The objective of business is profit. Profit creates employment, retail and wholesale orders, manufacturing, and growth — all of which contribute to a healthy economy.
But profit depends upon consumer spending. And consumer spending depends upon employment and fair wages.
Rather than stimulating economic activity, Act 10 created massive layoffs and lowered wages and has led to more sluggish economic activity in the state.
Here’s why: Suppression of collective bargaining equals wage suppression. Wage suppression equals suppression of purchasing power. Suppression of purchasing power equals lower profits.
ACT 10 IS THE ENEMY OF PROFIT
Act 10 has created diminished spending in marketplace, which in turn has created diminished profits in private sector, thus negating employment while creating layoffs, lower wages, and a slumping economy.
Every dollar Walker subtracts from personal income and wealth in the form of layoffs and wage suppression is a dollar subtracted from the marketplace, which in turn is a dollar subtracted from profits.
WALKER BALANCING THE BUDGET ON THE BACKS OF BUSINESS
Denying Medicaid expansion forces those in need to direct their spending away from the larger marketplace and toward healthcare.
In contrast, good jobs paying fair wages provide far greater economic compensation than Walker’s tax cuts. For example, because Social Security benefits are based upon earnings, low wages equal minimal Social Security benefits, reduced government revenue (taxes), and less purchasing power. Paradoxically, a low wage economy produces an ever-expanding Wisconsin welfare state.
As there are no free lunches, there are no free economies, and whatever is not free requires sacrifice. However, in this case, sacrifice is a fiscally-sound, AAA-rated investment simply because it generates profit.
WE INVEST IN OURSELVES
Investment should be twofold:
- Higher taxes must be required of those able. These tax dollars would fund essential services. Since the private sector will hire only out of need, government must generate a workforce, affording labor the purchasing power to create jobs in private sector.
- Those able in private sector must increase wages. Again, supporting higher wages will generate a profitable return on investment. More jobs paying higher wages equals greater purchasing power equals greater profits.
Investing in jobs and higher wages equal creation of profit, which in turn creates even more jobs and greater profits, resulting in a strong, healthy, vibrant economy.
INVEST IN WISCONSIN — INVESTING IN OURSELVES...A SURE BET
We are the party of business and economic growth.