Thus it can be said that inefficient or non-productive labor for our own consumption here at home is a practice to be reduced or eliminated and additionally, labor--jobs--for export products and services, while importing dollars, will give us no more goods and services of our own production to buy and prices will rise, except of course those to be purchased from other countries that can produce them at a lower cost. This practice is a prime cause of our two to three hundred billion dollar deficit since we are having other countries produce our needs. It is also a cause of our unemployment problems and of the lowering of our standard of living. Again, the highest standard of living requires producing our own needs with the greatest efficiency, which implies the lowest expenditure of the detraction, labor.
The frivolous production of an excess variety of choices of goods and services we may purchase requires that there be a necessary control by such a watchdog agency as The Department of Efficiency previously suggested. Nothing is gained, from a human welfare standpoint, by the number of similar makes and models of automobiles available, for example, nor are the slight changes in design each year to be commended. Such practices are associated with the prevalent drive to create a product to be sold, without regard to very high labor output and little, if any, human welfare advantage. While there must be several general classifications of quality and performance in available vehicles, for example, to cover various logical requirements, and with the maximum in parts standardization, the duplication of plant, equipment, sales, and management to produce two or more products of comparable or identical choice cannot be justified and becomes frivolous. Again, the quest for the highest standard of living requires producing our needs with the highest efficiency, which implies the lowest expenditure of labor. Setting up two or more business operations to compete in a quest for a profit at any extreme labor cost is untenable.
We have previously discussed the inefficient manufacture and sales techniques in practice in the case of brake fluid hoses. This example can be duplicated many, many times over when considering all of the parts required in two or more similar vehicles of different manufacture. Actually, in the competition between companies, the variation in construction is sought-after as a guarantee of parts sales at forced higher prices, which can be an important segment of business profit. Here again, the cost in human labor is disregarded and immaterial from a present business standpoint and this attitude must be addressed and corrected, either within or outside the business community. Labor efficiency must be made a primary driving force.
The Law of Supply and Demand is ever-present in our daily lives and involves merely a changing relationship between supply and demand that is self-correcting if not tampered with by overzealous "economists". It has become fashionable to look upon 'inflation', the upward trend of prices caused properly by a temporary shortage of supply of goods or excess of currency in circulation, as a negative element in the smooth operation of the economy and to control it artificially, trying to hold it to what is considered at the time to be a low level for purposes of encouraging borrowing, to 'increase economic growth' and proliferate 'jobs'.
It was previously explained that societal living 'involves a division of work; a thrust toward a good living for all by each worker producing his/her contribution toward the whole and receiving payment proportional to its importance'. Those payments are not only for the satisfaction of daily needs but are additionally a savings fund to be stored for later life. A fund stored with this objective should be available to lend to others at the prevailing unregulated interest rate as a source of further income. If interest rates are held to artificially low levels, the incentive for working additional hours to earn extra funds is defeated. These additional hours will have the effect of increasing production on the particular items in short supply while their prices are high, thus tending to properly balance Supply and Demand. It can also be said that the intended purpose of artificially holding the interest rate down, (stopping 'inflation'), is to 'stimulate business activity' in general, which involves the detraction, 'jobs', where they are probably not wanted or desired; (We need no more companies starting up on low-interest loans to duplicate car models and parts). Thus the objective of artificially-induces low interest rates is misguided.
There are occasions where poor government policy or management can be the actual cause of unjustifiable and damaging inflation. In the late 1970's and early 1980's the labor unions put on a very heavy drive for 'higher wages and better working conditions' which included shorter working hours. Additionally, many signed contracts provided for a thirty percent pay increase during the three year term of the contract. There was a consequent rapid increase in prices down the line of manufacture due to business costs. In addition, the apparently certain prospects of further steady increases in the future brought another pressure, by speculators, toward immediate higher manufacturing costs and prices by forcing loan interest rates to eighteen percent or more. These higher prices on American
manufactured goods, (highly condemned 'inflation' blamed on president Carter at the time), had the consequential effect of having companies transfer their purchased needs to other countries, thereby causing a heavy recession here. The fortuitous legal opportunity taken by then president Reagan to fire the air traffic controllers, the only move or even suggestion by any government agency, broke up the whole act, bringing the realization, by the public and the unions, of the requirements of the Laws of Economics and placing the unions in strong disfavor since then.
The Laws of Economics are indeed closely involved in the labor--job--function. A 'job' is an immediate service by a worker to aid in performing some service requiring human activity. When the duty has been consummated, the 'job' is deactivated. No contract inherently derives from the performance of the duty. It is basically a day by day fleeting activity and only continues if the fleeting activity repeats itself. A worker taking on this responsibility recognizes what is entailed and should expect that the 'job' will indeed be consummated when there is no longer a need for it. Since a 'job' is an assist in arriving at a useful conclusion, the 'job-holder' cannot expect to be carried through non-productive periods except at the discretion of the employer, who makes the decision to carry the worker over inactive periods or transfer him/her temporarily or permanently to other 'jobs'. Every worker has the responsibility to be aware of what the future may hold, which is basically described above. Mere long-term employment at accepted wages should have no significance as a right of continuance.
