Low-Skilled Workers Flee the Minimum Wage: How State Lawmakers Exile the Needy by Corey Iacono

What happens when, in a country where workers are free to move, a region raises its minimum wage? Do those with the fewest skills seek out the regions with the highest wage floors?

New minimum wage research by economist Joan Monras of the Paris Institute of Political Studies (Sciences Po) attempts to answer that question. Monras theoretically shows that there should be a close relationship between the employment effects of raising the minimum wage and the migration of low-skilled workers.

When the demand for local low-skilled labor is relatively unresponsive (or inelastic) to wage changes, raising the minimum wage should lead to an influx of low-skilled workers from other states in search of better-paying jobs. On the other hand, if the demand for low-skilled labor is relatively responsive (or elastic), raising the minimum wage will lead low-skilled workers to flee to states where they will more easily find employment.

To test the model empirically, Monras examined data from all the changes in effective state minimum wages over the period 1985 to 2012. Looking at time frames of three years before and after each minimum wage increase, Monras found that

  1. As depicted in the graph below on the left, those who kept their jobs earned more under the minimum wage. No surprise there.
  2. As depicted in the graph below on the right, workers with the fewest skills were having an easier time finding full-time employment prior to the minimum wage increase. But this trend completely reversed as soon as the minimum wage was increased.
  3. A control group of high-skilled workers didn’t experience either of these effects. Those affected by the changing laws were the least skilled and the most vulnerable.

These results show that the timing of minimum wage increases is not random.

Instead, policy makers tend to raise minimum wages when low-skilled workers’ real wages are declining and employment is rising. Many studies, misled by the assumption that the timing of minimum wage increases is not influenced by local labor demand, have interpreted the lack of falling low-skilled employment following a minimum wage increase as evidence that minimum wage increases have no effect on employment.

When Monras applied this same false assumption to his model, he got the same result. However, to observe the true effect of minimum wage increases on employment, he assumed a counterfactual scenario where, had the minimum wages not been raised, the trend in low-skilled employment growth would have continued as it was.

By making this comparison, Monras was able to estimate that wages increased considerably following a minimum wage hike, but employment also fell considerably. In fact, employment fell more than wages rose. For every 1 percent increase in wages, the share of a state’s population of low-skilled workers in full-time employment fell by 1.2 percent. (The same empirical approach showed that minimum wage increases had no effect on the wages or employment of a control group of high-skilled workers.)

Monras’s model predicts that if labor demand is sensitive to wage changes, low-skilled workers should leave states that increase their minimum wages — and that’s exactly what his empirical evidence shows.

According to Monras,

A 1 percent reduction in the share of employed low-skilled workers [following a minimum wage increase] reduces the share of low-skilled population by between .5 and .8 percent. It is worth emphasizing that this is a surprising and remarkable result: workers for whom the [minimum wage] policy was designed leave the states where the policy is implemented.

These new and important findings reinforce the view that minimum wage increases come at a cost to the employment rates of low-skilled workers.

They also pose a difficult question for minimum wage proponents: If minimum wage increases benefit low-skilled workers, why do these workers leave the states that raise their minimum wage?

Corey IaconoCorey Iacono

Corey Iacono is a student at the University of Rhode Island majoring in pharmaceutical science and minoring in economics.

EXPOSED: Big Business is Driving Muslim Refugee Resettlement in America

Update:  Be sure to learn more about what you should do about this during Election 2016 at American Resistance 2016!

The so-called ‘religious’ charities that resettle refugees in America and those in the UN/US State Department administering the refugee admissions program that is bringing tens of thousands of Muslim (and other) refugees to your towns want you to think this is all about ‘humanitarianism.’  It is not!

The do-gooders bringing refugees to America are shills for big business whether they know it or not!

It is about globalization and multi-national corporations’ need for cheap migrant laborers!

Did you read our post about BIG MEAT and Amarillo, TX just this week? It went viral and has brought thousands upon thousands of readers to RRW!  The business model is that companies, often times companies in the food industry, encourage (lobby for!) more refugees to be admitted to the US (or for amnesty for illegal aliens).

They get the slave laborers, your town gets the social/cultural tension, and taxpayers at all levels of government supplement the meager wages with WELFARE!  

Chobani Twin Falls Idaho

Cobani Twin Falls plant. As a driver of refugee resettlement, Chobani Yogurt is changing Idaho by changing the people.

Dems get reliable Leftwing voters!

(See also our post on foreign operatives changing America with refugee labor, here.)

Rich people going to Davos to make plans for your town!

This is what got me started this morning.  The Financial Times tells us that the founder of Chobani Yogurt will be making a pitch at Davos this week at the World Economic Forum for more companies to adopt that ‘business model’ and hire (read IMPORT) more refugees to small and medium-sized American cities!

Financial Times:

Last year Hamdi Ulukaya, a Kurdish entrepreneur who created the billion-dollar US-based Chobani yoghurt empire, travelled to Greece to see the swelling refugee crisis with his own eyes. Unsurprisingly, he was horrified by the human suffering that he witnessed, particularly as he shares a cultural affinity with many of the refugees — he grew up near the Syrian border in Turkey, before moving to the US as a student.

But Ulukaya was also appalled by something else: the hopelessly bureaucratic and old-fashioned nature of the organisations running the aid efforts. “The refugee issue is being dealt with using [methods from] the 1940s and it’s in the hands of the UN and mostly government and you don’t see a lot of private sector and entrepreneurs involved,” he told me last week. “I decided we have got to hack this — we have got to bring another perspective into this issue, there are technologies that can be used.”

So Ulukaya decided to act. Last year he established a foundation, Tent, to channel financial aid and innovation efforts into refugee work.

[….]

And he has stepped up efforts to hire as many refugees as he can at his yoghurt plants, where they currently account for 30 per cent of the total workforce, or 600 people. “There are 11 or 12 languages spoken in our factories,” says Ulukaya. “We have translators 24 hours a day.”

[….]

At next week’s World Economic Forum (WEF) meeting in Davos, he will call on other CEOs to join a campaign to channel corporate money, lobbying initiatives, services and jobs to refugees. Five companies have already signed up: Ikea, MasterCard, Airbnb, LinkedIn and UPS — and Ulukaya says more are poised to join.

Continue reading!  Reporter Gillian Tett quotes me, and mentions protests in Idaho and New York where Chobani is bringing in the refugee laborers.

See our complete archive on Twin Falls, Idaho and the ‘pocket of resistance’ that has formed there.

P.S. When I first learned about what Chobani Yogurt was doing to rural America (here), I never again bought any Chobani Yogurt!  I go down that dairy aisle and give them a mental finger (sorry to our more proper and polite readers).

Nine major federal contractors which like to call themselves VOLAGs (Voluntary agencies) which is such a joke considering how much federal money they receive:

RELATED ARTICLE: Muslim Immigration is What ISIS Wants

EDITORS NOTE: Chobani Yogurt CEO pursuing Syrian immigrants for employment in the United States. If you disagree readers may click here to send an email urging Chobani, Inc. officials to make national security, public safety and jobs for Americans the priority in Chobani hiring practices.

Can Cleveland Roberts III be Trusted to Lead the United Teachers of Dade?

RobertsEF

Cleveland Roberts III (left) with Emmanuel Fleurantin (foreground right).

Mr. Cleveland Roberts III has declared his candidacy for the presidency of the United Teachers of Dade as the leader of the Empower U caucus.

Upon contemplating the facts and all available evidence of Adobegate, a fair-minded person may conclude that Cleveland Roberts III is not fit to hold elective office within the United Teachers of Dade given his arguably questionable actions while steward at Miami Norland Senior High School in relation to having fellow steward and whistleblower Trevor Colestock displaced while proven test cheater and non-union member Brenda Muchnick returned to Norland in January 2014 with no outrage or objections from him.

How can one reasonably expect him to lead the United Teachers of Dade when he betrayed his own steward and lied about him in the process; one union member (Emmanuel Fleurantin) was fired while a non-union member (Brenda Muchnick) was given a meaningless 30 day suspension for the same crime; Mr. Colestock was, and still is, displaced for doing what was right; and Mr. Roberts remained completely silent?

If Mr. Roberts could not and would not defend his own members and steward at Miami Norland Senior High School, how can UTD members anywhere else depend on him to represent and/or defend them?

Could it also be that Mr. Roberts lied to the UTD membership at Norland about these events?

Mr. Roberts sent a letter to all the UTD members of Miami Norland SHS titled “Response to Trevor’s Blog” on September 10, 2013. Roberts in his letter wrote, “Due to the enormous amount of attention that this Testing incident has drawn to the school from the OIG, The Miami Herald, WSVN and Watchdogwire.com; and because I am mentioned in the online blog I am compelled to make a statement to you.”

Roberts stated, “I understand my job as a teacher and UTD Building Steward. I am not an agent for the Office of the Inspector General or the Office of the Auditor General. I do not investigate cases against my colleagues, I do not gather evidence against my co- workers, nor do I recommend that they not receive bonuses that are due to them for their hard work.  I am not a “Watchdog”. That is not my job!! I report incidents!”

