Labor Pains

The Washington Post published a piece contrasting stagnant wages against rising inflation and America’s current bout of economic growth. My favorite takeaway is here:

The lack of wage growth has befuddled economists and policymakers, who hoped that after job openings hit record highs and the unemployment rate dipped to the lowest level in decades, employers would give beefy raises to attract and retain workers. But so far, gains have been slight, and small recent increases are being eclipsed by rising prices.

I’m not sure why economists are confused by this, really. 

The recession taught businesses that they didn’t need to have a full staff to run a business. People would still use the business because they had little or no alternative. (IE, why Walmart and Target have no cash registers open whenever you go there.)

It also taught businesses that raising wages is counterproductive because they can get by with fewer people in the first place. Businesses aren’t going to raise wages when all wages are low because what are workers going to to, suddenly become skilled? No, they’re going to take the jobs offered them. 

This is common sense. 

America’s service economy is going to mostly be made up of jobs that anyone can do. And, when anyone can do them, there’s no reason to try to attract workers. There’s no where else for them to go. 

Wal Mart and the Paupers

Today the Nation Labor Relations Board sided with workers against Wal Mart employees trying to take a stand against Wal Mart's anti-labor practices. 

In its statement, the NLRB explained: “During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests on November 22, 2012.” It also ruled that “Walmart stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests.”
http://www.thenation.com/article/177254/labor-board-sides-workers-walmart-cant-silence-employees-any-longer

This is a major victory for everyone. Wal Mart workers are pushed onto Medicaid and Food Stamps because if the chains abysmal wages. Taxpayers are literally footing the bill for Wal Mart's low prices.

If we want a market based economy, it's time we actually stood up and held the free marketeers accountable for their actions. 

Otherwise, allow the government to subsidize private employees. Of course, that would require that we stop slashing spending to SNAP and TANF benefits.