Milton Friedman on Unions

Its interesting that the handwriting on the wall for the demise of labor unions in the United States was so obvious in America in the 1960's.

full post: http://capitalismandfriedman.wordpress.com/2009/04/13/milton-friedman-on-labo...

Category:

News & Politics

Tags:

• milton friedman unions
• labor union
• america

[CosmicFork]

Let's talk about Friedman's ideological consequences on the real world as seen in Reaganomics. The effort to undermine and destroy Labor Unions peaked in the "Reagan Years". I lived through those years, and only Margaret Thatcher succeeded in smashing down workers in England better. Managements goal has always been to undermine the basic rights guaranteed by The 1935 Wagner Act, or National Labor Relations Act. The basic method of this Anti-Union War is illegally firing thousands of workers!

[mba2ceo]

FACT: UNIONS = living wage - safety - dignity - professional growth.

[RRNYC1998]

I am anti-union because I am pro-capitalism

[Anglagard1]

@martydrooo Those nice unions jobs were for the most part gone before GM's most recent failing, most parts being made in Mexico and other countries by non-union labor. If AFL-CIO had the power you suggest they do, they never would have let those jobs go overseas to non-union workers.

[martydrooo]

@Anglagard1 Yes and no. Japs, Koreans, and krauts all have their factories in RTW states. Prior to that, unionized Jap. workers made far less than US counterparts (in the 70s/80s, but not the 90s). It's not a question about labor costs, though. The AFL-CIO lobby, far larger than any corporate lobby, never let any auto company fail; Rewarding failure. US co.s never had to compete at first, JP cos had to compete from day 1. Bad pc chip makers fail, bad car co.s get bailouts since the 70s.

[Anglagard1]

@martydrooo American car companies were crushed by Japanese car companies that used union labor. Unions on both sides of the equation cancel each other out, therefore unions had nothing to do with why Toyota, Honda, etc. won out.. Also, the government doesn't listen to unions nearly as much as it listens to corporations because they don't have nearly as much money to spend on politicians. Bailouts were given because the corporate masters demanded them.

[martydrooo]

@CosmicFork I'm not anti-union but destruction of unions have nothing to do with the american decline. In fact, they helped it happen. US automakers got comfortable with no outside competition and stopped innovating. The Japanese come and decimate them (US consumers long loyal to US brands cant afford breakdowns), and so the UAW lobbies to bail out the failed american auto co.s for the sake of their jobs. Unions are great when theres no competition, and thats bad for the consumer.

[StatelessLiberty]

@mba2ceo

-Unions create a barriers to entry in the labour market for young or unskilled workers, raising wages within the union, creating unemployment for those outside.

-Unions make wages stickier so increases unemployment and the collapse of businesses in a recession.

-Where wages are driven highest is where the replacement of labour with capital is most strongly incentivised. Capital is diverted from where it is most needed to labour cartels (unions), creating unemployment outside the cartel.

[fishbinger]

Results? The greatest growth in the standard of living of any society has occurred in places where markets are allowed to work largely unhindered.

An employer should have the right to terminate an employee for any reason and at any time, as long as the employment contract allows it. You can't force an employer to hire or retain an employee against his/her will. The employer owns the business. Employment must be a voluntary transaction in order to protect private property rights.

[themetalgod21]

@frase32 No, not without good cause and reason.Would it be in the worker's rights to strike outside your store.Treat people well and you will be treated well!!!

[CosmicFork]

Keep living in your "free-market" fantasy land fishmonger, fishbinger.. whatever the hell your name is. I LOOK AT RESULTS. The results of the methodical destruction of unions in this country has been devastating for working-class people! Real hourly wages have been totally stagnant or in most cases going DOWN for decades, since the late 70's. A working person can now be fired for any reason OR NO REASON AT ALL. In most states there isn't even any labor relations board! Reality says you're lying!