Jan 9, 2011
Chris Bedford returns to talk about what is going on since we last talked. In that time frame he has continued work on his local farmers market, worked as a community activist, and is currently working with a committee on bringing a TED Conference to a nearby college.... what have you been doing since Chris was last on our show?
We also wander off into many other topics worthy of discussion, of course, the most notable side discussion is our chat about the Governor of New Jersey Chris Christie. Chris Bedford shared some insightful analysis from someone who was a union activist for many years.
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A lot of tomatoes in California are grown in greenhouses, so that aspect would be a wash. With a greenhouse you can grow year around which is a big win.
I have to add an addendum to the previous comment. There is a world of difference between CEO pay in a private non-government supported corporation, and a Crony-Capitalist government-supported corporation like Goldman Sachs; obviously, we as taxpayers should care what government supported corporation CEO pay is, just as we should care about teacher union pay; however, this is the slippery slope of government bailouts - if this wasn't a Crony Capitalist system we wouldn't have to be monitoring CEO pay! So that is one clarification.
Secondly, regarding the wage declines and wealth inequality, as I mentioned Free Trade with slave labor countries is obviously causing some of these price declines, and in a lesser extent immigration policies. If you want wages to increase you need to tariff Asia, Africa, India, and that would force wages up. Unionizing in a free trade environment will simply cause exactly what has happened - everyone say's See Ya' America, Hello Asia!
Steve, first, I am no union expert. It is a free country so people have the right to unionize; however, the government is not a "for profit" business, so there is just no reason for unions there. Because what has happened is that the politicians (Democratic party traditionally) are now in bed with the public unions. But as I have said, your talking about Public Servants - they serve the people, and if they don't like the pay they can move along.
Your point about wealth inequality is sort of an if/then fallacy, there are other reasons for wealth inequality and CEO pay than drawing a straight line to unions. What about the fact that corporations are now multi-national and derive huge overseas profits, that should add to CEO pay correct? I am not sure what your theory is to why unions now have less power - though I would attribute it to free trade resulting in competition with overseas labor.
Other theory's I have for wealth inequality that has nothing to do with unions, would be 1. The country has been flooded with unskilled immigrants who earn low wages and distort the stats. 2. There is less land, resources, cheap oil, etc. now for the average American to "create wealth" with than in the 70's.
But in the end, the CEO pay comes down to a free market correct? What do you care what a CEO makes? Why do you care? Its not your company, there are shareholders and a board of directors that regulate what a CEO gets paid, and outside of that circle it is really no ones business or concern. It seems to me the people who care about CEO pay are the typical "give me" Democrat types, who want something for free, and say look at all that money that CEO got, not fair, I want some!
I just heard an amazing stat from Gary Shilling and had to mention it on this post. Public Sector Jobs are 40% Union compared to 7% Private Sector - talk about a corrupt joke of a system - there is absolutely no reason for this discepency, and no reason for public SERVANT unions.
I just listened to this interview again, and the second half really touches on some great points, and Chris sounds like a great guy in the work he is doing.
Steve, you and Chris talk about the bankers midway like they are the problem; there is a federal problem and state problem. The state of New Jersey is in its current situation because of Unions and public worker benefits 100% - nothing to do with wall st or bankers. So as far as Chris Christie pointing the finger, he has nothing to do with Wall St., his problems are due to unions and pensions. Wake Up.
Look, around 21:00 Chris is talking about how the unions should try to work with the state; I'm sorry but screw that, as Mish has said there should be NO public unions. If you want to be a "Public Servant" that is your deal, no one is forced into it, and there is absolutely no need for unions.