There is a Chinese curse, "May you live in interesting times." Today, as we look about, there are two revolutions taking place. One domestic, the other, in the Islamic world.
Domestically, it would appear that decades of union rule in the manufacturing sector, has been a, if not the, major factor in the outflow of jobs to the orient and other off-shore countries. It's really a simple conundrum. Labor wants more pay. That is a normal wish. We would all like to experience more income. But, in doing so we as a country have abrogated our economic advantage in the world. We have done so by pricing ourselves out of the world market. It does no good to be able to buy cheap Chinese goods, if you don't have an income to pay for them. Our federal government must also help, by curbing spending and in cases of other countries "dumping" goods onto our markets, enacting protective tariffs.
Today, there isn't a single television set built in this country. Nor are there any other consumer electronics as well. Competing with countries that have rising educational records but salaries that are much less than in this country has led to this serious hemorrhage. Our auto industry is on it's lips, with one manufacturer, sharing it's board of directors with the very union that supports higher wages for the company's employees.
The chickens have come home to roost. The rust belt, Michigan, Wisconsin, Ohio, etc. have realized that they are out of jobs because of these unions pressing for higher wages. Suddenly, the Wisconsin Senate has come to a halt due to the voter rebellion bringing unheard of republican victories in states that haven't been known to vote GOP in a very long time, if ever. In Wisconsin's case, the only way the democrats to still cling to their labor base could put off having public employee unions outlawed, was to become truant, causing the lack of a quorum. At some point, law enforcement can and probably will track down one or two of them, dragging them back which they can do by law. Still, this nationwide rebellion against labor unions, spending, etc. is overturning what many feel has been a long time coming, and necessary for the financial health of the nation. We as a country have a choice. We can either become protectionist, producing and buying only our own goods, while prohibiting imports, or bringing wages back to a manageable level.
On the international side, where we were only a year ago, with Islam in an uproar against the rest of the world, suddenly they are fighting amongst themselves, struggling to topple well entrenched dictators. When you consider that most of these mono-religious nations have never experienced democracy. Until one,little insignificant country, Tunisia, decided they have had enough. Taking to the streets, without weapons other than public opinion, they drove out an absolute ruler. Following that by just days, Egypt, Algeria, Iran, Jordan and other countries are saying, "If they can do it so can we." And they are.
Where all of these upheavals end only time will tell, but it would appear from my viewpoint that these adjustments have been long overdue and will vastly improve how we, as well as the Arab world live in the future. As wall street would put it, "this is an adjustment long overdue."
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7 years ago
10 comments:
Herb, I just retired from a union job after 35 years. I can honestly say that although I was never a union advocate, at times I was very glad I had them. After reading your post and comparison the U.S. to China and other third world counties I have to wonder where we, the working middle class, would be without them. Probably in competion to see who can pay the least and produce the most. The unions have done their share to make this nation what it is today, and given millions of people the lifestyle that they have worked for and earned. The people who are now chanting to ban the unions have probably have never been in one and had they been, I wonder if their stance would be the same
Thank you for your well though out comment. Actually, I don't know anyone that wants to abolish unions. The issue before us, and more specifically, Wisconsin, is the public employees have many advantages that the private sector doesn't.
Part of our problem is over reaction. Civil service employees have a job security that private employees would die for. The major restriction that is being discussed, is the power of a union to strike against the state. Some concessions as to benefits are also on the table, just as they are in all walks of life. We are in the 2nd great depression, the first starting in 1929 and ending with the advent of World War 11. Our federal government declared this "recession" over in 2009. It would seem that was an over optimistic view, or perhaps just another lie. The FAA controllers union struck the airways during Reagan's administration, when striking againt the federal government was unlawful. He called their bluff and fired all of them that refused to return to work. No thinking person would want to outright abolish unions and I don't think I called for that extreme solution. What we need, with our state and local governments running out of money, is not to further complicate things until it gets better. Militant unionism during tough times pits those union members against your friends and neighbors that aren't part of your movement.
I did mention that the primary reason for job loss in this country is the overpricing of goods and services in competition with developing countries. A balance between a wage adjustment and protective tariffs could be the answer. What I wanted to do was to open the discussion so that you and others could try to frame solutions, not to try to solve them myelf Thank you for responding.
Herb, there is absolutly no way we, can compete against other countries when their workers earn pennies on the dollar and live in worst than poverty conditions. What the answer is I don't know. However, I feel that alot of what the unions stood for has long been lost. Unions now are big business and have distance themselves from the worker. I was making less than $60,000.00 a year when I retired. The president of my local union was earning $225,000.00 a year from the local and another $225,000.00a year from the international. How can a person earning that much relate to people earning so much less. I don't mean to contradict what I said in my first post, the unions have served a purpose but they have gone over board in alot of situations. Wage and pension reform has to begin at the top. I would love to see the Senate and Congress voluntarily reduce their pensions to set an example.
Well, there we are. Perhaps the best beginning is to realize that something is broken(import/exports) amd keep up the chatter. Perhaps even we can make a difference with those who rule on our behalf.
One more thought. It is for people like you rather than the knee jerk reactionaries that I bother with this blog. Thank you for following my rants and unsolicited opinions.
Herb, do I sence a "the hell with it" emotion? I certainly hope not!! My wife and I have a place there in Bayview and I open your blog at least once a day to find out the latest. I will be the first to admit that I don't always agree with alot of your blogs but alot of other people do. Please don't think of shelving "Bayviews" you will disappoint not only me but alot of others too.
Just sold a customer a dealer fuel pump for his Cummings 5.9 Dodge Pickup. The Cummings part was made in China. The ones made in USA failed twice. What has happened to the name Made in USA and the quaility to go with it?
Rudy
No Ric, I'm not planning to shut down. I was just expressing my pleasure at having people like you as followers/commentors. Some of the more negative ones make it harder to go forward, but go forward i will.
Thank you !!
It seems Herb we have said in previous posts that expressing ones opinion and discussions are far different than the "I am right and I don't care" attitude. There is nothing wrong with quiet discussions, we all have our own opinions. It becomes wrong when I try to force my views on others simply because I know I am right.
Being an aeronautical engineer my father, so many years ago had the benefit of the union. He did however state that the unions formed to help the workers served their purpose and probably needed to go away. Protecting the health and well-being of workers. As stated we have out priced our local goods beyond most folks means. The time may have come for change.
NJ
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