Tuesday, September 8, 2015

It’s not labor unions that destroy the economy; it’s the New Deal and its awful progeny

It’s not labor unions that destroy the economy; it’s the New Deal and its awful progeny


Two small minorities on either end of the political spectrum have strong feelings about Labor Day. One side sees the holiday as a celebration of all the victories hard working folks have won in securing their rights against greedy capitalists who would otherwise have them working twenty-three hours a day in sweat shops. The other side sees it as overt Marxism, so dangerous to all that’s good and holy the holiday should be renamed.

The other 95% are just damned glad to have the day off.

That the right wingers are paranoid doesn’t mean no one is out to get them. There is a very real connection between the holiday, the unions that proposed it and Marxism. American Marxists are firm supporters of unions, as were Marx and Engels themselves.

Neither is there any denying the damage unions appear to have done. Wherever labor unions are firmly entrenched, economic hardship proliferates. Outside the politically correct zone, everyone knows unions destroyed Detroit. If you have any doubt, just look at General Motors’ 2006 balance sheet. Either capitalists mysteriously ceased being greedy for the preceding fifty years or something forced them to be overly generous with pay and benefits, resulting in the bizarre preponderance of legacy benefit costs reflected there.

This would seem to be something of a paradox. How can this free association, an expression of the free market itself, be so harmful to our economic well-being?

The answer is labor unions themselves are not the problem. It’s labor union legislation, starting with the infamous “Wagner Act” (National Labor Relations Act of 1935) and continuing with subsequent legislation in the decades thereafter. These laws transformed the employment contract from a voluntary buyer-seller agreement to an involuntary one for one side.


Full article: http://www.tommullen.net/featured/its-not-labor-unions-that-destroy-the-economy-its-the-new-deal-and-its-awful-progeny/