The Empty Feeling of McDonald's Pay Raise

Barry Ritholtz writes about The Empty Feeling of McDonald's Pay Raise.

But there are other issues worth discussing: Social media’s impact on consumers and competition for employees as the economy improves.

Both of these seem to have worked to the detriment of McDonald’s — especially among the millennial generation, which has voted with its dollars to eat at places that serve fresher, healthier food such as Chipotle. McDonald's also faces stiffening competition from burger upstarts such as Shake Shack, 5 Guys and Bobby Flay's Bobby’s Burger Palace.

Don’t underestimate the competition for quality workers at fast-food restaurants. The supply of people willing to do the difficult, dirty work of grilling greasy burgers and fries or interacting with drive-through customers is finite. Wal-Mart has similar issues finding qualified minimum-wage workers. And as the economy continues to slowly improve and unemployment declines, that pool of workers gets smaller. It really was just a matter of time before wages had to rise.

That is a positive development — especially for two companies with business models that are so dependent on government aid, tax breaks and Medicaid. As Bloomberg Businessweek reported in 2013, “Fast-Food wages come with a $7 billion side of public assistance.” Indeed, a higher portion of employees of fast-food restaurants receive taxpayer aid than in any other industry.

Wal-Mart isn't much better. As we noted, Wal-Mart employees receive $2.66 billion in government aid each year. That works out to $5,815 per worker, and $420,000 per store. Why private-sector employers require public assistance for their full- or part-time employees is beyond me. But it is why I've labeled these two corporate welfare queens.

Raising the minimum wage nationally to $12 would drive more of the employment costs back to the companies, which is where they belong. Estimates vary, but it would probably take a minimum wage of about $15 to make these companies' employees independent of state and federal aid.

It is worth watching to see what the tandem of social media and basic economics does to push these companies toward a higher minimum wage. With April 15th right around the corner, it would be nice to know that your tax dollars aren't going to subsidize huge for-profit, private enterprises.

Emphasis Mine

The limits of proletarisation have been reached. Basic jobs are being automated. Any job that can be learned by rote and through an instruction manual is one that can be done by a machine. Replacable workers have been replaced by machines.

Workers who can add value to the customer interaction are now needed. These workers do things that cannot be learnt by rote or through an instruction manual. They must be self-motivated to learn and try new things, and then to evaluate their own performance in order to improve.

In other words, they have to expand their consciousness about how the world works. They must educate themselves through study and interaction with other workers.

Economic survival is driving this expansion of worker consciousness. It is no longer adequate for a worker to be told what to think or what to do by a manager. The manager is now hopelessly lost in a rapidly changing environment.

A worker with a better understanding of how the political and economic system works is in a better position to see and take advantage of opportunities as they arise.

In my opinion, a worker with a Marxist understanding of the world is the one best able to survive in these turbulent economic. The primary reason is that Marxism gives the best description of how Capitalism works.

But it does not necessarily follow that a worker with a Marxist understanding will become a Communist.

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Kurdistan: Political and cultural revolution unfolds in Rojava

Evangelos Aretaios writes about how the Political and cultural revolution unfolds in Rojava, Kurdistan.

The Rojava model is based on two main pillars which may prove very efficient in the strengthening of democracy in the region. The first pillar is direct democracy as the basis of a communalist system in which citizens participate actively in decision-making and the management of the polis, from the neighborhood to the municipality and as far as the government. The second pillar, equally revolutionary, is the denial of the nation state structure and philosophy as such. In Rojava, many different religious and ethnic groups—Christians, Yezidis, Arabs, Turkmens, Chechens, Armenians—live together with the large Kurdish majority. By officially and insistently denying the nation state and by trying to create administrative structures that incorporate these different elements, the Rojava model gives to minorities a participatory role unprecedented in the Middle East — a role as equals in the management of the polis.

Emphasis Mine

Nationalism was the driving force behind Capitialism. It gave an identity to people who had thrown off the paternal relationships of Fedualism. A person was no longer defined by whom they owed service to, but by the nation they belonged to.

The creation of a nation expands the consciounsess of its citizens beyond that of the village. But the nation creates a new boundary that now restricts the growth of consciousness of humanity. We cling onto our nationality as fiercely as we once did with our feudal identity.

We need to burst this prison of nationalism, and embrace the universal humanity.

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Alienation: the non-issue

Chris Dillow writes about Alienation: the non-issue.

