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That could just be a small town New Mexico thing too; haven't really run into any surly clerks anywhere yet.
2014 Malibu 2LT, 2015 Cruze 2LT,
All that said to get back to where we are. We are evolving into a Service country vs an industrial. Most of the EU has passed the 70% service jobs threshold including Germany. Countries like Denmark are 77% service. Service jobs as you have pointed out were entry level when we built more stuff. With a very large segment of our population not working I don't see those jobs paying middle class incomes. WM is already feeling the competition from 20,000+ dollar type stores on every corner. It makes high wages for low level jobs unlikely.
So, we can place tariffs on imported goods, but now the prices skyrocket because those goods would be priced as though they were made by (probably overpaid) union labor here...it is like a see saw, you cannot affect one side without affecting the other side...
That might also include Fords made in Mexico, as their prices went up due to import tariffs...
Also, keep in mind how imported goods have made OURS better...Big 3 cars in the 70s and 80s were junk, and I mean that almost literally...the wave of quality Hondas and Toyotas showed us how much better cars could be made, and Big 3 cars are better today because of the past junk...I realize this is ancient history to some, but the quality of our cars today is so good because we had some real competition from the Japanese and, grudgingly, we made out cars to the quality products they are today...
If import tariffs had made Honda and Toyota too expensive, the masses never would have bought as many as it did, and Big 3 would have had no reason to improve their product...
Plus, with all the transplant factories here now, I wonder if buying a Toyota or a Honda or Hyundai now puts money in more American's pockets than the Big 3 do...Ohio, Tenn, GA, Alabama, SC, KY are some states that now HAVE a middle class because of factory jobs with "imports cars" that pay better then floor sweeper at the local school, with benefits...
Regressing towards a mean, as has been said. More to show that class warfare is real, and it is obvious who declared it, and who is winning.
So globalization:
- makes execs richer
- raises the standard of living in the underdeveloped countries
- lowers the standard of living in the US
Did we really expect it to be any other way? When the US was leading in the 40s, 50s, 60s, our standard of living grew rapidly. But that was always a bubble, as it's not like our head start was going to last forever. We need to be constantly ahead of other countries to be able to expect to maintain that standard.
On topic, the Unions started to protect innocent workers at a time when no laws were there to do so, but now the unions are an attempt to preserve the unsustainable bubbles. But in the end it doesn't work, although if you were lucky with your timing (such as the UAW high-tier legacy workers), you got to have the golden goose while those who came after are just sitting in bird poop...
Fin, I think Washington is very responsible for the growth in belief of class warfare. The convoluted laws, including all of the special tax breaks for people who can afford tax lawyers or CPA's, like trusts that can perpetually defer payment of capital gains, or allowing corporations to pay senior execs with stock instead of wages resulting in big tax savings (if the stock is received as payment to them for company performance, then it should be taxed the same as a wage because it was really earned that way), are leading America in this direction. It's easily remedied by stopping all of that and simplifying the tax code to make it flatter and fairer to all, but the wealthy are the big politician sponsors and contributors.
Tiong, I think as we move more toward service (and more professional service like law, programming, and engineering are also being offshored); when the economy turns around down the road there will be a greater potential for unionizing disenchanted technical and professional workers.
One of my big concerns about the huge loss of our internal industrial capabilities is what happens if we get into a big jam and countries like China decide to cut us off and tell us to pound sand? Nowadays war can be economic instead of military. Further, all of this offshoring is transferring our technical knowledge and advantage. As other countries get that, or steal it, what happens to us - we can't all be plumbers or HVAC repair people. The service economy concept is going to melt away too.
Raising the standard of living in other countries is immaterial, it is not part of the plan. The guillotine-worthy execs and treacherous politicos in their pockets don't do it out of altruism. Did the US start to fall behind just by not staying ahead, or by being helped in decline by some of its own so-called citizens? The lowest common denominator is a profitable ideal.
Lucky with timing, very true for some people...
