Business as Usual

Traditionally the Republican Party has been known as a friend of big business or even anyone with a business interest. The Democrat Party is generally known as a friend to labor unions and the workers. Though this division seems somewhat natural and necessary for balance it in actuality is most detrimental to the American economy.

As product pricing follows the laws of supply and demand, our labor markets swing with the same pendulum. If there are a lot of people in your profession who are prepared to work, the pay may be lower. If you provide a specialty service that few others can provide, you are paid more.

There are areas of the country where fast food workers are paid over ten-dollars per hour. Not only are they paid much higher than the national average for their McJobs, but they are also transported to and from work every day, which is usually from the inner city to the suburbs. Kids in the suburbs just won’t do that sort of work for that sort of wage.

Recently the City of Seaside has gone through some trauma because the affordable housing is converted into higher cost condominiums. These apartment complexes housed many of the people who are doing minimum wage tasks in their community. Over seventy units have been converted and are no longer available to these workers.

The owners are trying to maximize their investments and make a profit while they are able. However there are now at least seventy individuals or families who can no longer afford to reside in Seaside. This may not sound like much in the grand scheme of things, but next time you are in a large group, count heads and see just what 70 people look like.

Yes, many of the low wage jobs are filled by students who can only work part-time, but consider how many positions seventy people hold. What would happen to the motel industry in that town if all the housekeepers left? Let’s say all the fast food and convenience stores workers could no longer afford to be employed there?

In order to attract good employees or even warm bodies, the local businesses will have to shell out much more than minimum wage just to keep staffing at a minimal level. While a few people try to maximize their investments in real estate, every business will have to pay for the loss of affordable housing. This cost will be passed onto the consumer.

There is a cause and effect here that transcends any ideology that Republicans or Democrats have cooked up. It is hard enough for a small business or a minimum wage employee to survive with the outside forces tugging them in every direction and emptying their pockets.

With oil companies taking in billions of dollars of profit every quarter, the trickle down economy harms both small business and workers. It is believed that everything finds its own level in Capitalism. Unfortunately this level where all things are equal rarely comes into play with these unrealistic profits.

The pendulum is still in motion. Though it is doubtful that those on the bottom of the food chain will ever get ahead; those further up the food chain will have to pay more to maintain the status quo. Affordable housing and services will need to be provided to attract individuals and families to work in the service industry. Businesses will end up paying one way or another to meet the goals of their business plans. Rather than jump through all the hoops and watch the funds diminish with each transaction to patch the holes that prevent employees from living and working in the same town. Wouldn’t it make better sense to pay a fair wage and offer a health plan up front? This will create a work force that will be loyal and will have a vested interest in the community where the business is located.

There is a lot to be said for businesses who embrace this concept. As consumers, think of a business you frequent that has a constant turn over. Each transaction is made with a new inexperienced employee. These employees are never there long enough to understand the customers. Compare this with a business you may frequent that has retained the same staff over many years who not only remember your name but remember your history and what sort of purchases you have made in the past. One might think this is unimportant in a convenience store or a fast food restaurant, but it is important in any business, even a Kool-Aid stand.

The lack of a common ground of the Democratic and Republican platform on issues of labor and industry will keep the nation divided and keep class wars on our doorsteps. Maybe the rich will gain more wealth, but this lopsided gain is harming the health of our country, states and towns. If this stalemate continues it will harm our future as the divide grows wider.