The central conceit of the New Deal was that government could force companies to pay high wages and in the process create nationwide wealth. However, FDR and his crew of daydreaming socialists overlooked the fact that, for every high-paid wage-earner, two or three other would-be workers must be sacrificed on the altar of unemployment. Thus the Great Depression endured with double-digit unemployment until Hitler forced us to put everyone to work.
Much the same is currently transpiring in the Obama administration, which seeks to unionize the economic underbelly of the country, and thus create a high-wage-earning middle class to sustain the national wealth.
How goes it?
Gee, let's see, that really hasn't happened yet, what with actual unemployment (including those who have quit looking and aren't counted by the government) now at the 18-percent level and probably higher.
Up until the third prong of a three-year minimum wage hike blitz took effect this past July 24, the nation was creating one part-time job for every five full-time jobs lost to the recession. After the new $7.25-per-hour minimum wage was ensconced, however, the trend reversed sharply, the robust growth of part-time employment ceased, and layoffs began (see chart below).
Now, back to those daydreaming socialists–they still exist, usually referring to themselves as progressives these days (as in FDR's days). Seeing the drastic fall in part-time employment, they'll no doubt conclude (or at least try to convince us to believe) that those part-time positions were lost as companies began rehiring full-time workers under the Obama Recovery.
Now, if you believe that one, you're a kindred daydreamer. If not, they have some nice Kool-Aid for you.