In 2020, The U.S. government awarded 3M Co with a $126 million face masks contract; as of April 2023, 3M to cut 6,000 JOB positions globally to improve cash flow – April 26, 2023,
A lot of the world’s ECONOMIC problems are due to BIG GOVERNMENT stupidity, which inevitably leads to specific private entities being REWARDED for bad behavior, but worst than that, BIG GOVERNMENT leads to all sorts of STUPID economic situations.
What I’m writing is THEORY here, but during the pandemic, it came to the attention of most people in Western nations that without COMMUNIST China, we wouldn’t even have BASIC masks. But nobody wants to talk about how we got here.
The Stupidity of the FEDERAL minimum wage Law
Public sector aside, as in some countries, being a federal employee guarantees them a minimum wage; what I’m referring to is the FEDERAL minimum wage laws in the private sector. Whether it’s State, Canton, Provincial, or municipal minimum wage laws I think they should be LEGAL, but the FEDERAL minimum wage law should on the private sector should be abolished.
One of the stupid things about the minimum wage law is that some businesses, namely family-run small businesses, don’t have to abide by it, it’s one of the reasons CONVENIENCE stores often survive while most of the other NON-FAMILY run businesses have to get creative.
Being that there’s a WELFARE State in most western nations, why would you have a MINIMUM WAGE large? If someone DOES NOT want to work for the wages presented to them, that person could even go on WELFARE if they wanted to.
So why BURDEN the private sector with a minimum wage law? Exploitation is illegal in most Western nations, and countries like Sweden and Switzerland have already abolished their FEDERAL minimum wage laws, so why then does a country like America still have a FEDERAL minimum wage law?
This stupid law doesn’t make it hard for some U.S. States to compete for MANUFACTURING jobs, which is why companies like 3M co who make masks have to get creative and move to countries like China to do their manufacturing.
Lately, there have been GOVERNMENT initiatives to bring manufacturing jobs back to America without addressing the reason companies left in the first place. Although China doesn’t respect private property, a company can make a huge profit by moving to China, which obviously has fewer regulations on businesses as well as cheaper labor.
But if we’re going to get serious about 3M co and why they’re laying off people, the main reason is because MINIMUM WAGE laws for example, don’t allow companies the ability to LOWER wages for the people they hire. Now, let me ask you a question would you rather have lower wages or no job at all? Many in the modern era will say NO JOB at all; why? Because the government has money waiting for them if they’re laid off.
So again two separate forms of welfare available by the government incentivizing people in Western nations NOT TO WORK. These welfare programs aren’t free either, in fact, I could write about the FOREX markets and how certain countries benefit from the forex markets and global DEMAND for certain fiat currencies, which is the main reason why a lot of these MASSIVE UNSUSTAINABLE trade deficits exist in the first place.
Dependence on China is catching a lot of countries by surprise; most people won’t even pay attention to this 3M Co story, because Covid-19 is now officially yesterday’s news; I’m writing about this topic because I’m trying to leave a trail for people to follow to see how Western Nations are DESTROYING themselves.
This a reminder that PRICE CONTROLS do not work, and the minimum wage law is a PRICE CONTROL law. Working for wages only means that the government can charge you a higher TAX because of the choice made to make your income. Wages are a PRICE you charge for your labour that, based on government laws, entitle you to certain government benefits and liabilities.
But working for these wages and demanding there be a PRICE control for wages equates to PRIVATE businesses opting not to do it’s manufacturing in certain regions, because there’s a=only so much a person or a BUSINESS will be willing to pay to purchase a mask, and if domestic mask manufacturer is not profitable, it will have to move the location of it’s operations or close it’s doors altogether.
I’m, ofcourse not even talking about other government regulations that make it even LESS profitable to create a manufacturing business in the United States because I’m trying to keep this post short, but I hope you see why the government giving 3M co $125 million dollars was a MALINVESTMENT. gOVERNMENT SHOULD NOT GIVE PRIVATE BUSINESSES MONEY BECAUSE A PRIVATE BUSINESS has to be PROFITABLE to stay afloat and ofcourse if you’re a shareholder, you have to be paid for taking all of this risk, and if the $125 million is running out, 3M Co and company have to be paid out before the RISK of restructuring begins.
Interesting times ahead!