Posts tagged unions

Obama Doubles Down On Destroying The Economy

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Source: http://www.againstcronycapitalism.org

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Obama Doubles Down On Destroying The Economy

 

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Is the president really this ignorant of business and economics?

Telling American employers to raise their wages sounds innocent enough. But it ceases to be innocent when people lose their jobs as a result of it.

In his State of the Union address, the president called for higher minimum state and federal wages and added: “ I ask… America’s business leaders to…raise your employees’s wages.”

This is not the first time a president has made this “request” of employers.

After the stock market crash of 1929, President Hoover began talking about wages. They needed to be protected from cuts, he said, and preferably increased, so that consumer demand would increase. More consumer demand would supposedly get the economy through the storm.

As the economy sputtered and prices began to fall, the president acted on his pet theory. He began lobbying businesses not to reduce wages. He did more than lobby. He sent a clear signal that if his directive was ignored, the government might step in and legislate wages.

Businesses listened. But they also had their backs against a wall. With consumer prices falling, wage reductions were needed to protect profits. Without profits, a business fails and everyone loses their job.

Faced with this reality, but afraid to make any reduction in wages, businesses did the only thing they could do to try to stay afloat: they cut jobs. Millions were thrown out of work who might have kept their jobs at reduced pay but for Hoover’s intervention.

When the new Roosevelt administration came in, it embraced the same bogus economic theory. Both prices and wages were tightly controlled by the National Recovery Act. In a famous incident, a New Jersey immigrant worker, Jacob Maged, was sentenced to jail for three months on a charge of pressing a suit for 35 cents instead of the legislatively required 40 cents.

These policies had the paradoxical effect of making some Americans newly affluent even while throwing millions out of work. Since prices had fallen sharply, those who kept their jobs at the old wages could in many cases buy twice as much with the same money.

The Hoover/Roosevelt/ Obama policy meant that some got a windfall; others got destitution. Economic inequality sharply worsened. In general, the Roosevelt administration’s most powerful supporters, labor unions, saw to it that their members did not lose jobs, while those without unions were the ones laid off.

It is noteworthy that the same thing happened when the Obama administration bailed out General Motors. The non-unionized workers, even those in the most efficient plants, lost everything: jobs and retirement benefits. Unionized workers allied with the president kept both.

In the same State of the Union speech, the president did not just ask employers to raise wages. He also required them to pay a higher minimum wage if they had a federal contract. Hearing this, employers can only wonder what further wage controls will be proposed next.

If more federal wage controls do come, it is not even clear that lay-offs could be used as they were in the 1930’s to save businesses from closing. Economist Paul Krugman has proposed federal controls on the right to lay-off or fire workers. The president himself has proposed giving workers the right to sue if they apply for a job and are turned down.

The economy itself provides sufficent reason to be cautious about hiring. The Federal Reserve’s low interest rate policy and regulatory rules make it very difficult to persuade a bank to finance expansion. And Obamacare creates a strong disincentive to hire the 50th employee.

With all this in the background, why would any employer in 2014 hire a new worker if not absolutely necessary? This is especially true for small businesses, and small businesses have always been the chief source of new jobs.

This is all part of a larger picture. To thrive, an economy needs free prices. Free prices not only provide the truthful signals that producers and consumers need in order to make good decisions. They also provide the discipline that any economic system requires.

The Soviet Union’s collapse was an object lesson for the world. No system can survive in the long run without free prices, and wages are among the most important prices.

The Obama administration’s whole approach is to try to substitute government regulation for the private price system. As a result, we only have “engineered” prices left on Wall Street and in medicine, and both finance and medicine are in grave jeopardy as a direct result.

Fixing the economy is not all that difficult. All we have to do is let producers and consumers sort out prices together and the engine of job growth will start up. Meanwhile the present administration offers one initiative after another guaranteed to keep the middle class and especially the poor in a state of economic hopelessness.

