Monday, March 02, 2015
IF RTW Raises Wages, How Do Unions Hurt Businesses?
In an interview segment of "Here and Now" hosted by Frederica Freyberg, comes a frighteningly parsed yet laughable string of statements from the WMC's VP Scott Manley.
Under a basic line of questioning, Manley delivers a dumpster full of convoluted corporate hack talking points that simply doesn't square with reality. The amazing thing here is, Manley attempts to sell his entire pro-RTW meme on the reconstruction of a few soft facts, A) wage growth is faster in RTW states vs non-RTW, B) rate of job growth is better vs non-RTW, and C) RTW gives businesses "flexibility."
Of course even the street level little guy knows Manley's iterations about rates of growth are measures of speed and lift from a new "dropped" bottom and have nothing to do with actual wages or quality of jobs.
So, after Manley opens by building his foundational argument with RTW bringing higher wages and greater union membership, Freyberg follows through with a few simple questions in an effort to square the circle.
She asked, "how do wages go up?"
Manley, "It's based on the market ...and in RTW states, keep in mind they're growing jobs twice as fast and ...when you have more jobs available and the same number of employees, that creates higher demand for employees, and when you have higher demand for employees, those employees can command a higher wage."
The main problem is Manley begins his response with a giant hole by failing to explain the cause of the demand for jobs in RTW states. The demand he's talking about is not market demand for product ...it's demand for a rock bottom wage environment for employers.
With some deductive reasoning applied, half of the giant hole is an economic environment tapped out and incapable of creating more jobs through generally accepted supply-and-demand principles. What he won't say is RTW creates an artificial way to add jobs without increased product demand while cutting the payroll at the same time. Manley of course can't bring himself to the truth of the matter because his house of cards would instantly collapse.
My other point is, IF the endgame of RTW is to foster an economy of higher wage employees circularly creating more demand, we're already there with unions. So why go through all the trouble?
Well, we know RTW is primarily about the confiscation of earnings and political power.
Freyberg then asked, "...How do unions hurt businesses...?"
Manley spins the question completely around in his reply, "it's not about hurting unions ...a lot of people assume that right to work automatically results in a bad outcome for unions and that hasn't been the case."
Of course, Manley never answered the question and a lot of people have it all wrong. cough ...cough. There's no question in my mind his entire RTW meme is dripping in bullshit.
But the question every RTW supporter should answer is, SINCE RTW brings higher wages and benefits unions, "how do unions hurt businesses?"
The Freyberg/Manley interview, only 4 minutes long, is highly recommended viewing and can be seen here.
Posted by Lou Kaye at 12:01 AM