Thursday, June 26, 2008
The candidates are plowing full force straight into November with their oh-so-important visions for a new America. Recently, Barack Obama and John McCain are concocting plans left and right to sway the misinformed voters.
- Obama is pushing unions
- McCain is pushing technical progress
The article, Obama Plea to Tesco on union membership, in the Financial Times reports how Obama is pleading with Tesco to allow union representation for workers. As workers in Tesco would benefit with higher wages and benefits, more would suffer.
Barack Obama fights for the middle-class worker in order to secure prized endorsement by some of the big dogs in the world of unions – lots of money. However, if Obama thought more carefully about what he is doing, then he would realize that he is essentially firing workers and raising expected inflation rates.
First, Obama is firing workers. In a related blog, The Irony of the Threat to Boycott the CBS Debate, I explain how unionized industries offer workers the chance to earn higher wages and benefits, but fewer workers can keep their jobs (a.k.a., unemployment). The U.S. employment reported 5 consecutive months of job loss – what do you think would happen if Barack Obama got his way with mass unionization? Yup, more workers would lose their jobs. Second, Obama is creating inflation. Unionization creates higher wages and firms raise prices in order to afford the higher cost of production (wage hikes). Guess what results? Yup, higher inflation bears its mean face. When the U.S. is experiencing 4.2% inflation, which is low by historical standards but problematic compared to the last 10 years, why would the Presidential candidate fight for union membership when the result would be higher inflation?
Obama’s union efforts as economically harmful; he is not focusing on the future of America. On the other hand, McCain, as strange as his idea sounds, has a brighter America in mind.
Boston traffic is a mess. Like in New York, San Francisco, Denver, or really any urban center, traffic is a drag - especially when the price of gas is $4+/gallon. While Obama is focused on labor party issues like a deer in headlights, McCain’s focus is out of the box.
The article, McCain’s $300M lure for new, ‘green’ car battery sparks buzz, in the USA Today reports how McCain will offer $300 million as a reward to the inventor of a car battery strong enough to be a car’s sole power source. As many Democrats, like Adaora Udoji on the TAKEAWAY, scoffed at the idea, it will stimulate new technology…at least it is designed to do so.
The U.S. is an economy built on technical change and innovation. Why do you think that the U.S. patent system is so well developed? It is expensive to develop new ideas – planning, supplies, education, testing – that the government rewards the inventors of new technologies the right of sole production for 10 or 20 years. That is a plan! McCain’s plan offers an incentive for inventors to take the time and skill to produce a battery that is strong enough to fire up a zero-emission car.
At $4.25/gallon, and if I was one of the drivers sitting in the pictured traffic off of Storrow drive in Boston, I would certainly appreciate a car that was less expensive to drive (battery versus gas). McCain’s idea offers a brighter future for drivers in Boston traffic and across the U.S. Obama’s idea affects a select industry and will ultimately result in unemployment. I leave it to you to decide who’s idea is more progressive.
Please leave a comment. Best, Nontruths