Interestingly, contrary to evidence (emails sent between Mr. Roberts and Mr. Colestock and Mr. Gant’s Miami-Dade OIG Interview), Mr. Roberts writes, “I do not know the Inspector General nor do I call the Inspector General.  I do not encourage individuals to report to the Inspector General.  I also would not encourage anyone to go to the Inspector General’s office after they had already mailed the documents there before they had spoken to me.  (According to the article on Watchdog Wire).”

A month before Mr. Roberts made these statements to the Norland faculty and staff, Mr. Roberts emailed Mr. Colestock and Miami-Dade OIG Special Agents Lopez and Knigge confirming that he encouraged both Mr. Halligan and Mr. Gant to cooperate with the Miami-Dade OIG and come forward.

When Mr. Colestock replied back to the Norland faculty and staff rebutting Mr. Roberts’ falsehoods and offered his email as proof, Mr. Roberts emailed Mr. Colestock and the Miami-Dade OIG special agents back retracting his statement and calling it “a very serious lack of judgement on my part.”

Does Mr. Roberts consider doing the right thing, reporting test cheating, cooperating with law enforcement for the betterment of the school community and standing by a fellow union steward as a “very serious lack of judgement”?

Moreover, Mr. Gant in his interview with Miami-Dade OIG Special Agents Lopez and Knigge on May 17, 2012, told them that both Mr. Colestock and Mr. Roberts told him and Mr. Halligan to cooperate and come forward to the Miami-Dade OIG.

Caught in his lie by the OIG, Mr. Roberts decided to compound his error further at the faculty meeting later that day.

Confrontation with the facts usually shuts up falsehoods and befuddles one who lies.

As Mr. Colestock quashed the lie as the email attack did not work, Mr. Roberts had little options left at the end of this faculty meeting during the allotted ten minutes for union issues. Instead of having a JFK Profiles in Courage moment, which one would expect from the designated building steward who is also an athletic coach and pastor, in which he would have defended his role in exposing test cheating as required by state law and school board policies, he actually apologized for “letting people down,” as the situation “was not handled in-house and made the news,” and offered to resign from being a union steward.

According to this union leader, teachers are supposed to be quiet and cover it up; School Board Policies, state law, and Code of Ethics be damned!

Should a teacher engage in the cardinal sin of taking contractual and legal issues “outside of the building?” Teachers must lead by example, a good example. Like minded union members, can take the membership and the school out of this scandalous situation to a much better place. No one should be defending bad teachers!

This cheating scandal exposed a complete breakdown of institutional control as the principal and/or other school administrators did not rebut or refute the illegal actions and what was said at the faculty meeting, thereby being complicit in what was said and their actions. Cheating scandals make for a hostile working environment for those who desire compliance with the UTD contract and state laws.

Many faculty members refused to sign the petition seeking Mr. Colestock’s removal as steward for doing what was right. The petition was hand carried by a security monitor assigned to Mr. Roberts on school time. Twenty-nine members who associate with the “Adobegate” philosophy signed the petition. If these UTD members put as much effort into doing their jobs, Norland would be a much better school.

The petition went nowhere and related charges filed with UTD were dismissed.

Shortly afterwards, Mr. Roberts filed an unfounded civil rights complaint against Mr. Colestock which was dismissed shortly thereafter.

For those members running with Mr. Roberts in the Empower U caucus, why would you associate yourself with such a person with such a record and reputation?

As a UTD member and voter, why would you vote for Mr. Roberts after reading this and knowing now what you did not know before you read this article and the evidence?

Knowledge is power. Read, research, and vote wisely.

We report, you decide.

SOURCES:

http://watchdogwire.com/florida/2013/09/02/industry-exam-cheating-at-miami-norland-senior-high-school/

http://watchdogwire.com/florida/2013/09/13/school-librarian-attacked-for-exposing-fraud-in-miami-dade-schools/

http://watchdogwire.com/florida/2013/09/17/cheating-at-miami-norland-high-screw-up-and-cover-up/

http://watchdogwire.com/florida/2013/09/18/the-good-the-bad-and-the-ugly-in-miami-dade-schools/

http://watchdogwire.com/florida/2013/11/18/civil-rights-complaint-librarian-racially-motivated/

http://watchdogwire.com/florida/2013/11/21/miami-dade-school-board-gives-teacher-cheated-slap-wrist/

https://drrichswier.com/2014/01/20/troubling-jurisprudence-in-miami-dade-a-tale-of-two-teachers/

https://drrichswier.com/2014/07/31/miami-fl-court-upholds-firing-teacher-cheated-accomplice-returned-classroom/

https://drrichswier.com/2015/04/03/florida-and-georgia-a-tale-of-test-cheating-scandals-in-two-states/

https://drrichswier.com/2015/09/09/do-black-lives-matter-in-miami-dade-county-public-schools/

An Open Letter to the Miami-Dade School Board

Dear Superintendent Alberto Carvalho and School Board Members,

The purpose of this letter is twofold.  It seeks your written acknowledgement that district employees have a legal right to use the Miami-Dade County Public Schools (hereinafter “M-DCPS”) e-mail and school mailboxes for formal school related business and/or matters.  Additionally, this letter is yet another, albeit more formal and direct attempt to bring to your attention the fact that the district’s tactics, as will be explained in greater detail below, relating to how teachers are treated after they sign-up to or speak at school board meetings must cease and desist for very legitimate and sensitive reasons.  In an interesting way, these issues are intertwined in that they both have legal ramifications.  Your prompt attention is greatly appreciated.

Employee Use of E-Mail

At first glance, the initial above-mentioned request may appear superfluous or even oxymoronic since it seeks approval to engage in an action for which said approval should be axiomatic.  That is, district employees are legally allowed to use district e-mail and/or mailboxes for formal school related business, such as being allowed to send e-mails or place flyers requesting and encouraging the attendance and participation of colleagues in the monthly M-DCPS Board meetings.

Notwithstanding the fact that I am fully aware that sending such e-mails and/or using school mailboxes for the stated purpose would logically fall within the scope of school business and/or school related matters, prior to proceeding, I acted with an over abundance of caution by asking my principal to grant me unequivocal clearance.  When I posed my query to her, I added that I did not want any problems with the union stewards at my school, as my actions are constantly being closely scrutinized by them in their attempts to shut me down.  Being that my principal, understandably so, also wishes to avoid having any issues with the union stewards over issues of policy, she determined that it would be most prudent for her to run the issue by Labor Relations, such that should there be an issue, it would rest with them rather than with either one of us.  I concurred.

Much to my chagrin, Labor Relations told my principal that I was precluded from using M-DCPS e-mail or mailboxes to solicit teacher attendance at school board meetings.  Further, they cited the Contract Article XXIII, Section 14. Exclusivity Rights to justify their position.

Section 14, B. Work Location Mailboxes provides:

Pursuant to Article XXIII, Section 15 of the contract, UTD representatives (i.e., UTD building stewards and Union-designated Representatives) shall be afforded access to work location mailboxes.

Section 15. Reasonable Access provides that:

Representatives of the exclusive bargaining agent shall be afforded reasonable access to information during the bargaining process and in the administration of this Contract, such as, but not limited to, access to work locations, work location mail boxes, school system mail delivery service (if legal by U.S. Postal regulations), and work location unit meetings.

But, Labor Relations either intentionally or inadvertently failed to make reference to the following two (2) Articles:

Article XXI. Section K. Freedom of Speech stating:

The Parties agree that since the Constitution of the United States guarantees every citizen the right to free speech, all UTD bargaining [and non bargaining] unit members may speak with the media without fear of reprisal.  This right of Freedom of Speech shall extend to any forum in which the employee expresses his/her opinion.  Any dispute arising under this provision will not be arbitrable [sic].

Article II. Section 1. Labor Contract Supremacy which states:

All of this Contract shall be subject to Florida Statutes, Chapter 447, including its prohibitions against strikes.  The Board further agrees that this Contract shall supersede any Board Policies in conflict with the provisions of this Contract.

Further, and with that said, we would be remiss if we failed to turn to Florida Statute 447 which trumps the Contract between the M-DCPS Board and the United Teachers of Dade.

Florida Statute 447.01(1) provides:

Because of the activities of labor unions affecting the economic conditions of the country and the state, entering as they do into practically every business and industrial practice, it is the sense of the Legislature that such organizations affect the public interests and are charged with a public use.  The working person, unionist or nonunionist, must be protected.  The right to work is the right to live.

Florida Statute 447.03 further provides:

Employees shall have the right to self-organization, to form, join, or assist labor unions or labor organizations or to refrain from such activity, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.

As if the foregoing would not suffice to make the point, it would be worth your while to read the attached articles.

