Labor unions have come under fire in the news recently. Opinions seem to fall pretty clearly as expected, along party lines. Today’s joint post is by jmb275 and hawkgrrrl.
jmb275: Personally, I’m not a big fan of unions. I don’t think the benefits outweigh the costs. Essentially you end up with a stagnant workforce who is unmotivated to succeed, but has power to bankrupt the company.
hawkgrrrl: I agree with you on this topic. Collective bargaining is ostensibly the benefit, but in reality, unions are another business, and they are in the business of taking money from the workers and slowing down business to force the hand of management (which demonstrates their value – if they don’t influence, they lose power). They only thrive under certain conditions: 1) when businesses are too short-sighted to see the impacts of poor working conditions and high attrition rates, 2) when employees are not smart enough to get their needs met any other way (e.g. through more direct collective bargaining), or 3) when industries have a legacy of being dominated by unions.
hawkgrrrl: What employees sometimes fail to realize is that once they unionize, the union is nearly impossible to get rid of. It’s like a golem to solve your problems (the Jewish monster). Unions often rely on low-brow intimidation tactics like putting a large inflatable rat in the parking lot to discourage workers from working with “management,” even if management is inclined to work with the employees. Once a union enters the picture, the discussion is over. I question whether there is a place for unions in a meritocratic society.
jmb275: Clearly, the upshot is that by collective bargaining people have the power to disallow abuse from the corporation. This is certainly important, otherwise we leave it to the gov’t (which I do not endorse). But I think it has to be balanced against the union itself becoming so large as to be abusive and diminishing the quality of work produced.
jmb275: I think it’s one of the few places in our capitalistic society in which corporations really can be held to the fire (which ends up being both good and bad). I think for the most part, at least regarding the big unions it ends up bankrupting and crippling companies and industries in general (think auto industry and public education sector). Additionally, you get shoddy products (or in the case of education you get pathetic teaching) because of lack of motivation to succeed. I’m particularly saddened by the state of public education in our country, and I think much of the blame rests squarely with teachers’ unions and the roadblock to progress they create.
hawkgrrrl: The Wisconsin thing – well, I think it’s a little more complicated when you work for the government anyway. Honestly, government work is just as bad IMO as unions at discouraging productivity and eliminating performance incentives. There’s a real old school mindset at play there that rewards tenure over performance and believes work is a right regardless of economic factors, quality of output, and individual performance. And I agree with you that it’s based on valuing wealth redistribution rather than meritocracy.
jmb275: As usual people would rather trade liberty (or more aptly the ability to really succeed and innovate) for security. To me, it seems like in the effort to make things “equal” (which is a myth anyway) they crush the ability to become better (halting progress).
hawkgrrrl: I’ve also been reading Tony Blair’s book, and he talks about how he worked to change the Labour party to New Labour. He was alarmed to discover that many in the party were set on wealth redistribution and resented the fact that when the working class had equal access to opportunity, they strove to be middle class through meritocracy. Meritocracy was ingrained in people, something that many in the Labour party were blind to. Redistribution of wealth just doesn’t resonate for the recipients – people want a leg up, fair opportunity, not equal outcomes. They don’t want to be unfairly disadvantaged, but once you eliminate the unfair disadvantages, they want to enter the game and play like everyone else.
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“As long as the union keeps the best interest of the employees in mind. I’m for them in our industry. The problem is some them especially the IAM are for themselves. I’m for them because we have no say in decisions that affect us. Plus we have no recourse or support if we get in a bind and the company decides to fry us.”
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“Against. They are in it for themselves.”
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“If we truly had a say in what goes on I’d say no. After more then 22 years in this industry we’ve always been told take and smile. Suggestions rarely are heard even good ones. The company won’t back you unless in their best interest.”
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“For the most part I”m against. I think they had their place at one time, but it seems they’re mostly in it for themselves now.”
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“For. Unions are often the only thing keeping middle class jobs middle class. When the unemployment rate is high, individuals on their own are nearly always replaceable, so it is too easy for companies to take advantage of them.”
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“Unions stopped child labor in America. For that alone they should be lauded forever. But unions also stopped business from making people work in unsafe conditions, or cheat workers out of their pay, or to be able to openly apply force …in controlling the workers. You don’t have to look very hard to see evidence of corporations openly assisting in the oppression of people worldwide – now and throughout history. Look up a little of the real history of Chiquita banana company and their hijinks – and they only sold fruit…how nasty do you think the oil or the mineral industries could be? Read about the meat processing industry nowadays. A lot of immmigrants (legal and illegal) working in that industry. Poor treatment of workers. Not very unlike “‘The Jungle”? My point being – things have not changed. The people must look out for their own best interests collectively because government will bend over for a buck. If anything we need more unions, stronger unions, and really importantly multi-national unions.”
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“I really support unions. I highly recommend ‘A People’s History of the United States’ by Howard Zinn – GO LABOR! GO WISCONSIN! GO INDIANA!”
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“Technically teacher are an association, but serve their members in many of the same important ways. Totally support the public employees in Wisconsin — and the brave Dems.”
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“My husband belongs to one that has really worked hard to ensure air traffic controllers get fair wages and benefits. Thankfully, this also meant that the recently proposed federal government pay freezes didn’t apply to him!”
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“For … unless we find some better way to make our concerns level with corporations and markets.”
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“I have no problem with them as long as no one is forced to join in order to work.”
I also thought I’d add a few quotes from others:
- “Although it is true that only about 20 percent of American workers are in unions, that 20 percent sets the standards across the board in salaries, benefits and working conditions. If you are making a decent salary in a non-union company, you owe that to the unions. One thing that corporations do not do is give out money out of the goodness of their hearts.” Molly Ivins
- “In our glorious fight for civil rights, we must guard against being fooled by false slogans, as ‘right-to-work.’ It provides no ‘rights’ and no ‘works.’ Its purpose is to destroy labor unions and the freedom of collective bargaining… We demand this fraud be stopped.” Martin Luther King Jr.
- “With all their faults, trade unions have done more for humanity than any other organization of men that ever existed. They have done more for decency, for honesty, for education, for the betterment of the race, for the developing of character in men, than any other association of men.” Clarence Darrow
So, what are your thoughts? Are you for unions or against them? Do you have personal experiences that created your perceptions? Discuss!

For anyone that argues that unions increase the standard of living for those they represent- they need to check out Detroit.
The difference between the auto industry and the public sector? The auto industry doesn’t have the abiltity to suck tax payers for money.
In addition- public sector unions are the way Democrats successfully funnel tax payer dollars back into their own campaign pockets.
you wanna know why Toyota pays their workers so well in states like Alabama? Because they fear their workers unionizing. The power of a union goes far beyond its own union, by putting the fear in management across the marketplace that they better damn well pay their workers well or fear unionization happening within their own work force.
Who speaks for the little guy in a world dominated by the rich? Who defends the $50,000 a year worker? You think the Congressman whose average net worth is $900,000? You think he actually gives a damn about the worker who makes only the smallest amount compared to his own net worth? You think religions fight for the rights of the little guy in the workforce? You think charities fight for the rights of the little guy in the workforce? You think corporations fight for the rights of the little guy in the workforce?
Unions are not evil, in and of themselves. We tend to forget, our country is A UNION!
jmb,
Wow, that’s quite the charge. It works well as a Republican talking point, but can you point to actual evidence that a union workforce is “unmotivated to succeed?”
I really get the feeling you have no idea what you are talking about, but just listen to idiots on Fox News. Do you not even know anyone who belongs to a union?
Do you know any teachers in your life? Did your teachers suck when you went to school? Could parenting be one of the variables to the state of education of our children? Could the technological distractions be a variable to the state of education of our children? My wife is a principal of a public school here in New York City. She holds, once a month or so, a game night for her students. They bring in their favorite video games. I was fascinated to watch just how masterful they were with those games. They were awfully quick with their minds when playing those games. You think it is the fault of teachers for not being able to compete with the lure of the game for the mind of the child? You have no idea what you are talking about jmb.
Hawkgrrl,
Am I in some bizzarro world here? Do you guys not even study the world around you? Government work discourages productivity and eliminates performance incentives? Do you know anyone who works for the government in any fashion? Do you see what they do? Have you asked them if they are specifically discouraged at being productive?
jmb,
Why does your employer work “pretty dang hard” to ensure you’re happy? Because he’s afraid you’d unionize, you silly!
Hawkgrrl,
Thanks for sharing those quotes from Molly Ivins, Dr. Martin Luther King Jr. and Clarence Darrow. It seems however, from your earlier comments that you didn’t even listen to what they had to say.
Dan, this does seem to be an issue that divides across party lines, although in this case, neither jmb275 nor I are GOP, we’re just not Dems either. I do take seriously the opposing comments I shared. However, my personal experience differs dramatically; I think it’s also important to remember that these quotes were from decades ago. In my own lifetime I have mostly seen unions drain money from the poor and lower middle class to keep performance standards low so that lazy people don’t get fired for performance. High performers in unionized organizations are often marginalized and resentful. That’s just been my own experience.
