…[W]e have to be a lot more productive. Workforce participation has to rise from its all-time modern lows. It means that people need to work longer hours and through their productivity gain more income for their families. That’s the only way we are going to get out of this rut that we’re in.
Bush has clarified he did not mean full time workers needed to put in more hours, but that people looking for more work need to be able to find it. That has not stopped the campaign of newly revealed political mastermind Hillary Clinton from sending some well-aimed Twitter barbs Bush’s direction.
I have an idea.
Let’s ask Greece.
Greece is currently in the end stages of a long social experiment in massive, unprofitable jobs programs, political graft, and crony capitalism. In addition to soul-sucking tax rates, Greece also ran up colossal debt during the loose lending years of the pre-2008 boom.
Now Greece’s foreign debt is 177% of its GDP. Its unfunded liabilities are 875%. Its unemployment rate is more than 25%, and its labor participation rate 53%.
Despite taking in 50% of GDP in taxes, its government does not earn enough to fund its basic functions. And because Greece is incapable of paying its debts, no one is particularly interested in lending it any more money.
Greeks agree! They rejected by a decisive margin a proposal for paying back all that debt that allowed their free university education, their jobs-program national railroad, their jobs-program schools and their generous early-retirement pension programs.
What does a government do when it doesn’t “earn” enough (in taxes) to fund its basic functions, much less make payments against its overwhelming debt, and cannot find new lenders to keep that financial house of cards standing?
Not work more hours! That would be mean.
Jeb Bush mean.
Well, Greece could just default. Of course, it won’t get any more loans after that, so it would have to live within its means: only spend what its citizens can afford to pay in taxes.
That’s mean too!
They could go off the Euro and print as much as their own currency as they want. At least one economist has argued that periphery Euro-nations like Greece have been harmed by the monetary policies of the European Central Bank, and that non-Eurozone nations able to set their own monetary policies fared better during the financial crises that began in 2008.
Moving to the drachma, however, is not without its difficulties. The drachma will fall in value against the euro. The more drachmas “printed” to service the debt, the more its will fall. Greece will still face the problem of wary lenders and having to live within its means.
His focus on “hours” was regrettable only because over the long run, advances in technology, innovation and specialization should theoretically allow increases in labor outputs without corresponding increases in hours worked. But he was right that the only way to increase the wealth of a nation is to increase the outputs of labor.
Simply infusing money into a system is not sufficient.
Don’t believe it? Imagine sitting on a virgin planet with all of Earth’s gold in the cargo hold of your space ship. Or being castaway on an uninhabited island with a duffle bag full of bank notes.
So what would it look like for the Greeks to be more productive? Half-clad single mothers chained in mines as sweat drips down their faces and IMF overlords crack whips over their heads? Children toiling in sweat shops as flies buzz around their demoralized brows?
It means getting rid of the entrenched bureaucracy, bloated government, and corrupt police and political regimes that keep investors from making investments that result in jobsthat allow people to work more hours. It means lowering the effective 90% tax rate individuals pay so that working those hours is remunerative. It means fewer cartels and licensing requirements that keep would-be entrepreneur sidelined leaving no jobs for all those free university graduates. It means getting rid of the minimum wage and price controls that prevent the economy from responding to supply and demand.
I’m not sure the Greeks have the political will for any of the foregoing, or whether the ECB/IMF negotiators have the imagination to focus on the necessary fundamental reforms to the Greek economy. Without them though, there is no way out of the morass. More loans in the lean years cannot help a country that overspends in the fat years.
Interestingly, even as the Eurozone debates Greece’s future, here across the pond, the national campaign spokesperson for Ted Cruz also took a swipe at Jeb Bush:
“It would seem to me that Gov[ernor] Bush would want to avoid the kind of comments that led voters to believe that Governor Romney was out of touch with the economic struggles many Americans are facing. The problem is not that Americans aren’t working hard enough. It is that the Washington cartel of career politicians, special interests and lobbyists have rigged the game against them.”
