A few weeks ago we posted on Finnish police wandering the streets of Helsinki looking for pizza which was priced “too cheaply.” The reason? The fear that pizza vendors were selling at a price which didn’t generate enough sales tax revenue for the socialist country. In that post we explained that in many parts of the American big government archipelago, the Northeast, parts of the urban Midwest, and much of California it was likely only a matter of time before “pizza police”
I have often said that if private unions do not act in a crony way, they are perfectly legitimate. If a group of people want to come together to collectively bargain and sell their labor in bulk I think this can be OK. A contract can create a sense of stability for both management and workers. But the only moral way to do this is without coercive action from government. Unfortunately unions seem never to stray far from their crony friends in government.
By Ed Ring
Back in the late 1970’s something happened to the Santa Clara Valley. Increasingly it became referred to as the Silicon Valley, because the emerging silicon based semiconductor industry found its first home in plants nestled along the southern shores of the San Francisco Bay. Boasting what are among the finest universities in the United States – Stanford and Cal Berkeley – and the best weather in the world, high technology companies began choosing the San Francisco Bay Area in the 1940’s and never looked back.
I was recently going through the checkout line and I overheard the cashier talking to the bagger. “Man, if I could just get paid for doing nothin’. That’d be sweet.”
I looked right at the cashier who was all of 18 or so and I said that I disagreed. A really sweet job was one which provided a living while one did meaningful and enriching work. Doing nothing is boring.
Both the cashier and the bagger agreed that meaningful work was better than doing nothing.
Unfortunately it will likely not increase full-time workers either.
The enemies of progress (real progress) always lash out when bested. They fear the market. They fear the free flow of prices and the competition it brings.
Things change. Buggy whip companies go bust. So do cab companies. Sorry, my suggestion is that you learn how to do a better job than the Uber drivers.
Most of us over the age of 35 have seen massive changes to our livelihoods. I certainly have. This is the nature of the economy.
As we’ve argued many times before, arbitrarily raising the minimum wage, particularly to a level which is far above the real wage rate is an idiotic move. It creates unemployment for low wage earners, and in many cases for the people who formerly employed low wage earners. A “living wage” sounds nice. It sells to economically unsophisticated people. But a job doesn’t suddenly become “worth” more just because the government declares that it is. One can not revoke gravity. Likewise one can not revoke supply and demand.
By Ed Ring, executive director, California Policy Center
Emperor Palpatine: There is a great disturbance in the Force.
Darth Vader: I have felt it.
Emperor Palpatine: We have a new enemy, the young Rebel…
Darth Vader: How is that possible?
Emperor Palpatine: Search your feelings, Lord Vader. You know it to be true. He could destroy us. The Force is strong with him.
This is a significant development. One would think that the teachers unions, dominated largely by a female teacher rank and file, would be in the bag for Hillary. That the teachers (arguably the most important constituency for any Democrat running for president) would be a done deal.
They must be loving this at Clinton headquarters.
I have come to the conclusion that a large part of the voting population just wants ponies. Or maybe unicorns. There is a real live contingent which believes that such things can be simply conjured out of the air or perhaps that the government can force “rich people” to pay for them. Ponies for everyone courtesy of the Kochs.
Now most reasonable and rational people don’t believe that ponies or unicorns can be conjured into existence in the literal sense.
Yes, this may be true. But isn’t that more of a YOU issue?
The minimum wage debate is a bizarre one. Anyone who understands the simple concept of supply and demand can see why arbitrarily raising the minimum wage above the real wage rate for unskilled workers is a boneheaded idea. Raise the cost of labor and jobs will diminish, margins will be cut, tax bases will be reduced.
But a $15/hour wage sounds good to people who seriously DON’T understand supply and demand.
Don’t get out to pump the gas in Detroit unless you’re commuting with this guy.
It was not that long ago that Detroit was one of America’s and the world’s great cities. A center of industry and commerce which rose up out of the American Midwest as testament to innovation and ingenuity.
By Ed Ring, executive director, California Policy Center
“If you say there is an elephant in the room, you mean that there is an obvious problem or difficult situation that people do not want to talk about.”
– Cambridge Dictionaries Online
If you study California’s legislature, it doesn’t take long to learn there’s an elephant in both chambers, bigger and badder than every other beast. And considering the immense size of that elephant,
The unions don’t like it. Many libertarians and free market types don’t like it. But Obama and the Chamber of Commerce are keen. Something smells here.
Something else to keep in mind. Just because something is called free trade doesn’t mean it actually is free trade. My bet, and the author alludes to this, is that the agreement will be full of crony nooks and crannies. Nooks and crannies some would prefer the public not learn about.