Jun 8, 2011

Free Markets

Like everything else, Labor is a marketable item - a commodity just like any other.

When a business manager is trying to figure out what his plan should be for the coming year/quarter/whatever, he has to figure out what the costs will be for him to produce the goods and services his company offers.  He has things like rent, and equipment, and taxes, and raw materials, and labor.  He looks at several options before he moves into the space he needs for his operation; he invites at least 3 vendors to bid on selling him the stuff he needs to build whatever he's selling, etc.  The point is to get some real competition going in order to drive down his costs.

If he can pay some dues to Chamber of Commerce, or American Manufacturer's Assn, or some other trade group that can help him elect sympathetic politicians who will pass laws and enact policies that drive down the cost of practically everything, then he benefits greatly; and he will do exactly what we see being done to American workers right now.

When you look at Paul Ryan's budget plan, you needn't wonder why it seems he intends to tamp down on Medicare; he intends to press down on all aspects of the cost of labor because his Corporate Masters have told him to push the labor market to be more highly competitive.    They understand that when you have 100 people standing in line to fill an opening for one decent job, then you've basically created a bidding war.  Suddenly, every prospective employee (aka Labor Vendor) has to bid on that job, and the "winner" is the guy who's willing to do it for the lowest pay, or the longest hours, or the crappiest benefits, or whatever.

You think politicians aren't doing enough to get the economy going again?  Then you're thinking about it from the wrong angle.  The economy is actually going pretty well for the ownership class; all they're trying to do is to figure out how to placate us just enough to keep us from taking to the streets and burnin' this shit down.

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