I Hate Unions
I was just reading The Fellowship of the Ring, when something hit me: Unions suck!
So here's the deal, unions always try to keep wage rates higher than market value. The obvious consequence is a surplus of workers, or unemployment.
But then I started thinking about other possible consequences. Usually anti-union people say "Yo, even though these workers get higher wage rates, they get fewer hours." That's true. Typically someone might work 40 hours a week whereas a union worker may work 30 hours a week. But wage income in a week very well might be equal due to the higher wage rates of unions.
Isn't that great!?!
I don't think so. Sure, having more leisure time may be "nice" for an individual at first glance, but is it really?
Let's look at some possible unintended consequences, from the employer's perspective. A factory was just unionized. Now instead of a 5 day week, it is only open 3 days a week. It has a fixed income which it can spend on labor. Even with the higher wage rates, the payroll has remained the same by simply cutting hours.
But notice, production has now been cut by 2 days while maintaining the same expenditures as if production was not cut by these two days. That means production has just become that much more expensive. It also means that real wage rates actually have increased contrary to what the union worker will tell you. A consistent wage income does NOT mean that real wage rates have not increased.
Since production is so much more expensive, it can now produce much less.
Less production of goods means less wealth in the economy. Less wealth means that these businesses will now have less money to invest in capital, and will likely result in a multiplied increase in unemployment in the future.
In any market besides labor, this price fixing is seen as a bad thing. In Milwaukee they tried to try some price fixing on apartment complexes. Instead of a minimum price, they did a maximum price instead. The rent was fixed below market level so that the poor could get the apartments. What happened of course, was that there were massive shortages of apartments.
Instead of helping the poor, they were made off. A black market was created, and bids were made on apartments so that only the absolute wealthiest would get them. It was a disaster.
But when it comes to fixing wage rates, they don't consider it a disaster, even when it results in the same. As for a black market in labor, can you say mexicans?
The reason it isn't considered a disaster is because commodities can't vote in elections, people can. People know they are getting paid more, that's all they care about. They never consider the opportunity costs incurred both individual and in the aggregate.
Look at the opposite scenario.
What if lower wage rates were set rather than higher. Now the business has set the wage rate below market value and increased production to 6 days a week. The weekly income is still the same as it has been.
Now production has been made cheaper. More is being made for less and the economic pie is expanding. With some sound monetary policy, this could be the absolute best case scenario. If the money supply remains the same through this decrease in wage rates, production would be increasing but the money supply would remain consistent. This would infer that the real wealth of every individual would be steadily increasing, even those who took the wage rate cuts.
More wealth is created while the medium of exchange remains the same. The result would be a higher living of standard for all and overall awesomeness.
I hate unions.
This is all common sense. However, until you come up with a better solution for worker's rights (which, as a hardcore libertarian, you probably don't believe in as I think you're a property owner = god in his domain type of person?), the majority of people will never give up on them.
I'm split on unions. 50 years ago, unions were extremely important for helping the employees receive benefits that we take for granted today. So they do have their purposes. But sometimes unions are so corrupt they take advantage of their clout to corner the higher-ups. In Quebec, there is the Blue Collar Union, which is by far the most corrupt union in North America without being connected to the mob. But unions built Quebec at the same time, so we can't get rid of unions.
But what is missing from your idea is the human aspect. As usual, it is always gone. There is a certain amount of time a person can work until they are fatigued, and the lack of unions would surely mean that the company cuts down on safety protocols as well as break times. Benefits would be slashed as well all know that the company has no need to give to the employees, they are pawns and can easily be replaced (In their eyes). People are greedy but also fragile. What is going to stop the higher ups from making the factory a sweatshop while they make a couple extra million? Nothing.
So we can't have the option where there are no unions, because then it brings out the greed in the higher-ups. But we can't have overly powerful unions, because then it would be like the Blue Collar Union I mentioned earlier. It is safe to say the majority of people prefer the idea of moderation. Regulate unions to stop them from being too strong, but keep a certain amount of clout, so they can deal with the tyrannical presence of greed.
Finally. Fellowship of the Ring sucks.
Unions / Corporations / Whatever. It's a collective bargaining entity. Either it's a collective on the "capital" side (corporation) or on the labor side "union".
" Unions / Corporations / Whatever. It's a collective bargaining entity. Either it's a collective on the "capital" side (corporation) or on the labor side "union".However, here are things unions have gotten us:Getting paid in actual money, instead of corporate scrip. Look up "company town".Weekends.Pretty much all rights not tied explicitly to real estate ownership.So, you know, on the whole, kind of postive.Are there bad unions? Sure. Just like there are bad corporations, and bad people. Castigating the entire idea of "unions" as bad is myopic."
black text WTF
" When I saw this thread, I thought it said "I Hate Onions", and I was thinking "Oh hey, an interesting topic that I give a shit about!" But...I am disappoint. "
I think onion is a pretty cool guy, eh cooks well with food and doesn't afraid of anything.
