Tag: Labor Unions

The Minimum Wage Follies

Ten days ago, LA made a historically dumb decision to raise its minimum wage to $15 an hour. The usual chorus of Leftists emerged to claim that the contention that raising the minimum wage destroys low-wage jobs — a premise that was accepted by most economists until about two years ago — has been “debunked” as a myth (it hasn’t and it won’t be because the Law of Supply and Demand isn’t magically suspended for low-wage labor).

Some of the biggest supporters of the minimum wage hike were labor unions. You may wonder why labor unions would support hiking the minimum wage since most labor members don’t make minimum wage. The reason is that many union wages are pegged to the minimum wage and are set to automatically rise if the minimum wage does. It further gives them leverage in negotiations. If the minimum wage if $30,000 a year, it gives them an argument for larger starting union salaries. And since, in California, most labor arbitration is done by former union lawyers, it’s a nice racket. So their support has nothing to do with how much they care about the poor masses. It’s about cynically playing on sympathy for those masses to leverage their own pay hikes.

The unions have been at the forefront of claiming that the idea that minimum wage hikes destroy jobs is a myth. Well, guess what folks: they are perfectly aware of what a higher minimum wage will do. Why else would they want this:

Labor leaders, who were among the strongest supporters of the citywide minimum wage increase approved last week by the Los Angeles City Council, are advocating last-minute changes to the law that could create an exemption for companies with unionized workforces.

The push to include an exception to the mandated wage increase for companies that let their employees collectively bargain was the latest unexpected detour as the city nears approval of its landmark legislation to raise the minimum wage to $15 an hour by 2020.

For much of the past eight months, labor activists have argued against special considerations for business owners, such as restaurateurs, who said they would have trouble complying with the mandated pay increase.

But Rusty Hicks, who heads the county Federation of Labor and helps lead the Raise the Wage coalition, said Tuesday night that companies with workers represented by unions should have leeway to negotiate a wage below that mandated by the law.

So here’s how this two-step works:

1) the unions advocate for a higher minimum wage.

2) the raising of the minimum wage either triggers pay hikes for union members or gives them a leg up in negotiations.

3) However, they allow exceptions for industries that might have to lay people off … as long as those industries are unionized.

4) Industries that can’t pay the minimum wage either leave or … become unionized.

The net result? More money for unions, more union members, less jobs and higher prices for everyone else. And liberals wonder why we are so cynical about Big Labor.

Obama’s 2nd term news – Part Deux

I originally intended the first post to be the lead in a weekly series, but the amount of insane shit that is happening just a week after the election just feels like the gift that keeps on giving, so I am going to do another today. BTW, any one of you other authors that want to do some of this, feel free to gang up. I do not want you to feel that I hold exclusive rights to this concept.

Anyway, for those with a sweet tooth and of my age, I am afraid Woody Harrelson’s character in Zombieland is going to be disappointed that Twinkies will not be around. Talk about cutting off your nose to spite your face. Stupid unions. It does look like we will get the Apocalypse, though. Watch it happen because Obama decides to interfere and nationalize Twinkies like he did GM. My bet is they blame Sandy for those 18.5K new unemployment claims that come up next week.

I hear the union geniuses are trying to play Walmart too because it is implementing changes to deal with tax increases and Obamacare. Read about the genius that thinks Walmart is trampling on his rights because when he asked for a transfer to a different department where everyone wants to be since it is cake work, they cut his hours in order to honor his request. This moron thinks it was out of spite, not maybe that they have tons of people lined up to do the cushy job they also have to accommodate, and hence have to resort to reduced hours for everyone. EBIL CAPITALISTS!

Speaking of evil capitalists, it is finally being pointed out that they are now shrinking the size of their packages to overcome rising costs. The price stays the same but you are getting a lot less. The only reason that the nanny- staters aren’t all balking at this travesty is that it goes handily with their need to keep the illusion that there is no inflation. In the mean time we all keep losing. Heh, just get everyone drunk and they won’t care! And while some people are already pointing out how the evil capitalists can help the US follow in the footsteps of some other socialist states that used natural resources to get some serious cash flow while changing everything for the better, it is also obvious that this is all, for now at least, nothing but a pipe dream. The people in charge remind me of the old Soviets that in the name of collectivist ideology would do stupid and damaging things, even when the solutions were blatantly obvious. I guess this is another good reason to point out that referring to the greens as watermelons is very appropriate.

The housing market social engineering tactics that led to the economic meltdown in 2009 continue on, surprisingly, and despite, Dodd & Frank’s promise to fix the “deregulation” with a 2000 page new law that did nothing to address the underlying problem. So it is no surprise that the FHA, which uses Fannie & Freddie to play it’s shell game, is pissing away money like crazy, and again reaching out for a handout. That means they are asking tax payers to yet again cover for the problems this stupid and doomed social engineering practice cause. Doesn’t matter that we have pissed away trillions in wealth and paid billions to keep the crooked shell institutions the Feds use to play their games. The tax payer is told to give more so they can keep buying votes. In the mean time, they tell us they need more income, and from those evil rich of course, to cover their out of control spending – that’s the government wants higher taxes for you rubes – while in the private sector, stories like this abound. At least some of it is good news. Death to the stupid and wasteful green shit movement.

At least it looks like these hard times are not hurting Obama supporters. One buys some premium real estate, while the other dumps her citizenship in order to avoid taxes. That’s not the patriotism they tell us we should all feel when we get shafted, erm, handed the privilege of higher taxes.

Hang on for the ride people.

UPDATE:Too good for parody.

Walker Wins

It looks like Scott Walker has won the recall. More than that, he appears likely to win it by larger fraction than his initial election in 2010. But this has no national implications. No siree Bob.

Discuss amongst yourselves. And think about all the money burned on recalling a governor not over malfeasance, incompetence and corruption but over a policy disagreement — a disagreement that instantly vanished from the recall campaign.