I worked in commercial credit when Obama bailed out the auto manufacturers I worked at a company looking at supplying GM. Automobile manufacturers were teetering on bunktuptcy GM didn't have any bank debt. All their debt obligation was to pensions and retiree healthcare Wages like everything else in the production of a product have to reflect it's demand. If the cost is too high because production costs no one will buy it This is from the Air Traffic Control Thread Chinese workers are smarter and Hispanic labor costs less The solution isn't trying to force wages companies can't pay if they want to compete In GM's case years of union negotiated wages were driving them out of business
Come on now. If management can't figure out how to make money, it's their own fault! And accruing debt is their own fault too. I could make money too if I could just find workers to accept whatever salary lets me make money. Overhead in the offices of GM Boss: You employees are wrecking us with your demands. Employee: WTF, you make 5 times more than I do! Boss: Yeah, but in China they make less then you do. Would you just be cool like China? Employee: This is America. Boss: But I can't turn a profit. Employee: So you should be fired. Boss: Quit being a dick. Employee: Quit being a p***y. And so on.
You skip the part where the company then moves out of the country in order to resume making a profit and the employee is then out of a job in a dying town that was only getting by due to the industry that the employee just helped run out of the country. Sometimes unions are a very good thing and help make things better for workers, sometimes they get greedy and kill the industry in the US putting all of their people out of work.
During Henry Ford's era and during the fifties the reason auto manufacturing paid so much was American dominance in the American market What will happen with wages and lifestyle eventually is things like rent follow in decreasing It pretty much has to
Dude, the worker has been getting squeezed for the past ten years. Meanwhile, the rich are getting richer. Why don't you look at the people who are getting richer, if you want to scrounge up some extra profit.
The problem is that wages are top heavy you cannot convince me that I MUST make less to compete when management is getting absurd bonuses and increases. If I'm gonna have to take a loss. . . .why not them Until they become a part of US . .. the argument is moot One of the issues with Capitalism is chasing profit increase NOT PROFIT . . .Profit increase Seems that a profit of 10 million a year for 10 years is stagnation Unless you increase every year that is a problem Also . . . . I look at the walmarts and the mcdonalds of the world they say raising wages would not allow them to compete The real answer is they could compete but instead of a 500 bill dollar PROFIT they would have a 400 bill dollar profit It is UNACCEPTABLE to make less profit The thing is . . ITS PROFIT!! All the bills are paid and business can sustain and continue but in that case THE WRONG PEOPLE ARE TALKING A LOSS Better millions of employees move from 15$/hr to 12$/hr than thousands go from 1 million in dividends/bonuses/salares to 800K in dividends/bonuses/salares Rocket River
Ironically, the SW, Texas, and South have benefited from NAFTA and global trade..... Some areas just have no personal responsibility..... Remind me, did Trump come down to Texas and talk about NAFTA?
The point about the fifties in particular is the union wasn't the reason for good times for labor It was just economics. The whole economy benefited from the destruction of Europe and Japan during the war.
The biggest problem with NAFTA is it worked Free flow of goods has benefited. That's a good thing for everyone in the long run
One of the things that is ignored in any discussion around unions and artifically elevated wages: When you artificially elevate prices, you correspondingly reduce demand. Artificially elevated wages create incentive to look for lower cost alternatives. With the growing trend of automation, this would just accelerate that. You would have higher wages, but fewer workers. Outside of automation and other forms of job reduction (simply expecting each worker to do more), you also create incentive to outsource the work if possible. All of these lead to fewer and fewer jobs at those wages. This is simple economic fact. Unions are directly responsible for much of the job loss in the industries they are predominant in. What they should be doing is working to make their employees more and more valuable, then these issues don't occur. Many of these workers are skilled workers, and simply breaking down the union/management paradigm by working with management to realize the value of the workers they have (rather than enforcing rules that have workers sitting around waiting for an electrician to arrive to turn off a light switch) is the better approach. In today's global economic environment, unions are directly responsible for much of the job loss in many industries where the unions are predominant.
And remember folks, when workers demand more money it's "artificial inflation" - whenever anybody else bargains, it' s just the market at work naturally.
Hear hear! 5. Ginni Rometty, IBM Total compensation: $96,764,750 Salary: $1,600,000 Bonus: $4,950,000 Stock awards: $15,105,991 Option awards: $73,879,712 Pension, deferred and other: $1,229,047 4. Elon Musk, Tesla Total compensation: $99,744,920 Salary: $45,936 Option awards: $99,698,984 3. Sundar Pichai, Google Total compensation: $106,502,419 Salary: $650,000 Stock awards: $105,480,009 Pension, deferred and other: $372,410 2. Tim Cook, Apple Total compensation: $150,036,907 Salary: $3,000,000 Bonus: $5,370,000 Stock awards: $141,289,188 1. Marc Lore, Walmart U.S. E-commerce Total compensation: $236,896,191 Salary: $346,154 Bonus: $1,055,136 Acquisition awards: $235,468,788 Pension, deferred and other: $26,113 http://www.cnbc.com/2017/05/11/highest-paid-ceos-in-america.html Those are some artificially elevated wages right there. If you raise the average Walmart cashier's wage from $9.32 to $10.32, that's gonna wipe out Marc Lore's whole acquisition awards package for one year!!!!! I mean, after 235,468,788 man hours. [Edit] Marc Lore's one-year acquisition awards equals 12,632 full-time cashier positions at Walmart (@$9.32/hr). Does that sound like a good economic model for the USA? The five people listed above, put together, earned as much as 47,582 full-time minimum wage workers.
