[Eduardo] Porter believes, wrongly, that labor unions are able to improve the standard of living of wage earners throughout the economic system and that they do so by means of securing increases in money wage rates. He, along with almost everyone else, commits the fallacy of assuming that because earning more money is obviously an intelligent policy for an individual wage earner to pursue, it follows that it must be an intelligent policy for all wage earners taken together to pursue.
He is totally ignorant of the fact that increases in money wage rates obtained by labor unions reduce the quantity of labor demanded and thereby cause unemployment, less production, higher prices, and an added burden of supporting the unemployed. He is ignorant of the fact that what serves to increase money wages without causing additional unemployment is merely the increase in the quantity of money and consequent increase in the volume of spending in the economic system. But this phenomenon serves equally to raise prices and thus does not improve the standard of living of wage earners.
sexta-feira, janeiro 04, 2013
Labor Unions, Thugs, And Storm Troopers
Labor Unions, Thugs, And Storm Troopers por George Reisman: