Wednesday, April 09, 2008

Hillary's (Lack Of) Understanding of Economics

Here's a transcript of Hillary's OWN words on the Tonight Show with Jay Leno (Emphasis mine);

I was in Indianapolis the other day and I was shaking hands after I spoke. And there was this young boy about eleven years old and he's trying to tell me something—you know the crowd was yelling—so I leaned over and he said, "You know, my mom makes minimum wage and even though it went up, her hours were cut. So we're not making any more money. Can you help her?" You know, when somebody says something like that to you, it really does kind of energize me. I think, yeah, I can, I'm going to really try to help you, because this is wrong. And everywhere I go I hear stories like that about veterans who don't get health care, about people, who are, you know, losing their jobs, and I think we can do so much better. So for me it's just get up every day and fight on because this country's worth fighting for.

Note the line in bold. Economics 101, if production costs increase (either by material cost increases or labor increases) then you cut expenses to maintain a profit. In this case, the woman's wages were the increase. If the story is true, then this situation is easily predicted. The most amusing thing about this story is that Hillary herself was a HUGE supporter of the very reason this woman had a reduction in hours. The site has a transcript of a speech she gave to the President about raising minimum wage. If there's any doubt of her support of a rate increase, here's the opening statement of it;
Mr. President, I find it almost hard to believe that we are here on the floor of the United States Senate arguing over the necessity for an increase in the minimum wage. I am strongly supportive of Senator Kennedy’s amendment, proud to cosponsor it, and urge my colleagues on both sides of the aisle to vote in favor of it and to oppose the second-degree amendment. Now, this amendment does not go as far as I or Senator Kennedy and others would have preferred. It raises the minimum wage to $6.25 an hour, far short of the $7.25 an hour that Senator Kennedy and I and 48 other Senators proposed in March, but we could never get a vote on that. Now, this amendment, however, should have even greater support than the 50 cosponsors we had last March. It should pass unanimously out of this body. Fifty senators just last March supported an increase to $7.25 and now we have cut the increase with a hope that we can get, number one, the vote we are hoping to get on this appropriations bill; and, number two, an overwhelmingly bipartisan passage.
Not only did Hillary attempt to use this story to gain pity among voters, but she doesn't even seem to realize that she was the cause of it. This woman truly has no understanding of basic Economics.

H/T: RFTR's Gmail message.