http://www.aflcio.org/mediacenter/prsptm/pr07092003a.cfm
Hey you political nuts and guys out there! I wanna know... WHY could G.BUSH possibly have wanted to cut overtime pay of millions of americans... we all know he did many other fund-raising procedures at the time to get $ for the iraq invasion. Does this over-time pay cut fit into his "fund-Raising"? OTheriwse why did he do that? Anyone can help me?
If Bush cuts the overtime pay of people, economically we just assume that it is also a cut in wage rate, even though it is just overtime.
Now back to economic theory of demand and supply. If you cut the wage rate ceteris paribus, your supply of workers (domestic) will drop because fewer people want to supply work hours at lower wage. However, because cost of production has fallen due to overtime-pay cut, Employers demand for workers will increase; since they can hire more workers using $ which was originally overtime pay for their previous workers.
Thus we come to a situation where employers can hire more people at cheaper price, thereby maximising their profits. G.Bush will then tax the profits so that he can pay for his troops to invade Iraq. Note; I have skipped some pointers. Hope it helps, well at least that is my theory.