Friday, July 10, 2009

Take One

This post is really meant to generate some discussion. It’s kind of a post on the things I’ve noticed (so I imagine a significant portion will be political) in the past week or months. I hope to do one of these every week—most likely on a Thursday night—but I missed that already. Regardless, that is when I hope to post it every week.

Anyway. The inaugural post of a hopefully weekly series thing. I don’t know. It’s a work in progress, right?

TOPIC 1: I’m sure some of you have seen this before. This is a comic from Saturday Morning Breakfast Cereal, better known as SMBC:



Now, check out this article from the other day (I originally read it on CNN, but can't find that article now): http://in.news.yahoo.com/139/20090708/1662/ttc-scientists-create-artificial-sperm-c.html

Coincidence? I don’t know. I think the only real consolation is that the artificial sperm has to be made from a male stem cell. So us males can’t be totally destroyed.

TOPIC 2: As I’m sure you all may have heard (or maybe not; Michael Jackson coverage is STILL dominating the media, which is ridiculous) Obama visited Ghana on Friday. I was reading about it over on CNN (I scan their site every morning and lunch time at work, to stay up to date on the news)—http://www.cnn.com/2009/WORLD/africa/07/10/ghana.obama/index.html

Now, I have no problem with Obama visiting Ghana, especially as he goes there to praise their dedication to democracy. They’re one of the few—and maybe the only—sub-Saharan African nation to have peaceful transfers of power between rulers. There are other democracies, but as the article points out, most of the presidents either hole up in their office and refuse to leave or go out kicking, screaming, and crying.

But, really, what I take issue with here is CNN’s coverage. They mention that some other countries feel snubbed (as though he was going to visit all of them?). In particular, Kenya, which is where Obama’s dad is from. CNN says that opinion is split, with some feeling snubbed but some understanding. I don’t doubt this. They interviewed a man from Kenya who did indeed feel snubbed—valid enough. Then they interviewed a Kenyan man who understood and didn’t feel snubbed at all. . .but he lives in Baltimore. While it’s not completely irresponsible journalism, it is equating two people that aren’t equitable. It’s a lot easier to see it as justifiable from this side of the Atlantic—particularly less than two hours from the White House. I don’t doubt that there might be Kenyan-Americans that do feel snubbed on the behalf of their country, but I imagine that the percentage of the population of Kenyan-Americans that feel snubbed is significantly lower than that of Kenyans in Kenya. While there’s a deep connection between the two, there are also stark difference. Apples and oranges are both fruits, but that doesn’t make them equitable.

TOPIC 3: The final topic for this week is unionization. Within the past couple months, I was reading an article—yes, on CNN—talking about how ‘green’ jobs are helping to take the place of the lost automotive ones. No, the scope isn’t nearly the same; not all the car jobs lost can be made up in the green industries. But there are quite a few taking root in the areas once dominated by the now defunct (or nearly so) car companies. But there is one huge discrepancy: for the average auto factory worker, with only a high school diploma, the starting wage is about $10/hr. It’s not bad, but it’s not great, and almost assuredly impossible to support a family with. It’s competitive, but not the kind you’re looking for as a full-time, rest-of-your-life kind of job. Especially since when working for the car companies, thanks to the UAW, you could start off with $28/hr. The article then went on to say that there is room and potential for growth, and union officials are going to try and start unionizing green industries.

Which shocked me. I don’t understand why people still back unions; yes, I understand that they had a very significant role in the past, battling exploitative bosses and companies, fighting for better working conditions and wages. And they got them. But today, the need of the union is, I believe, over. With all the government oversight and another increase in the minimum wage on its way (and in many markets, companies have to pay significantly more than the minimum wage just to maintain competition), unions should be completely defunct (especially most player unions. . .really, NBA? MLB?). But they aren’t; the UAW is probably the most famous and one of the more important for American industry, and it did secure high wages for under-qualified workers—a win for the workers, no doubt.

But at what cost? The bankruptcies of GM and Chrysler, more than anything else, should’ve rung the death toll for the UAW and unions in general. There are a lot of reasons GM and Chrysler went down the drain. The American kept the price of gas artificially low, which led to cheaper gas, which led to the American love affair with speed, power, and big cars, which spurred the American auto companies to form big, fast, powerful cars that weren’t real fuel efficient, while Japanese and other foreign companies focused on practicality. Our innovation towards fuel efficiency ceased, for the most part, and when it became a big issue with the relatively recent spikes in gas prices, they couldn’t compete, so they folded. The only real reason Ford is still standing is because the other two went down.

That is a pretty major reason. But another major reason is the union. When factoring in pension, compensation, the wage, and all the benefits afforded to the average American auto worker, he makes the equivalent of about $70/hr. The wage itself only comes to somewhere between $25 and $30, but add in everything the union gets for them, and it skyrockets. Obviously, this isn’t all seen in the form of cash for the worker, but payments they don’t have to make (to insurances and such, as other private sector employees would) as well as relatively lucrative pensions. Compare this to the average Toyota worker. When you add all of this up, it comes to somewhere around $40/hr (see: http://cloudfront.mediamatters.org/static/images/item/autoworker-20081206-2.gif and others--they’re all over the internet). That’s a $30 differential—a huge difference. You might make the argument that our market dictated that level, while their’s may dictate differently—but that can’t be true. I don’t think there are many places in the country where you’ll find people only educated through high school making that much. And if such a level actually could be maintained, it would’ve been, but instead, the companies are crashing. Plus, there is no local marketplace anymore; it’s globalization. The wages you pay your employees here will affect the standing you have against your overseas counterparts. There’s no escaping it, not now. Toyota and its Japanese counterparts have, meanwhile, avoided unions; at least ones that maintain such force as the UAW. And this has helped give them the one up over the big three.

