Saturday, March 17, 2018

Unions, Parties and Killing Golden Geese

I have a friend who is a union man and we tend to get into some lovely conversations. I'm a conservative as you've probably figured out. Unions are pretty much NOT conservative and union men seem to take a particular delight in vilifying the president and the Republican Party, so sometimes the conversations get lively.

Let me make this clear. I feel about Unions the way I feel about Donald Trump. They both are doing some good, but sometimes they are their own worst enemies.  The idea of unions started out to be a good thing. The railroad union, in particular, to give it credit was able to work with the railroad companies to solve some of the problems of the economic transition that occurred in the twentieth century. The railroads were dying until finally the unions and the company figured out how to work together. That's how it should be done. 

But there are unions that don't do that. They ossify procedures, hiring and firing and pay rates. Unions can become so busy protecting specific jobs (and the Union income stream from dues) that the companies they work for keep folding. Hostess Bakeries was killed because their Union refused to budge. The union dug in its heels, the company couldn't adapt and folded. Retirement plans went away. So did a lot of jobs with the death of company and along with it, our supply of Twinkies and Hostess Cupcakes. Eventually someone else bought the brand but it was a near thing. 

Unions can do a lot of good, but too often in their blind hatred for the companies they work for, they kill the golden goose. I fault Unions for being so in the tank for Democrats. They do that because as in the case of Chrysler and then GM, the unions protect their turf so vigorously they frequently play a part in driving their companies to the brink. Let's face it, if a company can't make a decent profit, why should the continue to do business? Then when the company is on the brink, unions expect taxpayers to swoop in and bail them out, saving union jobs and failing companies. 

It's the same problem with environmentalists. These people want to somehow prevent the climate from changing. Unions want an unchanging job market. We are passing through climate changes as we always have. We are experiencinga titanic shift economically, as disrupting as the shift from a largely agrarian economy to an industrial economy. We are moving from an industrial to a tech-based information economy. Rather than preserve outmoded buggy whip manufacturing jobs, we need to be finding ways to adapt to the new reality.

The climate? Climates change. Get over it. We just have to deal with it. Clean up messes - absolutely. Stop polluting as far as possible. Of course. But do we have to create some vast centrally planned economy with an attendant huge army of bureaucrats to try and manage from Washington, a nation of 350 million individuals? That's absurd. The only way to do that is to simplify everything, stuff every peg, square, round or triangular into the same shape holes. That's why Marx was so in love with the idea of a homogeneous proletariat. If everybody (or at least most of us) were treated the same the theory was that they would be easier to manage for the leader class.

A nation of individuals is tough to make steady and predictable. Things change rapidly in a free market economy. Some businesses will close. Some will adapt. We're not asking mom and pop hardware stores to suddenly sell dresses because Walmart set up shot next door. But they can adapt  maybe sell hardware items that Walmart doesn't sell. They can offer higher levels of service that Wally World cannot offer because they have to sell such a huge volume of stuff.

In a time of upheaval, we have to change and adapt. In the past 200 years the world has changed in a profound way.  Two centuries ago we could be certain that, barring an attack by the nation next door and being carried off as slaves, for the most part however it was for your parents, it would be the same for you. After the huge scientific revolution of the 19th and 20th centuries, we came to believe that our lives would inevitably better than the lives of our parents.

It's ironic that the "progressive" movement that rose up seems to be attempting to reverse that course by making "progress" stand still. By insuring that everything from the jobs we work at to the very climate we live in stays the same, progressive behavior impedes progress. It's a losing battle. The world is changing and huge monolithic organizations and governments cannot possibly keep up. The reason America has thrived in this The future does not belong to those who learn something and then do that same something all their lives. That type of job is going away. The future will require us to learn how to learn, unlearn, and relearn something different. It will call for education that harks back to the old liberal arts education where we learn basic skills like math, writing, logic and computer skills and then layer on that first skill set you need to enter the workforce.

After that the worker has to stop worrying about fairness and start looking at what works to make that worker valuable to his employers. Here unions could play a role so long as they don't become the monolithic organizations, an image to the "beast" corporations they hate. If instead of propping up dying companies and industries we let the ones which try to kill themselves go ahead and die. We could spend that same money encouraging new companies to step in and start clean. We could train workers to do the new jobs using the new technologies and to meet the needs of a changing market.

The world is changing. There was a reason Chrysler was dying in the 80s and GM in the 00s. They probably should have. Someone or several someones could have bought the good parts and started clean. If the unions had been smart they'd have focused on working with newer, smarter, leaner companies. Sadly, too often the unions over time can become about accumulating power and fat budgets for the bosses instead of what they were about in the first place - a fair shake for workers on wages and safety. So when big bad corporations fall, unions probably should let them. Practically they never will.

There's a reason Detroit is rotting away.
If you keep an industry barely alive and never get beyond treading water, an industry will rot and along with it the community that depends on that industry. Can corporations become corrupt? You bet, especially when they hook up with corrupt government which protects them. If one could allow a partnership of workers and the markets to which their labors provide goods and services to work as free markets can, we could keep corporations in line. But corruption doesn't just happen in board rooms. It can be found top to bottom. It happens in board rooms, union halls and city halls.


When owners and workers finally realize they are both on the same team and we get over envying the wealth of people who risk everything to start these companies, we might just see a greater sharing of the wealth. There's a reason Ford wasn't involved in the bailouts of the automakers. Henry Ford started the 40 hour week and assembly line and took care of his workers in ways no other corporate magnate did. There were free market reasons why he did right by his workers. Oddly enough he was very popular with people like Hitler because he was a capitalist who was also something of a socialist. Fortunately, his focus on his employees and treating them well hung with the company for a long time and kept them from falling into that adversarial relationship despite Ford's folly in embracing socialism.

It's amazing to me that very wealthy people cannot do the decent thing for very long, before they look round and decide to hook up with the government to try to take some of the responsibility for being decent people off of themselves. This protects their wealth, but puts the lion's share of the tax burden on the middle class through confiscatory taxation. Back in the 50s, when the upper tax rate was like 70%, very few of the 1%ers actually paid that tax rate. The rich were famous for hiring staffs of tax attorneys who helped them navigate the loopholes that the Democrats they support put into the tax codes. In the 50s and 60s the fat cats were supposed to pay 70%, but very few paid anything near that rate and some paid almost no taxes at all. 


There is no simple solution so long as we have vast complicated piles of regulations, laws and rules that hide the true intent of the government from the governed. It's not just evil corporations, it's evil government bureaucracies.

I
think the devil's purpose is to keep us divided and fighting among ourselves. And what better way than to convince us to sling slogans at one another and lash ourselves to the mastheads of our ideologies. I used to do community organizing and it's so hard to get people to look beyond their pet ideologies and listen to each other. If you can, sometimes you can figure out how to fix the problem. Usually, people that figure out solutions that make sense just get pushed aside if they start talking sense that doesn't fit someone's ideology. Leaders on both sides of the ideological divide believe they need to keep the strife going in order to keep their jobs.

It's heartbreaking to watch the land that I love destroy itself from within. So it's good that Jesus is coming soon.

© 2018 by Tom King

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