" This is all common sense. However, until you come up with a better solution for worker's rights (which, as a hardcore libertarian, you probably don't believe in as I think you're a property owner = god in his domain type of person?), the majority of people will never give up on them. "
" Think about it like this:Companies -deflate- wages already. Unions exist to inflate them back to normal. Sometimes they get carried away, sure, but unions are supposed to normalize wages to the market instead of taking a normalized wage and increasing it.I'm no economist, though. "
"@Jayge said:This is economics, not ethics. If you want to get into rights that's an entirely different topic (What the hell does worker's right mean? They voluntarily work for a company for a specific rate, no rights are violated no matter what the going wage rate is)." This is all common sense. However, until you come up with a better solution for worker's rights (which, as a hardcore libertarian, you probably don't believe in as I think you're a property owner = god in his domain type of person?), the majority of people will never give up on them. ""
"@lilburtonboy7489 said:If you think the two can be seperated that easily, then what is that degree of yours actually worth? ""@Jayge said:This is economics, not ethics. If you want to get into rights that's an entirely different topic (What the hell does worker's right mean? They voluntarily work for a company for a specific rate, no rights are violated no matter what the going wage rate is)." This is all common sense. However, until you come up with a better solution for worker's rights (which, as a hardcore libertarian, you probably don't believe in as I think you're a property owner = god in his domain type of person?), the majority of people will never give up on them. ""
The teacher's union here in Ontario owns two professional sports teams and several prominent Toronto properties. I don't know about you, but that sort of goes beyond "fair pay".
unions don't hurt the economy or break the free market system. they're really nothing more than an organized body built to ensure a fair dialogue between the workers and management, so that they can work out a mutually beneficial relationship, rather than one of pure exploitation in which one side has all the power.
what breaks this mutually beneficial relationship is not giving workers an advocacy body, it's forcing union workers to compete with non-union workers, who will work for peanuts without benefits, or worse, forcing them to compete with overseas labour who are so desperate they will allow themselves to be abused for 16 hours a day for less than peanuts, no benefits and no job security.
you talk about more wealth being created when you pay people a pittance and work them like dogs. but why is that a compelling argument to us, when all that wealth goes to a much smaller number of owners, and the workers, who made that wealth a reality, don't get anything for our time & labour? why not go as far as monarchy? why not go as far as slavery? respect for people's time and labour, or their dignity as human beings, factors nowhere into your argument.
and just as an aside, i'm sure you, personally, are not an owner of industry, and i hope you are under no delusion that you ever will be. you stand to gain nothing and lose a great deal in your perfect world.
"@Jayge said:My degree is based on finding the most efficient markets, not trying to figure out morality. If morality is subjective, then playing Paul Krugman and basing every economic stance on morality is a pretty shitty way of looking at it."@lilburtonboy7489 said:If you think the two can be seperated that easily, then what is that degree of yours actually worth? ""@Jayge said:This is economics, not ethics. If you want to get into rights that's an entirely different topic (What the hell does worker's right mean? They voluntarily work for a company for a specific rate, no rights are violated no matter what the going wage rate is)." This is all common sense. However, until you come up with a better solution for worker's rights (which, as a hardcore libertarian, you probably don't believe in as I think you're a property owner = god in his domain type of person?), the majority of people will never give up on them. ""I want to teach people how markets work. That's all. There are millions of opinions on other matters, but this isn't opinionated stuff. I am saying what is materialistically beneficial, and what is not.But for the record, before I start my work on my MA in econ, i'm finishing up my other degree in philosophy. But I will never infuse the two, because inserting philosophical opinions (such as ethics) into a non-opinionated field of economics will distort your conclusions and ultimately give you false economic conclusions. *See Paul Krugman*"
"@Jayge said:My degree is based on finding the most efficient markets, not trying to figure out morality. If morality is subjective, then playing Paul Krugman and basing every economic stance on morality is a pretty shitty way of looking at it.I want to teach people how markets work. That's all. There are millions of opinions on other matters, but this isn't opinionated stuff. I am saying what is materialistically beneficial, and what is not.But for the record, before I start my work on my MA in econ, i'm finishing up my other degree in philosophy. But I will never infuse the two, because inserting philosophical opinions (such as ethics) into a non-opinionated field of economics will distort your conclusions and ultimately give you false economic conclusions. *See Paul Krugman*"
giving your opinion on economics and claiming it to have no link to any kind of morality is disingenuous at best and masturbatory at worst.
PS, the idea that your simplistic jabber has taught anyone anything about markets is laughable. a name dropped here, a claim of authority there, no arguments of any substance disseminated so far.
I would always trust a union to look after my welfare than a corporation.
"you talk about more wealth being created when you pay people a pittance and work them like dogs."
"and just as an aside, i'm sure you, personally, are not an owner of industry, and i hope you are under no delusion that you ever will be. you stand to gain nothing and lose a great deal in your perfect world."
" I would always trust a union to look after my welfare than a corporation.Corporations want unemployment to be at a certain level for their business purposes. When there is unemployment, they have a better bargaining position.Unions are an absolute must and workplace bargaining will always be better for workers as a whole, and society, than individual bargaining - where the employer holds too much power. Governments must also maintain control of the rights of workers, including unfair dismissal and proper minimum wages, so as to protect the weak and maintain social cohesion.Just imagine life withut unioons and see where society would be. It is not a pretty picture."
