Incentives
Carrots for the Rich, Sticks for the Poor
I saw a comment the other day and I don’t know who said it. But it’s true.
If you want to incentivize the rich, you give them money.
If you want to incentivize the poor, you take their money away.
It’s obvious when you look at it.
High taxes on the rich will take away their incentives to invest and make money. So they say. Reduce taxes and give them money!
Giving unemployment benefits and COVID relief to the poor will remove their incentives to work. So they say. Take away their unemployment benefits so they have to work!
Last year, when the pandemic hit, companies cut jobs like they were going out of style. I will never forget the front page of the New York Times last year on March 27th:
I stared at that line on the far right for what seemed like hours. I was shocked. That was the opening salvo for week after week of job losses. What did the majority of Corporate America do when the pandemic reared its ugly head? They fired people.
It was hard for everyone, but it was really hard for working people. I’m lucky and blessed, and I know it. I have been laid off during two previous recessions, and believe me, I had PTSD. I felt for these people. I still do.
Thankfully, the CARES act helped many people and made it a bit easier to weather the storm.
Without downplaying the absolute soul-crushing anxiety of being out of work, the feeling of being cut loose and set adrift, and the uncertainty of where all this will lead, there were some positives: being at home with the kids, being at home with your significant other, getting to know your pets, learning to cook, learning a new skill, not setting out every day on yet another crazy commute, and not having The Man own your time, which is especially true for low-paid jobs like retail and food service. I think a lot of people started to wonder about how much of the grind is worth it.
And now, which industries are crying about “not finding people?” Hospitality. Retail. Food service. You know, the ones that cut these folks adrift fourteen months ago. This article from Politico sums up the situation well. It’s worth the read. From the article:
At least 14 states, including North Dakota, Alabama and South Carolina, have moved to cut off enhanced federal jobless benefits that were supposed to last until September. Florida is among roughly 30 states reinstating a requirement that the unemployed prove they are looking for work to receive state benefits. Montana is offering return-to-work bonuses to unemployment recipients who accept a job offer. Amazon, McDonald's and Chipotle are hiking wages, as is Tyson Foods, which will also start allowing more flexible work schedules.
At least Montana is trying the “rich man” incentive theory. Fourteen states are moving to just cut people off! “That’ll show those freeloading bastards” cries Simon Legree of FU Food Services, Inc., in Lynching Tree, Nebraska.
Meanwhile, while the folks these people are trying to hire are supposedly basking in the luxury of $300 per week, America’s 722 billionaires are $1,200,000,000,000 richer since the pandemic began. That’s $1.2 Trillion. That’s roughly $23 Million per billionaire per week of the pandemic. And they’re crying about 300 bucks?
I say give these people a break.
You know what, Corporate America? You want your jobs filled? Here is a two step plan:
Pay them.
Treat them right
Don’t worry: Your bosses have enough money to pay them.