Category Archives: Price Increase

That why Minimum Wage is a bad idea according to the economic analyst John Sneisen

Josh Sigurdson sits down with author and economic analyst John Sneisen to talk about the recent “disaster” in Seattle as the minimum wage is hiked to $13/hr following its recent hike to $11/hr.
As Josh had predicted in 2014, the minimum wage hike would lead to vast unemployment, poverty and cause businesses to look elsewhere to set up shop.
Well, the truth always prevails eventually!

According to the study,
“The numbers of hours worked by low-wage workers fell by *3.5 million hours per quarter*. This was reflected both in thousands of job losses and reductions in hours worked by those who retained their jobs.”

“The losses were so dramatic that this increase “reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.” On average, low-wage workers *lost* $125 per month.”

It’s basic economics and market principles to understand the inflation of the price of living as the wage is raised, all while employment crashes in an attempt to save the markets from total destruction. Everything the government does, the free market does better!

People have to understand the difference between the amount of money they get and actual value as value goes down as the wage is forced up.

Who benefits? McDonalds, Burger King, Walmart, the companies these “Fight for 15” activists say can afford to pay them more. Of course they can afford to pay them more, but that’s not the point. The small businesses can’t. That’s why Walmart and McDonalds support the wage hike. It leads to further monopolization and less competition in the market.
This also leads to massive job automation and will lead to vast long-term poverty rates.

Time to grasp reality folks! Just because something “sounds” good doesn’t mean it is.

The minimum wage hike begets poverty and inflation. This isn’t rocket science.

Stay tuned for more from WAM!

Video edited by Josh Sigurdson

Socialism Nightmare: Venezuelans Now Eating Dogs, Cats and Pigeons to Survive

At the start of 2014, Venezuela’s GDP stood at $371.34 billion, with nearly half of that coming from oil (it accounts for almost 100% of exports). But after a year-high of $105.54 in June, crude plummeted by more than 50% to $48.51 by the end of the year. Oil has held steady in the $50-a-barrel range since, allowing the country’s socialist policies to materialize without the guise of high crude–and economic disaster has ensued.

Just this year, Venezuela has faced shortages in toilet paper, diapers and milk (and more) forcing more than 6,000 people to cross the border in Colombia to purchase necessities. The country had to ration its electricity use because of severe power shortages. It also could no longer afford to print its own money. Come 2016, the IMF forecasts Venezuela’s inflation rate to exceed 1,600%.

A Bolivarian Republic, Venezuela turned to socialism in 1998 when Hugo Chavez was elected president after two unsuccessful coup attempts to oust his predecessor. The new regime brought not only a new constitution, but higher oil prices as well. The following year Chavez passed laws redistributing land and wealth, which he followed in 2005 with a land reform decree that would eliminate larger estates to the benefit of the poor in rural areas.

In 2007 the government took control of important oil projects in the Orinoco Delta and later expropriated two U.S. oil companies, furthering Chavez’s nationalization plans.

Nationalization continued with the Bank of Venezuela and household fuels distributors and petrol stations. In 2011, with a 27% annual inflation rate, the Venezuelan government introduced price controls of some basic goods (they would extend to other products in the following years).

By the time of Chavez’s death in 2013, inflation had grown to 50% and rose to 63.4% in the following year. Towards the end of 2014, the country entered into a recession.

***

Present-day Venezuela is facing a humanitarian crisis and Nicolas Maduro, Chavez’s hand-picked successor, and his socialist regime is rightly shouldering the blame. The country’s emphasis on oil exports, price controls and a heavily-controlled economy are all features found in other current and former socialist countries–features that have contributed to the demise of whole economies, or brought them close to it.

Perhaps the most obvious example of economic failure is the Soviet Union (or USSR), With its highly centralized government and economy, the USSR survived for 69 years until its collapse in 1991, representing the longest time a state has been led by a Communist Party (China comes in second at 67 years).

While oil prices were high, the Soviet Union appeared to have a strong economy and could maintain its focus on increasing its military power. But when oil prices fell towards the end of the 1980s, the USSR found itself forced to borrow from Western banks. Its sluggish economic system and dependency on the West also weakened the control that it had over countries under the USSR’s control and eventually led to its demise. Venezuela now finds itself in the same difficult position.