I originally wrote the following post in the very early days of the 2012 presidential campaign. At the time, Donald Trump was threatening to enter the race but decided not to do so. A little over four years later, Trump has decided to run in an already very crowded 2016 Republican primary. I have friends and family members who are intrigued (who ought to know better) with the Donald. The reason I decided to re-publish this post is to remind readers why a President Donald Trump would be no friend of limited government or liberty.
I do not like Donald Trump. I don’t dislike him because of his wealth; he probably earned most of his wealth honestly. Some dislike Trump because he is a self promoter. I don’t dislike Trump for this reason either. Many successful individuals are great at self promotion and developing a successful brand (a very good attribute to have to have a successful political campaign).
For those who don’t quite understand the difference between a capitalist and a corporatist, I highly encourage you to read Brad’s post “Mercantilism, Fascism, Corporatism — And Capitalism.” This distinction is an important one. Donald Trump is the poster child for what many on the Left as a greedy capitalist; a caricature of everything that is wrong with capitalism as preached by the Ralph Naders and Michael Moores of the world.
But those of us who know better know that Donald Trump isn’t a capitalist at all but a corporatist. Trump doesn’t try to work within a framework of a free market as a true capitalist would, but like far too many businessmen, he uses his wealth and influence to encourage the government to work on his behalf to his advantage (and at the expense of anyone else who would dare get in his way).
In the early 1990’s, an elderly widow by the name of Vera Coking was in the way. Coking’s home that she had lived in for 30 years was on a plot of land that the Donald coveted. The Donald wanted the property so he could add a limousine parking area to one of his Atlantic City casinos. When Coking turned down his $1 million offer to buy the property, the Donald decided to enlist the help of his goons on the New Jersey Casino Reinvestment Authority. In 1994, these government thugs filed a lawsuit to take Coking’s property for $251,000 and gave her 90 days to leave her property (if she were to stay beyond the 90 days, men in uniforms with guns would forcibly remove her from her home).
Fortunately, Coking’s case gained enough media publicity to gain the attention and help of The Institute for Justice (think a more libertarian ACLU with a focus on property rights). With the IJ’s help, Coking was able to keep her property. In 1998, a judge made a decision that turned out to be final finding that the Donald’s limousine parking area was not a “public use.”
John Stossel confronted the Donald about his failed attempts to take the widow’s home away; he reprinted this exchange in his book Give Me A Break on pages 152 and 153:
Donald Trump: Do you want to live in a city where you can’t build roads or highways or have access to hospitals? Condemnation is a necessary evil.
John Stossel: But we’re not talking about a hospital. This is a building a rich guy finds ugly.
Donald Trump: You’re talking about at the tip of this city, lies a little group of terrible, terrible tenements – just terrible stuff, tenement housing.
John Stossel: So what!
Donald Trump: So what?…Atlantic City does a lot less business, and senior citizens get a lot less money and a lot less taxes and a lot less this and that.
Earlier in the book (page 25) Stossel gives his impressions of this confrontational interview:
Donald Trump was offended when I called him a bully for trying to force an old lady out of her house to make more room for his Atlantic City casino. After the interview, the producer stayed behind to pack up our equipment. Trump came back into the room, puffed himself up, and started blustering, “Nobody talks to me that way!”
Well, someone should.
Had this case taken place after Kelo, the Donald may well have prevailed. In the wake of the Kelo decision, Neil Cavuto interviewed the Donald on Fox News (7/19/05) to get his reaction.
I happen to agree with [the Kelo decision] 100 percent, not that I would want to use it. But the fact is, if you have a person living in an area that’s not even necessarily a good area, and government, whether it’s local or whatever, government wants to build a tremendous economic development, where a lot of people are going to be put to work and make area that’s not good into a good area, and move the person that’s living there into a better place — now, I know it might not be their choice — but move the person to a better place and yet create thousands upon thousands of jobs and beautification and lots of other things, I think it happens to be good.
Donald Trump is not one who respects property rights (other than his own). “Tremendous economic development” and “jobs” are great reasons to employ the full police power of government to take away someone’s property in the Donald’s world view.
