Rising Wages for Nurses? Nanny State to the Rescue (Market economy

[lindisfarne]

apparently not *always* needed, as Republican actions show us. Might it be that their "market" economy is more of a tool to keep the powerful in power and become more powerful? That wouldn't be it ....)

http://www.truthout.org/docs_2006/052406A.shtml
(link to NY Times article & discussion here:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=2644192&mesg_id=2644192

Rising Wages for Nurses? Nanny State to the Rescue
By Dean Baker
t r u t h o u t | Perspective

Wednesday 24 May 2006

The New York Times had an article today that inadvertently revealed a huge amount about how wages are set in the US economy ("US Plan to Lure Nurses May Hurt Poor Nations," 5-24-06; A1). We all know the official story - wages are supposed to be set by the market, our old friends supply and demand. When certain skills are in short supply, the wages for workers with these skills are bid up. This leads more people to acquire the skills and may also reduce the demand. Eventually, supply increases and demand falls by enough to establish a balance in the market.

In this wonderful market world, the people who end up with high wages (e.g. doctors, lawyers, accountants, economists) have skills that are in high demand and difficult to master. The people with low pay (e.g. custodians, retail clerks, child care workers, dishwashers, etc.) are ones who have skills that are relatively plentiful.

That is a nice fairy tale. It has about as much relationship to the real world as the tooth fairy, as the Times article showed.

The article reports on a provision in the Senate immigration bill that removes the cap on the number of nurses who can enter the country each year. The problem, as described in the article, is that the country faces a large and growing shortage of nurses. In a market economy, a shortage means that wages should rise. This will cause more students to enter nursing schools (presumably creating more incentive to establish nursing schools), and will induce many part-time or retired nurses to work more hours as nurses. It may also curtail the demand somewhat, as some tasks that are performed by nurses can presumably be performed by less-skilled workers.

<snip>

[midnight]

1. Thank you Dean Baker.

From all the nurses that need to read this. Very simple and to the point. You sure understand the big picture.

[no_hypocrisy]

2. Rising wages and benefits slashed.

The new union for the nurses allowed the management for Good Samiritan Hospital in Rockland County, NY to eliminate health benefits for the spouses and the children of the nurses. This leaves the families scrambling to find affordable insurance, nearly impossible, and with the potential of bankrupting the families of the nurses.

Nurses, teachers, etc. are getting in the crosshairs of budget managers and are getting a shorter end of the stick every day.

[acmejack]

3. H1B to rescue!

See, it CAN happen to you! Making what the wage payers think is too much money, the solution is simple, the handy H-1B Visa!

[elehhhhna]

4. My nurse friends tell me that foreign nurses, while skilled, have

in many cases very poor english (which is bad enough when talking, worse when writing on a chart).

The Docs love them because they are more "respectful" and don't question them or point out problems.