While it is technically possible for a group of 'job-holders' involved in a certain activity to exert pressure on the employer and demand certain rights, wages, or privileges, this is not a logical function in a business operation and cannot be tolerated as an on-going practice. It might well be possible in many cases that a fair meeting of the minds between employer and employees that will work to the advantage of both can be arrived at. However, although any company might go along with a general wage increase or other perk as a matter of good will and increase prices to cover the cost, it has been demonstrated in the 1979-80 example that this is anti-commerce and anti-Supply and Demand and cannot be justified as a governmental or business policy. In simpler terms, wages must be based on labor supply availability. A situation where employees are receiving wages above the norm while others are outside the gate willing to work for less is unstable and cannot hold.
It must be realized that while the primary function of this or any government is a proper understanding and regulation of the economy, this is not being accomplished presently in this country. This may appear at first thought to be an outrageous distortion but it can be stated categorically that countries do not operate as a function of politically-motivated dictums for personal long-term gain with no economic justification, but rather as a function of THE LAWS OF SUPPLY AND DEMAND. If they do not coincide with this statement of fact they do not operate but rather degrade to chaos.
We have shown many inconsistencies in our present direction; the almost frantic pressure for 'jobs' at any degree of inefficiency, to produce any product or service for domestic or foreign consumption; this, where both 'jobs' and 'productive jobs' have been shown to be a detraction and to properly be held to a minimum by efficient action. We have shown the presently-extravagant expenditures for very costly entertainment, paid for with funds and time our society cannot yet afford due to its present inconsistencies. We have shown the misguided drive for tax manipulation by government officials; placing a separate and distinct tax on any item in mind at the moment that seems to show promise of being able to suddenly make everything run smoothly, and the extreme volume of non-productive labor involved in this practice. We have shown the error of believing that an economy can be set in motion by simply putting money into circulation. How easy this could make the promotion of the sound-bite, 'ECONOMIC GROWTH'; either repair hurricane or flood damage at day-labor wages or print more dollars; (or perhaps dig pot-holes at pay?); result--'ECONOMIC GROWTH'. Automatically raising minimum and/or union wages would afford a similar effect. Mainly, we have attempted to make apparent the complete lack of concern with THE LAWS OF SUPPLY AND DEMAND which are ever-present.
We have recommended that a Federal Department of Efficiency be set up to steer a proper course and be legally granted strong rights of enforcement and the personnel to handle the work efficiently. This would be a very large department but could well pay for its costs by the gains made in efficiency on each matter considered. At the same time, it is extremely important that the whole country, politicians, business, the public, the media, all understand and agree with the reasons for the necessary changes so that they may cooperate to the fullest extent. To accomplish this objective, the most effective way of publicizing the concept could be to place booklets of basic information in all post offices, to be available at no charge.
Certainly there will be much discussion and many objections as the concept is foreign to any present thinking and a direct change of course. While the concept is an essential reversal from the downward trend that we are presently following, there will be disruptions in the changeover period, although it will have to be very gradual and as smooth-flowing as possible. It may well take a number of years to develop a noticeable reduction of non-productive labor since there is much that must be undone.
There are also many sociological changes that will be coming. As stated previously, 'We may very well find that, without the profligate waste of productive labor that we have been engaging in, our society may be able to gradually revert to the practices of previous days where the usual course of events in the adult community evolved to a husband that worked out, with the wife remaining at home to raise much more properly the quite-limited number of children that we should also be aiming for'. Thus, with the improvements in efficiency to be expected, this change will evolve to less and less needed work to be taken care of daily, such that the women of this society may again have the far better life extant in the past when we were not under pressure to frantically produce for both domestic and foreign consumption to propagate 'jobs' at any cost. Indeed, with the modern technological advances available and the elimination of the pressure of expanding populations, both men and women will find life more rewarding.
The children of this society will also be great beneficiaries. With the mother of the family as an almost constant companion and leader, aside from school time, the present rapid slide downward into indifference and crime will necessarily end and reverse itself. Too, the more relaxed working climate due to the reduced pressures for the un-called-for 'jobs' will allow the fathers to be more companionable and instructive.