I shudder to think of what a Donald Trump presidency would look like. Imagine the Donald with control of our CIA and our military. The Donald doesn’t have any problem using force to get what the Donald wants.
Now consider President Trump with a vacancy on the U.S. Supreme Court. What sort of Justice would he appoint? Most likely one who would view Kelo quite favorably.
This bully, Donald Trump is the guy who is polling second place in some early Republican primary polls? Wake the hell up Republicans!
Jason Pye, former contributor to The Liberty Papers and current Director of Justice Reform at FreedomWorks posted an article yesterday for Rare Liberty about some promising political developments in the area of criminal justice reform. Perhaps one of the most promising of these developments at the federal level is a bill being considered is S.502 – The Smarter Sentencing Act.
Jason explains why he believes this reform is a step in the right direction:
With federal prison spending booming, an unlikely bipartisan alliance has emerged to bring many of these successful state-level reforms to the federal justice system. Sens. Mike Lee (R-Utah), Ted Cruz (R-Texas), and Rand Paul (R-Ky.) have joined with Dick Durbin (D-Ill.), Cory Booker (D-N.J.), and Sheldon Whitehouse (D-R.I.) to reform federal mandatory minimums – a one-size-fits-all, congressionally mandated approach to sentencing.
The Smarter Sentencing Act would expand the federal “safety valve” – an exception to federal mandatory minimum sentences for low-level nonviolent offenders with little or no criminal history – and cuts in half mandatory minimum sentences for nonviolent offenders. This more rational approach to sentencing will reduce costs on already overburdened taxpayers. The nonpartisan Congressional Budget Office estimated a net $3 billion cost-savings over a decade. The Justice Department believes the bill will save an eye-popping $24 billion over 20 years.
The benefits of the Smarter Sentencing Act may not end with the fiscal savings. It could also reverse the damage done by federal mandatory minimum sentences in certain communities, which, as Lee recently explained, “have paid a high cost for the stiff sentences that mandatory minimums require.”
Those of you who are old enough to remember the dot com bubble bursting some 15 years ago might also remember the handwringing about how Microsoft was becoming a monopoly. Microsoft was the juggernaut that could only be taken down with antitrust suits by the federal government. Other companies simply could not compete with such a well-established corporation; the free market was inadequate.
Fast forward to where Microsoft stands today. The once seemingly invincible company has succumbed to the realities of competition and now finds itself in third place on the Nasdaq index.
James B. Stewart writing for The New York Timesexplains:
The Nasdaq composite that peaked at 5,048.62 on March 10, 2000, in what turned out to be the height of the technology bubble, bears little resemblance to today’s Nasdaq index. Of the top 20 Nasdaq companies by market capitalization in 2000, only four — Microsoft, Cisco Systems, Intel and Qualcomm — remain in the top 20 today. Eight no longer exist as independent companies, most as a result of bankruptcy or acquisition, and several are shadows of their former selves. The current Nasdaq composite index has only about half as many companies as it did in 2000.
“Joseph Schumpeter was spot on when he said capitalism is all about creative destruction,” said Richard Sylla, an economics professor at New York University’s Stern School of Business and a specialist in the history of markets, referring to the Austrian-American economist who described the phenomenon in 1942 in “Capitalism, Socialism and Democracy.”
In the intervening 15 years, a new generation of entrepreneurs, newly public companies and entire industries have emerged and seized the dominant positions in the Nasdaq index even as their predecessors faltered. Apple, now the world’s largest company by market capitalization, barely registered in 2000, and the first iPhone was not announced until 2007. Over a billion smartphones were shipped in 2014.
The chart below which accompanies the article illustrates this creative destruction of the past decade and a half quite clearly.
What this tells me is that no matter how large these corporations get, they cannot rest on their laurels. They cannot assume that just because consumers like their product(s) more than the competition today that the same will be true tomorrow. How many people use Myspace today as opposed to Facebook?
It’s the creative destruction of the free market – not additional regulations which ultimately allow consumers to have more choices.
Wisconsin Senate approves right-to-work bill, sends to state Assembly
BY BRENDAN O’BRIEN
The Wisconsin Senate narrowly approved a “right-to-work” bill on Wednesday that would bar private-sector employees who work under union-negotiated contracts from being required to join their unions or pay them dues.
