[Via Civic Skunk Works] Here at Civic Skunk Works, we’ve spent a quite a bit of time pointing out that trickle-down economics has never been anything more than an intimidation tactic masquerading as an economic theory. For decades, politicians (from both parties) and businesses have been employing this tactic in order to scare workers into paralysis. Think about the claims which trickle-down proponents have repeated over and over again:
- “If you raise the minimum wage, jobs will be lost.”
- “If you tax the wealthy, jobs will be lost.”
- “If regulation of the powerful goes up, jobs will be lost.
In short, don’t push it, buddy.
And this Monday, Ted Cruz provided a perfect illustration of this bullying tactic. The Texas senator was asked by a mother of four “what he would do about the current lack of federally mandated paid family leave.” A very good question on a very important subject which affects all working Americans. According to Think Progress, Cruz callously replied:
Giving away free stuff is very easy for politicians to do, but the simplest rule of economics is TANSTAAFL — there ain’t no such thing as a free lunch. Anything a politician gives you, he must first take from you. And so if you have the federal government mandate paid medical leave,what that ends up doing is driving up the cost of labor for low-income workers.
What he’s saying is: don’t ask for too much or you’ll be priced out of a job. And just in case this mother of four missed the veiled threat, he hammers the point home when he adds, “And by the way, if you get fired or laid off, not only do you not get paid family leave but you don’t get a paycheck either.”
Do you see how slimy this strategy is? Do you see how strong-handed this approach is? Do you see how they are striking fear and doubt into the minds of American workers?
And this isn’t anything new. This is how Republicans and businesses have been framing workplace benefits for a very long time. They’ve perpetually tried to scare the American worker by threatening to cut their jobs if they ever asked for too much. (What they define as “too much” has been ever-changing. Forty years ago occupational health and safety fit under such a category, today it’s paid leave, tomorrow it may be vacation time.) In economically anxious times they know this intimidation tactic often works. Why take a chance and try to push for better benefits if your job is already in the balance?
The truth is paid family leave is actually good for businesses, the worker, and society in general. For businesses specifically paid leave improves worker retention, increases worker productivity, and improves employee loyalty and morale. How do we know this? Well, for one, paid family leave insurance programs “are already working well in California, New Jersey, and Rhode Island.” That’s right – paid leave already exists in the three states and none of those state economies has nosedived into economic catastrophe. As Think Progresshighlights:
Evidence from the first two states shows that [paid family leave programs] haven’t hurt employers. About 90 percent of California businesses say that it either had a positive impact or none on profitability, employee performance, and productivity, while it helped reduce turnover, saving them an estimated $89 million each year. Themajority of New Jersey businesses surveyed also said that it hasn’t hurt their finances and some saw a benefit.
The job-killing dystopia which Ted Cruz foreshadowed to the mother of four is simply a trick. Thankfully, we know why politicians like Cruz are continuing to sell this scam to the American worker: because if he can get workers to believe this scary tale, big businesses and their politicians win.