The first article was published by Baker Hostetler is titled “National Labor Relations Board Permits Employees to Use Workplace Email System for Union Activity.” I highly recommend it for the edification of the Labor Relations employee who has inaccurately advised my principal, and is therefore, placing her, not to mention him or herself, in a position whereby my rights as an employee are being violated vis-á-vis the National Labor Relations Act (hereinafter “NLRA”).  I will highlight the following as is stated in the article:

The National Labor Relations Board previously held in Register Guard, 351 NLRB 1110 (2007) that an employer may prohibit nonwork-related use of its email system, so long as the employer does not discriminate against concerted activity.  [T]he Board overruled Register Guard and found that the employer’s policy was illegal under the National Labor Relations Act.  In doing so, [in the ruling of Purple Communications, Inc. 361 NLRB No. 126 (Dec. 11. 2014)], the Board primarily relied on an almost 70-year-old Supreme Court case, Republic Aviation, 324 U.S. 793 (1945), which found that employees had a right to solicit one another for Section 7 purposes (including union organizing) on nonworking time, absent special circumstances.  The Board found that this same rule applied to employer email systems, so that employees can presumptively use email for Section 7 purposes on noworking time, “absent a particularized showing of special circumstances regarding the employer’s need to maintain production and discipline.”

The Board emphasized that the “special circumstances” exception to justify a complete ban on nonwork email use “will be the rare case.”

Further, please note that the article goes on to advise employers as follows:

Employers should immediately review their employee handbooks and policies for rules that are inconsistent with the NLRB’s decision.  The NLRB has long held that the mere promulgation of an unlawful work rule violated the NLRA, even if the rule is never enforced against an employee.

Please note that in the instant case, as it relates to my specific query, it is not simply a matter of what is written in the Contract, but is in fact more egregious than that since a M-DCPS employee in Labor Relations claims that I do not have a legal right to use the M-DCPS’s e-mail system pursuant to the holding in  Purple Communications, Inc.  Stated more clearly, Labor Relations is actually in direct violation of the NLRA by way of precluding me from using the M-DCPS’s e-mail system to solicit employee attendance at school board meetings.

The other article was published by the Associated Press and is titled, “NLRB rules workers can use company email to organize unions.”  This brief article makes several noteworthy points as follows:

 NLRB once again elevated employee-protected activity over employer property rights.  Not only will employees now have the ability to use their work emails in their efforts to unionize or discuss terms and conditions of employment with co-workers, an employer’s communication system may also become an incredibly effective tool used to recruit members to form or join class-action cases.

Given the dire legal implications of this issue, I respectfully request that you proceed with haste and inform Labor Relations to modify their response to my principal such that it adheres with and falls within the parameters of the Act.

Workplace Coercion, Intimidation and/or Harassment

It is well documented both in video and in the written form that more than one teacher has expressed feeling coerced, intimidated and/or harassed after he or she either: (1) signed up to speak for a school board meeting; (2) after he or she actually spoke at a school board meeting; and (3) in some cases, both before and after speaking at a school board meeting.  Moreover, there is a common theme that resonates in that teachers are told by their administrators that their school is now “on the radar,” and that they (the administration) do not want to be on the School Board’s or Superintendent’s radar.  Consequently, many teachers have made, are making and will make the decision to: (1) not even contemplate signing up to attend a school board meeting; or (2) change their minds and decide not to attend and/or speak their minds at the school board meetings out of fear of retaliation or to avoid making bad blood with their administration.

Teachers know all too well of how bad it can be for them when he or she has an administrator who has it in for him or her. Yes, teachers willing and voluntarily forgo their civil liberties, which should be inalienable, and give way to being censored in exchange for being able to live in peace on a day-to-day basis at the workplace.  But, no one should directly or indirectly nor overtly or covertly infringe on anyone’s First Amendment rights – period.  This is not the price we should pay to live in peace; in fact, there is no price on that, at least not in America. Freedom is free.

Pre-Meeting Misconduct

More specifically, as it relates to teachers feeling harassed prior to speaking at school board meetings, teachers have vocalized, whether on public airwaves, through journalists or amongst each other, that after they have signed up for a school board meeting they have been subjected to one or more of the following tactics as follows:

(1) The teacher is called to the principal’s office at which point the principal explains that he or she has been called by a higher level administrator and/or the Superintendent wanting him or her to ask the teacher why he or she is going to speak at the school board meeting.  This meeting usually takes place during the school day and it is not unheard of that the teacher is actually pulled out of his or her class unexpectedly during instructional time to attend this meeting.  In case the obvious is not obvious to you, please know that most teachers do not appreciate being “called down” to the principal’s office in such an abrupt and unexpected manner.  This practice has a tendency to create high levels of anxiety in the teacher because teachers do not generally get called down to the principal’s office, and if they do, it is usually for admonishment.

(2) The teacher is paid a visit to his or her classroom while he or she is teaching and the visit is not for the purpose of a routine observation, but instead, to be grilled, in front of students, as to why he or she has signed up to speak at the upcoming school board meeting.  As with scenario (1) above, teachers feel very uncomfortable with this practice not only because it disrupts instructional time, but because it takes place in front of students.  Moreover, it creates an unreasonable sense of urgency and the teacher is psychological made to feel that he or she is the cause for the ambush-style and inappropriate communication; yet, the only “crime” committed was that the teacher merely signed up to speak at a public hearing.

(3) The teacher receives a phone call to his or her classroom during the school day and while instruction is taking place from a higher level administrator wanting to know why and for what reason he or she has signed up to speak.  Likewise, the teacher may also receive duplicate phone calls to his or her personal cell phone, as well as e-mails not by just one level administrator but often from multiple level administrators (e.g., regional superintendents and/or from other administrators) all inquiring the same.

(4) The most dreaded and intimidating of all these tactics, from a teacher’s perspective, is when a regional superintendent or the Superintendent, himself, pays a visit to the school.  It is no secret that when “downtown administrators” or the Superintendent show(s) up unexpectedly at a school site everyone, especially administration, quickly enters “on the edge” mode for the simple reason that the school is, clearly, being observed.  That means that all of the t’s need to be crossed and all the i’s dotted – but without having been afforded advanced notice to cure any irregularities with ample time since there was no warning that the visit would be forthcoming.  As a teacher, you do not want to be responsible for being the impetus for such a visit, at least not if you want your administrators to regard you fondly.

(5) It is not uncommon that the same teacher will be subjected to more than one of these practices within a period of a week.

At this juncture and as I write this, I get chills.  This resonates with the form of governance typical of dictatorships and totalitarian regimes and is reminiscent of true and personal accounts I have been told and what I have read in history books.  I digress.

Being subjected to any (1) through (5), as explained above, leaves the teacher feeling as if he or she is the one who is on the radar.  Further, teachers often express feeling hounded by all of these administrators who want to know their intentions for attending the school board meeting.  Do not take my word for it, instead watch the YouTube video titled “Attempted Intimidation, Coercion? Watch School Board Meeting of May 20, 2009!,” where two M-DCPS teachers explain the negative impact which these practices impressed upon them as employees.  Further, I want to underscore that the advice given by School Board member, Marta Perez, in the video as she requests that the Superintendent  cease and desist these practices have been blatantly ignored not to mention very tenuously justified.  As an aside, it is my hope that this letter, coupled with a re-viewing of this video, will serve as the final nails in the coffin to put an end to these practices.

Without a doubt, a “reasonable person,” which is the legal measuring stick, if you will, used to gauge whether a person, in fact, feels coerced, intimidated or harassed by a given practice or treatment in the workplace, would feel very uncomfortable after being subjected to one or all of the practices described above.  Stated differently, most employees would not voluntarily welcome any or all of these tactics.  In fact, a “reasonable person” who signs up to speak at a public hearing would most likely want to be afforded the mental, emotional, physical and intellectual sense of freedom needed to speak publicly and openly without the pressure of feeling that he or she is being closely “watched” or “monitored” by his or her immediate, or even, remote superiors and possibly subject to reprisal for doing so.  At this juncture, and to further buttress this position, note that the latter is the very reason why there are whistleblower laws protecting employees who speak out and against their employers.  Additionally, and for your perusal, I am attaching an article which was published in Seattle Business, titled “When Does a Workplace Qualify as Being Hostile?” which rather comprehensively, yet succinctly, explains that “[t]he issues and potential liability related to claims of ‘hostile work environments’ are complex and should not be ignored [by employers].”

Post-Meeting Misconduct

Without meaning to be superfluous, I also want to make clear that teachers have claimed feeling coerced intimidated and/or harassed after speaking out at a school board meeting.  In fact, that was the case in March of 2015 when a group of teachers addressed the Board on the issue of class size.  That is, after the meeting, teachers reported being subjected to (1) through (5), as explained above.  Please see the attached article which was published in the Miami Herald and is titled “Some Miami-Dade teachers say speaking out comes at a price.” When a school’s administration realizes that a specific teacher or group of teachers is or are responsible for placing the school “on the radar,” it is often the case that the teacher(s) is(are) brought in for questioning, as administration wants to prevent this(these) teacher(s) from calling the School Board’s attention to the school.  I would be remiss for failing to state that if principals do not carry out the orders of the higher level administrators and participate in the hounding of teachers, they will then be the ones subjected to the scrutiny; for this reason, although often times reluctantly, principals proceed as ordered by the district.  I know this to be a fact as told to me by a personal friend who is a former and retired regional superintendent.  Yes, fact check, this is how it is.

If you are thinking that this can all be dismissed by suggesting that all these claims are a figment of my imagination, keep reading.  Teachers have, on more than one occasion, and not just at my school, reached out to me and expressed that they have been subjected to these tactics.  They express that these practices are unwelcomed and seek my advice as to how to respond.  Most disconcerting, however, is when I hear or sense the angst in their voices or emails and text messages, respectively, and see or feel the fear in their eyes or written words, respectively.  This, clearly, has to stop.  And, for the record, do not ask me to divulgate the names of these teachers because they have asked that I keep their names confidential.