The bill, which would make Wisconsin the 25th U.S. state with a right-to-work law on the books, cleared the Republican-led Senate on a 17-15 vote following hours of debate marked by periodic angry shouts from opponents in the Senate gallery.
Supporters of organized labor chanted “Shame!” as the legislation was passed and sent for further consideration to the state Assembly, where Republicans also hold a majority.
One Republican senator, Jerry Petrowski, broke with his party and joined all 14 Democrats in the chamber in voting against the measure.
Wisconsin Governor Scott Walker, a possible Republican presidential hopeful, is expected to sign the bill if it reaches his desk.
Walker drew accolades from conservatives across the nation in 2011 when he ushered through legislation curtailing the powers of most public-sector unions in Wisconsin amid large protests at the state capitol in Madison.
Supporters of the right-to-work measure contend it could attract more businesses to the Midwestern state.
“I think this is something that is going to have a direct impact on the manufacturing sector in Wisconsin,” Senate Republican leader Scott Fitzgerald said after the vote.
Opponents cast the bill as an assault on organized labor and blue-collar workers that would limit union revenues.
“They are evaporating the middle class, and no one in this room seems to care,” Senator Dave Hansen, a Democrat, said during the floor debate.
So ignore the rather clearly biased language in the piece and video linked above, if you bother clicking through and reading it… If you’ve seen one piece about the subject, you’ve pretty much seen them all, and this one is no different.
Wisconsin is debating “Right to Work” legislation in house committee right now, after passing in the senate. A right to work measure (which may or may not be substantially identical to the one passed by the senate) is likely to pass the house as well, and governor (and likely Republican presidential candidate) Scott Walker is likely to sign it.
As per usual, leftists are up in arms about anything that might favor individuals over organized labor…”Anti-worker, anti-poor, anti-little guy, anti-union, destroying the middle class, 1% evil” etc… etc…
Can someone tell me how making it illegal to force someone who doesn’t want to join a union, to join a union… is anti-union?
That’s all “right to work” means… You can’t be forced to join a union if you don’t want to, and employers can’t be forced by the government to recognize or deal with a particular union if they don’t want to.
The “right to work”, is simply the right to freely associate and form contracts as we choose, which is supposed to be a right guaranteed us in this country (of course, so often it is not… but that’s another issue entirely).
Wait… What? Unions can force people to join who don’t want to?
Yes, they can, and they do.
Most people don’t know this, but in 26 states, unions are given special powers and privileges by the government, which you as in individual, or a private company or other organization would not have.
One of these, is that you can be forced to join a union against your will, if you want to get a job in a particular industry, or at a particular employer, or to keep your job at an employer after a union comes in.
Worse, in some states, you can opt out of the union, but even if you do, the union can still take dues straight out of your paycheck against your will, as if you were a member. They can also negotiate for you against your will, and set the terms and conditions under which you work, against your will.
Of course, since you aren’t a member, even though they’re taking your money and controlling your job, you don’t get to vote in the union, control its decisions in any way, or get any of the benefits of membership. The union gets your money, and all the benefit as if you were a member, without actually having to be accountable to you at all. And there’s nothing you can do or say about it.
Oh and the union can then do things like use that money to get politicians you oppose elected, get legislation you oppose passed, and change the terms and conditions of your employment against your will, without your approval or consent.
In those same 26 states (as well as federally in some cases), employers can be forced to recognize and negotiate with a union, even if they don’t want to. In fact, even if the union doesn’t actually represent their employees in some cases, or only 50.01% of their employees decide that a particular union will represent them.
“Right to Work”, is about ending some of those, frankly insane, conditions that unions operate under.
… Or at least that’s what it’s supposed to be about… It doesn’t always end up that way, because politics is what it is, so you have to be careful and pay attention to the details…
In “right to work” states, unions are still free to form, recruit members, and to collectively bargain in those members interests with employers. Workers are still free to join unions. Employers are still free to negotiate terms and contracts with the union, and if the employers don’t want to negotiate, unions are still free to use the power of their membership to make the employer negotiate through strikes, work stoppages and slow downs, and other organized labor actions.
