The "O" Word
Conservative by Nature, Christian by Choice
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Thursday Tidbits

June 14th, 2007 . by Cary

Today in History:

1954 – President Dwight D. Eisenhower effectively placed the words “Under God” in the Pledge of Allegiance.

The continental Congress adopted the Stars and Stripes as the National Ensign, making today Flag Day. (settle down, rosie, I said “flag”…)

Today could also end up being the day Bush twists the arms of the final GOP senators to force his twisted amnesty bill through. GOP senators who voted against cloture, and for the economy of the United States, have been told that they will need to vote for cloture if they want to be “relevant” in the final drafting of this bill.

Couple of points:
1) If the measure is defeated, there will be no need to draw up a final draft.
2) If the measure passes, you won’t be relevant at all after the following election.
3) If this country is sold up the river, We the People have no one to blame but ourselves. Call your GOP senators today, folks. Convince them that they need to keep this country sovereign, and granting amnesty to 12-20 million lawbreakers is not the path to follow. Capitol switchboard: 202-224-3121. Go. Call. Take back this country from the power-hungry elitists who have their hand in your pocket!

In other areas:
The “Big Three” automakers are trying to back down the union. Good luck – that tiger was uncaged the first time you let THEM dictate the pay rates.

I have a little story for you. Once upon a time, a man named Fred discovered that he could build a pretty mean widget. He sold his widgets, and made a decent profit. He made more widgets, and sold more widgets, making more decent profit. One day, Fred figured that if he could train someone to make a widget as well as he could, then his output could double, allowing him to make more money. Fred trained a helper.

Life was good. Fred trained more helpers, and expanded his business to meet the growing demand for his widgets. Pretty soon, he had a formidable workforce. Fred took care of his employees, and made sure to increase the companies goodwill bottom line by spreading the wealth that the entire workforce was generating.

One day, Tom, a representative of the Brotherhood of Widgetmakers, visited Fred’s widget factory. Tom talked to the widget makers in Fred’s factory, and told them of the wondrous benefits of belonging to the union. Tom convinced the workers in Fred’s factory to vote for joining the union, making Fred’s widget factory a union shop.

The union, after gaining the upper hand, started making demands of Fred. First, the union demanded more pay for the widget makers. Fred was already paying his widget makers pretty good money, but to keep the peace he agreed to an increase in pay. In order to make up the difference, Fred raised the price of the widgets he was making. Fred’s customers weren’t real happy about the increase, but since Fred was the closest supplier of quality widgets, they went along with the price increase. Since the customers needed to increase the cost of their goods to accommodate the more expensive widget, the cost of living in the area rose.

The union, seeing the cost of living in the area go up, demanded another raise for the workers – this one to compensate for the rise in the cost of living. Fred agreed, and raised the price of the widgets once again.

This went on for a while, each time the increase in wages was accompanied by an increase in the cost of the widgets, which caused other goods to increase in price, which increased the cost of living – which caused the union to negotiate another COL raise.

Finally, Fred’s customers could not absorb the increased cost anymore, and stopped buying Fred’s widgets. They started buying widgets from overseas, where the quality was almost as good and the cost was much lower. Fred, having no customers left, closed his shop. The unemployment rate in his area went through the roof, since Fred’s factory was the only one around that had provided steady employment. The cost of living went way down. The union, no longer having any workers to band together, left town.

The moral of the story is: Let the free market work. If Fred hadn’t been paying a decent wage, he wouldn’t have been able to keep his workers. If Fred had charged too much for his widgets, he would have lost his factory. Oh, wait – that happened anyway. If the union had kept it’s nose out of Fred’s factory, everyone would still have their jobs.

Thank you for stopping by, God bless you all, Wear Red on Fridays, support Warriors for Innocence, and write in Cary Cartter for President in 2008!

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8 Responses to “Thursday Tidbits”

  1. comment number 1 by: Barbara

    But Cary, I thought we had a free market in the United States. So how come factories sometimes close down?
    It’s some years since I got my PhD Econ., so please explain.

  2. comment number 2 by: daniel

    Happy Flag Day!
    Stars And Stripes Forever!
    FTGF!

  3. comment number 3 by: cary

    PhD Barbara: Sometimes factories shut down because there is no longer a demand for the product, no matter how well made – have you seen the buggy whip factory lately? – and sometimes factories shut down because they can’t afford to sell the product competitively due to economic forces. This isn’t Rocket Surgery – just plain common sense.

    Daniel – And to you and yours!

  4. comment number 4 by: Barb & Juan

    Oh, really? Now we understand.

  5. comment number 5 by: Douglas V. Gibbs

    How quickly the left has forgotten History.

  6. comment number 6 by: Just John

    Unions may have served a purpose at one time, back in the day of unscrupulous employers that were the only game in town. Now, unions only serve to bring about the effects described in your parable.

  7. comment number 7 by: cary

    Too bad that certain segments of our society will only go by what they have been told, instead of sticking their head out of the chartroom and taking a look about for themselves.

  8. comment number 8 by: Greybeard

    Boy JustJohn, I wish that were so!
    I hate unions. I had never belonged to a union in my life. When I first started flying for this company, some manager decided overtime pay would be doled out at the “average hourly rate” paid to all pilots. Since I was the one of the more senior pilots, that meant that my overtime pay was actually lower than my regular pay! Being a loyal employee, I continued to work the overtime because it did add a little money to my paycheck, but every chance I got I complained to the powers-that-be that overtime pay should be 1.5 times my regular pay.
    Long story short… this went on for 15 years! The company grew, and when we finally reached the 44 pilot mark, and the company was still ripping us off, we voted to install a union. Now we not only get 1.5 times our normal pay for overtime, we get 2X normal for holidays, and we have a stronger voice ref. our health care and other benefits.

    So are unions a bad thing or a good thing?
    The answer is yes, as are employers!