Additionally, I want to be clear, even at the risk of sounding very redundant, that the reason why I state that the foregoing statements are facts and not figments of my imagination is because I have also personally witnessed how teachers have signed up to attend school board meetings, eager to speak their minds – until one or more than one of these dreaded tactics is/are practiced on them.  It is bad enough that many teachers who want to attend meetings cannot due to familial obligations, time constraints or because it would be too onerous for them to travel to the school board meeting because of its location when compared to where they live or work.  Now, the few who can go and/or are willing to make the personal sacrifice are being pressured away in droves.  Yes, they do tell me that they are scared and that they have changed their minds – or worse.  There are the teachers who will not even sign up for the meetings because they have heard of such things, and they want to avoid calling any attention to themselves.  They will openly admit to the fear of reprisals.  They do not want an unfavorable teaching assignment the following school year nor to be moved to a school that is on the other side of town far from where they live.  And, they most certainly do not want to be told at the end of the school year that their contract will not be renewed, and that as such, they are unemployed – just because they spoke out and exercised their First Amendment rights.  These are unacceptable intended consequences.  It begs the question as to whether this was a motive for doing away with teacher tenure or Professional Service Contracts?  Shall tenure be reinstated such that teachers will feel more secure in their positions, particularly when speaking out against the flaws and wrongs perpetuated in the M-DCPS system?

I also speak from personal experience.  I, for one, had my administrators inquire as to why I had signed up to speak at the April 15, 2015 M-DCPS Board meeting.  My principal was called by Sally Alayon and/or Luis Diaz to find out.  It did not matter that I answered my administrations’ questions during a visit to my classroom, their visit was still followed by multiple phone calls from Sally Alayon, North Regional Superintendent, and Luis Diaz, Operations Director.  At the time, I made it clear that I did not need any assistance from them since I did not have any issues arising at my school site nor with my administrators, and in fact, I still do not.  As of the moment, I have a very good rapport with my administrators, and I feel that they do an excellent job in overseeing operations at our school.  I feel that the feeling is mutual.  Do not tamper with this relationship.  Moreover, the issues which I do have, I explained to all who asked, are best addressed openly and publicly since they relate to matters affecting all teachers.

Because You Asked: Ability of School Board to Address Issues that Matter

Now that you have broached the subject of what issues confound me, and possibly most teachers, and if you really must know, please know that it is the fact that when teachers do speak on matters that affect them, such as: (1) the violation of class size which results in overcrowded classrooms negatively impacting student learning and impeding teachers’ performance; (2) the lack of reliability of standardized test coupled with the fact that it robs students of instructional time and further impedes teachers’ performance;  (3) how (1) and (2) contribute to the very laughable Value Added Model which will be, allegedly (because it has not happened yet) and unrealistically used to determine teachers’ performance pay, and therefore remunerate them inequitably and unethically; and last but not least, (4) teachers’ decimated salaries and benefits – all – fall on deaf ears.  M-DCPS Board acts with impunity and lack of accountability as it continuously claims that anything and everything is either the union’s doing or is attributed to the Legislature’s shortcomings.  And, if that is, in fact, the case, then there is the legitimate and timely question which I posed publicly last month in the October school board meeting.

Perhaps the moment is ripe to pose the question:  What then, is the purpose of the M-DCPS Board and has it run its course?  Should teachers respectfully demand that we receive more from the Board than merely those  electronic newsletters, provided for at taxpayers’ expense and which usually go unread, wherein the Board displays photo ops showing the accolades earned at the school level and for which the Board did not materially contribute to since the manifestation of those accomplishments result from the hard work of administrators, teachers, students and parents?  Can’t those photo ops just be placed on the schools’ newsletters and trim the Board’s budget as you do to teachers’ salaries?  Perhaps if the Board implemented austere economic measures even handedly and commensurate with the ones the Board has imposed on teachers’ salaries, claiming insufficient funding, then perhaps the Board may also find time for more political activism, which better suits the Board, as Board members are political elected officials not socialites.  More specifically, the Board could spend time addressing the shortcomings of the Legislature which are brining teachers to their knees financially – according to you.  But, who is the Board kidding?  Well-informed teachers know that funding from the State of Florida per student has been abundant and has even increased with each passing year for most of the past decade – interestingly, the same span of time during which teachers’ salaries have been decimated through the reckless and negligent salary negotiations of the United Teachers of Dade Union, which rather than refute the claims made by the Board, that there is insufficient funding, acquiesces and panders to the Board’s political and economic agenda instead of aggressively representing the financial interests of its membership and all teachers alike.  I am also alluding to the fact that the better measure of austerity would be to simply dismantle the Board such that the real stakeholders in education who are the administrators, teachers, students and parents can take center stage once and for all and not only stand to earn more financially but also better manage M-DCPS.  If we, those in the trenches, were left in charge, it would free up thousands of dollars in administrative salaries and overhead which is for not, as the Board has openly and publicly admitted itself, whether individually or collectively, many times over.

The bottom line is that even when it appears that the Board is listening to us attentively, our concerns are never addressed, much to the contrary, they fade into the airwaves after they echo the walls of the auditorium where the school board meetings take place.  And if they are addressed, when a public speaker’s  three (3) minutes are up, the Board engages in a controlled message monologue which usually supplants, as well as misrepresents and distorts the facts made by the previous public speaker while giving him or her no opportunity to rebut or further clarify the often erroneous and self-serving Board member’s misstatements.  It is very frustrating and leaves the public speaker feeling impotent to address any wrongs.  And how can I say this with such certainty, you may ask.  Simply put, from the numerous times that I have personally addressed issues at a school board meetings none of them have ever been addressed, and if they have, it has been as I described.  Which makes a “reasonable person” question the sincerity and true motives of the above-mentioned tactics, (1) through (5), and whether they are really being carried out with the intention of wanting to address teachers’ concerns?  At times, many of us even wonder whether you listen to us as we speak at school board meetings because it is not uncommon that while a public speaker attempts to engage the Board, its Board members are either on the phone, interacting with their cell phones or simply sneak out through the back doors.  The public which is listening on the radio cannot see this nor can those watching the Board meeting on television since the cameras only focus on the public speaker speaking at the podium; those in the audience who are watching the School Board meeting, in person, however, can attest to what I just said.  Going forward, I suggest that there should be a split screen view of the meeting.

Conclusion

In the interest of equity and for the sake of following the rule of law, I respectfully request the M-DCPS Board agree to the following in an open acknowledgement:

(1) M-DCPS employees shall be allowed to use district email for purposes of soliciting the attendance of colleagues at M-DCPS Board meetings and/or for any and every other work related purposes; and

(2) employees who sign-up to speak at M-DCPS board meetings will be free of any of the above-mentioned tactics which have not only been brought to your attention previously, on multiple occasions and through multiple forms of media but which are also deemed to be coercive, intimidating and/or harassing as thoroughly explained herein.

I thank you for your time and mindful attention to these issues.   I look forward to a timely and written reply in the very near future acknowledging that teachers, in time for the November school board meeting,  may use the district e-mail’s system to solicit attendance and will be left in peace to do just that, including after they sign-up and/or speak at the school board meeting.  Please, do not ignore my letter, as no one appreciates being dismissed.  Remember, “Values Matter!”

Very Respectfully,

Thais M. Alvarez

cc:        Annette H. Weissman, Principal, Sunny Isles Beach K-8
Sally Alayon, North Regional Superintendent
Luis Diaz, Director of Operations

An Economist’s 10 Objections to the Minimum Wage by Mark J. Perry

One of the biggest political issues right now nationwide, and one that will likely be an important issue in next year’s presidential election is the minimum wage.

Economists are generally in agreement that increases in the minimum wage, especially large increases to $15 an hour like in Seattle, will reduce employment opportunities for unskilled workers.

Despite the inevitable negative outcomes that will surely result from a $15 minimum wage — we’ve already seen negative effects in Seattle’s restaurant industry — politicians and unions seem intent on engaging in an activity that could be described as an “economic death wish.”

Proponents of a higher minimum wage point to the obvious and visible benefits to some workers — those who may find a job at the higher wage or keep their existing job and get a higher wage.

But that is only part of the story — there are many less obvious downsides to an artificially high minimum wages that take longer to recognize, and it’s those inevitable negative effects that lead economists to generally oppose minimum wage laws.