Given my own experiences, I’m kind of floored you think government workers and educators are all so motivated and hard working. When’s the last time you went to the DMV or the post office? Can you honestly say that even half the teachers at your kids’ schools are up to scratch from a motivation and qualification standpoint? My experience is that, on the contrary, those who really are motivated and qualified shine like rare diamonds in a bucket of coal.
hawkgrrrl,
I’m sorry to hear that you had bad experiences with union workers. Having lived in several very different regions of the country, and having worked with, or been serviced by, union workers in all those places, I cannot see what you are talking about. Particularly in comparison to non-union workers. Maybe the postal worker where you are sucks, but the ones I know here in New York City work very well with the volume of people who frequent the post office. They know their work very well, and do it well. I haven’t been to the DMV office in a while, but the one I go to, in Jamaica, is quite busy. They don’t have time to be lazy there. My teachers in high school in California were excellent and I have no complaint about how well they taught me. I supported them the two times they went on strike. The teachers I know at my wife’s school work hard and no different than non-union workers that I know of in their own fields. As a librarian, I was unionized wherever I worked, and all the librarians I knew worked hard and did not cheat their employers. A few of them were lazy, due to the nature of their particular jobs, and if I were in charge, I would have done something about it. But, having worked also in non-union jobs, I know enough lazy non-union workers to not make a difference between the two. I participated in a strike because the university I worked at refused to accept our demands and they left us no choice. In the end, we received a better pay for our work than, most definitely, if we were not unionized. All those within the unions that I have worked with were qualified for their jobs and did well enough in them that I was not worried about them cheating their employer by being a part of the union.
So again, from personal experience, when someone makes the kinds of claims you two did in your piece here, I have to question whether you guys even live in this country or even know anybody. It just does not jibe with reality. Or maybe I lucked out and have only lived in cities where workers worked damn hard at the jobs they were qualified for.
Also you guys single out a couple of unions: teachers, auto-workers, post office workers. What about the other unions? Police? Firefighters? Baseball players? Football Players? Airline pilots? Should I name more? Why do you guys attack only those few unions but not delve into whether all unions suck? Are policemen “unmotivated?” Are firefighters? Are baseball players? How about airline pilots? Do they suck at flying solely because they belong to a union?
Finally, since our nation is a union of various states, is our union an “evil?” Because you guys don’t seem to differentiate if only some unions are evil. Your title is “Unions: A Necessary (or Unnecessary) Evil?” as if the very idea of “unions” is evil. Is our country therefore evil?
In a better world, employers would be motivated to treat their employees fairly. Of course, unions, like businesses often become self-serving and corrupt–but that doesn’t mean they need to be eliminated.
I’ve taught in districts with strong unions and weak unions. I haven’t always agreed with the unions’ demands, but I’ve also seen unreasonable demands made on employees in districts without strong unions.
A rural district in which we lived compelled non-union classified employees who were paid slightly above minimum wage to “volunteer” an extra hour a day beyond their paid shift. This is wrong and a union would not have allowed it.
Dan, I’m not going to engage with you. I have before and it’s a dead end. I have explained so many times to you that I’m not GOP, nor do I watch FoxNews. I hate them as much as you do. Why you can’t understand that someone can disagree with you and not be a Republican is beyond my own ability to comprehend.
I think unions have their place. It’s when the government gets involved that unions are bad. When unions can you violence or the threat thereof is when it becomes bad.
My dad belongs to an electricians union and recently was called up on a job because they provided higher quality service than the non union people.
I’m not a huge fan of unions but sometimes they can provide good services, like I said, it’s only when they use the violence of the state (or any violence or lying for that matter) that they are bad (which all government unions do, so they are all bad).
Re CC
For me this is the hard part with unions. I do think they are a force for good sometimes. Employers do make unreasonable demands on employees sometimes. Why is this the case? I think it’s because they knew they could get away with it. But I think this is changing. One of the reasons I think unions are a thing of the past is that young employees are very transient in their jobs over their lifetime, and are hence more willing to part with employers. I think this is the right way to have it – as opposed to unionizing.
I agree with the point about the power of employees having changed in more recent generations. It’s no longer the norm for someone to stay in the same company or even in many cases the same industry their entire career. People take more chances and want more variety than they used to. Risk-taking employees are also able to negotiate on their own behalf better because they are not as invested in job security as the ultimate reward. They want personal fulfillment, too. Employers who meet the most needs win in the marketplace today.
Policemen – uhm, yeah. Ever heard of the “blue wall”? Policemen are certainly prone to corruption and undeserved loyalty to their own. Interestingly, most of the organizations you listed that we didn’t talk about in the OP are male-dominated industries – I wonder if there is a higher percentage of men in unionized industries.
Airline pilots I do think are mostly hard working in high stress jobs (all airline jobs – pilots are probably the least stressful for their industry – Air Traffic Controllers and gate agents have it really hard IMO), but there’s another example of an industry that’s a huge mess that only gets worse with government oversight and intervention. Frequently, the government has to step in to mediate in the airline industry because the unions are not able to resolve the disputes.
How about just not necessary!
Unions are absolutely necessary. Yes, they’re sometimes rotten at the head, but they provide an essential counterbalance to the power of capital — which is at least as rotten (if not more so).
In an ideal world (as a previous comment indicates), unions wouldn’t be necessary. The world we actually live in needs them. As for employee transience, let me point out that it’s not just about a flighty younger generation’s short attention span: in many cases it’s the jobs that are transient. I’ve lost more jobs than I can list here through mergers, downsizing and outsourcing, none of which were by my own choice.
@hawkgrrrl,
I guess Dan never listened to the “This American Life” episode where they talk about how the NYPD are kidnapping people overnight in order to get better numbers. And how they harass cops that don’t want to play along. Oh, wait, that’s not a union problem, that’s just a problem with government monopolized services.
I took my kids out of the cesspool known as the public school system and put them into a private school. What a night and day difference. None of the teachers are part of a Union and can and are fired at will. Last year one of the math teachers wasn’t cutting it so she was fired and replaced mid stream. It is not healthy to have a system where it takes 50 steps, an act of congress and transferring the birth right to your firstborn to get someone fired.
Like the rest of the public they should be ‘at will’ employees; like the rest of the public they should plan for their own retirement and their own health care; and, like the rest of the public they would care more about their job performance.
Dan,
Who would have thought that the blog that rose from the ashes of Morrmon Matters would be more like Millenial Star than anything else. Sigh.
While unions can throw wrenches into the machine of capitalism (ie. Detroit, public school systems, etc) they are actually a result of that system. In an idealized world, people could flow from job to job, stocks would truly reflect a collective judgement of the underlying, educational opportunities would be equal, and politicians would look out for their constituents. However, the world is NOT ideal.
Because of this, the unions that companies hate are the direct result of the companies themselves. If companies treated their employees fairly, there would be no need for unions and they would dissolve fairly quickly.
Companies exist to make money – pure and simple. They are always trying to squeeze out a little more – a better price for products, a bit more work from employees, lower costs, etc. That is their job and that is what has made the US so successful. At the same time, if they push too far, they create an environment where a union forms to push back.
So, while unions are, at times, distasteful and seemingly against the “free economy”, they do provide a system of checks and balances. Sometimes the companies have the upper hand, sometimes the unions have the upper hand. It’s an ebb and flow.
Therefore – asking if unions are “evil” is the wrong question. They are a natural part of capitalism. The question is whether there is a better system for progress than capitalism. The world has never shown that there is, so as long as we have capitalism, there will be unions.
Chris H (For some reason your comments really draw me in, heh) – Do you have any suggestions?
Adam,
Nothing wrong with being like M * (unless you ban me like they did).
Right wing politics is a dominant feature of Mormonism. I am learning to deal with it….not really. I mostly just prayer that we never get too much political power. It is why I appreciate the Constituion. It keeps both Unions and Mormons from having too much power.
I am not a particularly huge fan of unions for two reason. Unions keep me from getting jobs in two areas when I was younger and also because i think that union power can “over-value” the jobs of its members.
My example would be the auto industry. many of those jobs were extremely over-valued and the pay was disproportionate to it over all value to the cost of the car. As a consequence, the American car manufacturers became non-competitive. This was not the only reason but a big part as salary, and benefits of current workers and retired workers made up a large part of the price of a car. Unions blackmailed the companies unto these high salaries and benefits and the rest, as they say is history. I think the Steel industry was the same way.
That being said, Corporation, in this day, are not longer, if they ever were, benevolent employers. they look at workers as another “resource.” the cheaper they can acquire that resource, the better the bottom line. Yet, happy workers are more productive and actually make more money for the company. but that is lost on the Wall Street, short term focus we see today.
More later, but a brief thought:
A union is what in economics is called a “cartel” — an effort by people to band together and artificially jack up the price of a commodity.
When that’s done in any other context than labor, it’s called a combination in restraint of trade, and somebody’s supposed to go to jail.
There may be justification for allowing cartels in the labor context (given the inherent difference in bargaining power between a large corporation and an individual, more or less unskilled worker), but it’s still a cartel. At the most, it ought to be tolerated — not advantaged.
And public employee unions shouldn’t be allowed at all. There is no genuine bargaining, when (1) the employer faces no competition, and little tangible pressure to control costs, and (2) the union has the power to help select the people it sits across the bargaining table from.
Federal workers, incidentally, generally don’t have collective bargaining rights; the decision not to extend them goes back at least as far as FDR.
unions are not inherently evil. capitalism is not inherently evil. there needs to be checks and balances, as was mentioned before. some unions are good, some are bad. some companies are good, some are bad. for every example of a bad union, a bad company such as walmart can be shown. when unions are seen as bad, you have lee scott making $24 million a year and saying he can’t afford to provide affordable health insurance for his employees. give me a break. walmart needs a union to protect workers with affordable health insurance. walmart is known for bullying down prices. why can’t they do that to help employees? having worked there, a union would help protect workers.
