CARSON: Obama is wrong that raising minimum wage will fix income inequality

There has been much discussion about income inequality recently. President Obama seems to think that we can make significant progress in eliminating poverty by raising the minimum wage, as his State of the Union address highlighted.

Many hope that through a simple declaration, the poor can be elevated to a higher social status. Such people fail to realize that pay is associated with value — otherwise, we could just pay everybody $1 million a year and let everybody be rich.

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SEE ALSO: Obama pushes minimum-wage hike during Costco visit

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In a capitalistic society, those individuals who produce the wherewithal to obtain income tend to be paid quite handsomely, while individuals who don’t generate significant income are paid accordingly.

As in any situation that involves human beings, there will be some abuses, but generally speaking, this kind of system works by incentivizing individuals to do the things necessary to enhance their value in the marketplace.

Many in the current administration and their sycophants in the news media are trying to persuade Americans that there is significant improvement in the general economy, while record numbers of people are enrolling in the food-stamp program and receiving various government subsidies.

Via: Washington Times

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Gas Prices Hit Record High In CA

California Gas Stations Shut as Oil Refiners Ration Supplies

Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.

Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.

Prices Jump

Gasoline at the pump gained 8.3 cents to $4.315 a gallon in California yesterday, according to AAA.com, 53.1 cents more than the national average of $3.784. In Los Angeles the price was $4.347. Gasoline futures for November delivery on the Nymex rose 14.34 cents to settle at $2.9429 a gallon, after falling yesterday to a 10-week low. Retail price movements tend to lag behind those of futures.

“Product supply in California has tightened, especially in Southern California, due to refinery outages,” Bill Day, a Valero spokesman at the company’s headquarters in San Antonio, said by e-mail.

Exxon’s Torrance refinery is restoring operations after losing power Oct. 1. Phillips 66 (PSX) is scheduled to perform work on gasoline-making units at its two California refineries this month, two people with knowledge of the schedules said. A Chevron Corp. (CVX) pipeline that delivers crude to Northern California.

Via: Bloomberg

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Cities pay a price for campaign swings: $100,000 for recent Obama visit

President Obama Continues to leave a Trail of Debt at a time when the Cities Can Least Afford it.

President Obama's motorcade pulls onto Hunts Point Road last month on the way to a private fundraiser at the home of former Costco CEO Jim Sinegal.

Local law-enforcement agencies spent nearly $100,000 in overtime to protect President Obama during a fundraising trip to the Seattle area last month, according to records released by the groups involved in the effort.

The roughly $98,500 tab, which won't be reimbursed, could have been much higher — the largest security force in the presidential motorcade, the Washington State Patrol, adjusted its schedules, shifting troopers from regular duties to avoid what would have been an additional $60,000 in overtime.

The single largest overtime tab came from the Bellevue Police Department, which paid $28,817 extra to some 60 officers involved in securing the Hilton Bellevue Hotel, where the president spent the night.

In all, dozens of employees from nine local agencies were involved in security for the July 24-25 visit, Obama's sixth to the state as president. Although the Secret Service coordinated the protection effort, local agencies also had to spend hours helping to craft a 72-page incident plan, officials said.

The costs are not unique to Obama; all presidential visits require intense security, and President Bush's trips to the state cost about the same, officials said. Security is also required for Republican Mitt Romney, although his status as only a candidate means the costs are lower.

The local expenses are in addition to costs handled by the federal government, including the operation of Air Force One, which is estimated at about $180,000 per hour. The Obama campaign is required to cover part of the federal expenses, but not local ones.

Those local costs for Obama's July visit represented only a small fraction of the budgets of the law-enforcement agencies.

Still, some people wondered why taxpayers must pay for security for a strictly political visit that did not include any public events.

The president attended a $35,800-per-person round-table with business leaders and a $5,000-per-ticket dinner at which he spoke for 13 minutes before reporters were escorted out. He raised about $1.75 million from the events, both at the Hunts Point home of Costco co-founder Jim Sinegal.

Via: The Seattle Times

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