Sunday, July 20, 2014

Corporate Welfare State: Taxpayers now on the hook for Job Training, while state pushes importing cheaper "Skills Gap" labor!

Taxpayers are now on the hook, subsidizing private business so they can train workers to fill the “skills gap.” But wait, the “skills gap” is a myth, created by business to keep wages low and import temporary foreign workers. If taxpayers really want to cuts government spending, try cutting this area of corporate welfare first.

Institutionalized Corporate Welfare: Even worse, Scott Walker has now officially institutionalized corporate welfare with taxpayer subsidized job training. It’s all a noble cause, and I feel lousy coming out against this...

…but business created the “skills gap” to import cheap labor, lower wages, and get taxpayers to foot the bill…or at least pay for part of the bill. As so many economists have stated, if there’s a shortage of workers, wages would have gone up. That didn't happen.

Walker’s WEDC gift of taxpayer money to job train is just the beginning:  
jsonline: (It’s an) initiative to train welders in four areas of the state … being funded by the state and the welding industry. The Wisconsin Department of Workforce Development has committed $400,000 to fund the customized technical skill development for the first year, with $100,000 going to each of the four regional sites … In addition, Illinois Tools Works Inc. — the parent company of Miller — is providing $400,000 in matching funds. The American Welding Society has committed $200,000.
Appearing on WPT's Here and Now, the President of the Wisconsin Technology Council Tom Still made a few amazing statements. Not only did he defend importing cheap foreign labor to fill that mythical "skills gap," but he also bragged those same workers have a "propensity" to start their own businesses. If we lag in jobs created, Still said, it's because we don't have enough foreign workers in Wisconsin. Would I kid you?

The official sounding “Sullivan Report” Tom Still mentions above is all CEO bluster pushing the “skills gap” myth. Here’s a sample of "Sullivan's" recommendations, including importing temp workers and institutionalizing corporate welfare:
The report by former Bucyrus International Chairman Tim Sullivan offers a series of recommendations to fill that gap … The skills gap "is hurting economic competitiveness in Wisconsin," Sullivan said. Giving the state Department of Workforce Development responsibility for coordinating job training programs … expanding funding for part-time technical college students to keep them enrolled while increasing tuition for technical college students who already have four-year degrees … and welcoming legal immigrants to the state. 
I found the comment below, to the story above, the appropriate less profane response:
Ace Rothstein: If I were to go knocking on doors on Lake Drive how many welders do you think I would come across? Yeah, its a wage problem. If you need more welders then start paying them more. Don't whine to the governor. Don't whine to the Jounal-Sentinel. Bust out your checkbook or go out of business.

1 comment:

  1. Wisconsin has the lowest average weekly manufacturing wage in the Midwest, according to the "gold standard" jobs numbers. If you want to start talking about the BS "skills gap", fill the wage gap first