What are the specific objections of economists to the minimum wage and why do they generally favor market wages instead? Here are ten reasons in favor of market wages over a government-mandated minimum wage:

  1. Proposed minimum wages are almost always arbitrary and never based on sound economic analysis. Why $10.10 an hour and not $9.10? Why $15 an hour and not $16 an hour?
  1. A uniform federal minimum wage may be sub-optimal for many states, and uniform state minimum wages may be sub-optimal for many cities. A one-size-fits-all approach to the minimum wage is really a “one-size-fits-none.”
  1. Minimum wage laws require costly taxpayer-funded monitoring and enforcement mechanisms, whereas market wages don’t.
  1. Minimum wage laws discriminate against unskilled workers in favor of skilled workers, and the greatest amount of discrimination takes place against minority groups, like blacks.
  1. Adjustments to total compensation following minimum wage laws will disadvantage workers in the form of reduced hours, reduced fringe benefits, and reduced on-the-job training.
  1. Many unskilled workers will be unable to find work and will be denied valuable on-the-job training and the opportunity to acquire experience and skills.
  1. Minimum wage laws prevent mutually advantageous, voluntary labor agreements between employers and employees from taking place.
  1. To the extent that higher minimum wages result in lower firm profits and higher retail prices, that’s a form of legal plunder by workers from employers and consumers that is objectionable.
  1. Market-determined wages are efficient, whereas government-mandated wages create distortions in the labor markets that prevent labor markets from clearing.
  1. Like all government price controls, minimum wage laws are distortionary. If you trust government officials and politicians to legislate and enforce a minimum wage for unskilled workers, you should logically trust those same bureaucrats to set all prices, wages and interest rates in the economy. Realistically, if you agree that those economy-wide price controls would be undesirable, then you should also agree that the minimum wage law is also undesirable.

In summary, economists are not unconcerned about unskilled workers, we are actually very concerned about those workers. And it is because of that concern to maximize employment opportunities that economists oppose the minimum wage.

Simply put, we would rather see unskilled workers employed at a market wage — even if that wage is only $5, $6 an hour — that allows them to gain valuable work experience and on-the-job training, than to be unemployed at $0.00 an hour. And unfortunately, a $15 minimum wage maximizes the probability that an unskilled worker will be unemployed at $0.00 an hour instead of being gainfully employed.

This post first appeared at InsideSources. Reprinted with permission.

Mark J. PerryMark J. Perry

Mark J. Perry is a scholar at the American Enterprise Institute and a professor of economics and finance at the University of Michigan’s Flint campus.

What would I ask Republican Presidential candidates tonight?

Someone asked me to prepare a list of questions I might ask Republican candidates tonight in Milwaukee.  So I wrote up a quick list and thought I would share them with you.  Now mind you, there is no way that anyone would ever ask the candidates if they would scratch the whole darn Refugee Admissions Program, so that is not one of my questions.

  1. The Obama Administration has said recently that it will admit 10,000 Syrians in the fiscal year 2016 resettlement of 85,000 third world refugees to American towns and cities in 48 states, yet the Director of the FBI James Comey recently told Congress that the Syrians, coming from a failed state, could not be properly screened. In this battle between the U.S. State Department (that wants many more than 10,000), and the FBI (Homeland Security concerned with the possible infiltration of ISIS in the refugee population), how would you bring your cabinet together on this critical issue?
  2. The Center for Immigration Studies recently released a new study which finds that a Syrian family of four resettled in America will cost U.S. taxpayers over a quarter of a million dollars over five years. Would that factor figure into your decision on how many refugees America can afford because it is the President who has almost exclusive power for determining refugee numbers and makes that determination every September?
  3. Recently Senator Jeff Sessions office released data on welfare use of refugees in America and found that 90% of Middle Eastern refugees were using some form of social services—food stamps, cash assistance, Medicaid and so forth—and that rate was higher for that group than refugees from elsewhere in the world. There are also reports of widespread fraud in the welfare application process. What would you do to discourage fraud and limit welfare for all classes of immigrant?
  4. The United Nations is choosing most refugees admitted to the U.S. (over 20,000 Syrians have been referred by the UN) and 97% of the Syrians chosen thus far have been Muslims who are presently housed in UN camps. Would you go against the UN and seek out Christian and other religious minorities in need of resettlement as a first priority?
  5. In 2014, the U.S. admitted 67% of the refugees that were resettled anywhere, the next highest country was Canada with 9%. If you were President would you urge a more equitable distribution to first world countries?
  6. The world is watching in horror as Europe is being inundated with tens of thousands of migrants. Approximately 8,000 are arriving in Germany each day (originally welcomed by the government). Only about half are Syrians and the largest percentage are economic migrants, not legitimate refugees. If you, as President, had a private meeting with Chancellor Angela Merkel, what would you say to her?
  7. The refugees being housed presently in Turkey, Lebanon and Jordan will be there temporarily, perhaps years, but they will not be given citizenship rights. Those resettled to the U.S. and other western countries are permanent residents on a track to citizenship. What alternative would you suggest for managing, especially the Syrian flow, short of making tens of thousands of them U.S. citizens?
  8. Our present system of resettling refugees is virtually controlled by the UN, the U.S. State Department and nine federal contractors which monopolize the resettlement of refugees and even choose the towns and cities where they will go. In a ______ Administration would you seek to reform this out-of-control resettlement program and give some authority to state and local elected officials which virtually have none right now? Would your administration propose or support existing reform legislation?
  9. Non-profit organizations affiliated with some religious denominatons are being paid millions of tax dollars each year to bring refugee families to cities of their choosing and in three to six months that family is expected to be on its own and the non-profit then brings in the next group incentivized by a federal payment that is calculated by the head (per refugee). Would you pledge to reform the program to put more responsibility back on to private charity as the original act of 1980 invisioned?
  10. There have been many reports recently of school systems overloaded with needy immigrant students who require extra help with learning English and to deal with mental traumas, would your administration seek a moratorium on resettlement until officials in overloaded cities and local and state taxpayers could catch their breath?

Don’t hold your breath!  I would be blown away if there is any question relating to refugees tonight in Milwaukee, even though, as I said in my previous post this morning—immigration is THE issue for 2016!

RELATED ARTICLES:

Note to Antonio Guterres! Terrorists do use refugees as cover to get into Europe

Another South Carolina County Council says no to refugee resettlement

Obama plan to use executive amnesty for a half a million illegal aliens, blocked in 5th Circuit Appeals Court decision

In Government, Nobody Quits – And You Can’t Get Fired by Daniel Bier

Government work is pretty sweet, if you can get it. If you have to pay for it… not so much.

The government has one of the highest paid workforces in the country. Federal bureaucrats make 78% more in total compensation than people in the private sector. State and local employees make on average 25% more.

Combined with laws that make it extremely difficult to fire public employees, even for explicit or criminal misconduct, it’s no wonder that hardly anyone leaves.

A CBS News investigation found,

At the Environmental Protection Agency (EPA), red tape is preventing the removal of a top level employee accused of viewing porn two to six hours a day while at work, since 2010. Even though investigators found 7,000 pornographic files on his computer and even caught him watching porn, he remains on the payroll. …

The administrative process meant to prevent against politically motivated firings is the civil servant protection system. The rules give employees the right to appeal a termination, a process that can take up two years. … [CEO Max Stier] said those rules make it nearly impossible to fire poor performers or problematic employees, even when they’ve committed egregious violations. …

A CBS News analysis of cases under review by the Merit System Protection Board (MSPB), an appeals board for federal workers, found other instances of employees who had committed seemingly fireable offenses who were later reinstated to their jobs, often with back pay and interest. …

Five years ago, the General Services Administration (GSA) spent more than $800,000 on a lavish conference in Las Vegas. They were served 1,000 sushi rolls costing $7 each and a clown and mind reader were hired for entertainment. Two managers were initially fired but got their jobs back after the MSPB reversed the decision. …

Firing belligerent or hostile workers is difficult, too. One former manager told CBS News he tried for more than a year to fire an employee who was intimidating co-workers and superiors, at one point even chasing a manager down the hall.

Upset about being reprimanded, the employee sent him numerous menacing emails, including one that read: “I can stand over you to [sic]. I am 6 foot 3 inches and I weigh 265, and I am not backing down. … And by the way, I do know where you live.”

The federal government is not unique in this. Rules vary across cities and states, but thanks to union contracts and special “law enforcement bill of rights,” it’s almost impossible to fire a cop, even for obvious criminal misconduct, let alone ordinary incompetence.

The same is often true for teachers. Thank to tenure, union rules, and other political privileges, firing a bad teacher is really hard. New York City alone spends $22 million a year to keep problem teachers in “rubber rooms,” away from kids, as they bounce around the arbitration process while the city tries to fire them.

Lest you think this is just anecdotal, look at the data on job separations. The turnover rate in government is a third of that in private industry.

Why is that? Because, to a close approximation, nobody quits. The quit rate of government employees is 70% lower than the private sector. (This also rebuts the claim that we should pay public employees so much because they have such hard jobs… that they almost never want to leave.)

And, to a close approximation, nobody gets fired, either. The rate of firing and layoffs for public employees is 71% lower than in the private economy (except for once in the summer of 2010, when states had such massive revenue shortfalls they literally did not have the money to pay them).

If you want, you can choose to believe that government employees are somehow three times more competent, honest, and productive than private employees, but that doesn’t seem very probable. What seems more likely is that government officials are just like the rest of us, but the political system protects their jobs and pays them substantially more than their services would be worth in the private sector.

In general, it’s a sweetheart deal for public employees: make a bunch more money, don’t worry about getting fired or laid off, retire and collect a pension (or two, or three). That doesn’t make them bad people (although it should concern all of us that bad apples are very hard to remove from government).

