How One Man Shut Down American Commerce To Avoid Paying His Workers A Fair Wage
Posted by deleted 10 years, 11 months ago to Business
Objectivist opinions on this?
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The website is Geroge Soros' megaphone - "Think Progress".
Therefore, the piece will be a real life analog to Bertram Scudder's hit piece on Hank Rearden - "The Octopus".
Therefore, why the hell should I read it in the first place?
I have real things to spend my time on.
Oooo!
Prava AND Izvestia wrote a piece denouncing American Capitalism!!!
Do you condemn John D. Rockefeller's oil because he attended Baptist services every Sunday?
"James J. Hill is touted by Rand for never _seeking_ a government subsidy. True enough. But he bought other railroads that had received them; and certainly never gave back the lands that had been granted. (See about Kennedy the financier for Hill here: http://rebirthofreason.com/Spirit/Books/...... and see here about Hill qua Hill; "Martin, Albro. _James J. Hill and the opening of the Northwest_ New York : Oxford University Press, 1976." "
what is your point? get to it quickly please
Heavens to Betsy! The evil Pullman didn't put things in his town that he thought distracted or degraded his workers. How diabolical!
Soon, you'll realize that you can save yourself a lot of time.
Just sayin'.
http://www.libertarian.co.uk/lapubs/hist...
Check out Footnote 27, which has an interesting comment on 19th century railroads by Ayn Rand.
Man owns railroads, workers strike, man wins, workers strike, business shut down by strikers, troops called to protect business from worker violence....Bla Bla Bla.
Workers are always complaining and striking. Like those trying to strike McDonalds for double wages. Just because workers strike does not mean they are right. If workers don't like their situation, move on and find something else.
This story is anecdotal. There may have been more situations like this, but it is ancient history.
Today workers claim they are entitled to the profits made by a business just because they work there. Bolshevism at its finest.
Labor unions are just a clever way for community organizers to exploit the workers for money to give to politicians
We too easily impose our modernist views on the past. We insist that no moral capitalist ever took a government subsidy. But it ain't necessarily so... Robert Fulton sought and got a monopoly to ply steamboats on the Hudson. Too bad that Ayn Rand was 100 years in his future... He might have been moral.
James J. Hill is touted by Rand for never _seeking_ a government subsidy. True enough. But he bought other railroads that had received them; and certainly never gave back the lands that had been granted. (See about Kennedy the financier for Hill here: http://rebirthofreason.com/Spirit/Books/... and see here about Hill qua Hill; "Martin, Albro. _James J. Hill and the opening of the Northwest_ New York : Oxford University Press, 1976."
Remember that in _Atlas Shrugged_ Wesley Mouch betrayed Hank Rearden. He only could have done that because was in Rearden's employ in the first place. Indeed, Rearden wonders why lobbyists are such a crummy lot, i.e., why no person of his stature and commitment exists among them. It is a deeper question, never explored in _Atlas Shrugged_.
A thousand years ago, I interviewed for publication a local office manager for IBM in Lansing, Michigan. He told me that if the first he found out about an open bid was seeing it on the state website, he would have fired the sales person for the account. It is the responsibility of the sales person to help the buyer understand the parameters of the purchase. It is called consultative selling. Other people call it "crony capitalism." However, I assure you that the most strictly limited government you can imagine can be expanded beyond your fears:
See here "Unlimited Constitutional Government" here:
http://necessaryfacts.blogspot.com/2011/...
and Part 2 here:
http://necessaryfacts.blogspot.com/2011/...
It is too easy a fallacy to condemn capitalists and industrialists and entrepreneurs of the past for not having our knowledge, wisdom, and insight... courtesy of Ayn Rand.
"The Managers’ Association included all 24 of the railroads centering in or terminating at Chicago. In the previous year, this Association had enabled the executives of each of these 24 companies to work together in implementing system-wide wage cuts to their workers — thus giving the lie to Wickes’ claim that 'it is a man’s privilege,' who does not like the wages paid by one employer 'to go to work somewhere else.'"