Venezuelan officials like to blame the crisis on the United States and right wing business owners aiming to sabotage the system, it seems obvious that the heavily centralized state-run system inherited from Chavez is what is driving Maduro’s country to ruin. With a GDP percent change of -8% from 2015 to 2016 and an unemployment rate of over 17%, the only thing that can save Venezuela is ditching socialism.

The opposition has called for a referendum to oust Maduro this year, but the process is still in limbo–meaning relief for the Venezuelan people might not come until 2018, the next scheduled presidential election.

Even then, change can never be promised in the world’s 9th most corrupt country.

War on food: NZ University wants to tax bread, cereal, meat, eggs and milk

Source:Scoop
Date:9 July 2015
Author: Food and Grocery Council

Auckland University wants to tax bread, cereal, meat, eggs and milk

A call by Auckland University academics to tax New Zealand families’ staple foods such as bread, milk, eggs and meat is lunacy, says NZ Food and Grocery Council Chief Executive Katherine Rich. Continue reading War on food: NZ University wants to tax bread, cereal, meat, eggs and milk

War on Meat: 40% beef tax suggested to pay for climate damage

Source:The Guardian
Date: 7 November 2016
Author:

 

Climate taxes on meat and milk would lead to huge and vital cuts in carbon emissions as well as saving half a million lives a year via healthier diets, according to the first global analysis of the issue.

Surcharges of 40% on beef and 20% on milk would account for the damage their production causes people via climate change, an Oxford University team has calculated. These taxes would then deter people from consuming as much of these foods, reducing both emissions and illness, the team said. Continue reading War on Meat: 40% beef tax suggested to pay for climate damage

Massive food inflation strikes Canada… consumers paying $8 for a head of cauliflower, $3 for a single cucumber.

Source:Natural News
Date: 25 January 2016
Author: Daniel Barker

(NaturalNews) Due to a “perfect storm” of inflationary factors – not the least of which being the continuing drop in oil prices – Canadians are seeing the effects of a weakening currency reflected in food prices at the supermarket.

$3 cucumbers, $8 for a head of cauliflower, grapes at $10 per bag – the spiraling cost of foods, particularly those imported from Canada’s neighbor to the south, has consumers there reeling from sticker shock.

Social media platforms have been inundated lately with complaints about the rising food costs, and the offset in low prices at the gas pump has not been enough to make up the difference for Canadians who are now paying more for almost all imported goods.

It’s one thing having to forego buying a new iPhone or other luxury items, but not being able to afford the foods one is accustomed to is particularly frustrating for the average consumer. Continue reading Massive food inflation strikes Canada… consumers paying $8 for a head of cauliflower, $3 for a single cucumber.

Food seizures begin: Venezuela farmers ordered to turn over their food to the government

Source:Natural News
Date: 7 August 2015
Author: Daniel Barker

(NaturalNews) As Venezuela’s economy continues to worsen — its currency having entered “free fall mode,” according to the Financial Times — the desperate Maduro government has taken the extreme measure of nationalizing the nation’s food industry.

Venezuelan farmers and food producers are now required to sell anywhere from 30 percent to 100 percent of their products to state-owned stores. The order covers staple foods such as rice, milk, oil, sugar and flour.

Shortages and long lines in stores have become common since Venezuela’s economy began sliding into inflation — a situation that placed them at the top of the list in the world for inflation in 2014. The official inflation rate was 65 percent last year, and in the last month the currency has lost another 43 percent of its value. Oil prices once again have dropped, causing further strain on Venezuela’s struggling economy.

The recent free fall of the country’s currency — the bolivar — is evidence, according to FT.com, of “the growing inability of Nicolas Maduro, Venezuela’s president, to stabilise the country’s fast deteriorating economy.”

Maduro's Leftist government has attempted to cover its debts by printing money, a move which has pushed the country towards a state of hyperinflation, according to leading economists. Venezuela's money supply has increased 85 percent in the last year, while the currency continues to devalue. The black market value of the bolivar has nearly reached the 700 to one dollar mark -- a figure roughly one-hundredth of the official government rate of 6.3 bolivars to the dollar.

Many observers believe that the move to nationalize the food supply will only worsen the situation, especially for Venezuela's lower income citizens.

Pablo Baraybar, president of the Venezuelan Food Industry Chamber, says the order is "illogical"
and will harm consumers:

Taking products from the supermarkets and shops to hand them over to the state network doesn't help in any way. And problems like speculating will only get worse, because the foods will be concentrated precisely in the areas where the resellers go.