But neither does that make it a good deal for the people they are ostensibly working for and who are forced through taxes to pay their salary (and pay the costs whenever one of them gets sued for hurting someone).

The fact that public employees never leave is both a cause and a symptom of the problem with government. It makes public services — from police to education to the DMV — less efficient, less productive, and more expensive than they ought to be. But more fundamentally, it exposes the danger of having a government so big that public sector unions can dictate terms to the elected officials who are supposed to represent the taxpayers and the general public.

Daniel BierDaniel Bier

Daniel Bier is the editor of Anything Peaceful. He writes on issues relating to science, civil liberties, and economic freedom.

Is Trump Right that NAFTA Was a “Disaster”? by Donald J. Boudreaux

Assessing the consequences of NAFTA, Mark Thoma says, “For the U.S. – where the Bill Clinton administration sold the agreement as a job-creating policy because U.S. exports would grow by more than its imports – the agreement has not lived up to its promise” (“Is Donald Trump right to call NAFTA a ‘disaster’?” Oct. 5).

Disappointingly, Prof. Thoma writes as if he were a politician rather than the economist that he is. Politicians routinely sell freer trade as a source of net job and export creation. Yet economists since Adam Smith — and ranging across the ideological spectrum from Milton Friedman to Paul Krugman — have consistently rejected such claims as justifications for free trade.

Economists understand that freer trade neither increases nor decreases the total number of jobs in an economy. Instead, freer trade changes the kinds of jobs performed in an economy by shifting jobs from industries that are comparatively inefficient to industries that are comparatively efficient.

Likewise, the correct case for freer trade does not depend upon exports growing by more than imports. First, there’s no reason to expect freer trade to result in such an outcome. Second, such an outcome, should it occur, might well be lamentable for it could reveal that investment opportunities at home are consistently less attractive than are investment opportunities abroad.

Cross-posted from Cafe Hayek.

Donald J. Boudreaux

Donald J. Boudreaux

Donald Boudreaux is a professor of economics at George Mason University, a former FEE president, and the author of Hypocrites and Half-Wits.

Florida: Teacher Uprising against Principal at Miami-Dade Special Education Center?

RoosThere seems to be growing discontent amongst faculty and staff against principal Dr. Tracy Roos (pictured right) at Neva King Cooper Educational Center, a Special Education Center within the Miami-Dade County Public Schools system.

Last week, every teacher received a letter that was mailed to their home purportedly from a Tallahassee-based group, Ethical Educators of America, which was highly critical of Dr. Roos.

The turmoil at the school seems to stem from the removal of the previous principal, Dr. Albert T. Fernandez, and assistant principal, Henny Cristobal, which was determined to be retaliatory by the Florida Department of Education and DOAH Judge Edward T. Bauar.

The decision ended up costing Miami-Dade and Florida taxpayers over $260,000 in legal fees and back pay to Dr. Fernandez.

There is disagreement over some of the content of the letter by teachers speaking on an anonymous basis for fear of retaliation and retribution, but agreement over how Dr. Roos treats her employees.

According to a legal complaint filed recently in state court in Miami-Dade, on April 9, 2013, Principal Roos delivered her sheep’s clothing address to her employees at a staff meeting:

And damn it!  When you see something wrong, speak up!  And I’m pissed, instead of hiding behind your, your little sheep clothing . . .

Could this incident be the “meltdown before the faculty” mentioned in the first page of the letter?

The legal complaint also details how teachers were threatened and/or intimidated and how one teacher was wrongfully terminated and then reinstated by a DOAH judge last May.

Teachers speaking on anonymity disagree on a number of points and offer the following corrections to the letter: that the Region Office did not established the curriculum, it was the District Special Education Office; Dr. Roos was not appointed by the Region but by the School Board; concerning the first paragraph on the second page, it is not true- however, District personnel, not Region, assisted in Dr. Fernandez’s removal; they would have lost over $3 million in funding, the letter states $1 million; the last sentence of the third paragraph on the second page is not true; and it was not a “totally worthless program,” and the program did enhance the students’ lives academically and personally.

Moreover, all parts of the letter which states policy came from the Region Office actually came from the District and/or District’s Special Education Office according to the teachers.

Media inquiries were made to the Florida Department of Education and to Dr. Roos.

So far, no one has commented.

We take no position if the letter is true in whole or in part, that is up to you the reader.

We report, you decide.

RELATED ARTICLE: Miami-Dade Night School Principal arrested for Kickbacks, Bribery

A Higher Minimum Wage Will Make Us Meaner by Scott Sumner

In a recent post, I argued that government monopolies often offered worse service to customers than competitive private firms. In this post (which will have something to offend both progressives and conservatives), I’ll look at a different but related problem.

A few days ago there was a big debate about a New York Times expose on working conditions at Amazon.com. (By the way, it would have been useful for the NYT to compare labor practices at the Seattle company to working conditions at firms operating in the Amazon region of Brazil.)

Many liberals were appalled, while conservatives often wondered why, if working conditions were so bad at Amazon, people didn’t simply “get another job.” I have sympathy for both sides, but probably a bit more for the conservative side.

One liberal objection might be that it’s not easy to get another job. (And perhaps that’s because monetary policy since 2008 has been too contractionary. And perhaps that’s because conservatives have complained about the Fed’s QE/low interest rate policies, which has made the Fed reluctant to do more.)

Regardless of how you feel about monetary policy, it’s clear that if employers feel they have a “captive audience” of workers, who are terrified of losing their jobs, it would be easier for the employer to crack the whip and drive the employees to work extremely hard. One advantage of a healthy job market is that workers have more power to negotiate pleasant working conditions.

But progressives also have some major weaknesses in this area. They tend to favor policies such as New York City’s rent controls, and the new $15 minimum wage being gradually phased in in some western cities.

I like to think of these policies as engines of meanness. They are constructed in such a way that they almost guarantee that Americans will become less polite to each other.

In New York City, landlords with rent controlled units know that the rent is being artificially held far below market, and thus that they would have no trouble finding new tenants if the existing tenant is unhappy. So then have no incentive to upgrade the quality of the apartment, or to quickly fix problems. They do have an incentive to discriminate against minorities that, on average, are more likely to become unemployed, and hence unable to pay the rent. Or young people, who might damage the unit with wild parties.

Wage floors present the same sort of problem as rent ceilings, except that now it’s the demanders who become meaner, not the supplier. Firms that demand labor in Los Angeles in the year 2020 will be able to treat their employees very poorly, and still find lots of people willing to work for $15/hour.

Even worse, this regulation will interact with the migrant flow from Latin America, to produce another set of unanticipated side effects. In some developing countries there is a huge army of unemployed who go to the cities, hoping to get one of the few high wage jobs available in the “formal” sector of the economy. With a $15 minimum wage, migrants will come from Mexico until the disutility of waiting for a good job just balances the expected utility of landing one of those good jobs. You’ll have lots more angry, frustrated, young Mexican illegal immigrants with lots of time on their hands. What could go wrong?

One reason that I am what Miles Kimball calls a “supply-side liberal” is that I believe my preferred policy mix (NGDP targeting, plus free markets) is most likely to produce the sort of “nice” society I grew up with (in Madison, Wisconsin).

This post first appeared at Econlog. ©

Scott Sumner
Scott Sumner

Scott B. Sumner is the director of the Program on Monetary Policy at the Mercatus Center and a professor at Bentley University. He blogs at the Money Illusion and Econlog.

Obama Administration Declares War on Franchisors and Subcontractors by Walter Olson

In a series of unilateral moves, the Obama administration has been introducing an entirely new regime of labor law without benefit of legislation, upending decades’ worth of precedent so as to herd as many workers into unions as possible.

The newest, yesterday, from the National Labor Relations Board, is also probably the most drastic yet: in a case against waste hauler Browning-Ferris Industries, the Board declared that from now on, franchisors and companies that employ subcontractors and temporary staffing agencies will often be treated as if they were really direct employers of those other firms’ workforces: they will be held liable for alleged labor law violations at the other workplaces, and will be under legal compulsion to bargain with unions deemed to represent their staff.

The new test, one of “industrial realities,” will ask whether the remote company has the power, even the potential power, to significantly influence working conditions or wages at the subcontractor or franchisee; a previous test sought to determine whether the remote company exercised “ ‘direct and immediate impact’ on the worker’s terms and conditions — say, if that second company is involved in hiring and determining pay levels.”

This is a really big deal; as our friend Iain Murray puts it at CEI, it has the potential to “set back the clock 40 years, to an era of corporate giants when few people had the option of being their own bosses while pursuing innovative employment arrangements.”

  • A tech start-up currently contracts out for janitorial, cafeteria, and landscaping services. It will now be at legal risk should its hired contractors be later found to have violated labor law in some way, as by improperly resisting unionization. If it wants to avoid this danger of vicarious liability, it may have to fire the outside firms and directly hire workers of its own.
  • A national fast-food chain currently employs only headquarters staff, with franchisees employing all the staff at local restaurants. Union organizers can now insist that it bargain centrally with local organizers, at risk for alleged infractions by the franchisees. To escape, it can either try to replace its franchise model with company-owned outlets — so that it can directly control compliance — or at least try to exert more control over franchisees, twisting their arms to recognize unions or requiring that an agent of the franchiser be on site at all times to monitor labor law compliance.

