Posts Tagged ‘Keynesian econmics’

September 3, 2010

(Dueling Perspectives) Labor Day: An Antiquated Remnant

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Labor Day, the one day out of the year that we celebrate all the hard work we do, was intended as a well deserved tribute to the men and women who worked in steel mills, factories, construction, and other such positions that the ruling elite look down on as “manual, menial” careers.  Labor Day has been a federal holiday since 1884, a year and an era when unions were necessary, were actually concerned about the workers who paid dues, and not simply seeking political influence.  The sad fact of modern American reality is that most of the jobs that Labor Day was intended to celebrate are now gone.  Government regulations, environmental regulations, and competition from overseas, have shut down the steel mills, the factories, and made life for “blue collar” workers hell. After all, how can a company, burdened with very costly government mandated OSHA and EPA regulations, compete with the prices of a company free from such regulations?  That is why Chinese steel is everywhere, and America is saddled with a “Rust” belt.

When conservatives talk of a free market based economy, they are not talking about NAFTA type treaties.  In 1993, before Bill Clinton signed NAFTA into law, many conservatives were opposed to the treaty.  The resistance was so strong that  the Heritage Foundation had to address it.  Clearly from that article, job creation was expected, as well as the idea that American companies could “take advantage” of Mexico’s “cheap” labor costs.  What does it mean to have a low labor cost, relative to a high labor cost?  In a nut shell, it means that companies can pay their workers less, because they expect less.  Many Americans on the Left and the Right supported that idea.  Payroll is always a companies largest expense, and finding ways to lower that is always high on a CEO’s priority list.  Oddly enough, the entire company benefits from this, a truth the left is reticent to admit.

NAFTA has never been a cause of illegal immigration.  The idea that Mexican farmers cannot compete with American ones is simply mistaken.  In reality, a great many of the fruits and vegetables we enjoy in America come from Mexico, whereas our own American Farmers are given government subsidies to grown nothing.  The root cause of illegal immigration from Mexico is the corruption and crime that is rampant in that nation.  Living in Las Vegas I have had many opportunities to speak with illegal Mexican immigrants, and they have almost all told me that they miss their nation, but “things are too bad there.”  America and our economy have not caused illegal immigration, rather, those men and women have taken a risk and tried to obtain a better life for themselves in a country relatively free from political corruption (at least so far.)  I do not object to that.  I object to them breaking our laws and draining our social safety nets, when our legal citizens are suffering.

Labor Day was meant to celebrate the American worker.  Today, in our globalized economy, the “American worker” is a term that has lost all its meaning.  Despite what Harry Reid said, most of the manual construction and landscape jobs in Las Vegas (and most cities) are done by illegals.  (Reids claim to the contrary surly ranks high among the most stupid things a human being has ever said.) The current blow-up in Arizona has nothing to do with NAFTA, nothing to do with Free Market economics, but everything to do with a states desire to protect its citizens.

Arizona SB 1070 was not written and passed because of racism, or prejudice against “Brown” people.  It was enacted because of the out of control drug violence in Mexico that is spilling over into Arizona and other border states.  When Governor Jan  Brewer requests 3,000 National Guard troops, and is only given 30 (thats 1%) is it any wonder that there is some angst against the Feds?  As for what Sheriff Joe is doing, I say keep it up.  My friends on the left view prison labor as “slave” labor.  This is their choice, just as it is their choice to remain ignorant of the economic realities surrounding the issue.

Billions of dollars are spent each year on our incarcerated population, and each year the tax payers receive higher crime rates and less safe communities as their ROI. What Sheriff Joe is doing is different, it is unique in America today, and it could be the solution to our woes.  If jails are not places people want to go, then perhaps they will think twice about a life of crime.  If prisoners in jail are given a job to do, perhaps they will acquire some life skills and be able to survive in the real world.  It is not about taking advantage of “slave” labor.  Cynicism and sophistry would like to claim it is, but it is about using scarce tax dollars better than we do now.  The current justice system has double digit recidivism rates.   Clearly something needs to change.  As someone diametrically opposed to Direct File and JLWOP I applaud what Sheriff Joe is trying to do.  Children who have made mistakes deserve a chance at a new life after rehabilitation.  Teaching them to work, stick to a schedule, and a marketable skill are far superior tactics than locking them away for decades.

As we celebrate Labor Day on Monday, most people I know will actually be at work.  The banks will be closed, the government will take a three day weekend, but ordinary hard working Americans like me will be at work.  Trying to survive a bone crunching recession caused by misguided democrat housing policies and made worse by a blind reliance on Keynesian economics.