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Cut Off the Checks -- America's Businesses Need Workers
Townhall.com ^ | June 17, 2021 | Laura Hollis

Posted on 06/17/2021 5:14:04 AM PDT by Kaslin

Like a lot of other Americans, I have been shocked in recent weeks at the number of businesses that cannot find workers. My daughter and I stopped at a fast-food restaurant here in South Bend, Indiana, two weeks ago on our way home from Chicago. After waiting 40 minutes in the drive-thru line, the beleaguered employee at the window handed us our food and apologized profusely. "I'm so sorry. We are way understaffed," he explained. "I have to close the store." This was 5:30 on a Saturday evening. How much money did that particular store lose, having to close for lack of staff in the middle of the dinner hour on a weekend night?

In South Bend and the surrounding areas, it seems like every store, every restaurant, every retail establishment of any kind is advertising for workers. And it's the same story across the country. Last week, my family and I drove to Mississippi for a family wedding. We saw "Help Wanted" signs everywhere on the trip and at our destination. When I joined a good friend at her country club for lunch, she described a similar situation there: The club desperately needs wait staff and cannot find help.

The availability of jobs should be good news, and in some respects, it is. The country is pulling out of the horrible COVID-19 pandemic, and those businesses which did not go under as a result of the lockdowns have reopened and are once again serving customers and clients. At the same time, they cannot get back to normal without employees, and from small towns to big cities, businesses are struggling to find them.

It's possible that some people remain concerned about returning to the workplace, fearing the coronavirus, notwithstanding the widespread availability of vaccines. But an equally likely cause is the money that has been flowing from the federal government to unemployed Americans. Those payments were originally intended to help workers who lost jobs as a result of the COVID-19 lockdowns, and they were much needed in 2020. But even last year, in the throes of the lockdowns, we were being warned that many workers in the retail, hospitality and restaurant segments of the economy were going to be making more money with the federal income supplements than they would when -- or if -- they returned to work.

Those are exactly the workers whose absence is being sorely felt now.

The continued insistence on making payments feels very much like a test run for "Universal Basic Income," or "UBI" -- a monthly check sent to every adult from the federal government. UBI is an idea that has gained popularity since the COVID-19 lockdowns shuttered so many businesses. Indeed, New York mayoral candidate Andrew Yang has been pushing for UBI since his 2020 presidential run.

Professors Melissa Kearney and Magne Mogstad wrote a straightforward article in Business Insider in 2019, explaining why UBI would fail to achieve any of the goals its advocates tout: It would not eliminate income inequality, raise stagnating wages or offset the impact of jobs lost to automation. And it would likely bankrupt the government.

But the federal government's payments during the COVID-19 lockdowns have provided concrete evidence of additional reasons why UBI would be economically disastrous: If you pay people not to work, many will not work. The lost capacity for human growth and development when people do not have gainful employment is immeasurable. What is measurable is the economic loss; our businesses cannot grow without employees.

We now know that one of the greatest determinants of economic development in any country is not just business creation, but business growth. In other words, without workers in front-facing jobs in food services, hospitality and retail, hundreds of thousands of enterprises will stagnate, and take the economy with them. As much as everyone thinks "high-tech" drives the economic bus in the United States (and elsewhere), neither our economy nor our society writ large can survive on Facebook, Apple, Google, TikTok and YouTube. We need restaurants, grocery stores, plumbers, car mechanics, roofers, electricians, dentists and innumerable other businesses. And those businesses need employees.

Politicians in general (and Democrats in particular) are infamous for promoting policies that sound good, without regard to the negative consequences. Classic examples are welfare -- part of the "War on Poverty" -- which has done catastrophic damage to the Black family while doing virtually nothing to lift people out of poverty, and closing mental hospitals, which had had the decidedly uncompassionate effect of throwing hundreds of thousands of mentally ill and drug-addicted Americans out on the streets. The New York Times wrote -- in 1984! -- that the decision to close mental hospitals was a terrible mistake. And yet here we are, 37 years later, still suffering the aftermath of those policy decisions.

Bad policy is often wrapped in unassailable terms like "compassion." This is a cheap ploy to avoid having the difficult conversations about the long-term desirability of whatever is being called for; who wants to be seen as uncompassionate? But no analysis of any policy is complete without taking human nature into account, and the incentives and disincentives created by whatever laws or regulations are being sold as the latest cure-all for deeply difficult societal problems.

We've been taken in by gladhanding politicians and "experts" enough times that we should know better. Americans must look past the sales pitch and consider the actual effects of any policies activists are clamoring for.

The checks from the federal government served their purpose. It's time to cut them off, bury the idea of UBI and let Americans get back to work.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: coronavirus; covid19; covidlockdown; ubi; unemployment
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1 posted on 06/17/2021 5:14:04 AM PDT by Kaslin
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To: Kaslin

Then there are those who want a job (employment?) but don’t want to work
A shift in attitude?


2 posted on 06/17/2021 5:18:26 AM PDT by griswold3 (NBA/ Plumlee Ball. = poor entertainment value while insulting the audience gets you broke )
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To: Kaslin

I see panhandlers all over, on streets with NOW HIRING SIGNS, they don’t want jobs.


3 posted on 06/17/2021 5:29:17 AM PDT by GailA (Constitution vs evil Treasonous political Apparatchiks, Constitutional Conservative.)
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To: Kaslin

There is no shortage of workers. There is only a shortage of workers who are not “too old” and who are willing to work for low wages.


4 posted on 06/17/2021 5:30:56 AM PDT by devere
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To: Kaslin; All
There is a secondary effect here as well. People who stuck it out in these jobs during peak covid are abandoning them for higher paying jobs that are readily available making the staffing situation even worse.

