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July 08, 2010

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I'm still struggling to find any evidence for this quote:

"Which story is true, mine or Reich's? Both are. But which story is right? The economy naturally wants to create jobs for people, but in too many cases the government says those jobs are illegal."

It's illegal for you to work for less than a wage that federal government determines is the minimum allowed, unless your employer is your family.

Second, it's illegal for you to work without various insurances a company must provide for you, even if you prefer higher wages instead of the protections. If the employer doesn't offer the protections, then the job is illegal.

"Outsizing" (making a job you offer come through a contract entity) isn't the answer, but the reality (like George in Reich's article); because it is difficult to compete in the world arena with lower-paid well-qualified "out-sources", the American worker will be reducing his/her standard of living. As a small business owner over the past 30 years there have been some years that I took less than the equivalent minimum wage home, but my employees still made their salaries/benefits. They are not greatly paid, but receive bonuses when times are good. I take the risk, we all share the reward. I like it that way -- I am energized by creating and achieving. My bills get paid, I don't overcommit and love what I do. My employees are happy and very loyal. I believe that most small businesses are run this way.. The very large ones depend on crony capitalism to continue their greed and power. Our elected officials cave in to this to keep their power. Government needs to only regulate the big boys, not us small businesses.

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It is amazing how entrepreneurs are in fact turning to contracting work instead of hiring workers. It is the easier way to do it, if not the most fair. Yet, as noted, being an employer is a lot like running an obstacle course in DC traffic.

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