Image credit: http://www.againstcronycapitalism.org

 


Hunter Lewis
About Hunter Lewis

Hunter Lewis is co-founder of AgainstCronyCapitalism.org. He is co-founder and former CEO of global investment firm Cambridge Associates, LLC and author of 8 books on moral philosophy, psychology, and economics, including the widely acclaimed Are the Rich Necessary? (“Highly provocative and highly pleasurable.”—New York Times) He has contributed to the New York Times, the Times of London, the Washing­ton Post, and the Atlantic Monthly, as well as numerous websites such as Breitbart.com, Forbes.com, Fox.com, and RealClearMarkets.com. His most recent books are Crony Capitalism in America: 2008–2012, Free Prices Now! Fixing the Economy by Abolishing the Fed, and Where Keynes Went Wrong: And Why Governments Keep Creating Inflation, Bubbles, and Busts. He has served on boards and committees of fifteen leading not-for-profit organizations, including environmental, teaching, research, and cultural and global development organizations, as well as the World Bank.

 

Chicago Sees Pension Crisis Drawing Near

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Source: http://www.againstcronycapitalism.org

By Nick Sorrentino

Chicago Sees Pension Crisis Drawing Near

 

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Promises were made to unions by people who knew they would be long gone when the bills came due. Now the bills are coming due and there is no money, or soon won’t be. But that doesn’t keep the unions from screaming foul.

So what if Chicago is headed over the economic precipice due to lavish pensions which do not exist anywhere in the private sector? You know the sector which pays the taxes for the lavish public sector pensions. So what? I deserve a lifetime pension and healthcare even though I am likely to live to be 80 and I retired at 52. Tough, taxpayers. Pay me.

Good luck with that.

(From The New York Times)

The pension fund for retired Chicago teachers stands at risk of collapse. The city’s four funds for other retired city workers are short by $19.5 billion. At least one of the funds is in peril of running out of money in less than a decade. And starting in 2015, the city will be required by the state to make far larger contributions to the funds, which could leave it hundreds of millions of dollars in the red — as much as it would cost to pay 4,300 police officers to patrol the streets for a year.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org

George Will: If he thinks libertarianism a “dangerous thought,” people may think Christie himself is “dangerous”

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Source: http://www.againstcronycapitalism.org

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George Will: If he thinks libertarianism a “dangerous thought,” people may think Christie himself is “dangerous”

 

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It is no secret that this site is a fan of small government. In our opinion the only real way to fight crony capitalism, the collusion of business, special interests, and government, is to shrink the government. Crony capitalism only happens with an intrusive state. It only happens when government is big enough to pick winners and losers. Intrusive government is the catalyst for crony capitalism.

Can corporations be corrupt without government? Absolutely.

Can unions be corrupt without government? Absolutely.

But the power of the corrupt expands when the corrupt can use law to compel the marketplace.

Libertarianism, as Will points out has many variations and strains, but generally it is about protecting the dignity of the individual, and advocates for a very limited government. Libertarians believe that transactions should be voluntary, and win win. This is how society has always progressed. This is how technology and food and societies and everything get better.

It is typically when vested interests (large companies, government agencies, unions) seek to disrupt this great experiment that things such as wars, bailouts for giant banks, and segregation of people by race happens. People freely trading with one another, respecting each other’s differences, tend not to kill one another despite what Hobbes said. Free people, secure in their property, tend to make their societies better.

Chris Christie is a big government guy. He has no idea how the average everyday people of the world could order themselves without wise and benevolent overlords. This is why he has attacked libertarianism. Basically he fears a free society. George Will has called him out.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org

 


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

Obama exempts Congress from Obamacare, A list of companies and unions with similar Obamacare exemptions

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Source: http://www.againstcronycapitalism.org

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Obama exempts Congress from Obamacare, A list of companies and unions with similar Obamacare exemptions

 

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Well let’s see. The doctors are leaving in droves because of Obamacare. The IRS doesn’t want Obamacare for its employees even though that agency will administer it, Congress just got an exemption from Obamacare from the president, hundreds of politically connected companies and unions have gotten exemptions, the Teamsters have warned that Obamacare threatens the middle class, the law is so complex that an army of “navigators” must be hired to sign people up, and the Democratic Senator Max Baucus, who is the outgoing head of the Finance Committee referred to the effort to administer the law as a potential “train wreck.”

