Best Idea Since Sliced Bread?

One recent afternoon I was perusing the website of the Service Employees Internation Union, when I came across a contest the union is sponsoring. It has it's own website called http://www.sinceslicedbread.com

The purpose of this website is to solicit ideas from "ordinary people" to learn what they suggest to improve the lot of our country. The winner of this contest receives $100,000 and two runners up will receive $50,000 each. Well, heck that was enough to entice me to enter.

Following is my entry. Following that, based upon a friend's recent admission that he didn't really understand my economics gobbledygook, I'll try to explain.

******My Idea*****

The economic chasm between labor and ownership restricts growth and threatens our ability to meet future challenges.

Conventional wisdom justifies this disparity by supply and demand theory. But organized labor can shift this equation by providing seed-capital to startup businesses which embrace democratic labor standards like universal profit-sharing, and low pay ratios between highest- and lowest-paid workers. As they prosper, these businesses will challenge their regressive competitors for the supply of good labor, spurring adoption of progressive employment practices and raising wages at every level of demand.

Encouraging democratic capitalism through competition rather than confrontation, can ignite an era of wealth creation unseen since the industrial revolution, and historically unique in its benefit to workers and owners alike. The resulting economic expansion will increase incomes, grow tax revenues even while reducing tax rates, and permit us to retire our national debt. Achieving these goals will help us to secure a future of unimagined possibilities.

*****END*****

First, I should explain that contestants are limited to 175 words. So the sort of explanation that might accompany the verbiage had to be omitted. But here is my idea in a (slightly larger) nutshell:

Regardless of the good role played by unions in the lives of the working class, the membership and clout of unions have diminished significantly over the last 50 years. I believe it's because arguments based upon entitlement (i.e., "we deserve this", or "you owe me that") run distinctly counter the the American psyche. People in our society don't act in a certain way because they're told to; they act in a certain way if they believe it makes sense.

Thus, I believe organized labor will win more adherents if their arguments make economic sense. To accomplish this, labor unions should use their funds to provide seed money for businesses which agree to operate by democratic labor standards. Most notably those standards should include a low ratio between the hourly earnings of the highest-paid worker and those of the lowest. In addition, it should include universal profit sharing among all workers.

Think of it--restaurants, auto mechanics, brokerage firms--all operated with flat pay ratios by people who have a vested interest in the success of the enterprise. As these business prosper (and many surely would) they would attract the best labor and force competitors to adopt similar labor standards. The result could be astounding, with workers at every level having more money to spend and increasing demand for goods and services to an extent not experienced since before the industrial revolutions. As incomes rose, along with savings and investment, tax revenues would rise, even with lower marginal rates.

Few things, to my way of thinking, could better help us to experience a new economic renaissance than this. And the best thing of all, no one loses--even stockholders which, by value, are largely the wealthiest class, would make huge returns.

Is anybody listening?