Without the Association, the strike would have been effective in bringing Pullman to the bargaining table. By preventing workers the ability to find work at one of the other railroads, the free market system was disrupted. As always, when the free market is disrupted people do not receive full value for their effort. If the government had enforced the free market system, instead of siding with the companies, the market would have had the chance to force an equitable solution.
This post brought to mind a philosophical question that had never occurred to me before. I've always thought that unions were more destructive than they were productive, but I understand that people should be able to form them if they do so voluntarily. I live in a state where, if there's a union, every employee must join. Forced unionism may be immoral but it's alive and well in many states. (I don't technically have to join my union but the "agency fee" is so close to the union dues that it's crazy to lose potentially beneficial union representation for a few cents. Literally a few cents.)
In contrast, most people agree fully with anti-price fixing laws and other laws and regulations that ban collusion between companies - collusion like existed with the Managers' Association. I'd say that prior to thinking about it carefully I'd support those regulations myself.
So to my surprise I suddenly asked myself, "If employees can form unions to bargain collectively then why can't the companies they work for cooperate to keep wages low or consumer prices high?"
msmithp2 writes that the Association disrupted the free market and kept workers from finding better employment terms at competing railroads. If that's true then why aren't unionized employees guilty of the same free-market disruption? Remember, often if one company's employees go out on strike their "union brothers" in other companies will join them. (And, secondarily, working at a different railroad is not the only alternative open to those employees.)
My last thought is that I don't think it's possible for anyone other than government to disrupt the free-market. Government is the sole entity that can lawfully enforce rules with a gun. They have a monopoly on legalized violence. Therefore, absent breaking the law, neither groups of people nor groups of companies can disrupt the free market or thwart Capitalism; it requires government's participation.. An industry may have a very high barrier to entry, like a railroad that must acquire land and spend millions to create a rail bed, lay track and buy locomotives, but at some point either the barrier will be breached or one or more of the Big Evil Companies will break ranks if they see more profit in doing so.
I not sure that I agree the government is the only one who can disrupt the free market. The problem is your statement, "absent breaking laws." If there are no laws then anyone can disrupt the market through theft, extortion, fraud, or other unethical mechanisms. If the government makes exactly the right laws, then you can have a free market. If they do not make the "right" laws then either the government laws can disrupt the market or leave it up to disruption by others. This is what I see as the key issue. What exactly is government's role? What exact laws should exist to allow the free market to thrive?
"What exact laws should exist to allow the free market to thrive?" Only those that protect private property rights. Everything flows from "I own myself." A sound currency backed by an actual, valuable commodity, gold is one example, is also necessary. I'd bet that a sound currency can also be arrived at from "I own myself",
What about three? What about all employees of the company? What about all employees of an industry? Is it extortion when all employees of an industry shut the industry down unless a company pays a wage they dictate? If you believe it is extortion then when was the line crossed? What should the law be that would prevent that extortion?
I totally agree in a government limited to protecting individual rights, but the devil is in the details and legal laws are subject to the law of unintended consequences. Many interactions between individuals can result in putting their individual rights in opposition. When both parties operate ethically, they can both will gain from interaction and walk away net positive in value. Thus an employer who pays a fair wage receives more value from the employee than he pays out, while the employee gets more value for his effort than he could find elsewhere.
But what if one or both parties does not operate ethically? Then the government laws should protect the rights of one individual from abuse by the other. Given a specific situation of abuse, it is easy to say well if this law existed then that abuse would be prevented. But often the proposed law has unintended consequences when applied in a different situation. Creating static laws that protect individual rights in all situations is incredible difficult, which is why I don't believe you can point to a single society that has ever accomplished that goal.
In the case of 2 to infinity employees banding together to demand a higher wage, they can demand all they like but they cannot dictate. Every proposed transaction, monetary or otherwise, is guided by a hierarchy of values, and one aspect of that is "at what price?"
When employees form a collective to demand change their price is the possibility of the loss of their jobs, whether they are fired and replaced or whether the company is driven to bankruptcy trying to meet the demands.
