With Southern California grocery workers planning to strike soon, I thought it an appropriate time to review the state of the unions and their role in the economy. Essentially, modern unions use political pull and extortion to get the unearned.
Summarized in their slogan “live better, work union,” union bosses lure new recruits by offering unearned wages in exchange for dues. They know the value of votes in our unfettered democracy, and seek to stockpile them for use as ammunition against others. Historically, unions have successfully infiltrated US laws through their political activities. Although many of these laws have weakened since their heyday, businesses are still forced to respect union extortions and treat them like valid and lawful requests.
For their part, unions only offer more extortion. Instead of seeking to improve their value, union members choose to gouge employers. Instead of using union dues to create competing businesses, they choose to invest in political pull to help force more unearned money from businesses. While businesses must constantly adjust their tactics to stay profitable in changing markets, unions seek to shield themselves from changing labor markets and force businesses to handle all of the risks.
Essentially, the union credo is “we want more money, and we’re going to destroy the business (and our own jobs) to get it.” Government unions are much worse in this respect. Their parasitic hosts are not businesses, but rather all taxpayers who don’t have a choice to shop elsewhere.
Properly, in a free market, people are compensated according to the value that they create. This is why engineers and architects are compensated more than janitors.
An engineer with a broom can sweep a room, but a janitor with an aircraft wing will produce disaster. A janitor with a broom can sweep a room, but an engineer with an aircraft wing can help quickly transport people and products to the far reaches of the world.
In spite of the obvious difference in value, the established compensation is still a wonderful property of the free market that achieves the maximum efficiency. Just like movie tickets cost whatever most people are willing to pay for them, employees should be compensated according to what salary other people are willing to do the work for. If a dozen people are willing to sweep a room for $10, it would be inefficient and wasteful to pay another person $20 for the same job. Likewise, if very few are willing or able to sweep a room for $10, then the market price increases to the proper level. Furthermore, if janitor Jimmy creates a way to sweep a room in half the time, he can charge $9 and still be more profitable than the others.
I worked at several smaller grocery and retail stores in my late teens. It was essentially unskilled manual labor requiring basic skills that anyone could do. Now with labor saving devices like laser barcode scanners and self-checkout aisles, the skills needed from today’s grocery store workers should be less, not more.
In the coming weeks, the liberal media will certainly run “balanced” stories about poor grocery workers who claim that they need more money to support their lifestyles (especially their hungry children) while grocery executives and stockholders are accused of greed for their large compensations. No reporter will ask grocery workers if they can make a business profitable in the free market while navigating countless laws and regulations. Instead, union bosses will be on camera screaming Marxist slogans to help maintain their worthless political pull.
Please treat these people and their ideas accordingly.