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. 

Compassionate Conservatives: We recognize your pain.

I can't wait for "Compassionate Conservatism" to make a comeback.

It's going to be great. The idea that Republicans haven't been failing minorities, gays, workers, the poor, and youth--you know, most of America. They've just been messaging it the wrong way.

It needs repackaged. What the GOP really needs to do is reintroduce the ideologies and policies that have left so many people behind over the last decade. But, friendlier. Explain it in simpler terms.

Show Americans that, despite all evidence to the contrary, low tax rates for the rich really have benefitted minorities. Gutting regulations really has resulted in safer, cleaner air. Global warming is just a myth. The BP Gulf oil spill wasn't a perfect example of companies ignoring regulations, safety, and warnings to maximize profits. It was really a risky business opportunity that didn't pan out.

The lives of the workers that survived were greatly improved. The economic hit on the Gulf coast, the untold amount of dead marine life, and the workers who were killed were just unfortunate situations.

Can't make an omelette without breaking a few eggs.

Keeping wages low for Americans really is a way to ensure more opportunities for employment. In fact, when we gut minimum wage requirements, there will be even more opportunities.

And don't worry about food stamps and Medicaid. The programs you rely on because of the opportunities those wages create. They're really just holding you back.

Plus, the free market that's been denying you care for preexisting conditions (such as pregnancy, doanchaknow) will adjust. As long as there's profit to be had.

All in all, you'll be better off with Compassionate Conservatism at the helm. We hear your problems. And we all have friends that have been inconvenienced by your pain.

We're from the free market and we'll continue to help. (For a small fee.)