New York City’s City Council has had a problem understanding economics and labor. The labor unions who tend to have a significant impact on the individual members of the City Council insist that new jobs are created with a living wage. The living wage is higher than some jobs are worth.
A job is worth what the market will bear. Skill and experience are the factors an employer will use to hire employees. The lower the skill level and the less experience required determines how many candidates qualify for a job. More candidates will qualify and apply for a position that has the lowest wages. The more skills and the more experience required the fewer candidates will be qualified and the wages will be higher. Skill, experience and availability of candidates will and should have a significant impact on the wages.
The Free Market determines who much a job should pay, not labor bosses attempting to accomplish through campaign contributions to individuals in political positions, what they couldn’t accomplish through union organizing. Private sector union membership has remained a very small movement in this country since the 1970s. Employees do not want to organize under a labor union, so the Unions try to accomplish their needs through those in office who desire the contribution and the door to door help available by associating with organized labor.
Between the politicians and the unions they fail to understand basic economics. They can’t grasp the fact that the Free Market drives the economy not government. Attempting to impose a wage requirement on new business that is set by government, as they do what unions tell them to do, will not have a positive impact on the business.
Government can have a negative impact on business by interfering in the Free Market, the only way they can have a positive impact is to stay out of the way.
The Kingsbridge Armory would have been converted to a Shopping Mall, had Unions not pushed the City Council to insist on artificially creating a wage requirement. At some level the City Council must understand the impact on their blind obedience to unions, but they still feel the need to do as they are instructed.
They are considering making the wage requirements mandatory in some projects but not in others. Is that how a politician thinks? “We know the Free Market works and we know when we interfere it has a negative impact on business, but we really need to obey the unions so let’s all agree to only interfere where it won’t screw things up too bad.”
They expect us to reelect them because they need to do the right thing while they obey the people who spend the money to keep them in office. The right thing has to be done but it can’t prevent me from obeying the unions. Doing the right thing for the right reason is not an option, unless it doesn’t upset anyone.
Aren’t we entitled to leaders who look at the situation ask questions and do research and come up with a solution and then lead us toward that solution. The problems aren’t easy to solve and just like the omelet, some eggs will get broken and some people will be real upset as the problems get solved.
This country has some significant tax and spending issues. We are taxed too much and they spend too much. Fixing these problems will require leaders with courage and common sense. Taxpayers who believe they are entitled to benefits will have to face reality. The solution to our problems will not please many people, but we have to solve the problems, sooner not later.
The courage to look reality in the eye and take decisive action will be needed. The people who can do that are not the people who run for political office. Politicians are puppets. Politicians are cowards. Politicians are not Leaders. We need leaders not politicians.