Capitalism, Common Sense Will Solve Global Crisis

After World War II labor unions represented as much as 40% of the private US labor force. Today that number is 7%.

So what happened?

Well, if you go on strike or otherwise harm or destroy your employer as unions have done repeatedly in thousands of cases, you are going to become unpopular and lose your power. Because many union members then end up unemployed.

Today private-sector workers all over America are openly and willingly voting against unionization. Because they understand what unions have done. Even union-strong Michigan recently became a “right to work” state where union power is restrained.

Meanwhile non-union states are generally prospering while union-strong states are generally suffering. Because labor unions are incompatible with economic growth.

The unions love to say that they created the American middle class in the period after World War II. But this is the opposite of the truth.

The middle class was created by the greatest economic boom in history. Then the unions actually killed the boom. Millions of jobs and entire companies and industries were destroyed by union belligerence, strikes and outrageous wage demands. Hostess, the struggling baking giant that made Twinkies and Wonder Bread, was finally killed off by a strike in late 2012. Number of jobs lost? 18,500

In another recent case the remnants of General Motors and Chrysler needed to be bailed out in 2009 because of their unsustainable union labor costs. Assembly line workers at GM and Chrysler at the time of the bailout were making $73 an hour(!) in wages, benefits and pensions.

These costs are the reason that Ford, GM and Chrysler had moved many operations out of the US in the first place. And why other parts of the auto industry shut down even in the good times like American Motors, Plymouth and Oldsmobile.

Meanwhile ‘transplant’ car companies from overseas like Toyota, Mercedes, Hyundai and BMW today are thriving in the non-union American South and their workers are voting freely and willingly against unionization. Because they have seen what the unions do.

The entire American steel industry was ruined in the 1970s by intransigent unions that caused instability, unreliability and high costs in the US, driving buyers to foreign sources.

The US freight railroads were undermined for decades by unsustainable union wage demands and crazy work rules. Only the deregulating Staggers Act of 1980 saved the railroads. Today they are thriving with the unions restrained. This is obviously positive for everyone including the workers themselves, the railroads, and all of the American businesses that rely on the railroads.

Here is another example about the negative effects of labor unions from Associated Press:

PORTLAND, Ore. (AP) — A Pacific Northwest grain terminal owner imposed a lockout on longshoremen Wednesday after saying an "independent former FBI investigator" determined a union leader sabotaged company equipment at the height of contentious labor problems in December (2012).

This type of sabotage is not an isolated incident. This has been going on for 100 years – unions disrupting businesses, threatening workers and employers, destroying property and refusing to work.

This cannot possibly contribute to economic growth. Only productive, willing workers can help the nation to prosper.

Unions behave like this because they are controlled by radical socialists who want to suck the wealth out of capitalism and destroy it while enriching union bosses and their sponsors in the Democrat party. But then when unionization destroys employers the workers are thrown overboard.

About unionized French workers, Reuters reported this:

(Reuters) – The CEO of a U.S. tire maker has delivered a crushing summary of how some outsiders view France's work ethic in a letter saying he would have to be stupid to take over a factory whose (unionized) staff only put in three hours work a day.

Titan International's Maurice Taylor, nicknamed "The Grizz" for his negotiating style, told the left-wing French industry minister in a letter published by media on Wednesday that he had no interest in rescuing a plant set for closure.

"The French workforce gets paid high wages but works only three hours. They get one hour for breaks and lunch, talk for three and work for three," Taylor wrote on February 8 in the letter in English to the minister, Arnaud Montebourg.

Three hours a day? You might think that this is anti-union propaganda until you see how the Euros work.

Notice that the workday he is referring to is only 7 hours in the first place, which is standard in much of Europe. This is why Europe has been in a high-unemployment slump for decades – because its workers are 12% less productive (officially work 12% fewer hours) than Americans just for starters.

Here is a Reuters story about Greece:

(Reuters) – Greek workers walk off the job on Wednesday in a nationwide anti-austerity strike that will disrupt transport, shut public schools and tax offices and leave hospitals working with emergency staff.

Greece's two biggest labor unions plan to bring much of the near-bankrupt country to a standstill during a 24-hour strike over the cuts, which they say only deepen the plight of a people struggling to get through the country's worst peacetime downturn.

Strikes, sabotage and on-the-job sloth cannot help a nation or a people to prosper or to recover from an economic crisis. Any rational person knows this. They make the crisis worse just as American unions took 1950s prosperity and destroyed it. Hundreds of towns and cities in the industrial belt from Maine to Michigan were killed by unions in the postwar period.

But somehow unions have portrayed themselves as a “friend of the working man”.

This is false. Unions are out for union power and for the enrichment of union bosses and the Democrat party. The workers are just pawns.

Yet union propaganda says that, under capitalism, that the workers are just pawns and that capitalism is only about enriching the boss.

But the glaring paradox in the union propaganda is that capitalism creates wealth and unions do not. And so capitalism is a positive force by creating wealth in the first place while labor unions are a negative force by A) never creating wealth and then B) repeatedly destroying wealth. 

Here is more from the story about the French tire workers:

"Titan is going to buy a Chinese tire company or an Indian one, pay less than one Euro per hour wage and ship all the tires France needs," (Taylor) said.

Yes, indeed. Because there is always somebody somewhere who is always willing to work cheaper, particularly in today’s global economy. That is why so many businesses in America are moving to non-union states or overseas.

Workers should always be thankful for the jobs that they have just like most American workers were happy with the economy in the 1950s. Except the unions were not. And American workers have paid a steep price.

Look at this about Greece:

Most business and public sector activity is expected to come to a halt during Wednesday's strike, with school teachers, train and bus employees and bankers among various groups joining the walkout.

Hospitals will have only emergency staff and ships will stay in port as seaworkers plan to defy government orders to return to work.

How is a nation supposed to come out of a depression like Greece’s by going on strike?

It cannot. It is common sense. These strikes are, in essence, starving a sick patient. The Greeks should be working much harder to give the economy the tools to recover by creating new wealth.

But they do not think that way in a place like Greece. Because the unions have massive power there and, with media cooperation, tell workers that they are working too hard, being exploited, that capitalism is evil, that ‘the government’ can save them because it has endless amounts of money etc.

Nonsense. This is just propaganda that destroys entire nations as it has destroyed Greece, Spain, Portugal, Italy and many other socialistic countries.

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