And now there’s discussion of unionizing the green industry? It might be safe for a while because, like the car companies, it’ll take time for other markets to catch up, but this time, the waiting won’t be nearly as long. And if the green industry is unionized, I’d foresee the same thing happening again, albeit on a much lower scale. Unions are not needed in this day and age, particularly the manner in which they are used. We need to learn from the past and from this huge automotive collapse and shut down the unions.

12 comments:

jake said...

I know this was just a subpoint on one of your comments, but i also am sick of the michael jackson stuff. its not news. one day of remembering michael jackson should be fine for the average person, theres no need to continuously broadcast segments or write articles about his death. It's starting to get ridiculous. There are far more important things going on in the world than the death of a pedophile.

Colin. said...

Actually, that was going to be one of my topics, but I elected to save it for next week. If he's still on the front page every day. . .I also think it's about time to let it go. He's done a lot, but by all means, let it go. Especially since the week he died, he immediately took over the more relatively important Iranian protests, which have since ceased. But few could tell you anything about that. Thanks, Michael.

jake said...

also, what about honduras? its been almost absent from the news. I watched the US vs Honduras soccer match and they didnt even mention it..

Colin. said...

Oh yeah. And then the protests in China. Change is occurring--for better and worse--and Jackson's death is more important. He hasn't been relevant in years, except for his silly court appearances.

JohnC said...

The point about CNN's terrible coverage is a good one, all the major networks are guilty of this to some extent, but CNN most of all. They like to pretend that every issue has 2 sides that are equally legitimate and that public opinion is split 50/50. This is never the case. CNN spends so much effort trying to appear neutral that they allow ridiculous views equal airtime with the truth. They can invite one “expert” on to talk about each side, and the lazy network never has to do any investigative journalism.

As for unions, if they go away completely, we'll just go back to where we were before unions came around and big business could oppress and intimidate workers. The unions aren't the only reason for the auto companies to go under, the unions had nothing to do with the type of cars they made, and that's the main cause for the failures. The biggest problem was poor management, the executives knew giant SUVs couldn’t last, but they didn't care because they just wanted to make huge short-term profits that helped them personally, but hurt their companies in the long term. Another big reason for the failure was the lack of significant government subsidies and tariffs. The Japanese did that to protect their industries, their companies were actually selling cars for less than it cost to build them, just to break into our market.

$70/hour is too much but I believe that number is also affected by the fact that the companies have been shrinking recently, there are fewer current workers but the companies still have to pay the pensions of lots of former workers. Also it’s worth pointing out that if our country provided free universal health care, the auto companies wouldn't have to provide it for their workers. The Japanese companies and others don't have to worry as much about those costs.

Colin. said...

Well, you're right--they all manipulate data and push for ratings; I only call out CNN because that's the one I read the most. For instance:

http://www.ceasespin.org/ceasespin_blog/ceasespin_blogger_files/fox_news_gets_okay_to_misinform_public.html

That cracks me up. Every time. Or the news on CNN.com about the psychics' relationship with Michael Jackson. I mean, really.

See, I don't think we will. I mean, the businesses essentially do that around the world anyway; but in the US, the government has too much oversight to let it happen. The UAW did get their workers good wages and benefits, but ultimately cost thousands, millions of them their jobs too. There are no jobs without the companies. And I cede the point that it wasn't all the union--which is why I talk about the artificially low gas prices, which led to the big car love. I don't know why the big three thought Americans wouldn't change buying habits with high gas prices (see the 1970s, when we almost bailed out Chrysler), and I don't doubt that a lot of it is accounted for by short term profit--if it's not broke, don't fix it. But while you have good and valid points as to why the big three fell, it doesn't so much validate the existence of unions. Which I still don't see as justifiable.

You're right on both accounts again, though I won't bother launching into my take on nationalized health care--as you might've guessed, I'm not a fan. But either way, when you compare the salaries and compensation of UAW workers against those in American markets of equitable size. . .the disparity is huge. And almost completely unjustifiable. In my eyes, anyway.

Thanxforthevenom said...

he was never convicted jake....

jake said...

i realize that

Kevin said...

Honestly I don't know enough about unions to contribute anything valuable, so I'll skip over that. I do however find it interesting, and I like that you're putting your thoughts on the blog Colin; I'm reading.

As for Michael Jackson, I understand that you all may be sick of how much coverage they're giving him, but you must not understand how important he was (is). He is, after all, the best selling musical artist of all time. More than Elvis, the Beatles, or anyone else. His death may not mean much to you, but for people about 20 years older than you he was THE icon that defined their childhood and teenage years.

Colin. said...

Well, Kevin, I do understand that. And I'm not trying to downplay the effect he had on the world. But it's been several weeks now, and while I'm not saying everybody should be over it, it shouldn't be the top six news stories on every news site. His drug use is not hard news, in my mind. Then again, half the stuff covered isn't.

jake said...

I agree with colin, while he had a profound impact on the world of music, he doesnt belong on the front page of cnn's website for weeks on end. maybe a few days and an update here or there, but its getting to be a bit ridiculous, when follow up stories (most of which are just a bunch of crap about nothing) are taking precedence over world issues. This is why other countries hate america.

Colin. said...

I think saying that that's why other countries hate us might be going a bit too far. They hate us for a host of reasons, I think, and most of it is about politics.