Killing The Goose

Discussion in 'Politics' started by Stephanie, Nov 19, 2012.

  1. Stephanie
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    Stephanie Diamond Member Supporting Member

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    Thomas Sowell
    Killing The Goose

    SNIP:
    Killing the goose that lays the golden egg is one of those old fairy tales for children which has a heavy message that a lot of adults should listen to. The labor unions which have driven the makers of Twinkies into bankruptcy, potentially destroying 18,500 jobs, could have learned a lot from that old children's fairy tale.

    Many people think of labor unions as organizations to benefit workers, and think of employers who are opposed to unions as just people who don't want to pay their employees more money. But some employers have made it a point to pay their employees more than the union wages, just to keep them from joining a union.

    Why would they do that, if it is just a question of not wanting to pay union wages? The Twinkies bankruptcy is a classic example of costs created by labor unions that are not confined to paychecks.

    The work rules imposed in union contracts required the company that makes Twinkies, which also makes Wonder Bread, to deliver these two products to stores in separate trucks. Moreover, truck drivers were not allowed to load either of these products into their trucks. And the people who did load Twinkies into trucks were not allowed to load Wonder Bread, and vice versa.

    All of this was obviously intended to create more jobs for the unions' members. But the needless additional costs that these make-work rules created ended up driving the company into bankruptcy, which can cost 18,500 jobs. The union is killing the goose that laid the golden egg.

    Not only are there reasons for employers to pay their workers enough to keep them from joining unions, there are reasons why workers in the private sector have increasingly voted against joining unions. They have seen unions driving jobs away to non-union competitors at home or driving them overseas, whether with costly work rules or in other ways.

    The old-time legendary labor leader John L. Lewis called so many strikes in the coal mines that many people switched to using oil instead, because they couldn't depend on coal deliveries. A professor of labor economics at the University of Chicago called John L. Lewis "the world's greatest oil salesman."

    There is no question that Lewis' United Mine Workers Union raised the pay and other benefits for coal miners. But the higher costs of producing coal not only led many consumers to switch to oil, these costs also led coal companies to substitute machinery for labor, reducing the number of miners.

    By the 1960s, many coal-mining towns were almost ghost towns. But few people connected the dots back to the glory years of John L. Lewis. The United Mine Workers Union did not kill the goose that laid the golden eggs, but it created a situation where fewer of those golden eggs reached the miners.

    It was much the same story in the automobile industry and the steel industry, where large pensions and costly work rules drove up the prices of finished products and drove down the number of jobs. There is a reason why there was a major decline in the proportion of private sector employees who joined unions. It was not just the number of union workers who ended up losing their jobs. Other workers saw the handwriting on the wall and refused to join unions.

    There is also a reason why labor unions are flourishing among people who work for government. No matter how much these public sector unions drive up costs, government agencies do not go out of business. They simply go back to the taxpayers for more money.

    all of it here
    http://www.creators.com/print/conservative/thomas-sowell/killing-the-goose.html
     
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  2. eflatminor
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    eflatminor Classical Liberal

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    Hard to believe that business model didn't work out...:doubt:

    Yep.
     
  3. jwoodie
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    jwoodie Gold Member Supporting Member

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    An elementary economics lesson that completely escapes the majority of voters.
     
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  4. Cowman
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    Cowman Cows Have Liberal Minds

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    The workers, the little guys, are the geese that lay the golden eggs for the corporations.
     
  5. Skull Pilot
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    Skull Pilot Platinum Member

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    And the businesses provide warm dry place for the egg layers and pay them a salary to boot.

    Here's a suggestion if you don't want a business to take your eggs then you can buy or lease some land, get all the permits and do all the regulatory bullshit then build your own hen house with your own money, heat it, cool it, pay the electric bills and taxes out of your own fucking pocket and then you can keep your own eggs.
     
    Last edited: Nov 19, 2012
  6. Cowman
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    Cowman Cows Have Liberal Minds

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    Well sorry but it looks like the greedy ass business got fucked over for messing with the geese.
     
  7. Skull Pilot
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    Skull Pilot Platinum Member

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    And now the geese have no place to lay their eggs and no salary while the business owners will sell off the assets of the company and retire.

    Seems to me the geese fucked themselves.
     
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  8. Staidhup
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    Staidhup Gold Member Supporting Member

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    Here we go again, another nut case that believes business's exist to employ workers and not produce a profit. Good luck with that concept, unless of course you work for GM.
     
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  9. Cowman
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    Cowman Cows Have Liberal Minds

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    So you look at this as a net positive then. I mean, you're obviously on the side of the business owners who are retiring and living comfortably.

    And you already stated essentially that you don't give a shit about the workers... so those unemployed numbers shouldn't bother you. After all, they fucked themselves, right?


    http://globalgrind.com/news/hostess-bakers-union-mediation-prevent-shut-down-twinkie-details


    The union workers are going to get a lot of what they want, and a lot less shaft that they were being given. That's my hope certainly.
     
    Last edited: Nov 19, 2012
  10. HUGGY
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    HUGGY I Post Because I Care Supporting Member

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    Steffuny... you are a stooge. Did you bother to do any independant research or thinking about this matter before blessing USMB with another of your cut and paste wonders?

    Companies survive on customers and sales you nitwit. Hostess products are taking a grand swan dive in the market. You think the executives at Hostess are giving themselves 300% raises because of the grand success of this company?

    The unions have already given back to the company twice in the last two years.

    Hostess is dead. You are stupid. Two facts you need to be aware of.
     

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