Wednesday, March 9, 2011

The Limited Role of Unions

... is the role of the haggler. Necessary? Sure, but not the driving force one might think.

Unions are the cart, productivity is the horse.

Oh and state-employee unions should be abolished full stop. The state is disconnected from price signals, and the funds come from third parties. Meaning a governor will agree to take more money from joe taxpayer to pay for teachers.

If a market union's demands become too great, a firm can always decide to close shop or move to India.

If a state union's demands become too great... well, just try to "opt-out" of state programs and their concomitant taxes a la carte.

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