I was disappointed but not surprised when President Obama signed an executive order giving contractors that use higher cost union labor on the construction projects which will be generated by the stimulus package, an edge over non-union contractors.
His flies in the face of economic logic which a few editorials voiced because using cheaper non-union labor would mean the creation of more jobs and after all, Obama is trying to create as many jobs as possible. This is nothing more than political payback even though unions DON’T CONTROL VOTES!
With the unions feeling their oats under the Obama administration, I have to once again point out what made the Great Depression last longer than it had to. Although there were a number of factors a huge one was labor and unionism.
FDR allowed unions to set high wage demands and enforce them through sit-down strikes. FDR also set and controlled prices at higher than normal levels. His policies were totally anti-free market.
FDR felt free market competition was the cause of the depression so he set out to eliminate competition by setting up rules under his “fair competition” policies. His National Industrial Reconstruction Agency told businesses what they could and could not do - Communism anyone?
President Obama, by insisting on union labor in all recovery efforts is following FDR’s footsteps which kept unemployment sky high during the Great Depression because businesses could not hire labor on their own terms. Labor statistics from 1933-1939 show a huge drop in weekly hours worked from that of 1929. Let me repeat; in trying to create more jobs, FDR actually was instrumental in eliminating jobs because of his union stance and control over business.
Obama says he wants to create more jobs but he is going about it the wrong way and may end up hurting the job market by insisting on union labor. Union labor is expensive and in no way faster or more efficient than non-union labor.
OBAMA SHOULD HAND OUT MONEY FOR PROJECTS TO THE BEST BIDDER AND NOT TO A UNION-ONLY BIDDER IF HE WANTS TO STIMULATE OUR ECONOMY.
Learn from history, please………………………………................
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