Public schools teach equality of outcome?
September 24, 2009
Last night I watched a CNBC special on Walmart. Much of the report centered on the frustration of workers who want to be paid more. Some Walmart employees have no problem working at the store on one day and on the next picketing the same store clamoring for “equal pay for equal work!“ In his campaign, Obama specifically called out Walmart as an organization that needs to start following the equal pay for equal work concept. This morning one of my Facebook friends sent me a link to a YouTube video showing children at a public school learning a song about Obama that featured lines like, “Obama says we must be fair today, equal work means equal pay.“ Both got me thinking. What are all of these people talking about?
The Equal Pay Act of 1963 requires that jobs that require the same skill, effort and responsibility, under the same conditions at the same establishment should offer the same level of pay. The bill was designed to minimize the effects of discrimination against minorities. Of course Obama and the folks yelling at customers entering Walmart are NOT suggesting Walmart is violating the Equal Pay Act, instead they are suggesting that the definition of ‘equal pay for equal work’ should be expanded. Under this new view of the the ‘equal pay for equal work’ everyone should be compensated similarly.
For example, some on the left suggest that TRUE equality can only be accomplished when we are equally compensated. Feminist suggest that mothers should be given government funded grants to cover the cost of childcare which “she could use for daycare, or alternatively, give to a relative, say a grandparent, who looked after her child or children, or keep herself and take the option of avoiding work outside the home.“ The idea is very simple, all people, regardless of gender should be compensated similarly for their effort. This is a scary idea.
The Walmart employees yelling at customers as they enter their stores want to be paid more money, plain and simple. They don’t think it is fair that a sales clerk at Tom Thumb earns, on average, two to three dollars more per hour than a Walmart sales clerk. They want Walmart to pony up – match the wages of other companies with different business models. Of course the food I buy at Tom Thumb is more expensive than what I could buy at Walmart, but I prefer the service I get at Tom Thumb and I am willing to pay more. If the Walmart employees were truly interested in equality, they would look at their peers in the retail space. Target, about a third of the size of Walmart in the US, pays their employees almost EXACTLY the same hourly rate. The real argument is that some Walmart employees just want to make more money.
When I saw the video of the public school children singing about equal pay for equal work I realized that the debate has changed. Obama wants to remake America for the better – a new system of capital creation and distribution. We aren’t talking about the 1960’s definition of equality, instead we are reaching farther back. In college I learned about something called the Labor Theory of Value (LTV) where the value of a product is related to the labor needed to produce it. Obama believes in LTV and agrees with this sentiment: “The worker becomes all the poorer the more wealth he produces, the more his production increases in power and range. The worker becomes an ever cheaper commodity the more commodities he creates. With the increasing value of the world of things proceeds in direct proportion to the devaluation of the world of men. Labor produces not only commodities; it produces itself and the worker as a commodity — and does so in the proportion in which it produces commodities generally.”
The last two hundred years has been a testament to how wrong the LTV folks were. Value is NOT the result of a products ‘inputs’ i.e. labor, but rather subjective judgments of individuals. Have you ever held a Louis Vitton handbag up next to a no-name brand handbag? They have roughly the same materials, same quality and same labor costs – but look at the price tag. The value of the handbag is equal to the subjective judgment of the buyer. Of course this is completely irrelevant to the subject at hand.
In a free society we are able to enter into contracts with each other on the assumption they will benefit us. If we allow the government to interfere with our contracts with one another our ability to improve our lot in life – our standard of living, our wealth – we allow the government to usurp control over our lives. The Constitution prohibits laws that infringe contracts between any two parties including contracts between employers and employees. The 9th Amendment states that rights not enumerated in the Constitution are retained by the people and this includes the ‘freedom of contract’. Article one section ten prohibits the states from “impairing the obligation of contracts”. The Supreme Court, under pressure from Roosevelt, in 1937 cut against this idea and allowed federally mandated minimum-wage laws.
Most of us have accepted minimum-wage laws and the fact that they infringe on our right to enter into contracts with one another. But the problem with this acceptance is that it has opened up the door for more damaging programs. By accepting that our leaders can intercede on behalf of one or more parties of a private contract we opened the door for Obama to promote the concept of ‘equality of outcome’. Obama, with help from Congress, could simply pass a law requiring that all bankers should make $100,000 per year, all lawyers should make $150,000 per year, all auto workers should make $50,000 per year and so on. The Constitution matters – we shouldn’t allow the government to intercede in matters that are none of its business – when we do we eventually sacrifice our freedoms.