Speculation and exploitation

The "speculating" that Baraybar refers to is the widespread practice of private retailers in Venezuela purchasing and hoarding cheap food products from the state-owned markets for resale at greatly inflated prices in the private stores.

The speculators, nicknamed "bachaqueros" (giant ants), buy goods from the three state-owned store chains, then resell them at a profit.

The nationalization will also lead to even longer lines in the markets, according to Baraybar, because "goods will be available in fewer stores."

From the Telegraph.com:

The state owns 7,245 stores, compared to more than 113,000 in private hands. Mr Baraybar said that many of the private shops were in densely-populated areas, meaning that people will now be forced to make longer journeys to the state stores.

Solution: increased production, not nationalization

Baraybar says that the Venezuelan Food Industry Chamber was not informed about the order and has called for a meeting with the government to discuss the plan. He says that the move "does absolutely nothing to help with the shortages" and that increased national production is the solution.

For years now, Venezuela has exercised strict price controls on many basic goods in an effort to keep them affordable for the country's poor, but manufacturers claim that high production costs make it impossible to for them to operate, leading to further shortages.

Meanwhile, the government accuses the producers of greedy speculation and trying to undermine the revolution.

The socialist model has proven to be disastrous to Venezuela's economy, as it has in other countries which opted for the same approach. Simply taking over the private sector will never be a formula for economic success.

Sources:

http://www.telegraph.co.uk

http://www.ft.com

http://www.telegraph.co.uk

Could the Bilderbergers could behind the 1973 Oil Crisis?

The Bilderberg Group orchestrated the 1973 Oil Crisis and talked OPEC into playing along to ensure that Anglo-American oil companies with ties to Bilderberg would profit from oil exploration in the North Sea, as Infowars journalist Kit Daniels explains.

For more information on the Bilderberg Group’s link to the ’73 Oil Crisis:

Controlling the Global Economy: Bilderberg, the Trilateral Commission and the Federal Reserve
http://www.infowars.com/controlling-t…

Robert Dallek, The Kissinger Presidency. Vanity Fair: May 2007: http://www.vanityfair.com/politics/fe…

The Observer, Saudi dove in the oil slick. The Guardian: January 14, 2001: http://www.guardian.co.uk/business/20…

F. William Engdahl, A Century of War: Anglo-American Oil Politics and the New World Order.

V.H. Oppenheim, Why Oil Prices Go Up (1) The Past: We Pushed Them. Foreign Policy: No. 25, Winter, 1976-1977

More living in cars as rents go through roof

NZ Herald
4 October 2014 (Publish on 4 May 2015)

A shortage of suitable homes sees some families forced to pay 70 per cent of their income to landlords

From left: Tamasailau, Nicole, Vaiopa’a, Maua, Faaasu, Jacoba and Moanille.

 

Families are being forced into desperate measures – paying more than half their income in rent and even living in cars – as Auckland’s rental housing crisis deepens.

South Auckland social service agencies say they are seeing more families with children living in cars, camping grounds and boarding houses in the past two or three months as private sector rents become unaffordable and state houses have become almost unavailable. Continue reading More living in cars as rents go through roof

Dodgey Dealings In Northland, How Winston Won!

The Northland Election Aftermath, Winston Won! Penny Bright, Evelyn Gilbert, Bruce Rogan http://www.thevinnyeastwoodshow.com/2… HOUR 1: Penny Bright breaks down the conflicts of interest, dodgey dealings and criminality that led to National and Mike Sabin’s downfall in Northland Evelyn Gilbert expands on the implications of this historic victory for Winston Peters but is still skeptical that he can change how New Zealand is run. HOUR 2: Bruce Rogan, chairman of the Mangawhai Residents and Ratepayers Association explains his own campaign in the election and how just talking about the issues, the facts and the corruption in the local councils rather than campaigning to be elected helped push Winston Peters into victory.

America to lose one-third of its fresh produce when California runs out of water

Natural News
March 16, 2015
Mike Adams, the Health Ranger

(NaturalNews) As Michael Snyder points out in a timely article at The Economic Collapse Blog, California is rapidly reverting back to the desert it was once.

Awareness of this is only now beginning to spread, but almost no one truly grasps the implications of what losing California’s Central Valley agricultural output means to grocery shoppers. Continue reading America to lose one-third of its fresh produce when California runs out of water

A freedom to exist both ecological and economical