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Now that the election is over . . .Tue, 11/28/2006 - 4:46pm
By: Letters to the ...
Now that the histrionics regarding a change in congressional power are mostly over, I thought it time to reflect on what real effect the change will have on us. Financially, I suspect not much direct effect. Oh, sure, the Bush tax cuts will likely be history. But, will our lifestyle be materially affected? Probably not. And, if corporate taxes go up? Not an issue for business owners. Just an issue for consumers. Anyone with half a brain and at least a modicum of understanding of economics recognizes that those taxes – like all other taxes – get incorporated into the price of the product. Corporations and businesses pay zero tax; consumers pay it all. And, what about raising the minimum wage? Again, not an issue for business owners or corporations. Are we going to reduce our margins? Ah, no. Funny thing about labor costs. You either lower them, as in the last couple of guys hired at minimum wage not only don’t get a raise, they get fired; or – you guessed it – raise product price to the consumer to maintain margin. Okay, so the consumer pays a little more to “help out” the very small number of wage earners getting minimum wage; how bad can that be? Well, oddly enough, the benefactors of an increase in minimum wage aren’t solely the little guy making minimum wage. Many labor union wage contracts are tied to the minimum wage. Various job classifications are paid a minimum of X percent over whatever the minimum wage is. So, by increasing the minimum wage, did the benevolent supporters of the minimum wage increase hone in like a laser beam on only the segment of labor earning the minimum wage in order to better their lot? Au contraire! Simply increasing the minimum wage unleashes across-the-board wage increases to large groups of labor. Costs rise. What do we do to maintain margin? Hmmm, increase prices to the consumer maybe? The third potential effect I hope to God I’m wrong about, however. It concerns the global war against radical Islam. As reports in Al Jazeera indicated, both al Qaeda and Hamas were rooting for a liberal party take-over of Congress. Osama bin Laden went so far as to issue a statement to Americans, urging us to repudiate the doctrines of George Bush and usher in the far more reasonable liberals. Now, why would they do that? Because of their inherent concern for mankind in general, and their overwhelming desire to see America thrive and prosper? Ah, again no. They know they cannot win with brute force. So, their only option is for coalition forces to leave. And what will expedite that? Having a political party in control that will extricate the troops. Now, granted, control of both the House and Senate changed hands. But there is some nuance here. Look at almost every race. Yes, there were some significant individual victories, but by and large we did not see a mandate expressed. Margins of victory by most of the candidates was very, very small. Which means, in those geographic areas where congressional seats changed hands, the local population remains almost equally divided regarding party preference. I don’t believe the radical Islamics will read it that way. As Saddam Hussein misinterpreted initial American resolve, I’m afraid they’ll misinterpret “mandate” into the power change. Accordingly, I believe they’ll eagerly anticipate a very rapid troop withdrawal from the region. Here’s my fear: if they don’t hear a drop-dead date for American troop withdrawal, or if one is expressed, but doesn’t meet their time-table, I believe they’ll increase their attacks on both American troops and locals. That’s what I’d do if I were one of their commanders. Why? Because the liberals have unequivocally announced they believe the war is wrong, we shouldn’t be there, and America needs to extricate itself. As an enemy commander, I’d want to significantly elevate the pressure for America to leave. So, if we don’t withdraw quickly enough, I suspect the change in congressional leadership will have the effect of increasing our casualties. And, if that happens, mark my words: the liberals will ignore direct cause and effect. They’ll revert to their tired mantra, “It’s all George Bush’s fault.” Scott Babbitt |