If you work for Walmart and you don’t feel you are fairly compensated, don’t picket the company or ask the government to intercede on your behalf – instead find another job or start your own company. The same system that seems heartless to some, is the same system that allows ANYONE to become anything they set out to become or accomplish (see Obama). There is a price to be paid for our freedoms – for some it means they will give their lives, for others it means they will have to work for low wages – but I would argue that freedom is worth the price.
On second thought, fire all the Democrats!
September 23, 2009
Earlier today I reported that, “Democrats and Republicans Agree!“ Democratic Representative Brian Baird sponsored a bill that would require Congress to actually read the legislation they voted on. Democratic leader Pelosi and other Democrats struck down the legislation in a partisan vote this afternoon. The bill would have required Congress to release legislation 72 hours before voting on it – i.e. so that Congress and the public could read and comment on the legislation. I think 72 hours is a pretty tight window, but Democrats voted the measure down despite sponsorship by one of their own – Brian Baird of Oregon. I just don’t understand how they can tell the American people they don’t need to read the legislation before they vote on it. Really, I don’t understand. Democrats suck. Please take a moment to contact your representative and express your displeasure – unless you agree with this idea…
Pelosi fears ACORN violence!
September 17, 2009
Pelosi chockes up against political violence against ACORN. The recent vote in the Senate and House to cut off funding to ACORN is a blow to Pelosi and she is worried that if the ‘rhetoric’ against them does not end there will be violence. She seemed genuinely scared. Watch for yourself on Real Clear.
Pelosi on Rep. Wilson and Rep. Rangel
September 11, 2009
Today Pelosi agreed pass a ‘resolution of disapproval’ to punish Rep. Wilson for calling Obama a liar earlier this week. Two weeks ago Pelosi indicated she would not punish Rep. Rangel for lying on his tax returns or on House financial disclosure forms EVEN if the House Ethics Committee found him guilty. Can you say double standard?
I guess it is better to lie than to call someone a liar (even if they are right).
Spector: We aren’t confused or misinformed!
August 24, 2009
Spector got on the news shows this morning and explained that the ONLY reason more than half of American’s oppose ObamaCare is because we are being mislead. He explained that there was no way we could even know what was in the bill because there isn’t a bill, yet. It was a surreal argument for the former Republican to make. He suggested we should simply wait until the Senate got back in session and the final bill was completed. Really? Are we that stupid?
The last couple of times Congress passed legislation this important they didn’t finish writing the bill until AFTER they passed it. We finally have a draft version of the bill from the House. Americans know what it says and we don’t like it. I don’t know much about the ‘death panels’ but I assume they are a red herring – something designed to misdirect us from the real issues. Pelosi and Obama want more and more government control of our private lives. This is what we are concerned about – not death panels.
Obama to auto dealers – hey buddy, can you spare a couple of billion?
August 19, 2009
Clearly, Obama and the vast majority of his team have never been responsible for the operation and management of a private company. Take for example the cash-for-clunkers program. One day on a Tuesday our fearless leaders announce an idea (not a plan) to give Americans $4500 for each ‘clunker’ they exchange for a new qualifying car. Sounds like a great idea? Not so fast.
Turns out our economy has been slowly improving (Obama’s words), but in the midst of this modest recovery we implement a plan that will accelerate car purchases by bribing Americans. This is bad for a number of reasons including:
- reduced inventories, creating shortages of new cars (increasing cost for buyers)
- shortages of new GM cars pushed buyers to foreign models (reducing value GM – owned by the taxpayers)
- used cars typically available on the secondary market are being destroyed, increasing the cost of used cars (increasing cost for buyers)
- GM, Chrysler and Ford have had to increase production, but once the program has ended they will, again, be forced to cut production (increasing cost for buyers)
- The spike in sales will result in a slump sometime early next year – likely spooking the market (perhaps causing credit markets to tighten again)
The bigger problem is for the thousands of small business owners (i.e. car dealers) who operate on very small margins. The dealer nets around $1,300 gross profit per new car. This is just enough to cover the rent, electricity, insurance and sales commission. In the past the dealer would then turn around and sell the used car for a much higher gross profit – closer to $4,000 per used car (where the real profit in the transaction was). In the cash for clunkers program the used cars are destroyed. Ouch, no profit. This means the dealer has to make a profit somewhere – and that place is usually in the F&I department selling stuff like GAP, Dent&Ding, Rim insurance and VSCs. So what is the big deal? The big deal is that under the cash for clunkers program the dealer (a small business guy operating on thin margins) is forced to loan the federal government $4,500 – $4,500 he doesn’t have (especially since he can’t resell the trade).
