Monday, September 29, 2014

It's why you write for a website, not a newspaper, Joel

The Seattle PI's wundercolumnist, Joel Connelly, mangles the facts, once again;
“The rich are not job creators . . . The job creators are not people at the top, but those at the middle and below,” said Reich, one of the nation’s highest profile and most progressive economists.
In fact Robert Reich is not an economist at all, but a lawyer like his friends Bill and Hillary Clinton. Here's a big fat clue that he isn't--as well as one that Connelly is less than a diligent fact checker;
Reich has formed a kind of troika with two local men — entrepreneur Nick Hanauer and Service Employees International Union leader David Rolf — in raining down criticism on the failed doctrine known as  “trickle down” economics.
There is no such doctrine. The term of abuse, trickle down economics, is purely an invention of socialists (who should, more legitimately, apply it to their own enthusiasms: Give us more of America's income in tax revenue and we'll see that it trickles down to the poor, the halt and the lame.).

Here's another clue;
Reich is a master at the art of argument.  He goes back a century to lionize auto maker Henry Ford, who raised wages to his workers — and pressured other manufacturers to pay a decent wage — out of the calculated self-interest that they would be able to buy his Model-T’s.
If Reich is a master of anything, it's duping ignorant and intellectually lazy columnists with deadlines to meet.
Henry Ford decided to pay his workforce more than they could get elsewhere--i.e., from his competitors--because he wanted to have the most productive assembly lines going. To do that he needed the most productive workers--another way he insured that was to hire private detectives to spy on their private lives, Joel.

Not, as Connelly has it, because the wanted his workers to buy his cars--that would have sold, at most, only a few thousand Model Ts, of the half million he produced each year. Exercise for the reader: How many Boeing workers, with their high wages, can afford to buy their own 777s?
The economics professor served four years as Secretary of Labor under President Bill Clinton.  He has been a Friend of Bill since the two men met on a boat carrying both to England where they were Rhodes Scholars.  Clinton brought chicken soup to a seasick Reich.
That paragraph above is a twofer. Reich is not an 'economics professor', but more laughably; you treat seasickness with chicken soup!


  1. Clear chicken soup, never with noodles.

  2. Good piece, but you missed the main reason Ford paid his workers more -- they were more productive!

    The reason the American industrial worker of the 1920s-1970s was so well-off relative to historical or global norms was their astounding relative productivity. Today we're so used to the idea of tons of value-added goods pouring out of factories that it's easy to forget what an enormously beneficial change industrialization was.

  3. Although, you did say he "wanted" more productive workers, so probably I'm splitting a hair too fine there. I guess my main point was just that industrialists created enormous wealth for workers.