 

Nothing wrong here. Slap one of those “I love Obamacare” stickers on your car and pretend like this isn’t the biggest legislative disaster of perhaps of multiple generations. Everything will be just fine. There is no way this program is going to cost trazzillions more than the trillions it’s projected to. No worries. We’ve got plenty of money, no deficit or debt at all.

The main issue which must be dealt with in this country is access to care in catastrophic circumstances and insuring those with a prior condition. This is a huge, monumental task, but much more narrow than the sweeping tsunami of red tape which is Obamacare. However, there are those who just want nationalized healthcare at nearly any cost and simply making sure that those who have cancer don’t fall into bankruptcy, and those who have epilepsy can get their medication easily isn’t enough. There must be “comprehensive” care for everyone, damn the cost to the taxpayer, or the employers (which are also taxpayers.)

The connected know (especially those with lawyers who have read the law) that they want no part of Obamacare and that is why the administration has issued HUNDREDS of EXEMPTIONS for connected companies and unions over the past 3 years. Now Congress and probably the IRS get exemptions too.

If Obamacare is so good why are even the members of Congress which wrote the legislation and the unions which lobbied for it desperately trying to get out of it?

Why? Because they can, and you can not.

Suckers!

Click here for the article.

Click here for the list of Obamacare exemptions in alphabetical order.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

Some thoughts on unions and unicorns

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Source: http://www.againstcronycapitalism.org

By Nick Sorrentino

Some thoughts on unions and unicorns

 

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Unions are not bad things necessarily. Private unions in theory can in fact be quite good.

If a group of people want to come together peacefully and offer their labor in bulk because it is more valuable that way, great.

In return for a contract, which gives union workers security, the business owner also gains peace of mind. The owner knows what he or she can expect from the workers over the period of the contract. There is absolutely nothing wrong with this.

A union contract in the private sector can be a win win win. A win for the workers. A win for management. And a win for the consumer of the product.

Unfortunately things are usually more muddied.

Over the years unions have used force to scare off “scabs.” They have also solidly entrenched themselves in government with bodies such as the National Labor Review Board, which in a free society should not exist. Why should a government entity ever be able to keep a company from moving a factory etc? Who owns the factory?

The biggest problem comes in the public sector however, the only place where unions continue to grow. How is it that civil servants are allowed to unionize? Who is the evil employer exploiting them? The American people? To paraphrase FDR who believe it or not didn’t think federal workers should be able to unionize.

One other bit on union contracts and pensions.

The point has been made (about Detroit) that contracts have been signed and so therefore pension obligations should be honored.

Indeed they should but by the entity which made the deal. If the city or company is broke, often because of pension liability, the broader public has no obligation to honor this contract. The deal was with the city and its workers (as in Detroit,) not with the taxpayers of the United States and the city workers of Detroit. The city does absolutely have an obligation to pay its pensions, but if the city is broke, it’s broke. There is no money anymore. It’s gone.

I could sign a contract with my neighbor down the street guaranteeing me that at some time in the next 5 years he will deliver me a living breathing unicorn. We have an enforceable contract. But because it’s based on magic the contract will never be filled.

I can take him to court. I can rant and rave. But there will never ever be a unicorn in my back yard even though I signed a contract which said that at some time in the next 5 years there would be.

The same is true with many city pension schemes.

Sure the city signed a deal but it doesn’t mean that it was ever based in reality. The unions knew it. The cities knew it. They just thought that somehow, some way, a unicorn would show up.

Sorry, unicorns aren’t real.

Image credit: http://www.againstcronycapitalism.org

North Carolina Ends Teacher Tenure, Teachers Will Now Have to Be Good at Their Jobs to Keep Them

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Source: http://www.againstcronycapitalism.org

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North Carolina Ends Teacher Tenure, Teachers Will Now Have to Be Good at Their Jobs to Keep Them

 

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God bless the Tar Heel state. First Michael Jordan and now this. Absolutely great news.

 

That teachers get lifetime tenure, jobs for life, anywhere, is absolutely criminal. I’m not being over the top. It is a crime against taxpayers and students. Now one should get paid for just showing up.

