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Text 43299, 211 rader
Skriven 2006-11-27 12:01:00 av bob klahn (1:275/311)
     Kommentar till en text av Roy Witt
Ärende: (1/2) Insults
=====================
 Is an addendum placed before the text a predendum?

 Anyway, putting this in after writing the below response.

 In researching this material I got a surprise, and a shock.

 The surprise was, most of the material I found on job growth was
 dated in 2004. The first thing I found in 2006 was a transcript
 of Bill Maher's program, "Real Time", on HBO. Even at that the
 best info I found was an article in the Seattle times from 2004.

 The shocker was data I had never seen before. I knew the poverty
 rate went up under anti-labor administrations, and down under
 pro-labor administrations. What I did not know was the number of
 people living below 50% of the poverty level. It runs around 5%
 of the population. That, again, rises and falls, going up under
 Bush, down under Clinton, and trending that way through out.
 However, it stays near 5%. IOW about 5% of the population of
 this country lives at less than half the poverty income. That's
 about 15 million people.

 Damn!

 End of predendum.

 ...

 TR>>> It would take only a few months to fill their jobs with new
 TR>>> workers; by years end production would be almost up to the
 TR>>> same scale it was previously, and people would be standing
 TR>>> in line waiting to fill out applications!

...

 bk>>  You have no idea how modern manufacturing works. Any company
 bk>>  that tried your idea would be likely to put itself out of
 bk>>  business.

 RW> Solar Turbines in San Diego, CA put the IAM out of business
 RW> in that town (with my blessing as an ex-employee). Solar
 RW> Turbines is still going as strong as ever with government
 RW> contracts to enhance their commercial contracts. See, when

 Either they are a small company, or the IAM represented a small
 portion of their workers. Or their work is very simple. Firing
 your entire skilled workforce is a good way to go under.

 Hell, the company I work for fired almost all their experienced
 managers, and have been struggling to bring the place up to
 expected performance for years. Too stupid to realize you can't
 hire people who know nothing about the business and let them
 tell the workers what to do.

 Ok not too stupid, the management that fired the experienced
 workers then sold the company. Guess they sold it with the claim
 that they had low pension liability for managers. From what I
 heard the manager for the buyer who was supposed to vet those
 claims got fired.

 RW> you don't have to pay overly-inflated union wages, but
 RW> still pay a decent wage a family can live on, that company
 RW> will be successful.

 Which is a contradiction in terms. Union wages are still far
 below CEO wages, or other high level management. A fraction of
 it.

 RW> If you don't believe that, take a look
 RW> at Toyota and a few other foriegn auto manufacturers who
 RW> have built plants in the US that don't entertain the unions.

 I have looked at them. A Japanese auto company built a plant in
 Mississippi, a non-union state, and was paying $25/hr for
 skilled workers. And not finding them. By that standard,
 northern, higher cost of living state, union wages are not that
 much higher.

 It isn't the wages where the Japanese companies get their
 advantage, it's pensions and medical benefits. Japanese plants
 have no pension liabilities to start out with, and no medical
 liabilities for retirees. American companies do. In Japan
 they have national health care, so they never have any
 additional liability for their workers or retirees. A big
 competitive advantage for them.

 In this country retirees are losing their company provided
 medical benefits, leaving many without any coverage beyond
 medicare. If you retire at 62 where does that leave you?

 bk>> And if you did destroy the unions you would probably put this country
 bk>> well on the road to third world status.

 RW> That is very unlikely, as lower overhead costs are passed
 RW> on to the consumer. The consumer, as long as he's being
 RW> paid union inflated wages, will spend more for the same
 RW> product than products made by a non-union manufacturer

 That holds to the view that declining wages don't matter if
 prices decline along with them. In reality, that has never been
 the case. Prices may decline, but, in the long run, they do not
 decline in line with wages. Look back at the 40's through the
 70's. The great expansion of American wealth was in line with
 the growth in real incomes. Higher incomes meant greater
 national wealth. Those with higher incomes can buy more,
 producing more jobs. Investment means nothing if the market is
 destroyed.

 RW> whose overhead is less costly. And labor is overhead right
 RW> up there with management personnel. As long as the workers
 RW> are making a decent but not inflated wage, the country
 RW> would be much better off. That's why there is a minimum
 RW> wage law.

 The minimum wage is no where near a decent wage. It is deep into
 poverty. And companies that are not union, or incompetition with
 union companies to recruit workers, tend to drive to the bottom.

 The fallacy is in the idea that companies will pay a decent wage
 if they don't have to. Competition alone drives them down.

 Note how poverty rates increase under anti-labor
 administrations, and decline under pro-labor administrations.
 Consider that the administration in power controls the people
 doing the measurements. So it's hard to fake in the long run.

 Look at the years during which the unions became so strong. From
 1947 to 1970 the percentage of families with an inflation
 adjusted income below $5K/yr fell from about 57% to about 24%.
 Remember, this is inflation adjusted, so it indicates real
 improvement.

 Numbers from the "Historical Statistics of the United States,
 colonial times to 1970". Dept of commerce pub.

 Looking back before that you see union wages rising like that,
 back to the early 1900s, and pulling all other wages with them.

 IOW, I submit that the growth of unions was a major factor in
 the great increase in wealth in this country.

 Oh, and the growth of national wealth and family and individual
 incomes drew to a close starting in 1970 or thereabouts. And I
 don't ascribe all the failure to the presidents, or even the
 majority. I see the Federal Reserve as the great culprit, as
 they have tried to manage the economy, and been as successful as
 the commissars of the USSR AFAICS. However, I do give blame to
 the presidents for bad economic policies, and, most of all, for
 not recognizing the failings of the FED. That includes Clinton.

 bk>> Or worse that GW Bush has already done.

 RW> LOL! With the best economy this country has ever seen going
 RW> on right now, you sound rediculous.

 The best? Not even near what Clinton had. Not even near what
 JFK/LBJ had. You may look at short term results and call it
 good. That's like calling two games a winning streak. The
 administration, on the dept of commerce website, was bragging
 about a monthly job growth of 92,000 for October. On the website
 they proclaim a job growth of 148,000 in Sept, and 230,000 in
 august. And they had to revise the August total *UP* by 139,000
 to get that figure. Under Clinton it averaged 236,000 jobs per
 month.

 That's an average. Note the decline in the current rate of
 increase?

 And all of Bush's "achievements" are in the context of exploding
 national debt and deficits, an increasing debt load, and
 declining wages and increasing uninsured.

 Clinton's were during a reduction in Federal employment, a
 declining deficit and projecting a real decline in the national
 debt.

 Bush reversed all that.

 Then look at the real employment picture:

 Data downloaded Nov. 2006.
 **************************************************************************

 All these numbers for population 16 and older, Bureau of Labor
 statistics doc empsit.cpseepa1.txt - From www.bls.gov.

 Clinton inherited an unemployment rate of 6.9%. In 2000 that was
 down to 4.0%. You are touting a Sept rate of 4.6% as "down much
 more."

 You do have to consider that the workforce increased about 9
 million over that period, 2000 to 2006.

 Then figure the work force participation rate for that period,
 from 67% in 2K to 66% in Sept 2006. One percent loss right
 there.

 The percentage of the population employed went from 64.4% in
 2000 to 63.1% in sept 06

 The number not in the labor force went from 70 mill in 2K to
 77.6 Million in sept 06.

 **************************************************************************


BOB KLAHN bob.klahn@sev.org   http://home.toltbbs.com/bobklahn

... It would be better for mankind... that the rich be tossed into the sea. A.C
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