Tuesday, September 29, 2009
What's wrong with de Rugy?
I've been following the posts of Veronique de Rugy at NRO with increasing puzzlement. She doesn't seem to know what she's doing. Today's article is an excellent example. She compares UPS and FedEx to spot the effect of unionized workers. The comparison is valid because UPS and FedEx are in the exact same business, with UPS unionized and FedEx non-union.
She concludes that FedEx is superior, and that "the biggest problem in this story is the existence of stupid, outdated, ineffective, penalizing laws."
Really? UPS is twice as profitable as FedEx. Using the chart de Rugy provides, UPS net income is 6% of total revenue while FedEx net income is 3% of total revenue.
This doesn't prove that unions are solely responsible for better profit, but it emphatically proves that you can make a better profit while paying your employees twice as much. ¶ 9:59 AM
She concludes that FedEx is superior, and that "the biggest problem in this story is the existence of stupid, outdated, ineffective, penalizing laws."
Really? UPS is twice as profitable as FedEx. Using the chart de Rugy provides, UPS net income is 6% of total revenue while FedEx net income is 3% of total revenue.
This doesn't prove that unions are solely responsible for better profit, but it emphatically proves that you can make a better profit while paying your employees twice as much. ¶ 9:59 AM
