werepossum
Elite Member
- Jul 10, 2006
- 29,873
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Actually Adam Smith was wrong in this instance, probably because he never foresaw the modern union movement. Take for instance the UAW-automobile manufacturer relationship. If the management of GM, Chrysler, and Ford got together to agree on a strategy to keep down wages, they would face jail time. Yet the UAW is perfectly free to establish a strategy to get concessions from all three by going after the weakest link, the most vulnerable, at the moment.What is the point of a union when corporations can simply bypass them for non-union members. And thanks to the advent of IT infrastructure, we can now bypass Americans altogether for non-manufacturing jobs as well.
Even Adam Smith recognized how fucked up this can get:
Properly run, unions can be effective without a government-mandated blackmail capability built in. The trade unions establish training programs that are better than similar competing government- or private-run training programs, so the union shops generally deliver a better product at competitive rates. Hazardous duty workers' unions like miners' unions can organize to point out dangerous operations and/or conditions, either coercing the owners to fix them or steering the better workers away from them until the worse companies fold either from competitive inefficiencies, government action (e.g. OSHA), or at worst lawsuits by victims and survivors. Legislating mandatory union membership merely establishes blackmail (i.e. strikes) with no options other than meet the union's demand or fold the business. In the end, that always results in folding the business because the unions will always raise the wage costs above the level that the consumers are willing to buy the product or service. Except of course for those businesses (i.e. governments) with the ability to mint money or take it at gunpoint. That ends in revolution, peaceful or otherwise.
