Sunday, November 18, 2012


I saw a post today about how capitalism created the rise of the Hostess Corporation, and socialism was it's demise. Truer words have never been spoken. Most will blame the lack of concession by the unions, but it wasn't the concessions that did in this business, it was increasing overhead partially caused by the socialist principles based in unionizing the workforce.

In a free capitalistic business environment people are paid for performance. If you excel you get the best wages and benefits, because the company values your work. The same principle applies to them as it does to you. If the company refuses to honor your work by paying a fair wage and offering your perks to stay, your free to offer your services to another.

Now in the union socialist model, everyone is paid and perked the same. The slacker is compensated equally to the high performer. Pretty soon the high performer says, "What the heck! Why should I work harder than everyone else and not be appreciated financially?" Work output declines, more labor has to be hired, and expenses increase. It's all fair though! Everyone is enjoying the same compensation. Now they are all enjoying the same glee of unemployment.

It doesn't take long before the price of the goods produced can be undercut by another and it's market place value isn't appreciated by the consumer. Consumers, like employers, want the maximum value for their buck. Encouraging equal pay for unequal performance doesn't produce ultimate efficiency. No sales, no jobs, period!

Some will blame the venture capitalist's who tried to save the company. Some will blame the greedy corporation, some will blame the economy, and some will blame the government, the truth is the blame lies in the socialist principles created by unionizing the work force. Honor exceptionalism!

God Bless!
Capt. Bill

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