We have acknowledged that the reversal in direction that we have been following must be accomplished over a considerable period of time such that disruptions are minimized. It is also essential that major agreement by all segments of our society must back up the gradual changes as they are deemed desirable. However, the problems to be encountered will still be extensive. The duplication of plant and personnel to manufacture two or more personal or commercial vehicles of equal quality has been mentioned as a prime example of wasted labor that serves solely as a source of profit for the multiple companies and disregards the damage done to society at large as it is certain
that one company could duplicate and exceed the production of the multiples with a much smaller increase in personnel than the total required for two or more companies. The present accepted general practice, engendering 'profligate waste' and ill-advised proliferation of the detraction, labor--jobs--, cannot continue as it is a prime contributor to our lowered life-style, to the loss of our proper child-rearing heritage and to 'over-drawing on our national bank account to the extent of two or three hundred billion dollars a year for additional support'.
We have said that 'there will also be many sociological changes that will be coming'. This statement is pointed up by the problems in eliminating such duplicate profit-making organizations that engage in 'profligate waste of productive labor' as the multiple-vehicle example does. We have, over a long period of time, "backed ourselves into a corner" by erroneous drives and the fallacious worshipping of the detraction, 'jobs', and cleaning up our act will not be easy or quickly accomplished. How to eliminate the multiplicity of capacity? Obviously it cannot be done by fiat overnight but rather as a cooperative slowing down process, one department or segment at a time and with the necessary cooperation and agreement of those in charge and the over-sight of the Department of Efficiency.
We have shown why the manufacture of a specific item must, for reasons of labor conservation, be limited to one company by the D of E and it is important to reiterate at this time why this is sound economics. It may well be asked, in view of our past distorted experiences, how it would be possible, without the "competition" that we have become indoctrinated with, to prevent uncontrollable price increases and quality deterioration under this concept. The drive in the manufacture of an item must be toward the best balance between volume of production and the selling price. This presumes the choice, on the part of the consumer, of whether to buy, delay the purchase, or do without. Too high a price will negatively affect volume of sales by reducing demand or the turnover rate of the product and thus the downward trend of profits; too low will increase sales at profit's expense. High quality can affect sales positively at increased prices; low quality will have the reverse effect. The best balance will be reached when satisfying a reasonably large percentage of those consumers desiring the product and this balance is a matter of good plant management. Bear in mind also that large producers usually operate as corporations and are publicly owned. Their profits are therefore dispersed nation-wide to the general public and excessive temporary profits, if any, revert to the public domain.
How is good plant management negatively affected by competition? Quite evidently in a number of ways; total volume
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of sales, continual price and quality variations, and by a competitor reaching for extra market by temporary de-stabilizing price reductions to increase cash flow. Importantly though, a prime weakness is the lack of greatest volume of standardized production and the multiple pricing and stocking of the product and its parts, creating a high level of waste as noted previously. A larger run of a manufactured product or its parts requires a comparatively low level of increase in tooling and labor and no multiple pricing and stocking.
It may well be said, as a result of the conceptions derived over the last half century, that government control is too reminiscent of Communism. This is not the case here. In Communism, production was by assigned quotas set by irresponsible government 'apparatchiks'. Here, if properly run, the one company has full control of the production and pricing at the proper level. The management, and the personnel, also have the responsibility of continually asking, in effect -- "Am I producing my distinct contribution toward the whole and receiving payment appropriate to its importance?", and herein lies an obligation to be constantly alert for scientific or social advances that can improve the product or working environment and/or reduce labor requirements. These advances must, however, be adapted to each company's product and operation and thus will require a degree of ingenuity on the part of management and, additionally, the opportunity of reward to the general personnel for useful suggestions. Thus, while outside competition is destructive to the proper functioning of a business and therefore a society, internal competition can work toward a continuing increase in efficiency and general well-being.
It is obvious that these many prime companies will require country-wide facilities to take advantage of a spread labor supply and local sources for raw materials and product market, and these single companies could, if desired, be set up in a franchise format to take advantage of wide-dispersed, capable and enthusiastic entrepeneurs and suitably compatable work forces, striving for efficiency.This, with the consistency of company control due to the absence of fluctuating alternatives forced by outside competition will provide an extremely stable source of employment and will facilitate the location of these branch extensions in industrial parks with surrounding living areas easily accessible by walking, bicycling, or organized bus service. There should be no need for the presence or daily use of private automobiles under these circumstances, especially in view of the opportunity to have centrally-located eating, gathering, and show places. While of a high-rise type, not exceeding eight floors for suitable ground fire control, this housing could have excellent amenities and be attractive in appearance since it would have a stable occupancy.