There are simply too many examples of corporations abusing their power for short term gains that ended in disaster (Enron, BP, the subprime debacle, etc.) for us not to support a system of checks. Government regulation is one, unions are another. Neither is perfect, but the alternative is to go back to the Gilded Age and no one wants that (except the corporations).
I am amazed that this discussion does not focus more on the distinction between PUBLIC sector unions and PRIVATE sector unions, since all of the current political upheaval is regarding the former, not the latter.
There are currently more white collar unionists than blue collar unionists, and more unionists employed by government than by corporations.
Let that sink in for a second. When private sector unions bargain, they bargain against corporations. That makes sense. But when public sector unions bargain, exactly who is it they bargain against? It isn’t capitalism, it’s the taxpayer. It’s you.!
Have you been abusing government workers? If there were no public sector unions, would you be making teachers work 16 hour days seven days a week? Would the government that represents you be doing so? All the evidence suggests just the opposite. Taxpayers funnel money to politicians by law for services to be provided by the government. These tax revenues are then sent to government employees who MUST deliver a portion of them to the union bosses. The union bosses then funnel portions of their “profits” back into electing politicians — which they often have overwhelming power to do at state and local levels. This “investment” then leads the politicians to support ever larger expansion of programs requiring ever more public employees receiving ever higher benefits (preferred over wages as easier to bury from public scrutiny and since the bills come due AFTER the politicians have moved on). The net flow is always from you the taxpayer to them the public employees.
It becomes a parasitic symbiosis among the union bosses and the politicians because they acquire immediate political power, but the taxpayers AND THEIR OWN UNION MEMBERS eventually pay those bills as the finances of the states and cities destabilize.
This becomes readily apparent if you realize that FEDERAL WORKERS DO NOT HAVE THE RIGHT TO COLLECTIVE BARGAINING OVER WAGES OR BENEFITS. Those “rights” were taken away the last time stagflation and Middle East unrest threatened by Jimmy Carter and a democratic congress. Every year, the Administration unilaterally tells the Federal workers what they will be paid for every job, grade, and step. In fact, Obama unilaterally froze pay for all Federal workers mere weeks ago.
The public unions can’t even make the argument that they balance corporate funding, since both big business and big labor give the majority of their contributions to the same side. Wall Street is as much a part of the symbiosis as are the unions; perhaps that’s why BOTH get bailed out of disaster at taxpayers’ expense.
Thomas, I fail to see the parallel between unions and cartels. Unions are created specifically to balance power and allow bargaining with equal resources and information between capital and labor. Cartels are specifically set up among competing firms to fix prices without the moderating force of bargaining and other free market principles. Apples and oranges, to me.
Firetag,
Excellent comments. A great documentary that illustrates this is waiting for superman. The main point, which is well documented, is that these government unions don’t care about their jobs or those who they are serving.
Firetag & Thomas bring up some good points.
First, FDR was against government unions (according to the last podcast “Common Sense” by Dan Carlin). Which was a bit of a surprise to me. Not that it matters what FDR thinks, I guess that’s more for the liberals than anything else.
Second, we must remember that in a free market corporations wouldn’t exist. Corporations are a construct of the state. With rule of law you wouldn’t be able to bar yourself from beings sued for bad behavior like people do that create corporations.
Jacob,
A union seeks to create a monopoly on a potential employer’s labor pool, preventing individual job seekers from offering to provide labor at a lesser price than what the union offers. Whether this involves “balancing power” between the union and the employer is irrelevant to whether the cooperation is a cartel: It’s an association of suppliers designed to allow a higher price to be charged, than would be possible absent the suppliers’ cooperation. Noble and necessary as the underlying cause may be, as a strictly economic matter, that is the classic definition of a cartel.
And, being a libertarian type, I’m fine with that — as long as the cartel doesn’t enforce its monopoly by breaking people’s arms, slashing their tires, or enlisting the government’s coercive power.
How might unions have helped avoid any of those debacles?
Unions are pretty good at protecting the interests of (senior or well-connected) employees. As for protecting the public, a union’s leadership has the same concern for the public interest as a firm’s stockholders have: None.
As one schoolteachers’ union boss famously said, when schoolchildren start paying union dues, that’s when he’ll start caring about schoolchildren.
Thomas,
Ah, you’re right, my list there had less to do with union benefits than the government regulation side. A more germane list of corporate abuse would have included something like child labor and unsafe working conditions, not BP and Enron.
I see the point about cartels, I honestly do, I just think there is enough to distinguish unions from cartels, as commonly understood, that the description just comes off as a smear, which maybe you don’t mean it to be. The main distinction, in my mind, is that a classic cartel is an effort to consolidate power without any market mechanism to counteract, whereas a union seeks to rectify such an imbalance of power through collective bargaining. The result is, of course, inflated wages and working conditions, but those were presumably low because of a cartel-like imbalance of power to begin with. Being far from an economist, perhaps I’m way off in left field.
Re Chris H
You know it’s strange. When one of us says something about gay marriage, abortion, legalizing marijuana, or a host of other moral issues, all we hear about is how liberal we are. When we speak out in favor of fiscally conservative ideas all we hear about is how conservative we are. I think it says more about the readers than it does about us. You read into it what you want.
My read is that many people view corporations as greedy, manipulative giants whose sole purpose is to extract every farthing from the poor and needy. While I certainly agree that the bottom line is margins, there are two ways to go about increasing those margins. The first is through fear and intimidation which many of you have pointed out, and historically, has certainly occurred. I think this has VERY limited effectiveness as evidenced by the rise of unions, and the general disdain many have for big businesses. And I think most employers realize this now.
The other tactic that is increasingly prevalent (and has been my experience with almost every job I’ve had), is for employers to make their employees happy. In this case employees word harder because they want to, which naturally increases the bottom line. It is instructive that places like Google don’t have unions (as far as I can tell). There doesn’t need to be (as some of you have pointed out).
I don’t think unions need to exist in a non-idealized world, but it is clear that they will (which is fine) particularly if people don’t have (or believe they have) enough individual bargaining power. But it’s not clear to me, in any case, that the benefits outweigh the total costs to the economy.
Chris,
#17,
Indeed. Well said. So much for the Mormon Blogosphere being a cesspool of liberalness.
jmb,
I don’t give a damn if you’re not going to engage me. However, if you say stupid things, I’ll still call you out on it. Your choice to respond or not.
Firetag,
#25,
What evidence? Will you share your evidence please.
Jon,
Do you guys like even study history? I mean, who says this kind of stupid?
jmb,
No they haven’t. They never will. That’s the point.
Since the introduction of unions in this country, what has been the effect on the GDP? Methinks you will not have good evidence to back up this claim.
Dan, a friendly bit of advice: There is coming to be an inverse relationship between the volume at which you scream YOU’RE STUPID! at people, and your actual understanding of the point at hand.
A corporation’s defining characteristic is limited liability: An investor only risks his investment capital, and isn’t personally liable (‘cept for alter ego and other rare stuff) if the corporation runs up liabilities that exceed its total capitalization.
Without a state to pass and enforce a Corporations Code, or other law providing for limited liability, you don’t have corporations. You might have partnerships that treat themselves as corporations, but since nobody else is required to, that doesn’t make any difference.
Thomas,
What was the world’s first corporation?
Let me rephrase, Thomas, because I am assuming that Jon still thinks a government exists even with a “free market.” Jon is implying that a “free market” therefore is one without any government. As such a situation can never exist, his point is plain dumb. Thus, why I call his point rather stupid. Or do you also believe a free market can only exist where no government exists?
Trivia time? Off the top of my head, I don’t know. Probably some outfit back in the Middle Ages got a royal charter granting it status as a legal entity distinct from its stakeholders.
Point is, an association of people to business is just that — an association of individual people, with no separate existence; in other words, a partnership — unless a state comes along and declares that it is to be treated as a separate legal entity.
Dan:
I was just waiting for you to make that [SELF-CENSORED] argument that government abuses government workers. That would be the same government, you realize, that the public employee unions are perfectly complicit in inflicting on the rest of us — but only if they get enough of the take?
I think a sensible reform would be to “bust” the state and local public unions back to the oppressed level of the Federal worker. Oh, the horror! 😀
My point, Thomas, is that, this association of individual people who are suddenly given power by a state to be a separate legal entity, how exactly does it force a market to no longer be free? Because that’s Jon’s point, that corporations don’t exist in a “free market.”
Firetag,
You’re talking about reform, not abolish. I have no problem with reforming unions. Just don’t abolish them. I’m still looking for evidence of your claim, but I highly doubt you’ll offer it.
Not at all. A completely free market (which has probably only existed, and that only briefly, on one of those desert islands in Dr. Kearl’s economic textbooks, where everybody spent their time trading palm leaves and coconuts back and forth) doesn’t require there to be no government. It just means that government doesn’t regulate economic activity.
You could have a government, for instance, that limited itself to preventing physical aggression — hitting someone on the head with a coconut so you can take his palm leaves. You’d still have a free market.
Of course, you wouldn’t have any means of protecting property rights, so if someone sneaked into your hut one night and stole all your palm leaves without laying a hand on you…or defrauded you of your palm leaves by promising you a free hand with Marianne and Ginger…you’d be out of luck.
