Today is Labor Day, which is sometimes jokingly described as the day when Americans honor work by taking the day off work.
I hope you have a safe and fun holiday with your family, and enjoy this special Labor Day edition Prosperity Insider.
These days, it’s easy for free market conservatives to distrust labor unions because of their corrupt leaders or one-sided politics (more on that later.)
But Labor Day reminds us of that era in history when unions were actually more interested in protecting workers than in protecting the jobs of union bosses and Democrat politicians.
Labor Day observances unofficially began around the turn of the 20th century as a celebration of the union movement, which was fighting truly dangerous and exploitative working conditions, not to mention violent strike-busting tactics.
Those kinds of conditions are not beneficial to labor or management.
Workers who get good pay, reasonable hours and a safe workplace are motivated to work harder and make their employers profitable.
America’s prosperity and world leader status were the result of shared benefits between labor and management.
Recruiting good employees, treating them well, and giving them a stake in the outcome is good business.
When labor and management are partners, everyone wins: stockholders, management, workers, and most importantly, consumers.
After years of vicious, one-sided Trump vilification, it’s important to remind Americans that before the Chinese unleashed a virus that knocked the wind out of our economy, President Trump wasn’t just helping to bring back jobs, but also helping workers across all demographics.
The strong job market and record low unemployment meant companies had to offer higher pay and more benefits to attract good workers. Unemployment was at near-record lows and real wages were rising faster than inflation for the first time in decades.
That’s how getting government out of the way of job creation benefits everyone.
And why on Labor Day, we can reflect on the positive historical role that unions played a century ago, and talk about ways that they could be reformed to restore their proper role in the future.
But mostly, I prefer to think of it as a day to celebrate not the unions but the American workers: the people who put in a hard day’s work, sweating through their clothes on farms and in factories…
Those who don police and firefighter uniforms and rush toward danger when the rest of us are running away from it…
And the ones who kept working through the pandemic, from the doctors and nurses to the truckers, delivery drivers and grocery shelf stockers, to keep the rest of us supplied with the necessities of life.
The workers, union or not, who literally and figuratively carry the load for those who can’t or won’t.
These are the real heroes of America who deserve a holiday in their honor. So, this Labor Day is for you!
Note: See what happens when labor and management are truly partners — scroll down and take a look at our exclusive interview below.
Charles sits down with one CEO who did just that and transformed the lives of his employees by treating them as shareholders.
Director, Prosperity Research
Huckabee’s Daily Bible VerseLet us then approach God’s throne of grace with confidence so that we may receive mercy and find grace to help us in our time of need. ~ Hebrews 4:16 |
Creating 2,500 Millionaires by Putting Employees First
When Dave Cote became CEO in 2002, he faced a daunting challenge.
The board, led by the chairman, forbade him from reviewing the company’s finances. When Cote asked about the quarterly performance, he was met with silence.
The reason soon became clear: the company’s situation was worse than anyone knew.
Cote didn’t back down.
He rolled up his sleeves and, over the next 16 years, transformed Honeywell International — growing its market cap from $20 billion to nearly $120 billion.
The stock soared 800%, outpacing the S&P 500 by two and a half times.
But what Cote valued most was creating 2,500 401(k) millionaires — 95% of whom were regular employees — with the lowest-paid earning just $43,000 a year.
When asked about this achievement, Cote simply said, “Man, that makes me feel good.”
That’s why we partner with CEOs who put their employees first.
Regards,
Charles Mizrahi
Founder, Alpha Investor
