It is true. No short-term pain suggests no long-term gain. Economists Dornbusch and Edwards define microeconomic populism as economic management that emphasizes growth and income redistribution while de-emphasizing deficit financing as leading government policy makers to be aggressive in pursing non-market policy. This seems to be what the Obama administration and the Congressional liberals appear to embrace while the conservatives have to take on an unpopular stance as adversary simply because the general audience of America finds it too much bother to study and scrutinize issues and use commonsense which seems lacking in the American dream state.
Look at the mess in Washington, D.C. Isn’t this the economic boondoggle that is the fault of much that has eroded effective economic policies for the past several years, if not longer? The cry goes out among the elite politicians, backed by the consorting media artificially inflating policies that caused the deficits to rise to triple record levels all the while the Federal Reserve kept inflation low by artificially printing money the budget could hardly endure so that today it seems to a guy like me–absolutely beyond repair. The politicians from all the government branches–executive, judicial, legislative have no clue other than to continue to race down the same road of passing the buck to others and shirking responsibility as elected officials of the people.
Raising the minimum wage seems logical and is a driving energetic pump in the populist mentality. And the public by and large goes along with it as closing the gap between the haves and have-nots, especially at the lower economic scale. The simple truth is that the so-called middle class can become the hard-up class by past standards. Wages have been static. Economic tinkering by well-meaning liberals and conservatives who both fail to see a bonding relationship between markets and microeconomic incentives; this bonding is something on which economists agree.
Take the minimum wage dispute. Everyone agrees that people cannot exist within that bracket for long. Liberals see the solution as just raising the money supply. The conservatives believe in a balanced budget and the minimum wage as a stepping stone for first time employees as a rational approach. That conflict of beliefs create short-term pain but likewise sets in motion no long-term gain. Because, what happens when a product value is raised at the source, it forces all prices to rise to create a static equilibrium. Thus, the liberals advocate an easy solution which is to just open up the money faucet. The conservatives tend to bear the brunt of public sentiment that the liberal elite has focused on and backed up with the support of a complaisant media that historically played a role as watchdog for public interest into this decade.
As I see it, no easy remedy exists because America is a nation of laws, some that were formulated on emotional settings rather than pointing to a level of wisdom that any law passed should require above all else decency and commonsense. Our Supreme Court exists as the third tier of legal recourse. It makes wisdom in our justice system palpable.