Which is why a completely free market is kind of like absolute zero — something that’s approached, but never reached, or which can only exist for as long as it takes for the first partypooper to pull something: Without a mechanism to peacefully enforce property rights and basic transactional rules, pretty soon everybody’s infuriated and heaving barrages of coconuts at each other.
Thomas,
But the creation of a corporation does NOT regulate economic activity.
Firetag,
“I think a sensible reform would be to “bust” the state and local public unions back to the oppressed level of the Federal worker. Oh, the horror!”
Outstanding.
Dan:
I doubt that I will bother, but I don’t think that anyone with internet access to this site doesn’t have access to the New York Times, Wall Street Journal, Washington Post, US Today, or other bastions of the right wing crazies. The stories have been running for the past two weeks, complete with pretty graphics. (US Today has an article showing that public sector workers consistently out earn private sector workers in 41 states, for example.)
If you can’t spare the time to stop at the corner on your way home this afternoon, drop by Real Clear Politics and find a couple of dozen articles on the topic.
But I am glad that you accept the reform that state and local public employees should have their union power reduced to that of the Feds. Clearly Governor Walker of Wisconsin is not going far enough, because the Wisconsin unions would still have greater rights than the Fed unions. And pay and benefits far better than the Wisconsin taxpayer.
All I can say is thank goodness for Obama and his liberal agenda. Had he not been so aggressive in pushing his leftist ideology, Wisconsin and the other states would never been taken over by reasonable adults—adults who are willing to identify and solve the problems.
Firetag,
You’re going to have to actually show me your evidence. I’m not your runner. On the other hand, here is a report that shows that in the state of Wisconsin, public workers are actually paid less than private workers
Click to access 9e237c56096a8e4904_rkm6b9hn1.pdf
So again, show me your evidence.
Frankly I would think, if I were a proponent of a union free, free market system, I would be pleased as punch by a report that shows that even with all their efforts, public employee unions still cannot match the power of “pure capitalists” at getting better pay to their union members, and I would figure that a report that shows that public employee unions can’t seem to do the job would make me feel happy, rather than attempt to inflate the power and influence of a public union to “steal” the taxpayer money. It’s just not real. Com’on guys, I know you all probably went to public schools, and obviously your unionized teachers sucked, but surely you did something of your own abilities to learn of the real world around you.
Dan,
Foxnews says so and that’s why.
If I were a proponent of a union free, free market system, I would also highlight a report like this one, which shows that Toyota, with non-union workers, pays their workers on average $30 an hour, whereas unionized GM workers get paid $27. Of course, I would concede that the only reason Toyota pays their employees so well is the threat of their workers unionizing. Thus if I were a proponent of a union free, free market system, I would concede that there are some benefits to having unions still around because they force corporations and businesses to pay their workers well or be faced with a unionized workforce.
I would be totally in favor of abolishing the collectivization of labor thorugh unions just as soon as we abolish the collectivization of capital through corporations. Corporations are just in it for themsleves. They are a legal fiction that allows thoes with means to benefit through the legal fiction of a corporate entity from questionable business practices without facing personal accountability.
Dan,
Toyota has reasonable benefits and has a 401 plans that matches a percentage of the employee’s pay. Before bankruptcy, actually the cause of the bankruptcy, at GM stemmed from the bloated retirement and healthcare it offered its workers – retirement and health care benefits paid after retirement until death. A broken program negotiated by the Unions.
Dan,
Cesspool, indeed. I think you are too good for cesspools.
The comments were overwhelming. Made me glad I went to law school instead of continuing on to get a graduate degree in Economics.
dan,
is your purpose in commenting to persuade people to your position, or pick a fight?
um, both? 🙂
dan, I think you have good ideas. if you are trying to persuade, leave off the ‘you’re stupid’ (or similar) to your comments. it is not helpful to your persuasion, and turns people against you.
if you are merely picking a fight, there are other places more conducive to that than here.
MH,
sorry that I let my frustration out. I’m rather surprised that even those who I assumed were not conservative paraded the Republican talking points vis a vis unions. It’s one thing to be critical of unions (and my wife, as a principal—whose union sucks, btw—has plenty of good strong criticism toward the UFT of New York), it’s quite another to make such ridiculous claims as those made by Hawkgrrrl and jmb in the OP. Those points are not founded in reality.
MH,
I think of it more as when someone’s argument falls apart they typically resort to personal attacks.
Dan:
Ah, yes. You walked into the second trap, too. (Do you forget I read both Democratic and Republican sources?)
Note the controls used to define “similar” workers. In the private sector you don’t have incentive to “over-require” by insisting on degrees for jobs where degrees do not impact performance. In fact, cost minimization gives you incentive to pick the cheapest person to get the same quality output — that’s your greedy corporatist argument, right? Similarly, in the private sector you don’t have incentive to care about any of the other things your study “controls for” because they are irrelevant to the goals of the private sector.
In the public sector (particularly in academia) there is every incentive to do so — it helps bar entry to the guild and maximizes the power within the guild to grant rewards for obedience. The goal is equal distribution of rewards among a political coalition.
I see this all of the time in companies that interact with the government. They are continually required to bid up labor costs for any contract with the government by policy requirements. I’ve seen people with 30 years experience doing a given job without a degree being ruled out of being proposed for the same job in the re-compete bid because the labor category description now REQUIRED an advanced degree.
So it is bogus to define as comparable workers classified on such bases. I repeat, public employee unions are not bargaining against corporations. They are bargaining against taxpayers. Do the taxpayers believe they should pay more to public employees or not?
I don’t have to prove it to you, Dan. The people are perfectly capable of figuring it out for themselves.
Firetag,
#63, excellent again.
Will,
You mean like this?
Firetag,
I don’t know who argued that public employees were bargaining against corporations. I’m also not sure what trap I’ve fallen into. You said:
I showed you actual research that proved your point wrong. I don’t know why you’re arguing with me, because showing evidence that the private worker is getting paid MORE kinda makes the point that unions don’t do a good job at getting good pay for their members. That would kinda make your overall point, wouldn’t it? I’m just correcting the absurd talking point that public workers are somehow getting paid more than the private worker. It’s just not real.
Dan, Thomas,
Murray Rothbard mentioned how the Quakers in Pennsylvania lived in a free market (anarchy) for at least three years before the statists were able to make them slaves to the state again through violence. They were perfectly happy and lived in peace. You can find it in “Conceived in Liberty” volume 1 or 2, I can’t remember. So it is possible to live free, you just have to have a righteous people that desire to be free, you don’t have that and you move towards tyranny.
Thomas,
You don’t need the state to rule the people at all even beyond economics. There will still be a rule of law (if the people are righteous enough for it). There are natural laws that guide the world. The bible talks of it and there are numerous examples in it. Take Leviticus that I read recently:
Leviticus 18:24-25,28-29
It’s the same concept with the free market, there are natural laws that people must abide or they will pay the natural consequences. You cheat your business partner and then they have a harder time finding businesses and people shun them (I like to call it the “shaming principle), even the souls that commit them shall be cut off from among their people.
Dan,
There is still governance in the free market, as explained above. Just because you don’t have an immediate master over you doesn’t mean there isn’t rule of law and peace and prosperity.
I’m amazed that you contradict FDR on his government employee union stance.
Here’s the argument from public-choice theory as to why public-sector unions are a worse idea than private-sector unions:
With private-sector unions, the union bosses, for all their colorful invective towards employers, know that they better not kill their host. They understand that if the company doesn’t make a profit, the company goes out of business, and then the union members stop paying dues, and the bosses have to go get real jobs.
If labor costs get so high that a company’s output is underpriced by someone else — and with the lesser breeds without the Law rapidly figuring out how to work machine tools, there are suddenly lots of Someone Elses across the world to compete with — the company’s widgets don’t sell, and that’s all she wrote for the company, and its union along with it.
So private-sector unions have a built-in incentive not to get completely ridiculous. Unfortunately, in many American industries half a century ago, both labor leaders and corporate management made the mistake of thinking that a world in which all potential competition had been smashed to rubble by B-17s was sustainable, and so undertook crippling long-term liabilities, which they may or may not be able to outlast.
The same dynamic isn’t at play with public-sector unions. There’s no competition: Absent a repeat of 1861, there’s only one option in the “government” market. The unions work for a monopoly. The unions are demanding more money? Raise taxes. Get the number of people who pay any significant taxes small enough, and (theoretically), you’ll be able to outvote your unwilling sugar daddies every time the decision of whether to tax them some more comes up.
Frustratingly, though, there’s a limit to how much you can do this. The American public tends to have the impression that tax rates originally sold as being intended only for “the rich” have a nasty habit of trickling down to bite more people than are strictly “rich.”
So a guy negotiating compensation with a public-services union has a dilemma: To get the union bosses out of his hair (and to make sure they don’t lavish contributions on his opponent next election), he has to give them something. But on the other hand, there’s a bunch of noisy kooks wearing three-corner hats playing fifes and drums outside his office, and they don’t seem entirely on board with the idea of having their taxes raised.
The solution is obvious: Don’t raise the public servants’ actual pay, which would mean you’d have to raise taxes right now to pay the freight. Instead, you agree to a generous pension scheme. If it turns out your pension actuary’s assumptions of 20% annual returns are just a wee bit overoptimistic, and in a couple of decades it turns out your pension fund is undercapitalized by a gumphillion dollars or so…that’s your successor’s problem. Have fun, big guy; I’ll be out on the golf course.