All the union talk is just a pendulum. It'll swing back, even if the guilted grey population expanders try to increase the amount of workers enough to make it difficult.
berri: if you want a simpler and fairer tax code, I am with you...if it must be an income tax, a simple flat tax, or no more than 2 brackets (like in 1986 under Reagan, 15 and 28%) altho I would lower the rates to say, 8 and 15% and take away ALL deductions, like church, charity and mortgage interest...spend your money as you wish, and nobody gets ANY deductions, which would be a true flat tax on income...what I really want is a national retail sales tax (NOT the Fair Tax, too complicated)...set tha tax, say at 8 or 10%, which means your gross paycheck is your net paycheck, so your takehome pay would jump easily 20% or more, which easily offsets the "increase" in the cost of goods, because you are paying that sales tax from your whole paycheck, not the paycheck "after tax"...there would be no "after tax" because there are no more withholding taxes...much simpler, and only businesses have to file tax returns (about 5 million in US) not 150 million-plus, and our privacy would be restored, with no need for the IRS to know what we make...whether you make cars, sell drugs, or do surgery, when you spend your money you would pay retail sales tax to the federal govt just like the state govt...the only exemptions would be raw food (potatoes, not potato chips; eggs, not egg beaters; milk, not chocolate milk;) and prescription medications...all else is taxed at the final point of sale, which is, for most, the retail store...
" But I think that begets the question of if people were more fully employed at wages that weren't diminished, would they end up buying more of the $19 dollar shirts than the current $12 ones?"...good point, but would hamburger flippers, floor sweepers, etc really be worth more and receive more income???...there comes a point where some jobs simply are not worth paying much, and they would not be able to pay the $19 for the shirt...
To me, it seems that WalMart grew like it did because people found a place where they could buy goods cheaper because of China manufacturing and good business practices (Sam Walton pioneered, I believe, much of the high efficiency distribution system that allowed him to sell cheaper than Kmart, long before he was buying from China)...
I guess what it boils down to is that just because a company raises its price on shirts by a few dollars, or if BMW raises the price of its M3, that does not mean that everybody in the United States mandates a raise so they can buy it, some things will just cost more and some folks will not be able to afford it...just because someone could afford a $10K Cadillac 25 years ago does not mean that they would be able to afford a $70K Caddy today...besides, wait for a 2 year old cream puff, and that $70K Caddy can be bought for under $30K, still get the 100K mile, 7 year, extended warranty (I believe in extended warranties on cars, but cars only, not toasters), and have a much better car that the one that could be bought 25 years ago...
Rant over...:):):)
A long time ago, unions were a progressive idea; now they seem to have lost their original intent.
I'm sure there's no other issues with your proposals though. Can we implement the rest by next Wednesday?
No one has mentioned the expansion of Right to Work in Wisconsin's private sector that may be finalized next week? Notably absent from the "reforms" are the police and fire unions. (NPR)
Shifty, I think the real problem with many unions may be their too often insistence on excess work rules and featherbedding, more than above market wage rates (except for the Longshoremen). Long time, large unions like the UAW or the different airline unions also seem to frequently end up in an "us versus them" mode which ends up poorly for both the company and the employees. If GM employees see themselves more as a UAW employee, than a GM team member, that will not enhance either organization's future longer term. Additionally, many organizations, be they unions, corporations, or government seem to become far too inward over time leading to either some ugly wake ups, or failures.
Regarding wages, I guess one can choose from a Seattle area arrangement, or a southeast style arrangement. Both have pros and cons, some more than others.
The MN RTW war is funny, of course one militant rabid untouchable union is exempt. Walker is a sham.
He won't touch the cops. Nobody will. That's a union that makes the UAW look like toddlers, and nobody has the stones to touch it, because of course. Such fighting about RTW, yet states who embrace it still have plenty of problems regarding socio-economic development. Maybe it isn't the real problem.
gagrice - I gotta tell ya that my Motorola Moto G is a great smartphone and I only paid $99 for the thing. 3G, Quadcore processor, great surfing capabilities and no storage problems whatsoever. Calls are clear coming in and going out. Using Boost Mobile as the carrier I'm down to only $40 a month, too.
I'm now in rural eastern Washington state doing a Sleep Tech. job. My wife and I are not wanting ta move again anytime soon. Ugh.
2021 Kia Soul LX 6-speed stick
Rural eastern WA as opposed to urban eastern WA?
Yeah, I think I said that because we just enjoyed the Hasting's store in the "big city" for around us here, Wenatchee.
2021 Kia Soul LX 6-speed stick
This was my first cell phone. We set up several new cell sites with it. I miss the clear talking on the analog phones.
Then we started using these and sold hundreds of them.
That was the last of the Made in America phones. The best selling phone in the Arctic was the bag phone. It would work out 50 miles from the cell site. No longer as analog takes too much bandwidth. They just recently turned down all the analog channels in the Arctic villages. Made a lot of people very unhappy.
You're right on, gagrice. I will have to prove to my wife I'm done moving by just...staying put from now on!
2021 Kia Soul LX 6-speed stick
Wenatchee, nice weather there. More than a few west side lucky retirees who saw 1000% appreciation on the houses they bought in the early 80s have moved out there.
