There was an interesting article in today’s US print edition of the Wall Street Journal. It was titled, “New Labor Law Curbs Small Forms’ Plans” and it explains how new rules introduced by the National Labor Relations Board are causing small business to curtail growth plans. These are the very growth plans this country needs in order to drive fair paying, not low paying, salaries and private (as opposed to public) sector growth. So what are the new rules?
The National Labor Relations Board referees workplace disputes and oversees union-organizing elections. The new rules are designed to hold businesses more accountable for labor law violations and to help workers unionize more easily.
So here is he choice we have. We can:
- Increase the cost and administration burden on small companies through extra administration to comply with additional red tape and bureaucracy on a system already over burdened,
- Seek to create tension between workers and owners, given workers are already protected and can get another job if they want to
The result of the above rules will increase costs and thus reduce the opportunities for growth and new hiring, and might even lead to contraction of jobs and growth.
Or we can avoid such polices and instead remove red tape or streamline current rules to help reduce costs. This will create more profits, avoid patronizing unions, and seem to encourage fair with-profits reward schemes for all employees, if anything.
But this story is typical of the battle playing out in many Western economies. Though the press suggests we are operating under capitalism and that capitalism inset working, this is not capitalism. We are not working in a free society; we are under the cudgel of heavy, ongoing, pernicious government intervention. These government agencies need to write rules to justify their existence; new rules mean new hires to them. And they generate no wealth for anyone, other than the government elite.
I wish we had a candidate for November that stood up for smaller government. A leader that would vow to leave office after four years with a smaller US federal budget than when they began office. Now that would lead to the change we need, and return us to the same freedom this country was built on.