Writes management-side labor lawyer Jon Hyman:

If staffing agencies and franchisors are now equal under the National Labor Relations Act with their customers and franchisees, then we will see the end of staffing agencies and franchises as viable business models.

Moreover, do not think for a second that this expansion of joint-employer liability will stop at the NLRB. The Department of Labor recently announced that it is exploring a similar expansion of liability for OSHA violations. And the EEOC is similarly exploring the issue for discrimination liability.

And Beth Milito, senior legal counsel at the National Federation of Independent Business, quoted at The Hill: “It will make it much harder for self-employed subcontractors to get jobs.”

What will happen to the thriving white-van culture of small skilled contractors that now provides upward mobility to so many tradespeople? Trade it in for a company van, start punching someone’s clock, and just forget about building a business of your own.

What do advocates of these changes intend to accomplish by destroying the economics of business relationships under which millions of Americans are presently employed? For many, the aim is to force much more of the economy into the mold of large-payroll, unionized employers, a system for which the 1950s are often (wrongly) idealized.

One wonders whether many of the smart New Economy people who bought into the Obama administration’s promises really knew what they were buying.

This post first appeared at Cato.org.

Walter Olson
Walter Olson

Walter Olson is a senior fellow at the Cato Institute’s Center for Constitutional Studies.

New York’s Taxi Cartel Is Collapsing — Now They Want a Bailout! by Jeffrey A. Tucker

An age-old rap against free markets is that they give rise to monopolies that use their power to exploit consumers, crush upstarts, and stifle innovation. It was this perception that led to “trust busting” a century ago, and continues to drive the monopoly-hunting policy at the Federal Trade Commission and the Justice Department.

But if you look around at the real world, you find something different. The actually existing monopolies that do these bad things are created not by markets but by government policy. Think of sectors like education, mail, courts, money, or municipal taxis, and you find a reality that is the opposite of the caricature: public policy creates monopolies while markets bust them.

For generations, economists and some political figures have been trying to bring competition to these sectors, but with limited success. The case of taxis makes the point. There is no way to justify the policies that keep these cartels protected. And yet they persist — or, at least, they have persisted until very recently.

In New York, we are seeing a collapse as inexorable as the fall of the Soviet Union itself. The app economy introduced competition in a surreptitious way. It invited people to sign up to drive people here and there and get paid for it. No more standing in lines on corners or being forced to split fares. You can stay in the coffee shop until you are notified that your car is there.

In less than one year, we’ve seen the astonishing effects. Not only has the price of taxi medallions fallen dramatically from a peak of $1 million, it’s not even clear that there is a market remaining at all for these permits. There hasn’t been a single medallion sale in four months. They are on the verge of becoming scrap metal or collector’s items destined for eBay.

What economists, politicians, lobbyists, writers, and agitators failed to accomplished for many decades, a clever innovation has achieved in just a few years of pushing. No one on the planet could have predicted this collapse just five years ago. Now it is a living fact.

Reason TV does a fantastic job and covering what’s going on with taxis in New York. Now if this model can be applied to all other government-created monopolies, we might see genuine progress toward a truly competitive economy. After all, it turns out that the free market is the best anti-monopoly weapon ever developed.

Jeffrey A. Tucker
Jeffrey A. Tucker

Jeffrey Tucker is Director of Digital Development at FEE, CLO of the startup Liberty.me, and editor at Laissez Faire Books. Author of five books, he speaks at FEE summer seminars and other events. His latest book is Bit by Bit: How P2P Is Freeing the World.  Follow on Twitter and Like on Facebook.

UTD President Fed Ingram (and Superintendent Carvalho) stick it to Miami-Dade Teachers on the Way Out to FEA

Fed and AC

UTD President Fed Ingram (left) and Miami-Dade Superintendent Alberto Carvalho.

As previously reported in another article in January, United Teachers of Dade (UTD) President Fed Ingram is seeking higher office within the Florida Education Association at their annual Delegate Assembly in October.

To assist in this effort, and to apparently put M-DCPS Superintendent Alberto Carvalho in a good light and short change the teachers in the process, UTD negotiated a very bad deal Friday night in which teachers will not be given a step at all over the next two years.

Teachers will be given a definite “salary adjustment” on their current step for this year and a vague, uncertain salary adjustment for the next school year.

Obviously, teachers want their steps as they are four steps down and want to see progression and to truly advance.

Union members received an email Friday night complete with scare tactics of the consequences of voting against it.

“Teachers voted down a bad proposal in the recent past and got a better deal,” says Trevor Colestock, citizen journalist and litigant against M-DCPS. “They are obviously scaring the membership into voting yes by offering two years of security in supposed salary adjustments and minimal healthcare benefits in exchange for giving up their steps which is a raw and very bad deal.  No wonder UTD membership is dwindling and declining. This is just one bad deal following two previous bad ones. It just gets worse and worse.”

FEDruns4FEA-225x300Mr. Colestock goes on to make a very interesting point: “If Fed and UTD could not and would not protect and stand up for me, a decorated and accomplished steward that was correct about the test cheating at Miami Norland Senior High School as outlined in the Final Miami-Dade OIG Report, and stayed silent as I was displaced and currently undergoing litigation while a fellow union member (Emmanuel Fleurantin) was fired and another cheater who was a non-union member (Brenda Muchnick) is still at Norland to this day while teachers who did the very same thing are in jail in Atlanta, how can Fed and UTD stand up and look out for you at the bargaining table?”

“Obviously, given this deal that benefits the District, they did not and cannot, and I am voting no.”

To read the terms of the Tentative Agreement and the scare tactics, click here.

Shawn Beightol pointed out in his recent article that through three straight years of property tax collection surpluses the property tax revenue is available to fund a better deal and to offer a step.

Therefore, why cannot the teachers have a salary adjustment (cost of living) and a step (raise)?

Mr. Carvalho does well for himself as he makes about $318,000; most district administrators make between $150,000-$200,000 a year; and most principals make about $100,000 or more a year.

Miami-Dade teachers are asking: Why cannot the teachers who work the hardest and face the most accountability share in the financial success that the higher ups enjoy?

Mr. Carvalho used to be Fed’s chemistry teacher; apparently, he is still taking Fed to school and both appear to have a low opinion of teachers and their intelligence given this deal according to some.

Teachers may vote no in solidarity and get something better.

EDITORS NOTE: The featured image of UTD President Ingram is from Twitter.

Will Robots Put Everyone Out of Work? by Sandy Ikeda

Will workplace automation make the rich richer and doom the poor?

That could happen soon, warns Paul Solman, economics correspondent for PBS NewsHour. He’s talking to Jerry Kaplan, author of a new book that seems to combine Luddism with fears about inequality.

PAUL SOLMAN: And the age-old fear of displaced workers, says Kaplan, is finally, irrevocably upon us.

JERRY KAPLAN: What happens to people who simply can’t acquire or don’t have the skills that are going to be needed in the new economy?

PAUL SOLMAN: Well, what is going to happen to them?

JERRY KAPLAN: We’re going to see much worse income inequality. And unless we take some humanitarian actions, the truth is, they’re going to starve and live in poverty and then die.

PAUL SOLMAN: Kaplan offers that grim prognosis in a new book, Humans Need Not Apply. He knows, of course, that automation has been replacing labor for 200 years or more, for decades, eliminating relatively high-paying factory jobs in America, and that new jobs have more than kept pace, but not anymore, he says.

I haven’t read Kaplan’s book, but you can get a sense of the issue from this video.

The  fear is that, unlike the past when displaced workers could learn new skills for a different industry, advanced “thinking machines” will soon fill even highly skilled positions, making it that much harder to find a job that pays a decent wage. And while the Luddite argument assumes that the number of jobs in an economy is fixed, the fear now is that whatever jobs may be created will simply be filled by even smarter machines.

This new spin sounds different, but it’s essentially the same old Luddite fallacy on two levels. First, while it’s true that machinery frequently substitutes for labor in the short term, automation tends to complement labor in the long term; and, second, the primary purpose of markets is not to create jobs per se, it is to create successful ventures by satisfying human wants and needs.

While I understand that Kaplan offers some market-oriented solutions, the mainstream media has emphasized the more alarmist aspects of his thesis. The Solmans of the world would like the government to respond with regulations to slow or prevent the introduction of artificial intelligence — or to at least subsidize the kind of major labor-force adjustments that such changes appear to demand.

Short-Term Substitutes, Long-Term Complements

Fortunately, Henry Hazlitt long ago worked out in a clear, careful, and sympathetic way the consequences of innovations on employment in his classic book, Economics in One Lesson. Here’s a brief outline of the chapter relevant to our discussion, “The Curse of Machinery”:

(As Hazlitt notes, not all innovations are “labor-saving.” Many simply improve the quality of output, but let’s put that to one side. Let’s also put aside the very real problem that raising the minimum wage will artificially accelerate the trend toward automation.)

