1. Show or hide comments about the document.

  2. Search over the document's text.

  3. Share the document through social networks or e-mail.

  4. After selecting an area on the page.

  5. ...you can:
    copy the text
    share the segment
    comment
    cite the document

Spring 2008
ISSN 0890-913X
Volume 23, Number 2

Hayek on Labor Unions: Economic and Social Consequences

Charles W. Baird, California State University Hayward
Download Share e-mail
  • << Back to editing
  • Previous version by
  • << Older
  • Newer >>
  • Revert to this one
  • Edit
  • Fullscreen
  • Show comments
  •  
  •  
  •  
  •  
  • Zoom:
     
     
  • Page:  / 19
  •  
  •  
  •  
  • Line spacing:
     
     
  • Word spacing:
     
     
  • Search:FindClose
 
search results
 
 
 
 
 
 
 
 
 
 
 
409
638
1
0
/jpe/index.php?action=ajax&rs=GDMgetPage&rsargs[]=Spring2008_2.pdf&rsargs[]=0
TheJournalofPrivateEnterprise23(2),2008,19-37HayekonLaborUnions:EconomicandSocialConsequencesCharlesW.BairdCaliforniaStateUniversity,EastBayAbstractWhileAmericanunionshavealowanddecliningmarketshare,theyremainverysignificant,especiallyinthepoliticalmarketplace.Thatpoliticalinfluencemakesitpossibleforunionstoyieldfarmorepowerintheprivatesectorthantheirmarketshareinthatsector(7.5percent)implies.Allthisispossiblebecauseofthesubstantialgoodwillcapitalthatunionsstillenjoy.F.A.Hayekthoughtthatifpeople,includingworkers,understoodthenegativeconsequencesofunionism,unionswouldlosemostofthatgoodwillcapital.Hayekwroteextensivelyontwocategoriesofmaligneffectsofunionism:thoseinvolvingbreachoftheruleoflawandthoseinvolvingtheeconomyandthefreesociety.Thispaperexamineshisviewsonthelatter.I.IntroductionManypeople,awarethatonly7.5percentofprivatesectorAmericanworkersareunionized,concludethat,atleastintheU.S.,unionsarelargelyirrelevant.Thatinferenceisverywrong.Tobeginwith,35.9percentofgovernmentsectorAmericanworkersareunionized.Toalargeextentcollectivebargaininginthegovernmentsectorresultsingovernmentemployeesimposingtaxation-withoutrepresentationontherestofus.(Wagesandsalariespaidtogovernmentworkersarepaidforoutoftaxes,andtaxpayersdon'tgettovoteontheprovisionsofcollectivebargainingagreements.)Moreover,despitethelow,andfalling,marketshareofprivatesectorunions,theirabilitytoextractforcedduesfromworkerswhowantnothingtodowiththemgivesthemfartoomuchinfluenceinthepoliticalmarketplace.Thissorrystateofaffairsismadepossiblebythefactthatunionsenjoyfarmoregoodwillamongthepublicthantheydeserve.F.A.Hayekbelievedthatifpeople,includingunionizedworkers,cametounderstandtheactualconsequenceofunionismas19
GLIFOS-digital_archive