Tuesday, March 1, 2011

Will The Government Replace Unions?

Let me start by saying that my father was a member of the IBEW and my brother was in IBEW Local 3 in New York. Also once I write this someone in IBEW Local 3 will hist this page, good work guys, let's see if it takes more than three hours. My grandmother headed the Socialist Party in New York and ran for Senate and NY State Treasurer. So politically I have some exposure to the issues.

Now there is an article by a left wing economist in The Fiscal Times which states:

If unions aren’t the answer in a global economy, then what is? Will global labor organizations replace domestic unions? Perhaps someday, but this would require global institutions that do not presently exist, and that do not look likely to materialize anytime soon. 

The only institution powerful enough to protect workers now is government. By providing the things unions once fought for on behalf of workers, government can help to correct inequities and reduce the insecurity workers face. Ensuring that working-class households have the health and dental care they need, security in old age, a safe place to work, insurance against job loss, higher education that is essentially free, and the benefits of a tax policy that redistributes income so economic gains are shared more equitably would go a long way toward remedying what workers have lost since the 1970s

Now how is that for a mouthful! Get the Government to tell business what to pay people and furthermore ensure Government redistributes the wealth the people who took the risks created! Now unlike these non-productive academics I really started businesses and did so in Russia and throughout Eastern Europe. I did so on my own nickle and not with any corporate rubric. The result was wealth creation for many, including many old communists. When my old communist friends read this utter nonsense they wonder what has happened to the land of opportunity. Perhaps the oligarchs in Russia have it right. Perhaps we should annex Russia and elect Putin as a natural born citizen!

Entrepreneurs create wealth by taking substantial personal risk, total risk. I had a handful of plan tickets on my credit cards and went and built companies in 20+ countries. What if I had to tell the Russians, Greeks, Thais, Koreans, etc that the US Government would control my work conditions? No value creation. It is bad enough that we have the second highest corporate taxes, it drives business out of the US, I moved to the Czech Republic!

Yes workers need good working conditions, yes wages should be fair, but no, Government should not take the place of unions or be in the business of health care!