4 million people quit their jobs in April, sparked by confidence they can find better work (CNBC)

5 posted on 06/17/2021 5:34:15 AM PDT by newzjunkey (America First - bring on Giant Meteor in 2021)
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To: Kaslin

Do you really want to hire someone who is more comfortable on the dole?....


6 posted on 06/17/2021 5:40:00 AM PDT by taildragger ("Do you hear the people Singing? Singing the Songs of Angry Men!")
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To: Kaslin
In South Bend and the surrounding areas, it seems like every store, every restaurant, every retail establishment of any kind is advertising for workers.

It's always restaurants and retail that are mentioned as having problems getting people. What about manufacturing, warehouses, office work, and the like? Are they experiencing a worker shortage as well?

7 posted on 06/17/2021 5:40:34 AM PDT by DoodleDawg
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To: Kaslin

I have been looking for work for 10 months, am willing to work for less than half what I was making in my previous job, and haven’t been hired due to my age. A manager at a famous American company tried to hire me, and was stopped by his senior management. So there are problems here in America other than lazy workers.


8 posted on 06/17/2021 5:42:02 AM PDT by devere
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To: Kaslin

Now that MAGA is destroyed and China is in charge, who cares?

Build Back Better. One giant Uighur slave camp.


9 posted on 06/17/2021 5:42:11 AM PDT by Empire_of_Liberty
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To: griswold3

Couple local signs of ‘interest’

At a Nursery/Landscaping Business

NOW HIRING

below, about 4 panels down

WE ISSUE STIMULUS CHECKS EVERY WEDNESDAY....apply within

JUST up the street

MERRY MAIDs..... now hiring
next to it
FOOD DISTRIBUTION Sat

MM shares building with a ‘storefront church’.

There was a time that some may try to get the job with MM hoping the food distribution may be part of the deal...

Can only imagine which sign attracts more people...(HA)


10 posted on 06/17/2021 5:43:38 AM PDT by xrmusn (6/98 "Message to GOP "GO FUnd YOURSELF")
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To: Kaslin

The government says you needn’t pay your rent, and pays you not to work. What could go wrong?


11 posted on 06/17/2021 5:47:11 AM PDT by Spok (There are many more things that frighten us than can cause us harm.)
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To: GailA

Same here.

Most look like in decent shape guys.

I’d like to be a professional bum but for some reason I have standards and despise moochers.


12 posted on 06/17/2021 5:47:58 AM PDT by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: Kaslin

There are a nominal number of people who want to work for someone else. Small businesses that are small enough have family workers, frequently working overtime. Businesses that recruit and hire and pay top dollar (think Chick Fila) are doing well enough, and will do better than struggling competitors. Example, long lines at Chick Fila are tolerated by customers because the lines move quickly, with an organized, pleasant, and numerous young motivated staff. On occasion driving thru other fast food lines, long because of inefficiency and some marginal workers, i have seen vehicles pull out of line because the line is too long for too long. Two places I stopped going to because orders are always wrong, and a simple thing like iced tea tasted like dish water.
Wherever i shop, I always say ‘Thank you for being here’, even for a marginal effort. To acknowledge and encourage someone that DID show up.
People that would otherwise need to work have figured out how to survive with less, without a job or paycheck, and aren’t motivated to do anything


13 posted on 06/17/2021 5:51:13 AM PDT by drSteve78 (Je suis deplorable. WE'RE NOT GOING TO TAKE IT ANYMORE)
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To: Kaslin

I went to a restaurant late one Monday evening last month, and there was *one* guy trying to wait on about 20 tables.


14 posted on 06/17/2021 5:53:19 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: Kaslin

Reminds of the old “Hippy Dippy Weatherman” singing:

“We don’t want no war
We don’t want no war
We don’t want no jobs neither”


15 posted on 06/17/2021 5:53:39 AM PDT by P.O.E. (Pray for America)
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To: devere

I drive by a McDonalds advertising $12/hr to start. Not low wages for that type of work. People who might do the jobs just don’t want to work or have passed it up for something else.

Walk into many Kroger grocery stores in ATL and expect lines during peak times because they can’t hire or retain good workers, even fresh high school grads are jumping on better options. When asked it seems the stores have no flexibility in changing pay since it’s locked into a multiyear union contract. Who wants to work at an understaffed store for $9-$10/hr when they can jump to another job so easily?

The enhanced unemployment is overdue to have ended. I can’t help but think Trump would’ve had a better plan in place to return to normal. Joe’s admin is trying to use it for economic transformation and probably test ubi as the article claims. If mismanaged, we’re looking at ugly economic times but they and their media allies will Baghdad Bob us so we’ll never know the truth before the midterms.

Looks like the coin shortage is back too.


16 posted on 06/17/2021 5:53:43 AM PDT by newzjunkey (America First - bring on Giant Meteor in 2021)
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To: DoodleDawg

Armored car companies, post office, I have hear all types complaining about shortages of workers.


17 posted on 06/17/2021 5:58:34 AM PDT by newzjunkey (America First - bring on Giant Meteor in 2021)
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To: Kaslin

3 fast food restaurants here had ‘lobby closed due to short staffing’ signs. Talked to one of the managers. She said the covid closings of lobbies helped her for a while. Been short staffed for months.


18 posted on 06/17/2021 6:07:10 AM PDT by FredSchwartz (What ever happened to common sense and simple logic?)
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To: xrmusn

On Sunday, $17/HOUR TO START on a McDonald’s sign near here.


19 posted on 06/17/2021 6:08:33 AM PDT by NEMDF
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To: Empire_of_Liberty
"One giant Uighur slave camp."

I am a Uighur!

Wait... that doesn't sound quite right 😕...

20 posted on 06/17/2021 6:15:05 AM PDT by Does so (The Media is the enemy of the people...Trial lawyers close behind...)
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