Howdy folks,
Great discussion. Start with
@msf and Ford raising his workers wages so they could afford to buy a Ford. Another classic was the GI Bill after WW2. It was simply a labor control device to slow the reentry of the GI's into the work force. After WW1, the GI's marched on WashDC for jobs and Uncle to call out active duty soldiers to quell the uprising. That said, what the GI Bill resulted in was an incredible investment in human capital which led the the posterity of the
50's and 60's. Both are example of Demand Side economics . . . which we need more of. Not because we're bleeding heart liberals or socialists or even nice guys. IT'S TO STIMULATE AGGREGATE DEMAND. Duh. That's what this Employment strike will result in. That's why the states that maintained the excess unemployment benefits had better economies than those that didn't. The extra bennies went to AGG Demand. And what is so brain dead, is that the republicans are so damn mean, they continually choose the wrong actions and shoot themselves in the foot.
@Ben and
@oldJoe, Unions were and are a necessary evil. However, once they were founded, they became institutionalized and aren't much different today than management. Not unlike organized religion. Once established, they become more obsessed with preserving the institution than the membership.
@hank, all true about the demise of organized labor, etc. That said, a DC pension can be a good substitute for a DC pension but it has to be done right and at the beginning of employment and most often they are not. You can have decent benefits for employees and not have enormous legacy costs. My township has great benefits and no legacy costs. 403(b) with match and investment guidance and flexibility. Health care while working and health savings for retirement. It can be done, but you first have to give a shit about your employees.
We need more demand side economics. Raising the minimum wage would be perfect but it's going to have to be a grass roots movement (like a general strike) due to the inability of Washington to do anything right for the right reasons. Infrastructure? Huge. It's jobs. That's what people need and want. The reason why demand side econ is so superior to supply side is the Marginal Propensity to Consume. This is how a person saves or spends each additional dollar. Down around the bottom of the income ladder the MPC approaches 1.0. They are forced to spend (consume) every additional dollar. By consuming, they're buying stuff and then stuff has to be made. When the cost of capital is 0.0%, nothing will ever 'trickle down'.
And for every business with a Help Wanted sign in their window. PAY YOUR WORKERS MORE AND YOU WON'T HAVE THIS PROBLEM.
and so it goes,
peace and wear the damn mask,
rono