I was lucky enough to know a number of great teachers going through school. CE Johnson Jr. was probably my favorite. He was brilliant and respectful and professional. He was a great government teacher. But even he didn’t deserve lifetime tenure. Not that he would ever need to worry, which is the point.

But for every CE Johnson Jr., I probably had 5 teachers who were clearly just going through the motions. This was their paycheck and they were counting down the years until their pension kicked in. And I was in a good school district. I can just imagine what New York City schools are like.

My old Yugoslavian astronomy professor once said that the downfall of American public education was when teachers gave up their position as “professionals” and threw in in their lot with the unions. He always made the point that Einstein couldn’t teach physics in the USA but that many people who didn’t really know physics did, and could never be fired.

(From Reason.com)
 
Under the new plan, top performers will be offered four year contracts, while others will be on one or two year contracts.
 
It’s not exactly at-will employment—the kind of jobs that most of us have, in which both parties can choose to end the period of employment whenever they like, without advance warning—but it’s a heckuva lot closer.
 
Naturally, local union officials are flipping out:

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

John Stossel – Detroit Gutted By Government

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John Stossel – Detroit Gutted By Government

 

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Published by XRepublicTV

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John Stossel discusses the demise that is Detroit with guests Darcy Olsen and Shikha Dalmia, regarding causes behind the Detroit collapse and other cities following a different model running in the black unlike the bankrupt situation facing Detroit.

Thinking Sandy Springs, Georgia is a model worth much more study.

Giant Unions Turn on the Prez: Obamacare Will Shatter Backbone of Middle Class

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Source: http://www.againstcronycapitalism.org

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Giant Unions Turn on the Prez: Obamacare Will Shatter Backbone of Middle Class

 

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James Hoffa of the Teamsters, Joseph Hansen of United Food and Commercial Workers International Union, and Donald Taylor, the president of Unite-Here, penned a letter to the president explaining to him that Obamacare is set to destroy the unionized middle class.

That is really what they said.

 

Boy times have changed. Guess maybe we actually should have read the legislation before we passed it huh?

If the Teamsters are coming out against Obamacare along with many other unions, and employers are coming out against Obamacare, and religious organizations which provide healthcare to the poor are coming out against Obamacare, and doctors from Alaska to Florida are leaving the profession because of Obamacare, and even the Congress people who voted for Obamcare are coming out against Obamacare, maybe it’s time we got rid of Obamcare.

It is a disaster, an anvil tied to the job market, or as Demcratic Senator Baucus referred to it in the Spring, an economic “train wreck.”

I don’t want a train wreck. Our economy is already pretty wrecked. We’re still trying to put the pieces together from 2008 for crying out loud. Obamacare is not what we need.

The unions are not set to completely abandon the president however, not that we would expect them to. They want special crony carve outs for their members which is really just par for the Obamacare course.

But for the big unions to use these terms publicly gives you an idea just how bad an idea Obamcare is. That they would hand such language to their opponents is remarkable. Think about how bad they must think things are going to get for the Teamsters to say that Obamacare will break “the backbone of the middle class.”

That should put the fear of you know who into anyone.

FULL SYORY

Still Voting Romney or Obama? Not After This Video! RONY 2012!

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Source: http://jana-murray.com

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My gift to the Dare County Republicans, North Carolina. Hopefully the simplicity of this blog post my reach your apathetic and dangerous view point of the world in which you have played your role flawlessly. Watch if you “DARE” to WAKE UP!

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You’ve heard about Kony 2012…Well This is a REAL MOVEMENT!
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IMPORTANT! We must get this out before the next states Vote!
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Lost Rights what rights have we lost in America

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Published on May 17, 2012 by

Click on this link to sign up for tom woods liberty classroom.com http://www.libertyclassroom.com/dap/a/?a=664
lost rights the blog is just a brief overview of some of the rights we have lost in America

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[CIM]

The time is NOW to take back our personal liberties and freedoms!
Ron Paul 2012: Restore America Now

http://www.ronpaul2012.com

Please visit Ron Paul’s official campaign site by following the link below and donate today!

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