This is one of the reasons California is so screwed.
Dan,
No, it is accurate.
Jon,
As much as I’d like to think the rule of natural law is self-executing, I just don’t see it happening within a useful time frame. “Wherefore doth the way of the wicked prosper?” Because it very often does.
In the long run, a bad actor’s reputation will suffer and he may be run out of business. But as Lord Keynes said in one of his rare useful dicta, in the long run, we’re all dead. And the shaming principle doesn’t work well on the shameless.
Or maybe I’m prejudiced in favor of having a functioning justice system because I have no marketable skills in any other field, and my kids would starve if (heaven forbid) I had to do real work.
I also oppose FDR for ignoring civil rights and interning Japanese Americans.
Jon again,
It helps to have your polity consist of like twelve guys who say “thou” and wear funny hats. Even Tom Paine, who most of the time was grossly unrealistic about human nature and the need for government, acknowledged that once your society gets big enough that a convenient tree can’t serve as your state-house, something more elaborate than informal government will be needed.
Thomas,
It’s nice to see you write things I agree with, and are well written. 🙂
Dan:
What you did a good job about was proving was that public employees are part of a privileged class that compares itself to others on the bases of qualifications that are of increasingly less relevance to the rest of us.
“Comparisons controlling for education, experience, organizational size, gender, race, ethnicity, citizenship, and disability reveal that employees of both state and local governments in Wisconsin earn less than comparable private sector employees.”
When people go to the grocery store, few people control the price they are willing to pay for any of those things, do they? Because those inputs to the quality of the product don’t show up to the buyer.
Taxpayers have decided they do not want to pay for the symbols of trophies of those who mark themselves as belonging to the political class, as I discussed at length here:
Dan,
Thanks, mate. Not that anyone’s going to be picking out curtains or anything….
Thomas,
I agree that my views can be considered radical. I would compromise with minarchy, unfortunately most people wouldn’t.
In a free market system you would still see arbitrators of law. There would still be “law enforcement”. It’s impossible to know what it would look like exactly since we have never lived under it for an extended amount of time due to men’s desires to rule over others and the populaces’ desire to be ruled. There’s a lot of theory on this. Stefan over at http://freedomainradio.com/ has some interesting ideas on this (I don’t listen to him very much though since he’s like the anti-Christ incarnate).
You also overlook the tendency for all states to become more tyrannical over its people over time. They all lead to the people having to revolt eventually because of what happens when you have a monopoly of violence. Look at Dan’s beloved NYPD and listen to the “This American Life” story on them. This is just a product of a monopoly sponsored by violence.
The state relies on violence to collect its dues in order to “protect” us but this is no different than having the mafia collect its dues for similar purposes.
1. In controlling for “education,” did they control for (a) prestige of school (because everybody knows a U. of Idaho degree means you’re an idiot, unlike Hahhvaaahhhd grads), (b) type of degree (i.e., I would expect an engineer to earn more than someone with a degree ending in “-studies,” and a law partner more than a Ph.D in education), etc.?
2. Re: experience, is that really a useful measurement? Long experience in the private sector is a good indication that you’re able to perform more or less competently, as demonstrated by your not having gotten fired. Long experience in the public sector, where you typically can’t get fired for anything short of unauthorized use of nuclear weapons, may not demonstrate much more than that you’re still breathing.
I think there’s some serious apples-and-oranges comparison going on here.
Dan,
I think you wanted to see the first two papers found in this search regarding state and local unions:
http://www.google.com/search?client=opera&rls=en&q=public+worker+pay+vs+private+site:cato.org&sourceid=opera&ie=utf-8&oe=utf-8
Not overlooked.
I think I wrote in an earlier post that all institutions — businesses, unions, governments, colleges, charities, and churches — tend over time to be run more and more for the benefit of those who run them.
I’m just still (naively, perhaps) holding onto the idea that the Founders’ conception of ordered liberty has a few more years in it yet.
Dan:
While I do not necessarily agree with your defensiveness under fire, I wholeheartedly agree with (3).
jmb275 (32): We share the same planet, but live in different universes.
No one- not my union, not my employer, not even my wife- is particularly interested in maximizing my happiness.
Jon,
That’s much better. Though your source does not indicate if they controlled for other variables, such as education of the workforce. Public employees, as indicated by others here, tend to be required to have a certain level of education, whereas that’s not necessarily a requirement in the private sector. That tends to skew numbers because, if you do control for education, the numbers show that private workers are paid more than public workers are.
I gotta say, I find it amusing that we chide local governments or the federal government from requiring their workers be well educated in their fields, as if it is worth taxpayer money to hire unqualified workers…
Firetag,
Um, I’m not sure public employees perceive themselves or even try to make themselves appear as a “privileged class.” I’m also not sure what qualifications are less relevant to the rest of us. Maybe having a master’s degree is less relevant? Personally, I prefer having a well educated teacher, a well educated police man, a well educated firefighter, a well educated pilot, and so on. But that’s just me.
Define “unqualified.”
Case in point: My mother-in-law, a school nurse, got a pay bump for getting a Master’s in “multicultural education.” That degree didn’t affect her qualification for her job one bit. (Neither did it do her one bit of good, from the educational establishment’s perspective — her opinions on matters where a “multicultural education” degree was supposed to have properly indoctrinated her, remain substantially unreconstructed.)
As far as I can tell, getting a Master’s in multicultural education means that you’re familiar with whatever set of buzzwords happened to be in fashion while you were working on it. I don’t see (from my admittedly unscientific sample of one) any evidence that it enhances your ability to think analytically, or add value to whatever it is you’re getting paid to do.
Thomas,
all institutions…tend over time to be run more and more for the benefit of those who run them.
Hence one of the reasons I like the free market so much. Those that don’t adapt to changes stop existing. Something a government monopoly can’t do. But businesses can, and if they don’t, are replaced. It’s substantially harder to replace a government that has gone bad. Even just to reform government it is terribly difficult. Look at Reagan. The most free market guy (at least in rhetoric) we’ve had in the presidency in a long time yet ended his eight years with a government much more bloated than before.
It used to be “When they are learned, they think they are wise.”
Now it’s “When they are credentialed, they think they are learned.”
I’m becoming less and less convinced that a non-scientific degree is useful evidence that someone is even “learned,” let alone “wise.”
As for well-educated firefighters, I want my firefighters to know how to put out fires, and maybe work the paddles when I have my heart attack. (I learned the latter in a day, and later learned the hard way that when someone says “clear,” the correct response is not “huh?”) If he can quote Tennyson while dragging me out of a burning building, I guess that’s nice, but (a) not really necessary, and (b) chances are anymore it’s not going to be Tennyson, but some postmodernist schlock that will just irritate me.
You don’t need to have a college education to teach children a high quality education. All you need are parent(s) that care and are willing to put in the time to help their children learn. Case in point, all the children that are home schooled (with parents that only have a high school diploma or less) and come out with smart children with a high degree of self confidence and self actualization. Look at the kids in government schools too that come out far ahead of the others. The difference? Parents that care. There are exceptions but they aren’t the rule.
Jon,
ah, the Contradiction raises its head. Reagan, that “most free market guy” except that he wasn’t. Not sure why guys like you heap praise on him, Jon. He tripled the national debt and vastly increased the size and scope of the government. Shows how crackpot the Right is.
Thomas,
Why would a scientific degree make someone “learned” or “wise?”
Jon,
so no child that is homeschooled failed?
You do realize you’re making the point that it isn’t the teacher that is the main variable that decides whether a child is well educated or not.
Harder to fudge.
…and it therefore follows that we don’t need to raise pay to attract a better hiring pool. Because it won’t have any effect on performance.
supposedly Thomas. Though I personally don’t believe that. Just pointing out that it isn’t just teachers that have influence over the education of our children. Just hearkening back to my own experience. Grammar English in my sophomore year was the dullest class ever. I got a D in the class. But in my senior year, I took AP English and got an A. The difference was definitely the teacher.
My impression is that except at the far ends of the bell curve — the supermen like Jaime Escalante (whose union, incidentally, ran him out of teaching), and the handful of genuine incompetents and time-servers, most of the people now involved in teaching do about as well as the raw material and curriculum allow them to do. Once a basic level of competence is reached, additional “qualifications” may not yield significantly better results, except in rare cases. (And in those cases, the union will probably turn against the superstar, for showing the others up.)
David Letterman was interviewing Rand Paul on his show the other day, putting on a fine display of his and his audience’s complete ignorance. Paul stated that the average total compensation of a Wisconsin teacher was something like $90,000. Letterman said (to general applause) they ought to be paid twice that much.
Paul missed the obvious follow-up question: “Are Wisconsin teachers really that bad?”
When Letterman buys a $500 suit instead of spending $150 at Marshall’s, he does it because he expects to get what he pays for. He pays $350 more, because he wants that much more value.
When you set out to hire someone, you offer a high enough pay scale to attract the kind of applicant pool that will enable you to pick people who will get the job done. If you conclude that the people you get with that level of pay aren’t getting the job done, you offer more — in the expectation that this will attract a greater number of better-qualified applicants.
If Letterman thinks that Wisconsin ought to offer to pay twice as much for teachers as it does now, he must think (assuming he’s thought things this far through) that the bottom-scrapings its pittance pay motivated to show up, aren’t cutting the mustard, and that an upgrade in personnel quality is therefore needed.
