Wednesday, September 30, 2020

Add life boats to labor's Titanic -- or do something real?

 
Wage increases at high end restaurants can cause sales drop for two reasons: (1) the obvious, prices of meals rising; (2) the less obvious, customers may have less money in their pockets to spend on high end merch after confronted across the board with price increases at their supermarkets, at Target, at Micky D’s … 
 
 … accompanying newly bulging labor union density's collective bargaining power or a minimum wage a lot higher than today’s 1956/2020 federal minimum, both $7.25 (inflation adjusted) -- or both. 

On average most businesses have 10-15% labor costs – outliers run from 7% for Walmart to 25% for fast food.  Ergo, average doubling labor’s wages should average add 12.5% to consumer prices.  Cab driver guess work: leading to 10% loss of original customers’ sales.  But, across the board wage hikes for bottom 40% of workforce should add a lot of sales – at businesses bottom 40% earners patronize.

All the while, average doubling (!) bottom 40% percent wages.  
  * * * * * *

When Congress first laid down the legal blueprint for organizing labor -- it could never have anticipated today's well oiled anti-union machinery stamping (stomping!) out unions until they are virtually all gone -- 6.5% in private (non gov) occupations should be seen as virtually gone.


Card check in today's toxic, 93.5% union free labor market; raising the minimum wage from the 1956 level ($7.25) to what bottom pay earners could probably collectively negotiate for themselves ($15), EITC that transfers 2% of income, while 40%* earn less than what we think the minimum wage could be -- are just adding life boats to America labor's Titanic.  We need something real – something to restore collective bargaining for real:
https://onlabor.org/why-not-hold-union-representation-elections-on-a-regular-schedule/   
 * http://fortune.com/2015/04/13/who-makes-15-per-hour/ (2015 -- gated -- but best story)

Barak Obama and Hillary Clinton never nearly fathomed (pun intended) American labor's going-down-for- the-third-time desperation – which is why Alfred E. Trump populates the White House today.  Nuff said?