Skip to main contentSkip to navigationSkip to search

Combating Obstacles

1. Obstacle 1: "Businesses Will Close! / Move Overseas!"

Response:

  • Most Businesses Can't Move: (Restaurants, retail, healthcare, and construction - must be local)
  • Manufacturing: Can be moved, but...
    • Tariffs: On companies that offshore (100% tariff on goods made by companies that moved jobs overseas)
    • Clawbacks: Must repay all tax breaks, subsidies
    • Exit Fees: Compensate community
    • Result: More expensive to move than to stay, pay fair wages
  • Evidence: Nordic countries have strong labor laws, haven't seen mass exodus (because productivity is high, workers are skilled, markets are valuable)

2. Obstacle 2: "Small Businesses Can't Afford $41/hr!"

Response:

  • Tax Credits: Small businesses (<100 employees) get federal tax credits to offset wage increases
    • Example: Small restaurant, 20 employees, each gets $7/hour raise
      • Cost: 20 × $7 × 2,080 hours = $291,200/year
      • Tax Credit: $200,000 (federal - covers most of increase)
  • Phased Implementation: 3 years to reach $27/hour (businesses have time to adjust)
  • Customers Have More Money: Higher wages → more consumer spending → more business (offsets wage costs)

Evidence:

  • Seattle: Raised minimum to $15/hour (2014-2017)
    • Result: Restaurant employment increased (contrary to predictions)
    • Why: Workers had more money and ate out more

3. Obstacle 3: "Inflation Will Explode"

Response:

  • Demand-Pull Inflation: (From more consumer spending) - yes, some
    • Estimate: 2-3% additional inflation (over 3 years)
    • But: Wages index to inflation (COLA), so workers protected
  • Cost-Push Inflation: (From higher labor costs) - minimal
    • Labor is 25-30% of Costs: (For most businesses)
    • $10/hour Raise: Increases labor costs ~30% (from $20 to $30)
    • 30% Increase in 25% of costs: = 7.5% total cost increase
    • Prices Increase: ~5-7% (businesses absorb some, pass some to consumers)
    • But Workers' Wages Increased 35%: ($20 to $30), so net gain

Evidence:

  • Nordic Countries: High minimum wages and low inflation (because productivity is high, economies are efficient)

4. Obstacle 4: "Automation Will Replace Workers"

Response:

  • Automation Consultation: Workers must approve automation (50% board seats, sectoral bargaining includes automation clauses)
  • Retraining Guaranteed: If automation happens, then workers get free retraining + guaranteed jobs in other divisions (see 'Reskill, Not Abandon for re-skilling )
  • Automation is Already Happening: Regardless of wages (fast food kiosks, self-checkout - happening because technology improves, not because of wages)
  • High Wages Fund Automation Gradually: Not a shock (companies invest in automation over time, workers transition)

Evidence:

  • Denmark: Has a robot density 2x U.S. (robots per worker), but unemployment is 5% (same as U.S.)
    • Why: Robots complement workers (don't replace), and strong unions negotiate for retraining

5. Obstacle 5 "Union Corruption"

Response:

  • Some Unions are Corrupt: True (Teamsters in 1970s, etc.)
  • Solution: Democracy
    • Member-run Unions: Elections, transparency, and accountability
    • Department of Labor Oversight: For financial malfeasance (already exists, strengthen it)
  • Corrupt Unions Are Better Than No Unions:
    • Union Wage Premium: 10-20% (even with corrupt leadership, workers earn more)
    • Non-Corrupt Unions: Even better (30-40% wage premium)

Evidence:

  • Most Unions aren't Corrupt: (Teachers, nurses, and machinists, etc. - democratically run, effective)
  • Corporate Propaganda: Exaggerates corruption (to discredit all unions)

6. Obstacle 6 "Workers Don't Want Unions"

Response:

  • Polls Show: 60% of workers want unions (Gallup, 2023)
  • But Only 10% Have Unions: Why?
    • Employer Intimidation: Workers were fired and threatened (so they vote no even though they want union)
    • Delay Tactics: By time election happens, workers are scared
  • With Card Check: No employer intimidation (just sign card, union recognized)
    • Expect: Union density shoots to 50%+ (repressed demand unleashed)

Evidence:

  • Canada: Has card check in some provinces
    • Union Density: 30% (vs. 10% in U.S.)
    • Why: Card check makes organizing possible

7. Obstacle 7 "Constitutional Challenges"

Response:

  • Commerce Clause: Congress has authority to regulate interstate commerce (includes labor)
    • Precedent: Fair Labor Standards Act (minimum wage, overtime) - upheld by Supreme Court
  • If the Supreme Court Strikes It Down: Pass constitutional amendment
    • 28th Amendment: "Workers have the right to organize, bargain collectively, and strike. Congress shall have power to enforce this article by appropriate legislation."
    • Requires: 2/3 of Congress, 3/4 of states (difficult, but possible with mass movement)