Labor Day

The labor leaders blame the problems on corporate greed.
Management blames the problems on the high costs of labor -
particularly health and retirement benefits. At the same time,
Japan was producing higher quality cars and trucks because of
our own Dr. Deming. American MBA schools ignored his
statistical quality control ideas.
Labor wants to keep the high wages and have taxpayers
cover the health and retirement benefits. What they don't
tell you is that there are non-union, American auto workers
who are paid well but much less than UAW workers when
the total cost of labor is considered. The Federal
government's solution to failed business is for the taxpayer
to buy the failed business.
In 1970, Future Shock, warned that the industrial age was
maturing and that automation would free many industrial
- as it had for agricultural - workers to be service and
information workers. Most industrial workers ignored the
warning because they would have to take a serious cut in
pay to retrain and take the jobs which the economy was
creating. The UAW was paying 95% of a worker's pay to UAW
workers whenever they were laid off. Even with the deep
pockets of the taxpayers, the UAW can not afford to do that.
The taxpayers were supposed to pick up the tab for UAW
workers' health and retirement benefits, but most are not
willing to do that.The unemployment rate is now 9.7%
We are deeply in debt and subject to the whims of our
creditors like China and Japan. Our graduates of
government schools are ill-prepared to compete in the
global economy. Obama will tax small business with
both hidden taxes like the VAT and a 5.4% surcharge
on any business making more than $1M. Cap and trade will
increase the cost of doing business. Small business will
have to lay off workers. We will be in recession
or slow growth mode until capitalism returns.
For the solution, see my heisrisen2009 blog.