Suppose a person who owns a coat-making business invests in a new machine that makes the same number of coats with half the workers. (Assume for now that all employees work eight-hour days and earn the going wage.) What’s easy to see is that, say, 50 people are laid off; what’s harder to see is that other people will be hired to build that new machine. If the new machine does reduce the business’s cost, however, then presumably it takes fewer than 50 people to build it. If it takes, say, 30 people, there still appears to be a net loss of 20 jobs overall.

But the story doesn’t end there. Assuming the owner doesn’t lower her price for the coats she sells, Hazlitt notes that there are three things she can do with the resulting profit. She can use it to invest in her own business, to invest in some other business, or to spend on consumption goods for herself and others. Whichever she does means more production and thus more employment elsewhere.

Moreover, competition in the coat industry will likely lead her rivals to adopt the labor-saving machinery and to produce more coats. Buying more machines means more employment in the machine-making industry, and producing more coats will, other things equal, lower the price of coats.

Now, buying more machines will probably mean she has to hire more workers to operate or maintain them, and lower coat prices mean that consumers will have more disposable income to spend on goods in general, including coats.

The overall effect is to increase the demand for labor and the number of jobs, which conforms to our historical experience in many industries. So, if all you see are the 50 people initially laid off, well, you’ve missed most of the story.

Despite claims to the contrary, it’s really no different in the case of artificial intelligence.

Machines might substitute for labor in the short term, but in the long term they complement labor and increase its productivity. Yes, new machines used in production will be more sophisticated and do more things than the old ones, but that shouldn’t be surprising; that’s what new machines have done throughout history.

And as I’ve written before in “The Breezes of Creative Destruction,” it usually takes several years for an innovation — even something as currently ubiquitous as smartphones — to permeate an economy. (I would guess that we each could name several people who don’t own one.) This gives people time to adjust by moving, learning new skills, and making new connections. Hazlitt recognizes that not everyone will adjust fully to the new situation, perhaps because of age or disability. He responds,

It is altogether proper — it is, in fact, essential to a full understanding of the problem — that the plight of these groups be recognized, that they be dealt with sympathetically, and that we try to see whether some of the gains from this specialized progress cannot be used to help the victims find a productive role elsewhere.

I’m pretty sure Hazlitt means that voluntary, noncoercive actions and organizations should take the lead in filling this compassionate role.

In any case, what works at the level of a single industry also works across all industries. The same processes that Hazlitt describes will operate as long as markets are left free to adjust. Using government intervention to deliberately stifle change may save the jobs we see, but it will destroy the many more jobs that we don’t see — and worse.

More Jobs, Less Work, Greater Well-Being

Being able to contribute to making one’s own living is probably essential to human happiness. And economic development has indeed meant that we’ve been spending less time working.

Although it’s hard to calculate accurately how many hours per week our ancestors worked — and some claim that people in preindustrial society had more leisure time than industrial workers — the best estimate is that the work week in the United States fell from about 70 hours in 1850 to about 40 hours today. Has this been a bad thing? Has working less led to human misery? Given the track record of relatively free markets, that’s a strange question to ask.

Take, for example, this video by Swedish doctor Hans Rosling about his mother’s washing machine. It’s a wonderful explanation of how this particular machine, sophisticated for its day, enabled his mother to read to him, which helped him to then become a successful scientist.

I had lunch with someone who was recently laid off and whose husband has a fulfilling but low-paying job. Despite this relatively low family income, she was able to fly to New York for a weekend to attend a U2 concert, take a class at an upscale yoga studio in Manhattan, and share a vegan lunch with an old friend. Our grandparents would have been dumbfounded!

As British journalist Matt Ridley puts it in his book The Rational Optimist,

Innovation changes the world but only because it aids the elaboration of the division of labor and encourages the division of time. Forget wars, religions, famines and poems for the moment. This is history’s greatest theme: the metastasis of exchange, specialization and the invention it has called forth, the “creation” of time.

The great accomplishment of the free market is not that it creates jobs (which it does) but that it gives us the time to promote our well-being and to accomplish things no one thought possible.

If using robots raises the productivity of labor, increases output, and expands the amount, quality, and variety of goods each of us can consume — and also lowers the hours we have to work — what’s wrong with that? What’s wrong with working less and having the time to promote the well-being of ourselves and of others?

In a system where people are free to innovate and to adjust to innovation, there will always be enough jobs for whoever wants one; we just won’t need to work as hard in them.

Sandy Ikeda
Sandy Ikeda

Sandy Ikeda is a professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.

Labor Unions Create Unemployment: It’s a Feature, Not a Bug by Sarah Skwire

Did the labor unions goof, or did they get exactly what they want?

Los Angeles has approved a minimum wage hike to $15 an hour. Some of the biggest supporters of that increase were the labor unions. But now that the increase has been approved, the unions are fighting to exempt union labor from that wage hike.

Over at Anything Peaceful, Dan Bier has nicely explained why the unions would do something that seems, at first glance, so nonsensical. But what I want to point out is that this kind of hijinks is not a new invention of 21st century organized labor. Instead, it’s pretty much what labor was organized to do. It’s a feature, not a bug.

Part of the early reasoning for the minimum wage — which originated as a “family wage” or “living wage” — was its intent to allow a worker to “keep his wife and children out of competition with himself” and presumably to keep all other women out of the workforce as well.

Similarly, the labor movement, from the very beginning, meant to protect organized white male labor from competition against black labor, immigrant labor, female labor, and nonunion labor. There are subtleties to this generalization, of course, and labor historian Ruth Milkman identifies four historical waves of the labor movement that have differing commitments (and a lack thereof) to a more diverse vision of labor rights. But unions — like so many other institutions — work on the “get up and bar the door” principle. Get up as high as you can, and then bar the door behind you against any further entrants who might cut into the goodies you have grabbed for yourself.

Labor union expert Charles Baird notes,

Unions depend on capture. They try to capture employers by cutting them off from alternative sources of labor; they try to capture workers by eliminating union-free employment alternatives; and they try to capture customers by eliminating union-free producers. Successful capture generates monopoly gains for unions.

Protection is the name of the game.

Unsurprisingly, the unions made sure to be involved when, about 50 years before the 1970s push for an equal rights amendment, there was another push for an ERA in the United States. Written by suffragist leader Alice Paul, the amendment was an attempt to leverage the newly recognized voting power of women into a policy that guaranteed men and women shall have equal rights throughout the United States and every place under its jurisdiction.” This amendment would have prevented various gender-based inequities that the courts supported at the time — like hugely different hourly wages for male and female workers, limits on the number of hours women could work, limits on when women could work (night shifts were seen as particularly dangerous for women’s health and welfare), and limits on the kinds of work women could do.

Reporting on the debates over the ERA in 1924, Doris Stevens noted three main objections to the amendment:

First, there was the familiar plea for gradual, rather than sweeping change.

Second, there were concerns over lost pensions for widows and mothers.

And in Stevens’s words,

The final objection says: Grant political, social, and civil equality to women, but do not give equality to women in industry.… Here lies the heart of the whole controversy. It is not astonishing, but very intelligent indeed, that the battle should center on the point of woman’s right to sell her labor on the same terms as man. For unless she is able equally to compete, to earn, to control, and to invest her money, unless in short woman’s economic position is made more secure, certainly she cannot establish equality in fact. She will have won merely the shadow of power without essential and authentic substance.

Suffragist Rheta Childe Dorr (in Good Housekeeping, of all places. How the mighty have fallen!) pointed out again the logic behind labor’s opposition to the equal rights amendment:

The labor unions are most opposed to this law, for few unions want women to advance in skilled trades. The Women’s Trade Union League, controlled and to a large extent supported by the men’s unions, opposes it. Of course, the welfare organizations oppose it, for it frees women wage earners from the police power of the old laws. But I pray that public opinion, especially that of the club women, will support it. It’s the first law yet proposed that gives working women a man’s chance industrially. “No men’s labor unions, no leisure class women, no uniformed legislators have a right to govern our lives without our consent,” the women declare, and I think they are dead right about it.

Organized labor — founded to ensure the collective right to contract — refused to stand up for the right of individual women to contract. From their point of view, it was only sensible. And, perhaps most importantly, women in organized labor refused to stand up for the women outside the unions.

Organized male and female labor’s fight against the ERA was at least as much about protectionism as it was about sexism. Maybe more. Women’s rights and union activist Ethel M. Smith attended the debates on the ERA to report on it for the Life and Labor Bulletin, and found that union workers did not even attempt to gloss over their protectionist agenda:

Miss Mary Goff of the International Ladies’ Garment Workers Union, emphasized the seriousness of the effect upon organized establishments were legal restrictions upon hours of labor removed from the unorganized. “The organized women workers,” she said, “need the labor laws to protect them from the competition of the unorganized. Where my union, for instance, may have secured for me a 44-hour week, how long could they maintain it if there were unlimited hours for other workers? Unfortunately, there are hundreds of thousands of unorganized working women in New York who would undoubtedly be working 10 hours a day but for the 9-hour law of New York.”

So labor unions excluded women as long as they could, then let in a privileged few and barred the doors behind them. And they continue to use the same tactics today in LA and elsewhere.

How long can they keep it up?


Sarah Skwire

Sarah Skwire is a senior fellow at Liberty Fund, Inc. She is a poet and author of the writing textbook Writing with a Thesis.