Sunday, May 10, 2009

Revolution & worker rights

Please see the following video for Max Keiser's view of America and the American worker.

While I agree that what he is saying is a possibility, the mentality of the French workers and more and more the American workers is the entitlement mentality. This is a disturbing trend that does not bode well for the producers of society.

Entitlement leech colonies, also known as unions, provide an education to their workers that a job is a right. It is the right of the worker to make more money and work less than others. These people either do not understand what a business does and how it does it or they are seriously on the edge of being sociopaths. If we had an education system that taught what businesses do and how they would do it, there would be no reason for a union. People would know that businesses are in competition with each other to provide a valuable service at the lowest possible cost. Labor is sold to business owners and entrepreneurs at the prevailing market wage that enables the owner a return on investment. Typically, laborers are paid a fixed wage, because they want predictable income streams. If they wanted, they could negotiate a variable wage dependent on the success of the business or of their efforts, i.e. commissions and bonuses. As long as the business is performing well, the owner are willing to pay well. If the business starts losing money, then it just doesn't make sense to pay wages that do not allow the business to operate profitably. The laborer works as long as there is a job offered or as long as the laborer performs. Distortions caused by worker's rights laws and union contracts create inefficiencies which cause our companies to lose money and be less competitive in the global market.

A business that makes a boat load of money will see competitors move in to seize on the abnormal profits of that business. This bids up the price of good labor and reduces the profit to the original business. This is the concept of normal profit and it is taught in Econ 101. It's too bad it isn't a required part of the high school curriculum. If people understood that, business would not be demonized as it is now.

Workers rights should be limited to having a safe environment and that's it. The business owner is taking on all the risk and should be compensated for it.

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