The only difference, is that the union just can’t FORCE anyone to join the union, or force employers to negotiate with the union, or get the government to do it for them.
Why is this a bad thing?
It isn’t. Straight up, it isn’t.
It’s not bad for employees, it’s not bad for employers, it’s not actually bad for the unions if the unions are doing what they’re supposed to be doing, It’s not bad for consumers who consume the goods and services these employers provide.
In fact, in reducing union overreach to whatever extent it may (probably not too much, but one can hope), and in reducing the overall cost of doing business in the state of Wisconsin, it’s likely to benefit consumers with lower prices, and potentially with more business and more jobs in the state
This doesn’t always work out… It has generally done so in relatively business friendly states like Tennessee, North and South Carolina, Georgia, Alabama (I said relatively… relative to Illinois, New York, Wisconsin etc..). In those states, which are right to work, non union manufacturing has generally done well, in some cases even boomed. Not only that, but wages have substantially increased in those areas, not crashed as predicted by unions.
Right to work has not had as positive an impact in say, Indiana, or Michigan (yes, Michigan has been right to work since 2012… and yes, organized labor is still having a collective fit over that fact), which are comparatively less business friendly, higher tax, higher regulatory burden, and higher cost of living. In fact, mostly, companies have used the change in status to help them get rid of legacy contracts which were burdening their bottom lines, and then move to other states.
That however isn’t really the fault of right to work… it’s the decades of anti-business regulation and being forced to accept bad union contracts (and to be fair, decades of bad management as well).
Overall, right to work in and of itself is not a negative for anyone… well… except two groups.
The only parties it’s bad for, are union officials, and the politicians they’re in bed with). The officials depend on the politicians to pass legislation that favors the union officials, in exchange the politicians depend on the officials for large donations, and the use of their organization for street level politics (campaign volunteers, donor lists, call lists, phone rooms, rally fillers, doorbell ringers etc…). Without the forced membership and dues, the union officials don’t have as much money to donate to those politicians in exchange for favors, nor as many warm bodies to throw at their campaigns.
Also, if people can leave the union at will, it means that those officials have to watch their steps, and actually be accountable to union members…. Unfortunately something which has proven to rarely be the case today.
Leaving aside the corruption angle, and even the economics of it…
Does “right to work” reduce unions power? Potentially yes, if people don’t want to join, or want to quit the union.
However, I don’t see that as a bad thing. Why would that be a bad thing?
If people don’t want to be members of the union, why should the union get more power? Or any power at all?
Shouldn’t a union get it’s power from the strength of it’s membership, who support it, and in turn are supported by it? Shouldn’t a union attract and retain members because they are effective at doing so?
If they can’t do that… why should the union exist at all?
If they CAN do that, then why do they need the government to force people to join, and force companies to negotiate with them exclusively?
If the unions actually do what they’re supposed to do, and what they say they do… Why is this even an issue?
Right… thought so…
Here’s the thing though… Even if it were a provable economic net negative, that actually did harm jobs and wages, and even if all of the horrible terrible no good very bad things unions and democrats claim of right to work were true…
…I would still be in favor of right to work.
It’s a question of individual rights
I generally favor right to work, because I’m in favor of fundamental individual rights, including, but definitely not limited to: freedom of conscience, freedom of association, freedom of self determination, the right to private property, the right to the fruits of ones labors, and the freedom to make contract as one sees fit.
I generally support right to work legislation, presuming that’s what it really is (as with all legislation, what it claims to be, is often nothing to do with what it is, so pay attention to the details), because no-one should be forced to join any organization against their will (even if it’s absolutely for their own good), and no organization should have the right to control others in the way unions do, without those persons consent (even if doing so is to those persons benefit). It really is that simple.
For that matter, in general, I oppose involuntary collectivism, and preventing involuntary collectivism is what “right to work” is supposed to be about.