This wouldn’t be a huge problem for most dealers if the federal government would actually send them the money. Guess what. They aren’t. The administration is telling dealers to calm down – they will get their money eventually. Eventually? Before or after they go bankrupt? Cash flow is king in business – small and large. With credit tight and margins that are slim it is the difference between life and death for a business.
How many of the ‘clunkers’ have the dealers been reimbursed for? According to the Automobile Dealers Association less than 2% of the cars turned in have been paid for by the federal government. Auto dealers have in effect, loaned the federal government almost $2 billion – do you think they have $2 billion to lend? Not on your life. What are dealers doing? To avoid going out of business they are having to pull out of the program. Half of the dealers in New York (hundreds of dealers) have left the program according to Dan Srtumpf an auto writer for the AP.
Obama and Pelosi are not bad people, they just don’t understand how businesses operate. And they want to start their own health insurance company…
Obama = Bush (on planning skills)
August 15, 2009
It is important to have a plan when you attempt to remake a society or destroy one. Bush was soundly criticized for his lack of planning in the Iraq war. He had no plan to rebuild Iraq after taking it over. Robert Reich and Ann Coulter have both come to the conclusion that Obama is stunningly similar to Bush in his lack of planning skills.
Obama was supposed to be the ‘cool methodical’ one, but both Ann and Robert note that, “despite all the Administration hoopla, there’s still no plan. Or, possibly, that the White House has a plan, but won’t tell us what it is. And yet the people who don’t want to see a bill — some bill, doing who-knows-what — rammed through in the dead of night are somehow the ones who are ignorant and being manipulated. Right.”
Maybe Ann and Robert are both completely wrong. What if Obama and Pelosi HAVE a plan to ’save us’ after they pass the nightmare that will be the current health care reform act. My hope is that vision and mission of America survives their plan.
Pelosi Circa 2006: Town Hall Distruptors = Good
August 14, 2009
Back in 2006 Pelosi applauded disruptor in her own town hall meeting. She went so far as to claim she was, “I’m a Fan of Disruptors”. Here is the video:
Of course in 2009 Pelosi suggests that Town Protests are ‘un-American’. Why were they good in 2006 and bad in 2009? Simple. She isn’t against free speech, she is against speech that she doesn’t agree with. It is simple as that.
Powerful Democrats want Pelosi Out!
August 12, 2009
Camille Paglia, a huge fan of Obama, is not a fan of Pelosi. She suggests, “Speaker Nancy Pelosi [...] has clearly gone off the deep end with her bizarre rants about legitimate town-hall protests by American citizens. She is doing grievous damage to the party and should immediately step down.”
Ms. Paglia is a well known social critic and dissident feminist – i.e. she supports our Constitutional right to protest our government when we don’t like what it is doing. Of course she is a strange bedfellow for conservatives – but we live in interesting times.
Americans hate being lied to. . .
It is true, just ask Bill Clinton and Richard Nixon. Obama and Pelosi are asking Americans to believe the unbelieveable. Newt Gingrich has a new post titled, “Citizens just want the truth: 2+2=4” where he explains how crazy the facts that Obama and Pelosi would have us believe.
“American people are being asked to believe the unbelievable. We’re being told that a $1 trillion health care bill will not add to the deficit, that a $1 trillion national energy tax affecting every business in America will not kill jobs, and that a $787 billion unread spending bill is actually saving our economy. It is this mind-set and denial of reality that gave us the subprime lending disaster, an IOU-issuing Sacramento, and a dysfunctional Detroit. Simply put, people are fed up. To get America back on the right track, we must re-establish a simple premise: 2+2=4.”
Americans are willing make HUGE sacrifices to help the poor, the sick and the enslaved. Just take a look at the number of Americans who gave their lives on the battlefields of Europe and Asia. But we want to be asked, not lied to.
Pelosi and Congress have suggested that somehow the people who are standing up and complaining about being lied to – i.e. the townhall protestors – are un-American. That they are plants from an evil right wing cabal. I have listened to more than a few YouTube videos. The anger is REAL. These people aren’t professionals. They aren’t plants. Ironically, a little girl was called on at Obama’s Town Hall Meeting on Health Care looks like a a plant. She asked, “why are people carrying signs saing mean things? How do kids know what is true, and why do people want a new system that can – that help more of us?”
Her mother, Kathleen Manning Hall, is a lawyer who has donated thousands of dollars to Obama (not to mention the funds her firm has donated). She knows Michelle Obama and Joe Biden. Katheleen was on the New England Finance and Steering Committee for Obama for more than a year. She was a delegate for Obama at the Denver DNC convention. Was the question a plant? I have no idea, but I would appreciate it if Pelosi and Reid would stop calling me and un-American plant. Plant or no – we are still Americans and have every right to be told the truth.
