Koios
Recreational Kibitzer
- Nov 12, 2012
- 2,841
- 117
- 48
The only stupidity here is the notion that this is somehow a bad thing. Now a person gets to work for an employer that is mostly unionized with the confidence that they will succeed or fail on their own merits. The fact that you wouldn't reply to my earlier post suggest your running out of legs to stand on in this debate.
For the union it is a bad thing, since they have a fiduciary responsibility to their dues-paying members.
For Republicans it is stupid, since many of the angry white males they're pandering to are union joes. But since all Republicans have the IQs of vegetables, many of those union Reps just say they hate the union and having to pay dues, while enjoying the higher pay and benefits. Contradictions are no problemo in service of a comforting delusion.
Meanwhile, as a former marketing executive, I like high wages, since it grows the market and creates something companies can invest in to get after. Unions only create upward pressure, and thus benefit somewhat, markets, businesses rely on to be successful. The problem is it's unlevel, but was thought to be a market-based alternative to being commie, back in the day. The thought was that if both management and workers had a say, the natural balance of those forces would achieve pay for actual worth.
Ideally, we'd set wage minimums nationally, to raise the value of the market (middle class) in a way that's balanced, so employers paying wages that add value in service of other companies, get back from the other companies, and equal contribution to the value chain. That would be my preferred. But failing that, thank goodness workers are carrying the water for us, and organizing to a degree, helping to mitigate to a degree our shrinking middle class wealth, which fuck companies in the ass, since we customers who can afford to buy our shit.
None too complicated.
But what you are contending we should do simply doesn't work that way. The value of something can not be set arbitrarily. For the guy that claims to have studied economics I would think you would understand this concept. The value of anything is determined by scarcity and demand. Something's value, labor in this case, can't arbitrarily jump from $10/hr to $15/hr without one of those other factors changing as well. This is basic supply and demand curve stuff, which they teach in basic econ which you claimed to have studied. And even if some law were passed that made that happen it wouldn't have the outcome you think it would. Wage increases to that extent across such so much of labor force don't happen in a vacuum. The costs of goods and services are going to go up accordingly. In short raising minimum wages is a) immoral because you don't have the right to be the only person in the transaction that gets a say in what you make and b) it's impossible because you can't raise the cost of something in vacuum and expect that all other market conditions are going to remain where they were before you arbitrarily raised wages.
Sure it can, and is, frequently, by companies, governments, people, organizations (OPEC) etc.
But it is not arbitrary. We can set targets based on past times (1950 the FMW went up 87.5%). Unemployment at the same time, went from 6.5% in 1950, to 2.7% just 24 months later. Consider within the context of other factors, and you can predict certain benefits from broad-based wage increasing.
Next, ask where you want to go: 4% GDP increase; eliminate 2 or 3 percentage points on unemployment? Then look at times that happened, or nearly did, and what the economic impact was. And of course experiment: if bad shit happens, course correct. Or if good things happen, debrief, and add if needed, or save it in the quiver for times the economy needs the boost.
Be strategic, and NOT ARBITRARY!!!
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