March 19, 2024
Being fed up with most everything that has made America the very special place that it is, those on the left want to change how our system of employment works. We have fairly recently seen efforts to replace people getting promotions and raises due to the level of their performance with a focus on DEI (diversity, equity and inclusion). With DEI, getting a particular job or a raise is based upon who they are, their race, gender, etc., not their level of skills and knowledge.
One aspect of this desire for change was posted in a meme on Facebook that said: “Every single job should pay a living wage. If the work matters enough to hire someone to do it, that worker should be able to afford a safe, comfy home; fresh, nutritious food; and fun vacation sometimes, and enough left to save. Yes, every single job, including yours.”
First, there is the question what a living wage is, and who gets to decide that? A living wage in some cities and areas of the country is very different from a living wage in towns and cities in other places.
This idea ignores the different levels and requirements of jobs. Some have high demands and greater needs, and higher pay. Others have low requirements, with lower pay. Then there is the background and level of performance of the worker. Under this theory, a high school or college student working a very basic job should earn a wage high enough to satisfy the details of the Facebook meme. Or someone in an apprenticeship learning the basics of a new job should earn a living wage from day one.
The job/pay situation is complicated.
Support for reducing the standard 40-hour, five-day workweek to a 32-hour, four-day workweek has recently gained momentum. U.S. Sen. Bernie Sanders, I-VT, has introduced a bill to do just that. Under his bill, people will work a four-day week, but be paid for what they would earn working a five-day week.
The 40-hour workweek has been the standard for some 80 years, being brought into effect by the Fair Labor Standards Act in 1940. It has worked very well, for the most part. But, Sanders says that due to advances in automation and other aspects of production, companies can afford to give employees more time off, but keep their pay and benefits the same.
He told a Senate Committee on Health, Education, Labor and Pensions that the economic gains that have resulted from automation and other factors have benefitted CEOs, while workers have still made the same amount of money.
“The question that we are asking today is a pretty simple question,” Sanders said. “Do we continue the trend that technology only benefits the people on top, or do we demand that these transformational changes benefit working people? And, one of these benefits must be a lower workweek, 32-hour workweek. This is not a radical idea.”
However, if labor and machine operation are reduced by 20 hours a week, productivity will drop by 20 percent. Employers will have the same labor costs, but will have fewer goods and services to sell. Businesses will lose income and profit.
The employer will then have to raise prices to compensate for the lost productivity, or hire more workers to take up the slack. More workers may make up the loss of productivity, but that will cause an increase in labor costs.
Louisiana Republican Sen. Bill Cassidy argued that the proposal is essentially a pay increase forced upon businesses. And, he predicted that the 32-hour workweek would "destroy some employers" who would be unable to adjust to the new system.
Both of these concepts — first, that every worker should get a living wage, regardless of job demands, ability and experience; and, second, pay workers the same for working 32 hours per week as they got for 40 hours per week — are typical of liberal/socialist “reasoning.” They represent what the great economist and author Thomas Sowell so rightly termed “stage-one thinking.”
Stage-one thinking is when an idea pops up that delights many, and they react with “Wow! What a great idea. Let’s do it!” They fail to look beyond the attractiveness of that “great idea” to see what might happen down the road. After it has been in effect for a while, the results are most often much worse than expected.
So often, liberal/socialist ideas target and negatively affect businesses, because the proponents of these ideas think businesses are just selfish entities that take advantage of their workers. But businesses provide jobs and make things we want and need. And, being able to work and earn money to live on is a good thing. Without businesses that can operate relatively freely, where would we get the things we need and want?
It is also a good thing that in America anyone can pursue any work area they choose, and so long as they can learn the trade or profession and perform it at a suitable level, they will be happy and can live a decent life.
Recklessly altering this proven system is a dangerous move that will likely produce negative effects on the country, its people and its businesses.
No comments:
Post a Comment