Representing One Side of the Labor Market

November 24, 2015

Mr. Tony Iriti – Economic Development Director for the Hancock County Alliance –  made a request for local government’s help to offset a local “Worker Shortage”.   I found this interesting on many levels.

I understand many in business feel that if government would only get out of way the economy would thrive.  In this case at least, Mr. Iriti is asking for a government solution and government funds to resolve a market problem.

This brings me to the function of a market.  Mr. Iriti seems to be representing only one side on the market.  Mr. Iriti fails to understand or acknowledge that when it is harder for companies to find workers that means on the other side of the equation workers are finding jobs more easily.

Whenever a business makes the statement that it is unable to find workers, in my mind , I always add the phrase “at the wages, benefits and worker conditions that I am providing.”

As a labor market  tightens, workers have more choice where to sell their labor. If the market forces business to raise wages and benefits to attract a workforce than this is a good thing.  Maybe the market is finally addressing the gross income inequality that this nation is facing.

As wages for low income workers rise they will become less dependent on government programs; like food stamps.  That is good for the whole community.

Our ultimate goal in managing our local economy should not be growth; it should be promoting broad-base middle-class prosperity.

If a business is having issues finding workers then they need to look at what they are offering in the market place.  To business I say; get out there and compete.  Have faith in the market, let the market work.


It is the Labor Market Stupid

January 5, 2014

Why Democrats will not address the real cause of income inequality.

I am hopeful that the public and our political class are coming to terms with income inequality in America and the harm it is doing to our economy and society.  At the same time, I am disappointed in the response by my party, the Democratic Party, to the overreaching economic issues of our time.

While raising the minimum wage would do more good than harm, simply raising the minimum wage would help too few people, too little, and could create inequities of its own.  More importantly, the minimum wage is a placebo, a distraction from the real labor market forces at work that is bringing the idea of America as a broad-based middle class national, to a close.

Our government over the last 30 years has pursued policies by way of trade agreements, cheap foreign labor embedded in the goods imported to the US and an immigration policy of non-enforcement to increase the supply of labor in the United States.  Globalization has been an abject failure for the American middle class.  When President Clinton supported NAFTA he sold out to a corporate establishment and took the Democratic Party’s labor market policy 180 degrees in the wrong direction.

Increasing the supply of labor into the US market has had a predictable, and for some, the desired result.  While corporate profits are at record highs the value of labor in the market has been diminished to the point where a full-time job no longer provides a place in the middle class.

For a party that holds the moral high ground on so many important issues, it sickens me to see Democrats pandering to foreign nationals who have intentionally broken our immigration law in order to gain an electoral advantage, and to a corporate establishment that is willing to put short-term profits above the economic interest of their employees and their own customers.

It is my wish that the Democratic Party will set aside the interest of foreign nationals and big campaign contributors and return to their core values of supporting a strong and prosperous middle-class.

Please like the Facebook Page: Democrats Against Amnesty   https://www.facebook.com/pages/Democrats-Against-Amnesty/152334804799707?ref=br_tf


Farm Labor Organizer Says Immigration Reform Will Mean More Competition for Jobs

February 7, 2013

On channel 13abc’s Sunday morning public affairs show; Conklin & Company, Baldemar Velasquez, President of the Farm Labor Organizing Committee stated that immigration reform would lead to more completion for jobs in the labor market as newly legalized agricultural workers seek out better year-round jobs.  This would leave a “void” of agricultural workers that would require a guest worker program to fill.

Mr. Velasquez said “So that people who get legalized in agriculture are going to find their ways in to more permanent employment in order to support their families 12 months of the year”

The full interview with Mr. Velasquez can be seen on the 13abc web site: http://www.13abc.com/story/16366357/conklin-and-company


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