Dan,
Yes, both of those were my point. Reagan doesn’t deserve praise but scorn (hence the reason government can’t be cut back easily) and the deciding factor in a child’s education is the parents, not the teacher.
Thomas,
Or that teachers are actually underpaid for their work…and maybe that CEOs are waaaay overpaid for their work.
1. No argument that (many) CEOs are waaaay overpaid. The shareholders ought to do something about the waste of their money.
2. If what the teachers are being paid now, is enough to motivate reasonably competent people to show up and teach, then by definition, they’re not underpaid.
If all the best teachers are getting cherry-picked for better-paying gigs, then they are underpaid. (My famously stingy firm may shortly get a lesson in this basic economic principle…here’s hoping.)
Teaching has a great amount of moral value. It contributes a great deal to society. Unfortunately for teacher salaries, there is evidently a fairly high number of people who can do it well enough for government work. If good teachers were more scarce, their pay would get bid up. As it is, there is a sufficiently large reserve army of the basically competent, that you don’t have schools getting into bidding wars for the value-adding superstars.
(Or, alternatively, the unions have worked hard to discourage the notion that there are any value-adding superstars. They fight tooth and nail any effort to reward extraordinary performance.)
I haven’t read all the comment before this, excuse me if I repeat what another has said.
I personally think that Unions are the Blue campaign funding answer to the Red Corporations. Republican politicians seem to be trying to pull funding out from under anyone who disagrees with them. The best way to do that? Kill the Unions.
If for no other reason than I think this nation needs at least two viable political parties, I support Unions.
April,
Do you think corporate money just goes to Republicans?
My observation is that the more an industry is entangled with government — if it is heavily regulated, or is a government contractor — the key to whether Republicans or Democrats get more of its money, is who is likelier to win in a given election cycle.
Thus, Barack Obama got the lion’s share of Wall Street contributions in 2008. The Street’s all about making sure it’s on the winning side…whichever it is.
On the contrary, union money overwhelmingly goes to Democrats. And so with public money, we have the spectacle of my taxes being tapped to contribute to causes and people I oppose. Insult to injury.
If the concern is that there be two viable political parties, fine. But if the Democrats’ popular support is so tenuous that they literally wouldn’t be viable without the support of just one special interest, they deserve to go the way of the Whigs and make room for a new party.
France during strike season is literally brought to it’s knees by Unions, Germany on the otherhand seems to be more harmonious (except pension deficit) unions are often the way to contsruct a clear coherent message, if the union is not value for money individuals cancel membership, however unions can become too powerful, In the UK the leader of the opposition party (Labour .. Socialist … Red) was elected by the union, the majority of the party voted for another candidate.
Securing a status quo is virtually impossible.
I am not amazed at the anti-union feeling of many of the people on the blogernacle, but I am dumfounded by their ignorance about what unions actually do. The plethora of right wing nuttiness, Beckerheads, and Faux News watchers finds willing listeners in the very conservative base of most Mormons. However, the total lack of understanding of what unions do for teachers and kids was appalling. Besides being a union member for over thirty years, I was President and a part time employee of the union for a fair amount of that time. Here is a very short list of things that we did:
1. Warned teachers that one district was trying to circumvent the law about reporting suspected child abuse. The law specifies that the teacher report it to local authorities, reporting it only to the adminstrator, as the district asked, only put the instructor at legal risk.
2. We bargained inservice based on teacher and student needs. For example classroom management skills, something that schools of education seldom prepare new teachers.
3. We bargained gang training for teachers. Like I mentioned in another blog, most teachers are from a middle class background, they couldn’t tell you what an “og” was or what “jumping in” meant.
Teachers needed to how to recognize gang behavior, what to do about it as well as what not to do.
4. We got teachers trained on how to stop fights. There is a huge variance in “normal” boys, girls and gang fights and each needs to be handled differently.
5. We had a Principal call a teacher down for a meeting with an angry parent who was making threats. He of course didnt warn the teacher and left the room after 30 seconds to
do something else. As President of the union I had to warm the principal not to do it again and write a letter to the Superintendant to direct all administrators not do do so as well as including the verbiage which also would have placed liability on the District as well as the perpetrator for any harm to an employee.
6. We tried to fight the firing of a first year teacher who was once “Tteacher of the Year” in Idaho. Though the teacher got a great evaluation, the Principal wanted to hire his brothert-in-law. Unfortunately, In California you can let a teacher go without a reason during his or her first years.
7. We had to guide through a number of disability or disability retirements. The state was really hard on teacher claims. For example, one 58 year old man had been thrown over a desk trying to stop a fight. The state claimed it was really a carryover froma WWII injury.
8. As President I had to fight to see that a teacher who became mentally incapacitated and had to leave the classroom got all the rights coming to her. Because she was hospitalized out of state, the district did not want to pay what they owed her and leave all the costs to her parents.
9. We had to fight our district to move two special ed classes to another Junior High. The classes were supposed to go to a school that just opened, but that Principal did not want any Special Ed students and he had the clout with the Board to do it. The aurally handicapped, of course, went to the school with the worst aucustics and the visually impaired to the one with the worst lighting. It’s amazing what a letter with the requisite threats from a union’s lawyer
can do. Both situations got changed quickly.
10. This one situation is why I consider the Goivernor of Wisconsin a danger as he would take class size out of bargaining. By the vagaries of California law in the early 70’s you could basically place 13 autistic kids in one Special Ed class. Any more than four is too much, our Special Ed Director, of course, placed 13 in one class. It took us a year to get that rectified.
I hope that clarifies for some what unions do other than wages and fringes. But, just to tick off the wingnuts, One of my proudest moments when I was President was to see a clause put in our contract banning discrimination against women and on the basis of sexual orientation
Why do so many people say you are a right wing person if you disagree with a union or how unions are currently organized? I guess they just love the left-right paradigm too much to see any other argument besides their own?
Stan,
You forgot to add:
And bankrupted the great State of California.
What is it now, $500 Billion in unfunded Pensions
Anyone noticing the familiar pattern of disagreement? The other side is always either 1) ignorant, 2) stupid or 3) evil. So if you don’t agree with someone else, they simply don’t have the facts, are too stupid to comprehend the facts once confronted with them or are operating in bad faith.
No, I would just say you have a deficient sense of justice.
Of course, it makes sense since us union-type use “low-brow intimidation tactics.” if we had good bourgeois manners we would be champions of inequality and crap on unions instead. You have all made your class proud. Good for you.
hawkgrrrl,
I have hardly called Thomas ignorant, stupid, or evil, because he generally provides a very good logic to his arguments. On only the few occasions that he defends the stupidity of the likes of Will and Jon do I make fun of him. But if you go back on my comments between him and I, you’ll find I am quite respectful to his position. That’s because his argument actually uses good logic and he has a generally good understanding of the world around him.
My wife has very strong views about unions right now, because she’s dealing directly with the UFT and its abuses of its union relationship with the City. But her positions are well grounded in reality. When you and JMB were saying things like:
That’s just [self moderated][self moderated] crap. It’s not worthy of your level of debate, hawkgrrrl.
Re 103 Hawkgrrrl
Yeah, closed-mindedness runs rampant no matter which side you’re on. People aren’t really interested in learning new things, only in defending what they already know to be true. Works for Mormons, Dems, GOPs, JWs, etc. etc.
“That’s just [self moderated][self moderated] crap. It’s not worthy of your level of debate, hawkgrrrl.” Well, you’re quoting jmb275, not me, although thanks for the backhanded compliment. 🙂 I’m sure many of my own views are also objectionable to you – that just wasn’t something I personally said.
There are many examples of companies who went bankrupt while trying to negotiate with unions – airlines, automakers, etc. A reasonable person could theorize that it’s because those companies were making many bad business decisions, and the union interference was just further evidence of the company’s incompetence. Companies that fail to meet employee needs will fail overall.
Folks here haven’t really addressed the chief argument that I have against unions: that they are at least as self-serving as the corporations it’s their job to oppose. To put it more charitably, they are like the old adage about consultants. They borrow your watch so they can tell you what time it is. Then they keep the watch. I’m not talking about the fictional Robin Hood scenario that idealogues portray (and that unions might start out as), but the actual contemporary unions, especially those that have been around for decades and had time to fester and corrupt. I’m all for employees in all fields getting what they need from employers (although if the employer is the government, good luck on that one). As an employer, I’m all for making sure people’s needs are met and that compensation is fair for the work being done. I simply feel that unions are an increasingly obsolete and ineffective way to bargain.
“champions of inequality”? If by that you mean, champions of meritocracy, absolutely!
Let me say a word about “unfunded pensions”.
In order to attract and retain workers, both public and private enterprises offered generous pension plans to their workers, both union and non-union, while keeping wages essentially unchanged.
The shareholders were paid, the executives received their contractual bonuses, but the pensions went unfunded.
Translating from accountantspeak, “pension” means “promise”, and “unfunded” means “empty”.
There are plenty of us that put real dollars out of our paychecks into so-called “guaranteed” pension plans who are now receiving pennies on the dollar because our prior employer is bankrupt, out-of-business, or has been bought by another corporation which no longer honors the pension agreement.
We did the work, but where not paid what we were promised.
“Sorry, we just don’t have the money.”
And the courts shrug their shoulders and say “OK”.