I’m all for voluntary collectivism… absolutely 100%. If you agree and consent to be a part of a group, and to take action as part of that group, or be represented by that group, great. More power to you, and to them.
In fact, I’m all for unions. I think collective bargaining is a wonderful and powerful tool, and I wish more people across more industries and market segments would take advantage of it.
An aside… I’m not just blowing theoretical smoke here. I’ve got a personal stake in this, both as a matter of principal, and as a practical matter in my own profession.
The level of worker exploitation, and in general negative, harmful, and just plain stupid labor practices in information technology, my chosen profession, is absolutely despicable.
Employers routinely extract far more labor from employees than they are paying for, or than that is reasonable for employees quality of life or professional development; while at the same time deliberately suppressing those employees wages, and denying them opportunities for improvement or advancement.
… and we allow them to do this. We accept it, because we don’t believe we have the power to change it, or we feel too insecure to do so.
The only way these conditions are going to change, is if they obviously and clearly no longer work to increase profits or improve stock prices.
Actually, it’s been repeatedly and conclusively proven they not only don’t help, but they substantially harm organizations, including their bottom lines… but execs still love them because the stock market loves them (That’s another issue entirely)
That being the case, the only way needed change is going to happen, is if enough of us in the profession stop accepting these conditions, and do something about them.
A company can’t be pumping its stock prices, if it doesn’t have anyone keeping it’s computers and networks operational…. or at least not for more than a few weeks.
Stop working for companies that use these practices. Insist on being paid for our time. or in receiving compensatory time off. Report companies for labor law violations, and make sure the laws are properly and evenly applied, through the use of the media and political pressure (I think most labor laws are horrible and stupid and shouldn’t exist, but so long as they do, the greater tyranny is that they are applied capriciously and unevenly based on political whim, and lobbying).
Most importantly, as managers, leaders, and thought leaders in the industry, don’t allow and accept these practices in your own organization. When they pop up… and they will.. gather together, and pound them into the dust before they can take over.
One of the more effective ways we could do all of that, is with collective bargaining, and collective and consistent messaging to the media, and politicians (though sadly, I don’t think it’s likely to happen any time soon). Not necessarily a union, but some type of voluntary collective organization to increase our negotiation power and leverage, and help to prevent things like companies requiring hundreds of hours of uncompensated overtime.
If enough of us act… whether collectively or as individuals, we can force changes. Without enough of us acting in concert, we can’t… And if we can’t, we’re left depending on the government to “fix” things… and you know how I feel about that.
It’s when you take that choice away by force, that I have issues. Forced unionization is never OK… and that includes “democratic” forced unionization.
Just because you got a few dozen of your friends together and you all voted to give you the “right” to control everyone else, doesn’t actually give you the right to control everyone else. Even if there’s 50 million of you, and 1 of everyone else. Otherwise, there are no individual rights, only privileges and entitlements dispensed by the will of the majority. That’s no less tyranny than a dictatorship of one man… and in some ways is a greater one.
“Oh, but democracy is great. It’s the will of the majority, so you just have to go along”
Right… because giving more control over your life to everyone else is always a great idea, especially when jobs and money are at stake.
Giving your coworkers a vote on how much you can make, how much you can get paid per hour and how much of a raise you can get when, how many hours you can work, what tasks you can do, how you can do them, whether or not you can be promoted and when…
…Actually, often a veto, not just a vote…
And people like this idea why?
No thanks. Not up for that.
I have no problem with unions, in fact I think they’re great in theory, and I’d like to see a lot more of them, a lot more active, doing what they are supposed to be doing…
… So long As:
1. Participation (including fees or dues) is voluntary
2. They are not given special privileges or powers over individuals or employers by the government
3. Individuals and employers are free to negotiate and form contracts outside the union
4. The union cannot set the wages, benefits, conditions and terms of employment, and working conditions; for individuals or employers, without their consent.
If they’ve got consent for collective representation of all the workers, and the employer agrees to the conditions and terms… GREAT. That’s what collective bargaining is for.
Otherwise, what gives you or anyone else, the right to determine those things for me, my employer, or anyone else?
I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.
Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra