Originally Posted by Rouger2
Enron happened because Enron basically wrote their own regulations. Enron was in the meetings and wrote the regulations for the regulators. Senator Grams wife was one of the regulators that helped with that. What they did was lift the regulations that were in place. So they let a non competitive industry with out regulations charge what ever prices it want to charge so they ripped off California. If there is no competiton in a market to control prices you have monopoly pricing like Enron had. The housing crisis happened because of lax regulations of banking and morgage industry. The unions have shed blood over the rights they have gotten. Rights such as safetly regulations, no child labor, 40 hr work week, time and half for overtime enviromental protections. Withouit labor union capitalism in this country would never have made it.
Wrote their own regulations? That means that they used government regulations to their advantage - precisely what I'm opposed to! As with much regulation, the laws in place laws created warped lure for accounting firms to avoid showing any financial problems, while complying with the law, keeping their gainful professional relationships with public companies.
The sub-prime crisis was largely created by the Fed and the CRA which pressured banks to give more loans to "riskier" borrowers.
Oh dear, unions shed blood
I'll break this up into parts.
Because of competition the American workplace has become safer, not union-backed regulation. It's quite simple. An unsafe workplace can be costly to employers because they must pay a compensating difference to draw laborers. Thus, employers must have a big interest in advancing workplace safety. Also, employers must endure the costs of lost work, training new employees, and the threat of lawsuits. Furthermore, the American workplace has become much safer simply because of new technology, such as robots. Oddly many unions oppose such improvements.
Competition is also why "child labor" was eradicated, not unions. Originally children left the farms to work in rough factory conditions because it was nothing more than a matter of survival for them and their families. Howevert as workers became better paid (thanks to investment and ensuing productivity) more and more families could afford to keep their children at home and in school.
Legislation prohibiting child labor only came after
the decline in child labor had already started. Look it up. Only 6% of children were in the workforce when the first federal laws were passed, and 2/3rds of said children worked on farms -which is still legal! Regardless, child labor laws are horrible.
40 Hour Work Week:
As the marginal productivity of labor increased over time, (due to more capital investment) less work was needed to produce the same amount of output. As competition became more stark, employers competed for the best employees by offering both better pay and shorter hours. Thus, employers who were unwilling to offer shorter work weeks and/or better wages would quickly become uncompetitive.
Labor unions are destroying America and it is incredibly silly to think that a country, that was founded and became quite successful without them, wouldn't be able to continue without them. Because of the horrible nature of unions (and power vested into them) they've effectively created a tax on capital investment in the United States.