"PS, the idea that your simplistic jabber has taught anyone anything about markets is laughable. a name dropped here, a claim of authority there, no arguments of any substance disseminated so far."
" Nothing wrong with voluntarily-formed mutual-representation systems.But in effect unions are labour brokers. Manipulating the supply of labour to drive their returns higher. They're like Opec, but they're dealing in people and not oil. "
A free economic agent has the right to form associations for whatever purposes they want, and if they bring about personal economic gain, then they are improving the state of their economy. Where the major economic drain from organized labour comes in is the forceful restriction of the supply of labour, with government backing. Unions wouldn't have the power to cripple economies without their men in Washington helping out
"A free economic agent has the right to form associations for whatever purposes they want, and if they bring about personal economic gain, then they are improving the state of their economy."
unions also make it harder to hire new people at their company and make prices go way up for the consumer.
in short: union workers get richer at the expense of others getting poorer
I don't think voluntarily formed labour corps necessarily make rigid the costs of labour. In many cases they can provide flexibility and a dynamism that a single labourer could not (hence the value of outsourcing).
Like the leftists who hate corporations because limited liability makes them immune to criminal prosecution, I have to remind those with the same political stripes as me that the current political-economic state of affairs would not necessarily apply to a differently-organized social system.
Basically what I am saying is in a free society, unions might become labour-supply corporations, and that process might increase the availability of the supply of labour.
" You know, Burton, you could edit quotes down and leave the formatting normal, instead of using that obnoxious system. "
" I don't think voluntarily formed labour corps necessarily make rigid the costs of labour. In many cases they can provide flexibility and a dynamism that a single labourer could not (hence the value of outsourcing).Like the leftists who hate corporations because limited liability makes them immune to criminal prosecution, I have to remind those with the same political stripes as me that the current political-economic state of affairs would not necessarily apply to a differently-organized social system.Basically what I am saying is in a free society, unions might become labour-supply corporations, and that process might increase the availability of the supply of labour. "
That isn't necessarily true. Corporations in other aspects of the economy don't simply make rigid the supply of their goods to drive up the price of their goods. If it were up to Chevron and ExxonMobil, oil prices would be lower, because they wouldn't accept the supply constraints Opec thrusts upon them.
Unions can exist for reasons other than the cost of labour. They can be ways for workers to pool their resources to purchase products and services collectively, driving down the cost for them of the item they wish to purchase.
Though you're right that if their only purpose is to drive up the cost of a thing, then they wouldn't last long in a free market.
" Unions can exist for reasons other than the cost of labour. They can be ways for workers to pool their resources to purchase products and services collectively, driving down the cost for them of the item they wish to purchase.Though you're right that if their only purpose is to drive up the cost of a thing, then they wouldn't last long in a free market. "
"@pirate_republic said:Contribution to topic fail. ""@CL60 said:""Black text fail."
"@lilburtonboy7489 said:""@pirate_republic said:Contribution to topic fail. ""@CL60 said:""Black text fail."
It is apparrent to me that you want me to contribute. Unions are good, otherwise it'll be the industrial revolution all over again. That is all.
Not really sure what the answer is, but I think a lot of unions as of late are corrupt and don't help workers like they once did. They're just like the businesses.
My dad worked for a corporate airline for 40 years and the union ended up cutting half of his pension. Sure it wasn't just the Union doing that alone, and there are obviously other factors, but I just don't get how you can let workers down when they're paying their union dues for 40 years. As soon as you retire they could care less about you.
I had to pay a union start up fee of $30, and I have to pay $27 a month now that I just started working at Slaveway. (By July 26 they'll have to increase they're pay per hour to $7.25 to keep up with the minimum wage laws).
Working as a courtesy clerk, I see no need for the union seeing as I'm being paid the state minimum wage.
I hate them. I can't wait until I can get my originally planned summer job as a Lifeguard. (Unfortintiallly for me, they hired at the pool when I was on vacation). :( I'm pretty sure I would have gotten the job if I had known about it. (They pay $16 an hour starting out)
Oh well, the pool will be hiring in the Fall and I'm volunteering at the pool every Saturday for childrens classes so I pretty much have a job secured there. If not, I could always get a lifeguard job on the local military base.
" Not really sure what the answer is, but I think a lot of unions as of late are corrupt and don't help workers like they once did. They're just like the businesses.My dad worked for a corporate airline for 40 years and the union ended up cutting half of his pension. Sure it wasn't just the Union doing that alone, and there are obviously other factors, but I just don't get how you can let workers down when they're paying their union dues for 40 years. As soon as you retire they could care less about you. "
Unions destroyed the American steel and automotive industries let us not forget. And nowadays do a half-assed job at protecting workers rights anyways, its no longer the 70's and the mob is no longer behind the unions. So now unions are pussies and a waste of money and would do much better if they were dissolved and workers rights were outlined by laws not contracts subject change.
Please Log In to post.
Log in to comment