On the employer side the decision includes the cost of agreeing to the demand vs the cost of hiring and training new employees. Or maybe the cost of relocating to another town, state or country.
"... it is easy to say well if this law existed then that abuse would be prevented." In what universe? Laws, like locked doors, are for honest people, not dishonest. How many laws do we have against murder and other violent acts? Hundreds? Thousands? Have the murders stopped?
I most certainly never said "in the absence of laws", I said "absent breaking the law." That means "unless they break the law." My statement specifically ruled out thuggery on the part of unions OR companies because you can't discuss philosophy or pretty much anything else if you have chaos as your reference point. There must be a stable frame of reference, otherwise you and I would have no way to determine what the other guy was saying.
I really don't think we are in disagreement.
Thuggery is always possible. There is no law that can stop it. But there are laws that can force restitution by the offender and/or punish him in other ways.
Government role should be limited to ensuring a fair playing field. Enforcing property rights, preventing/punishing fraud (a form of theft), ensuring competition and preventing artificial monopolies. Monopolies disrupt the free market because they competition the grease that makes the free market operate. An artificial monopoly is one where collusion and force prevent competition. I do believe that there is a place for a natural monopolies in those services and industries where scale can result in delivering the most efficient service, although even these are eventually face competition, typically when technology introduces a paradigm shift.
I am arguing here for what the role of government should be, not what it historically has been.
"I do believe that there is a place for a natural monopolies in those services and industries where scale can result in delivering the most efficient service, although even these are eventually face competition, typically when technology introduces a paradigm shift." This statement is anti-free market. You do know you are on an Ayn Rand site, right?
Competition is the force behind a vibrant free market economy. Without it, all things stagnate. And fair is such a wimpy, subjective word. Fair should only be used to describe a popular summer event where one can gorge on funnel cakes and watch tractor pulls.
Without competition, what is the motivation to be the better shoe manufacturer or microprocessor innovator? It does defy logic to think a government mandate can guarantee a "fair" market! Gag
Fair is a relative, not an absolute, and as such is impossible to legislate properly.
Not that this will stop the politicians from passing whatever pushes their agenda or gets them contributions. Neither of which have anything to do with "fair" but at least is something they are able to actually work for and ultimately achieve.
I think msmithp2 only lacks understanding of capitalism and objectivism. I can remember when I believed what he believes. It's been 18 years since I heard Harry Browne on C-SPAN and realized I was a libertarian and began to learn how libertarianism addressed issues that a lot of people worry about, like "fairness.".
It was years after that when I finally read AS and realized I probably was an objectivist. Then I bought and read several of A. R.'s objectivist philosophy books and found that a rational philosophy based on objective criteria is the best guide on how to live life. I believe (based on concrete evidence) that I have a very firm grasp on objectivism but I have a long way to go before I'd call myself an expert.
My advice to msmithp2 is to read AS if he hasn't and to read it again if he has - and concentrate on what it says. Why do the heroes say and do the things they do? And notice that Rand exalts not only the successful and powerful but also those of meager means who lead a rational life, who value themselves and live their lives for their own benefit.
That way you will learn why objectivism is the best way to achieve peace and equality and why capitalism is the only ethical economic system. After AS and The Fountainhead read The Virtue of Selfishness and then Capitalism: an unknown ideal.
it's interesting, but I tend to find aricles on historical socio-economics somewhat empty witout background. Extension, please.
And then I'd have to make the time to read it.
I just started a fairly interesting new project, so I'm going to be busy for a while.
Not too busy to make the occasional post, but too busy to read anything else than what I already am reading, and certainly too busy to be bothered with whatever Think Progress is spinning today.
Maybe one day I'll get to it, but it's not going to be today.
Why didn't these employees if they were so smart and valuable, pool their resources and start their own railroad. I will tell you, because they did not want to risk THEIR money.
When people strike, it is THEIR greed and envy that are the problem. Nobody stopped these people from quitting and going to work elsewhere. Nobody FORCED them to stay in the job they apparently did not like or feel they were not paid enough.
I see this guy as a HERO not to buckle under the pressure of the greedy.