Employers' Unions By T.S. Khanna, August 12, 2024.

 

Employers’ Unions

By T.S. Khanna, August 12, 2024,

Foundation For Better Government.

 

Minimum wage fixation is a delusional tool used by smart politicians to fool voters into their camp.  It does not raise standard of living; it only triggers inflation.  Based on the new minimum wage, all wages are re-fixed disproportionately higher than the minimum wage.  Prices of goods rise accordingly, further reducing the purchasing power of the dollar, leaving the low wage earners even in a worse position than before.  As more dollars buy fewer goods, inflation sets in, creating a need for still another higher minimum wage.  The cycle goes on without raising the standard of living of low wage earners.

 

To raise the standard of living of low wage earners, our effort should be to increase the purchasing power of the dollar by using more efficient wealth production techniques, especially for energy production.

 

In the past, labor unions have caused a lopsided economy in their favor, driving jobs out of America and serving as a disincentive to higher education.  With progressive development and application of technology, labor unions demands could be met in the past.  Now saturation points have come and other countries are also using those techniques.

 

To bring the labor unions forces in balance to control inflation, there seems to be a pressing need to create Employers’ Unions and Buyers’ Unions.  Such a counter force will truly divert our efforts to control inflation and raise the standard of living for the low wage earners.