Mercury Rising 鳯女

Politics, life, and other things that matter

Want To Improve Job Prospects? Make It Less Profitable For Bosses To Run Sweatshops

Posted by Phoenix Woman on August 1, 2010

Here’s a simple quiz: Why do Republicans love the current immigration situation? Because they and their business patrons can run sweatshops and get away with it.

Think about it: If you’re an unscrupulous employer, and can get away with paying your workers slave wages — and fire them at will, knowing that you won’t suffer any consequences therefor, because your workers didn’t get a green card before they entered the US — of course you love the current immigration situation.

But if you’re a normal human with a conscience, this is horrible.

That’s why the fine folks in the SEIU locals (like SEIU 26) are doing such signally good work.

One Response to “Want To Improve Job Prospects? Make It Less Profitable For Bosses To Run Sweatshops”

  1. Charles II said

    I think they do it more for the sense of power it gives them than for the money. At the same time that American wages have fallen, American business has been doing badly.

    This is not just because of purchasing power issues. The fact that the stock market hasn’t gone anywhere for 10 years is an indicator of earnings. This graph is kind of complicated to understand, but here goes: From about 1965 to 1990, corporate earnings were pretty much stagnant at ca $35, inflation-adjusted. So the rise in the stock market that occurred under Reagan was really a recovery from depressed depths–using borrowed money. Under Clinton, earnings soared from ca. 35 (ignoring the recessionary trough) to an over-optimistic peak ca $65. This represented both an earnings rise and also asset price inflation, as the rise in earnings made investors think it was a permanent feature. Under Dubya, earning increased from, say $50 (ignoring the recessionary trough)to $90, but only through debt and phony bookkeeping, which will plague the market for years to come.

    So, Clinton saw a sustainable rise in earnings of ca. 40% ($35 to $50), while the net effect of Bush may be to permanently lower corporate earnings.

    I think this is what happens at business large and small. They hire workers who are cheaper… but who also are less willing and able (due to language barriers) to donate their creativity. They do what the boss commands, but no more. And, since it turns out that many good ideas potentially come from below, the top-down command system undermines itself. Businesses that hire people in order to pay less and exert control end up destroying themselves.

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