Thursday, August 06, 2009

Drawing the Line

Talifaitasi W. Satele


The Private Sector and the ASG may have a nice, cozy relationship going on with its partnership together on the minimum wage petition, but that will soon come to an end.

For one, Congress will never delay the next increase in the minimum wage law lest they be made out to be a bunch of hypocrites by Republicans and liberals alike in the national media.

Two, the devastating effects of an increase in labor costs based on nothing other than Congress’ preconceived notions of social justice will force the ASG to choose between either upsetting its own work force (for cutting personnel costs) or its new found friend (for raising taxes on them to pay for its personnel costs).

As California and many other states have figured out the hard way, government is no creator of wealth. If government did create wealth, it could tax itself on the way to a balanced budget!

But the truth of the matter is that it is the Private Sector that creates wealth and the new revenues governments have had the pleasure of redistributing. So what many states have had to decide during this recession is either to raise taxes, cut spending or both.

Right now, the ASG is positioning itself to raise taxes with its un-prioritized spending. $200K for a Heritage week in Hawaii and trips to Washington D.C. to hand deliver the minimum wage petition do not put the ASG in a fiscally responsible position at a time when COS departure will mean a substantial loss amount of taxes to fund the government. And the Private Sector has said virtually nothing in the way of constructive criticism of the government’s reckless spending habits.

If private citizens don’t draw the line somewhere sometime soon, it will be that much more difficult to complain when the ASG comes knocking on the door after running up the tab.

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