How can it be assured that the highest level of management and personnel quality is continually in control of this prime producer? The following, with necessary variations, would be the manner of operation:
Such large companies of the type being considered here, manufacturing a material need of society, would not have employees, working at wages, but rather would be staffed by co-owners, receiving their compensation in the form of a proper percentage of company profits, if any. Clearly, each worker's interests would lie in working efficiently and there would also be a strong incentive to offer in-depth suggestions along with an opportunity for secret balloting for vote-of-confidence decisions on changes in operating practices and on maintaining or replacing management officers and setting their wages, preventing 'Old Boys' Clubs' of Boards of Directors from granting them wages and other perks at the very limit of outrageousness. Outside stockholders could be well-informed regarding the company's status by an unbiased and open company publication in addition to the in-depth Annual Report and afforded the same voting rights, and since there would be no outside competition this lack of secrecy would be acceptable and harmless. In view of the before-mentioned 'centrally located eating, gathering, and show places' we have also generated an enjoyable means of getting together to discuss business operations for both the co-owner workers and the outside stockholders and this would strongly aid in promoting a stable and enduring business with a suitably-compatible personnel. It would be necessary, to avoid locking-in unsuitable employees, to have an apprenticeship or indoctrination period during which the applicant's suitability for co-ownership could be established, with a vote then being taken. Requested substitutions could be handled in a similar manner.
The point has been made that communities of workers' living quarters should be built around central manufacturing or office complexes as a means of efficient and convenient intercourse to and from work. Such a possibility is facilitated in cases where many people are already congregated in areas lacking the means of affording employment and this situation already exists in so-called depressed areas where the population is trapped without the ability to 'produce the members' distinct contribution to the whole' and thus 'receive payment appropriate to its importance'. There are many such areas of population now, with more developing as conditions deteriorate. This presents an excellent opportunity to match 'jobs' to workers. The labor force for the housing and business construction work and thereafter the business employment are already present, and indeed locked in. Good business acumen along with a necessary dedication to relieving an otherwise unsolvable problem dictates the need for vision to take advantage of such a situation. A logical preliminary course would be to invest
in such a project on land which is by circumstance cheap, taking advantage of a labor force already present, even though principally untrained and inexperienced, and using cooperative government low-interest loans and grants for training classes to gradually build up an efficient body of workers.
In addition to the apprenticeship-indoctrination period it would also be necessary to provide a program for buying ownership of the housing units on an installment basis, to be deducted as a percentage share of company profits, since most new workers would not have funds for the advance payment of full construction costs of their condominiums. This financing could also be justifiably borne by the same government loan program covering employee training since the benefits would accrue to the country as a whole.
The above course of action appears to be the only hope of relief for the presently deteriorated state extant in the so-called 'depressed areas'. Any given populated area must have an internal source of income to pay for its total needs, most of which are produced elsewhere, and as there is no significant means of production in these locations, an untenable condition prevails. Commuting into outside areas scattered city-wide is not tenable, as the cost in time, vehicle, and other expenses is too great for an extensive population generally found to be untrained in the many trades, services, and professions needed city-wide. Thus, an efficient living-working design, one of the many sociological changes being called for, will come into play with this centralized business opportunity.
It should be remembered that a greatly-reduced need for business transportation for commuting purposes due to living near the worksite will eliminate much of the need for private vehicle usage. Therefore, the prime company manufacturing the non-competitive automobile models will produce a far smaller number than would be the case under previous conditions of high usage. This is consistent with the thrust to reduce labor--'jobs'--and thus, again, advances the quality of life; 'jobs' being an affirmed detraction.
With the progressive increases in efficiency and reductions in labor requirements that our economic policy is engendering, it could be asked what the outcome will be for those workers previously producing 'their distinct contribution toward the whole and thus having the right and privilege of purchasing the goods and services they require'. We remind that the labor force has already been reduced by half by relieving the feminine population of the need to work out and thus be able to remain at home to produce worthwhile offspring and otherwise enjoy
the good life in a household equipped with the latest advances in work-saving and entertainment. Further reductions in the labor bank could be engendered appropriately by periodic reductions in the retirement age, prepared-for financially with the present-type Social Security income deductions.
It could be arranged, to properly maintain the exactly correct body of workers required in an unsteady world, to provide a floating retirement age, the youngest age group being moved in or out as necessary, perhaps quarterly, to hold the proper balance. Additionally, it could also be possible, to permit those of any age who wished to get back into the labor market, to volunteer for work at a specific company presently needing additional help and unable to find it readily due to the close balance of workers to productive jobs. They could stay for as long as desired or to help until other workers were available. This would permit the personal choice of retirement age and would not disrupt the basic concept.
Thus we have been developing a means toward a better world, a course of logic to follow; no misguided 'Economic Growth', no 'Global Economy', no 'jobs', 'jobs', 'jobs', without sound need or justification; a stabilized population count with special opportunities for other genera. However, it will be essential, in carrying out this thrust toward a sensible conclusion to the haphazard course that this country and the world have been on, to publicize its logic and means of development over time. This can readily be done now through the facilities of the many talk shows and other electronic communications available and/or by the previously suggested placing of booklets of basic information in all post offices to be freely available. In such manner we would move slowly and gradually toward an enlightened, stable, satisfying way of life for all.
The author.