I wish I could make that argument regarding my mortgage.
“Sorry, we just had to put the kids through school. Thanks for the house.”
@Chapman,
Hence the reason personal responsibility is so important. It will be interesting when SS goes bust too. We were better off left alone. It would help if the money supply didn’t rob the poor either, as it now does so you would be able to save money and know what the future value of that money would be.
“I wish I could make that argument regarding my mortgage.” You can. People declare personal bankruptcy all the time. And like the company you describe as being “bankrupt, out-of-business, or . . . bought by another corporation,” you lose the house when you declare bankruptcy just like those companies lose their business for acting irresponsibly.
People who worked for Enron did things in good faith, and they lost out. Many of us bought homes in an inflated market believing that the value would hold or rise over decades as has been the norm for a century. We lost out, too. People invested in stocks hoping for modest returns, slightly better than interest rates, and instead lost all their retirement funds. When businesses and economies fail, guarantees and promises do, too. If you happen to be at a company that goes belly up, all bets are off. The courts don’t have much alternative if there’s no money to be had, and another company that buys that company out will not do so if they can’t make it a solvent business in the process. Nobody buys a bad company to incorporate its crippling debts. It’s a business, not charity. So having any job at all after your company goes belly up is the silver lining. Many aren’t so lucky.
Every single one of us is putting our faith in our company to stay solvent, to be reputable, to make sound business decisions. And we could be wrong about that. But we aren’t guaranteed that we will have no personal impact if our faith is misplaced or conditions change. Anyone working for a company they suspect is bad should not stay there.
Re Stan
I appreciate your list of achievements. Those things are very important, and you should feel proud of your accomplishments. I thought I made it clear in the OP that I thought unions could accomplish some good – which I think you perfectly demonstrated. It’s just that I find myself dissuaded from joining any or lending them my support. Again, for me, I don’t see that the benefits outweigh the costs. Perhaps it’s because I’m too individualistic.
My employer tries to keep me happy because she wants to attract more good employees and increase her own bottom line. I have extremely competitive benefits and pay (better than all the other places to which I applied) primarily because of such incentives. Now many of my coworkers are trying to unionize (and of course charge me a yearly union fee to support some full-time employee) and I see no reason to try and bully my employer into giving us more (which is already better than market average). Quite the contrary, if anyone has the upper hand in my employer/employee relationship it is me. If I fail at my job, the company fails (in a small part). They want me to be successful and produce because they are the primary beneficiaries of my work. They have invested a great deal of money in me, and to make me unhappy is not in their best interests. I should add that such was the case at my last job too (which I left for personal reasons).
I understand not all employers are as good as mine. That’s why I think a transient workforce is a good thing. Good teachers will have high negotiating capabilities no matter where they are. Where unions are in place, so do bad teachers – and that’s a problem.
Inequality wrapped in the idea of meritocracy. Figured as much. As an employer, I am sure you feel that unions are obsolete. That is why we need unions…employers seem so bent on getting rid of them.
Of course, I am just arguing for a fictional Robin Hood. You realize that after calling for people not to call others ignorant and stupid, you did the same thing. Right?
I am now tempted to swear, just so that I can chat with Adam. Hello, Adam.
The best part of a “transient workforce” is that it helps to undermine the stability of families and communities. Rampant individualism is clearly the key to happiness.
Re Chris H.
It would be nice to have a discussion with you as you clearly see things differently than me. I am not certain in my opinions, particularly on this issue. But it’s hard to have a conversation with and learn from you with your current commenting tactic.
Perhaps, however, you are achieving the goal you set out to achieve.
hawkgrrrl,
I can quote you too. After JMB’s ridiculous comment, you said:
and then later on you say:
So it seems like you agree with JMB who said, again:
Unmotivated to succeed. Discouraging productivity. Eliminating performance incentives. Stagnant workforce. It’s just so out of touch with reality, hawkgrrrl. Listen to Stan, who actually works with unions. I’ve been a member of unions at my various librarian jobs. What you write is not what I see in actual reality. That’s why I seriously question if you two are writing about this planet, or some other fantasy planet you guys visit somehow.
Of course unions are self-serving. The capitalistic world is truly a dog eat dog world, and if you cannot survive, you are dead. Unions serve themselves because that’s what they’re designed to do. Corporations and businesses have little interest in anything but their bottom line, because in the end, if their bottom line is not in the black, they also are dead. Previous to unions, this meant that upper management ran off with all the profits. With unions, they could not do that anymore. Yet amazingly, their businesses continued to survive and even thrive. The greatest growth in our country’s history occurred AFTER the introduction of unions into our system. It’s because the wealth finally got around to all workers and not just to the few at the top. Now we’re back at a situation where CEOs are paid ridiculously overpriced salaries and we’re demanding workers get paid less? I mean, WTF! Something is seriously wrong here. Over the past thirty years, middle class salaries have remained stagnant while the top 1% have seen tremendous rises in their wealth. Over the past thirty years, we have also seen a decline in unions. Is there a correlation? You bet there is!
Watch this episode from Jon Stewart the other night, where he highlights the millionaires getting on the TV at Fox News, CNBC, and Fox Business to decry and denounce all the workers that dare demand better pay. I mean, don’t you see what’s wrong, hawkgrrrl? The average net worth of a Congressman is $900,000. You think he gives a damn about the worker who gets paid $50,000 or even $75,000? Do you know what the cutoff is for being in the top 10% earners in the country? It’s about $100,000. Do you know what the cutoff is to be in the top 1% earners in the country? about $450,000. The median salary in America is about $50,000, while the average is lower than that. The growth of our economy occurred at its greatest when the disparity between the well to do and the not well to do was low. We’re top heavy right now, and because of that, we’re at the whim of the actions of the rich. So if they make bad decisions financially (like for example, overplaying the housing market), the whole economy gets messed up. It makes no sense for long term future of our economy to continue with such a top heavy pay. Our CEOs are not worth millions of dollars. Our workers are worth far more than $50,000. Only unions demand better pay for workers. Wealthy Congressmen and women do not. CEOs do not.
jmb,
thank your local union. 🙂
What would my “current commenting tactic” be, exactly? I have refined my blogging style over five years of heaving writing and commenting. Some deal with it better than others.
Chris,
Well said. I saw a job opening for a librarian on a boat for SUNY Maritime College. Just six weeks away from family. It’s okay right?
Look, Chris, I meant no attack on you. An honest question about wanting to discuss the issue with someone who sees it differently than me. You tend to use a fair amount of hyperbole in your comments.
I never said anything about “rampant individualism” or even implied it. In fact, I think I’ve clearly acknowledged that I thought unions accomplished some good things – just that I don’t personally like them much.
I was just wondering if you wanted to discuss it rather than picking out pieces of my comments and using them to ridicule me. It’s cool if you don’t want to. I’m no expert in economics or politics so I shouldn’t be too hard to persuade.
Okay, my goal is not just to express contempt, though I do have contempt for many of you. I have been employed full-time for the last 8 years…since the completion of my masters. However, I have also live in 4 places and had five employers. This has not been an amazing experience in in free-flow capitalism, but a living hell that has undermined the ability to create lasting relationships (though Facebook helps), become a meaningful member of a ward, and my children have bounced around schools (leading to a variety of concerns). I am now in a tenure-track job. However, my wife hates where we live. We will likely move again in the next couple years. I think stablitlity would be nice and I do not blame workiers for trying to find it is this turbulent world. Mobility and freedom are goods, but not the only goods.
Dan,
” On only the few occasions that he defends the stupidity of the likes of Will and Jon do I make fun of him”
Now tell me again what do you do to provide for your family?
Will,
It is a good thing that you are allowed to do whatever you want around here. Another victory for civility and openness.
Will,
I’m a caporegime who secretly steals money from the rich. Muhuhahahahahahaha!
jmb,
“My employer tries to keep me happy because she wants to attract more good employees and increase her own bottom line. I have extremely competitive benefits and pay (better than all the other places to which I applied) primarily because of such incentives.”
There was a time when I believed that. I work for a company that used to be like that. But now, they are more concerned about the bottom line and shareholder value and wall street than anything else. So the company takes and takes from employees to give to shareholders and the big investors.
And right now, there is not many places to go for another job. In the last company survey, over 60% of employees would leave if offered a comparable job with the same salary and benefits. That number used to less than 10% at one time.
And they took away the pension from most employees. For old guys like me they grandfathered (literally) those of us with age and long service, but stopped contributing to it.
So, maybe unions are useful to preserve employee benefits while companies try to take them away.
Everyone is willing to sacrifice for the good of the company health, but when the top 6 people in the company take home over $200M in salary and bouns while we gave up 5% of our salary, it is a little hard to swallow.
Thanks for sharing Chris H. If I have done something to make it so you have “contempt” for me, I apologize. Though I believe this is the first time I’ve even engaged with you at all. I’ve had too much on my plate to be too involved in the b’nacle lately.
Anyway, I think I understand your concern, and I agree with you that it is not as easy to just always seek out a new employer. I fully understand that. This is one of my biggest complaints about the individualist movement as well and one reason why I concede that unions do some good. Though I myself am rather individualistic, I don’t think everyone should be.
If I might refine my statement a bit, what I intend is that in general, I think the increasingly transient workforce is good for helping employers be better and more honest. For families that can deal with that, it’s great. For families who can’t I think they benefit from the transience of those who can.
