers would lose only 3 cents an hour.
Colorado is one of 10 states where the minimum wage is tied to inflation. The indexing is thought to protect low-wage workers from having flat wages as the cost of living goes up.
But because Colorado’s provision allows wage declines, the minimum wage will drop because of a falling consumer price index. It will be the first decrease in any state since the federal minimum wage law was passed in 1938.
Once again: its called a Depression. Get used to it. Obama and the Fed think they can inflate the economy…of course, so did FDR. It doesn’t work – credit has dried up and even if it hadn’t, no one wants to borrow and banks can’t afford to lend as they are, in real terms, insolvent due to the bad and/or upside down loans still on the books (rest assured my 396k mortgage is still listed at that value at the bank…even though the house is worth maybe 150k…and I’m one of many millions just like that).
We can only get out of this by building wealth – by making, mining and growing things. The world has over-capacity, but we don’t. Even in this downturn we’re still importing like mad…and we thus have the demand in our own economy to provide jobs and wealth for Americans…if we just get out of the business of thinking that inflation is the way out of a Depression.
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