Two places the UAW will never seek to exist
It's also ironic, since there are more autoworkers now at work in Mexico than in all of America. RTW is turning into "right to lose your job at any moment to Mexico".
There is one highly effective autoworkers union in Mexico, at Pueblo I think it is, but most unions in Mexico are pretty much controlled by the PRI.
So some Mexican people are benefitting from American job loss. Once Mexico becomes too expensive, they will move the plants to some other cheap labor source I believe.
You have to remember that RTW is a Federal Law that is almost 70 years old. A large portion of Federal workers get all the benefits of the Union negotiations without paying dues or even joining the Union. When I went to work for Pacific Telephone I was not approached to join the CWA until I had worked there about 4 years. I joined voluntarily when I was approached and given good reason to be part of the group. And they did go to bat for me when I got crossways with a supervisor.
What is fair about being forced to join a Union that only looks out for the workers that have been there a long time? The two tier wage schedule in the UAW is an abomination. And from all I read it will not be done away with in the current negotiations.
In the USA, we could afford about $6000 per year per person with no substantial increase in spending (since we would eliminate about $1 trillion in government assistance).
What a wild idea! Of course, no human being is ever satisfied with the amount of money he gets--"if I only had X dollars more, THEN I'd be happy".
Still, better than no job and living totally on welfare with its indignities. Even Warren Buffett will get the $6K.
Not sure how you calculated that. I get $1.896 Trillion to give 316 million people $6k. And that would not even cover most middle class HC Premiums. My SIL just got hooked up in Washington State and was lucky to get coverage in her area at $5.25 per month. My nephew's company is paying $4000 per month for him, his wife and 5 children. He has to pay $1000 per month. Before ACA his company was paying $1800 per month. Too many people paying little or nothing. Just as a side note the Swiss spend less than half of what we spend per capita on HC. It would be nice if we could cut HC cost in half.
Unions are also much less powerful in Switzerland compared to much of Europe. Huge standard of living, but they bank for monsters and criminals, so there's that.
HC costs won't ever improve with corporations who are people too running the show.
Precisely why I would have let GM and C go normal bankruptcy. The good stuff, if there was any, would have been picked up by entrepreneurs. The bond holders would have gotten their legal due. Much of which was investments by Pension plans. The dirtiest little secret of the illegal auto bankruptcy, the fact it was purely paybacks to the UAW. Now the tax payers will continue paying when the UAW Pension plan goes into default again. With all the pension plans at the time critically underfunded, why did we give the UAW pension plan $27 billion to bail it out? At the time there were 100s of Union pension plans in bad shape many worse than the UAW Pension plan. Still with the massive increase in the Stock market over the last 3 years at least 235 pension plans are still endangered or critical status. That does not include the State and municipal pension plans in critical condition. Bailing out the UAW was a travesty.
I can imagine the UAW’s unspoken message for the White House in June of 2009: “Mr. President, in a normal bankruptcy, we might end up with the same wages as those scabs at Toyota and Volkswagen in the South. The court might order cuts in our pensions. We gave you our money, and you protect us. You can claim you are doing it for the middle class. That story might sell.”
“I saved the auto industry” will be a cornerstone of Obama’s reelection campaign. He featured it in his State of the Union address. Paul Krugman, in his Jobs, Jobs, and Cars, hailed Obama’s auto bailout as “the single most successful policy initiative of recent years.”
http://www.forbes.com/sites/paulroderickgregory/2012/02/06/american-airlines-shows-the-corruption-of-obamas-gm-bailout/
(Kind of surprised that was American's first bankruptcy, and I was thinking UAL had more than one too. There's been so many, it's hard to keep up). (Wiki)
But what about all of those UAW force-fed jobs, people. It was all about continuing ta have a job for one and a job for all. It would have hit the balance-books more spot on ta have just let the Big Three fail, agreed, but, since post Twin Tower America has been such a fear-fed fiasco, the Big Bailout was something that had ta be done for the well-being of those who heavily worry about those types of things. And who doesn't, right?
2021 Kia Soul LX 6-speed stick
And we should ask ourselves who was causing this "fog of economic war" and fear? Bush did a good job as shown on a Michael Moore movie. But who was really scared, because the majority were not scared of letting companies fail.
Yes, fear mongering seems to be an effective tactic with the American public (unfortunate, IMO), but it wasn't that effective on the bailouts; at least not at fooling the majority. Certainly, it proved our elected representatives were spineless.
Regarding the failures, I'd worry more about the supplier ripple effect than the damage to the big boys.