This poses the question: why isn't there more demand at the political level for fulfilling work?

The question gains force from two facts. First, autonomy at work is a big factor in life-satisfation. Politicians who want to improve well-being - as Cameron once claimed to - should therefore take an interest in working conditions. Secondly, workers who are happy - less alienated - are more productive. Less alienation should therefore help to close the productivity gap between the UK and other rich nations, which in turn should raise real wages.

Despite all this, working conditions are barely on the agenda at all in this election. Politically, the workplace is, as Marx said, a "hidden abode."

One reason for this is that politics has largely ceased to be a vehicle for improving lives. It is instead a form of narcissistic tribalism and low-grade celebrity tittle-tattle: when will Cameron resign? Who'll replace him? What does Miliband's kitchen look like?

And in this way, politics serves the interests of the boss class and not workers. Capitalist power is exercised not just consciously and explicitly, but by determining what becomes a political demand and what doesn't. Here's Steven Lukes:

Is it not the supreme exercise of power to get another or others to have the desires you want them to have - that is, to secure their compliance by controlling their thoughts and desires?...Is it not the supreme and most insidious use of power to prevent people, to whatever degree, from having grievances by shaping their perceptions, cognitions and preferences in such a way that they accept their role in the existing order of things?

Emphasis Mine

Workers should be struggling to make working the supreme achievement in life. It is through labour that we create a more just and harmonious society. Workers should determine what use the fruits of our labour are put to.

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Who Is This “Together” Starbucks’ Howard Schultz Is Talking About?

Ted Rall asks Who Is This “Together” Starbucks’ Howard Schultz Is Talking About?.

He’s considered a hero, and rightly so. Still, when French General Charles de Gaulle gave his most famous speech, the Appeal of 18 June 1940, not everyone was moved. “Nothing is lost for France!” the future leader of the Free French intoned into the BBC microphone to the people of France, who had just lost their country to the Nazi invasion. “The flame of the French resistance must not be extinguished and will not be extinguished!”

“Easy for him to say!” my grandfather raged. “He’s sitting over there in London, sipping tea! Here we’ve got the krauts up our ass!”

He changed his mind later. But still: terrible first communiqué.

Communications 101: If you hope others to follow you as a leader, remember who and where and what you are.

If you don’t, others will.

Emphasis Mine

This is a very important for Communists. Ww must be workers who share the struggles and privations of other workers.

It is very easy for me, a priviliged worker, to blog about Commmunism and Capitalism. But I can really talk to other privileged workers.

But this does not mean I should keep silent. All workers are needed to build the Communist society. It behoves us all, priviliged, skilled, non-skilled, and unemployed, to remember that we are all workers.

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Intergenerational report a dishonest weapon of the 1%

Alex Bainbridge writes that Intergenerational report a dishonest weapon of the 1%.

Further, Australia's GDP per capita — a rough measure of the country's wealth — continues to grow dramatically. In fact, per capita GDP growth has massively outpaced the growth in real wages, which is something every worker should remember next time the boss says there isn't enough money for a pay rise.

It is also something we should remember when the government says it cannot afford education or pensions.

The real alternative to Abbott's budget cuts — and the subtle or not so subtle media message that we cannot afford decent pensions, education and health care — is to take the money from the super rich through a fairer taxation system. The government now pays superannuation tax concessions to the very wealthiest that are comparable to the entire cost of the age pension.

A rich country like Australia should be talking about lowering the retirement age and raising pensions at the same time as we plan increased spending on renewable energy and other measures that will truly make lives better for future generations.

Emphasis Mine

I am two minds about retirement: escape from Capitalism; and exclusion from Communism.

The escape from Capitalism means that workers are no longer alienated from their labour. Retired workers are now free to pursue meaningful and fulfilling labour if their retirement benefits permit it.

Therein lies the paradox of retirement under Capitalism. Alienated labour is replaced by grinding poverty. But that is the tyranny of Capitalism: unless one contributes to the growth in profits, one is of no use and therefore denied sustenance.

Whereas, under Communism, retirement means exclusion from the economic and political system. Workers contribute to the growth of society and the spread of benefits to all people. Retirement means turning back on society.

One may do different jobs as one ages but the contributions are still valued because they are needed. Being a worker means being a citizen.

Through labour society is built and enhanced. Withdrawal from the labour means withdrawal from society.

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