Posted by JRSutton on April 18, 2014 at 06:39:12 from (71.174.108.245):
In Reply to: Small business posted by showcrop on April 18, 2014 at 05:17:57:
This is an unwinnable argument, as much as I wish that weren't true.
American consumers will always shop for the lowest possible price.
Greed is what makes capitalism work. Greed works on both ends. Greedy consumers want to save every penny possible. And greedy business owners want to make every possible penny possible.
It's like water following the path of least resistance. It's a law of nature. And it's good.
The problem is, capitalism needs balance. That's why we have anti-monopoly laws and practices. We can't let one company get so large that the natural attributes of supply and demand get lost.
The dark secret nobody likes to talk about (yet) is that unionized employees became a monopoly themselves.
They tipped the scales of balance too far into the favor of the worker.
Sure unionization was great when the crashed economy tipped the scales into corporate favor way back in the 20's - they brought the balance back. But once the economy balanced, they should have gone away.
Instead they stayed in place getting stronger and stronger. Tipping the balance to one side.
Try walking through Detroit some time. Took a loooot of money to overpay all those workers, and what you see is the result.
Here in the northeast you can walk through any mill town, find the mill(s) that formed the town and every single one of them is collapsing, producing nothing.
I go into Worcester, MA near me and see all the old brick factories - all crumbling and empty. We couldn't even BUILD buildings like that these days, let alone make them productive.
At some point America has to admit it's dead, and take a cold hard look at what killed us.
We're still ignoring the obvious - despite all the obvious signs.
US Steel - down the road from me. Used to be a huge building with hundreds of cars in the parking lot. Now it's a Walmart. From American steel production to a big box store selling Chinese goods.
What changed? Unskilled labor thought they deserved what everybody else had. Unions forced businesses to give it to them.
Was great for a while - but you can only overpay people for so long. In order for capitalism to work, it has to reward those that try to get ahead - and PUNISH those who try to take more than they're worth.
I've worked in union shops - I've seen what it does to people. When tenure becomes more valuable than productivity - that's the end of a business. It's the wrong balance.
There are of course other factors at play in our demise - but I'd have to say the tipping of the scales too far to the worker was the biggest.
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