Unions

The democratic economic plan is today the same as it was yesterday and the day before. It is to redistribute income and wealth. They will take money from those who have a lot and give it to those who have less. In the process they will decide who gets what, when and how. The objective is to offer benefits in the hope of getting votes but in the process, they gain the power of the purse. This then leads to control of policy which means power over the people. Both parties use this but the democrats have perfected the art. Republicans besides offering goodies will strive to ease regulations on business to create jobs which leads to economic growth which leads to expanding the opportunities for innovation. It is the private sector that has the incentive to come up with new ideas and these lead to new industries. The public sector can also create jobs through innovation in NASA and other areas of research and development like the CDC. These areas provide the ground work for private groups like Space X and pharma companies to grow. The democratic party now has an opportunity to right one of the most serious wrongs in the country and that is the large discrepancy called the income and wealth gap. As the country brings home the manufacturing jobs it lost over the past 50 years the door is open for unions to gain more power. Most economist say that if wages go up then prices will follow but that doesn’t take into account the increased buying power of the consumers whose wages increased. When Henry Ford started paying $5 per day it allowed his workers to buy the cars they were producing. This led to increased consumption and the country profited. When ordinary people earn more money, they spend more money and since the economy is based on consumer spending the economy will grow producing more jobs. Add to that the fact that new facilities will be more efficient further adding to productivity and everyone wins. The government can broaden collective bargaining rights and simplify the unionization process. Under the present system people are not paid based on their ability to produce but rather on their ability to bargain. It is ridiculous to think that the CEO is more productive than a thousand workers yet that is how they are paid. Unions will provide more bargaining power to the workers. In 1950 35% of workers were unionized and today that figure is only 6%.