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Economic changes are needed

August 26, 2012
Weirton Daily Times

To the editor:

Joe Zoric has been a cheerleader for runaway capitalism since his very first letter to the editor ("Writer lacks basic understanding," Aug. 19.) There are other factors involved beside the minimum wage being raised. He may be right about raising the minimum wage impacting jobs for young people, but there are ways to help the lowest paid employees without hurting the employer. The first step is a friendlier flow of cash. Banks must be regulated. Young people starting out are faced with insufficient income to pay their living expenses but the banks issue them credit cards with high interest rates and then after they approach their limit the bank extends their credit. Now, with the hook set they raise the interest rates on them. Banks instigate fees that are no more than pure profit that does nothing toward paying for the service.

Student loans are another gaffe that makes it impossible to get a start in life. Students who use the student loan programs are saddled with balances from $70,000 to $100,000. Wages have been stagnant for the past 30 years making it difficult and in some cases impossible to pay back the loans. The government should also allow people who are making minimum wage and slightly above to be tax exempt. People on the bottom rung need help as well as those in the middle class. The new corporate practice entails understaffing, overworking and underpaying.

The bottom line is that the precepts of capitalism have been changed. Failure of larger corporate businesses is impossible because they make up any losses from the consumer, which makes it easier for CEOs to gamble with or squander corporate money. Supply and demand rules have been changed. The price of gasoline no longer follows supply and demand. Gas prices fluctuate relative to Wall Street future speculation. Minimum wage should be tied to the increases in CEO and stock holder dividends. Then wages would be more than adjusted for inflation. There is a serious income disparity in America. There is a transfer of wealth in this country but it is the opposite of what the conservative talk show hosts would tell you. The money is leaving the pockets of the working class and going to the overseas private accounts of the elite. I would like to witness Zoric's reaction if his salary increase wire tied to the frequency and percentage of minimum wage increases.

I am inclined to think that minimum wage employees are more important to this country than Zoric, who distorts economics in his public rants and I am sure in his classroom. The purveyors of economics in American colleges have distorted the traditional economic structure to a contemporary structure that transfers wealth up hill. This is evident in the way managerial salaries and bonuses have skyrocketed while employee wages have remained stagnant.

Joe Scalise

Steubenville

 
 

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