One of the reasons I don’t care much for unions is the effect it has on those who aren’t in the club. Unions cause wage discrepancies amongst classes, and races and often exacerbate the problems they sought to fix (like more protection, better wages, better benefits).
Wage discrepancies…hehe, blaming unions for wage discrepancies…wow. I guess it was unions who forced companies to increase CEO pay to its ridiculous level. The mind reels.
Re Jeff-
I understand what you’re saying. There are a lot of problems in our economy right now. If 60% of the people would leave, they should…in an ideal world in which there were plenty of jobs available. But there aren’t. CEOs get paid too much, that’s a given. On the other hand, they should get paid a lot as they are ultimately responsible for the success of the company…or at least they would be if we allowed them to fail.
One problem with this whole discussion is that we can’t even talk about the issues as separate issues because of the highly dependent nature of the entire system. Every regulation passed, every union formed, every bailout given has a profound effect on the supply and demand in the economy. It’s easy to point out CEOs as evil without really investigating the reasons why they do what they do. The conclusions I come to when I research the issues are that a free-er market will perform better than a highly regulated one if given the opportunity.
I acknowledge that my field is likely different than many. The science/technology sector is dying for more qualified employees and it’s not a matter of finding a job, but a matter of picking the best one. In my own view, this particular sector of the economy is far far free-er than most, and hence more successful, treats employees better, has higher wages, and makes more profit.
I don’t know who says CEOs are evil. Not me. I just say they are way overpaid.
Chris,
What is uncivil about asking somebody what they do for a living?
jmb,
Not you. I really do not want to argue about unions. I am not so much defending unions as I am disturbed by anti-Unionism.
I am a bit baffled by the post. If there was going to be a two-person post on this issue. Why not a point-counterpoint with one person who is pro-union and another who is not. The pro-union quotes at the end do not really achieve this. Just a thought. I am not sure if any of the permas here are pro-union. It does not really matter what I think and I only care of W&T because I care about BiV.
Will, do not play passive aggressive with me. You were making a personal dig. Dan does a form of work that is far greater and more important than any other one I can think of. He is also lucky that he gets to do it in a great city.
Will,
Do a search for librarian.
Dan,
There are hypocrites on all sides. Take Gore for example. He talks about being good to the earth and tells the poor that they should sacrifice to cut emissions. Then what does he do? Just the opposite. He’s what you would call an elite. The reason he wants a carbon tax is so he can make money off of it. Do I truly know that? No, but that’s what it appears to be. Same for all the other guys that you looked at. Besides, it’s principles that matter, the rest is just fluff.
Chris,
Maybe he is an attorney, like Thomas, and knows more about the law than me or Jon. That doesn’t make us stupid and him smart, just a different background. That is my point.
librarian, that explains a lot.
Not what I was referring to.
An old friend of mine is a librarian. She had the best book club ever going. It was sad when she left, the book club died. Of course, it would have been nice if I could have gotten the club to read “Batman: The Dark Night Returns”. Alas, we usually gave everyone three choices of books to read when it was your turn and they didn’t choose Batman.
BTW, just so I don’t continue to give Dan a free pass in this discussion (seriously, Dan, your hypocrisy in calling me ignorant knows no bounds and makes you look extraordinarily foolish to anyone who actually has looked beyond Jon Stewart for talking points), here are a smattering of studies, papers, and articles highlighting many of the problems (yes, Dan, wage discrepancy primarily).
About wage discrepancy in South Africa where there is a large number of unions. It is most interesting to point out that these wage discrepancies run along racial and class lines, often destroying the very ideals (equalizing wealth and expunging xenophobia) that Dems are in favor of.
http://www.jstor.org/stable/2525014?seq=2
About how unions, by expropriating wages late in the development cycle, can bankrupt a company and cheat investors who provided a great deal of equipment capital.
http://www.jstor.org/stable/2352822
An entire website dedicated to demonstrating how unions cause employment and wage problems for the economy at large. The first article there describes the toll young workers face as a result of unions.
http://www.nilrr.org/
A PEW research poll indicating that, like me, people are favoring unions less and less. The big concern? The power that unions almost inevitably grow into.
http://pewresearch.org/pubs/1505/labor-unions-support-falls-public-now-evenly-split-on-purpose-power
A very interesting site kept by two of the most prominent labor economists. As of this last year, the majority of unionized workers work for the gov’t (starting to wonder who the real villain is here).
http://www.unionstats.com/
Dan, it would be nice if you read some of these, but IIRC, last time I provided you with “evidence” (a discussion long ago over at MM) you did nothing but continue to ridicule me. Have you read any of Rothbard’s work as I suggested last time? How about anything about the Austrian or Chicago schools of economic thought? Anything from Hayek, Mises, or Friedman? Or do you take all your points from Jon Stewart (since this is at least the second discussion I know of here at W&T in which your primary rebuttle has been to watch one of his clips). Oh, and I like Jon Stewart too, BTW.
Re Chris H.
Ah, I see. I realize I came across anti-unionism. That was my mistake. I personally don’t favor unions and I think overall they contribute poorly to our economy, but I wouldn’t say I’m anti-union (in the sense that I actively fight against them. I merely choose not to be involved with them).
Yeah, it’s true. Hawk and I happened to agree on this issue (we have disagreed on others though).
I think I’ve probably only read 2 articles at FPR, so I see what you’re saying.
If you want a case study in government sanctioned, union killing economies, take France.
No multinational will invest in France anymore because of their employment policies. Getting rid of employees is near impossible and very expensive.
Any change the government even tries to make in its policies is met with riots.
Yet, the so-called “at-will” nature of US employment is no good either because employees can be fired for no reason at all and no compensated for it.
JMB,
#138,
now why couldn’t you have begun this whole conversation with this kind of point? I certainly would have had much more respect for your points. It’s nice to see that unions in South Africa are succeeding at providing a better wage for their members. And your overall point with regards to the other links well made. There are definite downsides to having unions. I don’t dispute that, and certainly not something others who are even more pro-union than I dispute. We obviously don’t need to go through the history of labor in the United States to prove that without unions, workers were treated like [self moderated]. We also don’t really need to see that since the rise of unions, this country’s wealth has risen dramatically. So going back all the way to the OP, and the title of this piece, how can a union be evil if it provides such a service to the workers of this country, both in and out of unions?
Jeff,
I’m not sure what you mean, Jeff. Are we talking the same France?
Will, Jon,
I’m actually a stay at home dad. And I rock at my job!
CEOs: A Necessary (Or Unnecessary) Evil? you decide.
Hawkgirl. I am afraid you do not understand the California system for education funding and taxation as well as grasp how the State Teachers Retirement System works.
First, Teacher salaries are negotiated with individual districts, not the state. Each district gets money based on attendance. An amount (Base Revenue Limit) is multiplied by this attendance figure. The Base Revenue Limit can only increase by a COLA
percentage. In addition, There is a limit of 40% of the state budget that goes to education that is very difficult to exceed in even bad times. The net result is that teacher compensation flows with the state of the economy. For example, in the 90’s I once had to take a 9% salary cut. This limit
on state funding for education has been in place for 24 years, it is nothing new.
Second, the State Teachers Retirement System is funded by an 8% contribution from a teachers salary and an 8.3% contribution from the District. It has been one of the most stable systems for near 100 years. It is now under funded (not broke) because of the losses in the stock market.
Three, The state is in bad financial shape because of unemployment and a taxation system that is flawed. Because of Prop 13
property taxes can go up only 2% a year, no matter what the COLA is. Local communities in the middle of the housing boom were doing quite well–new houses brought in bedroom fees and those houses had their tax based on the sale price. Many cities and counties made bad fiscal decisions based on the assumption that the boom would continue . Schools did not have this income boon, but we sure got hit by the economic downturn.
Third, the State Income tax was lowered for high income people during the good times. Add that income reduction to the unemployment, under employment and reduced wages of the last four years, the state had and still has a real problem with this source of revenue.
Oh, when you hear about exhorbitant retirement income, you usually see executive types that have the ability to game the systeem, not the average teacher or state employee
Just an organizational theory perspective – do unions make organization’s more or less adaptive to environmental changes? It seems that the more dynamic an industry is, unionization undermines adaptability. Perhaps as traditionally stable industries (education, government) see more competition due to globalization, outsourcing and technology, unions may continue to lose their power.
It’s telling that the discussion keeps coming back to taking aim at CEO pay. That sounds suspiciously like wealth redistribution. I’m not arguing CEO’s always merit their pay any more than anyone else does, but when they fall, often so does the company. According to HBR, there is a huge talent drain and high risk in finding qualified CEOs after the Enron debacle. In an HBR study from 2008, fewer than 20% of companies had an adequate succession plan for the C-level. Nobody wants the top job if it can land you in jail for being ignorant of the misdeeds one or two levels down. For CEOs the risks can outweight the rewards. So what can companies do to attract a solid CEO? They have to pay well enough that the person will look past the personal risk.
#140 – the France example can hardly be dismissed with a wave of the hand. So much of the pro-union arguments here are history lessons, and I think we all agree that unions have done good and were necessary to get companies in check. The issue is that they are, in many cases and industries, outliving their usefulness.
I admit that the title of the post was not as even handed as the post itself. It was intended to hook in readers. Unfortunately, it was probably too sensationalistic to attract a more nuanced discussion. My bad.
“That sounds suspiciously like wealth redistribution.”
And you sound suspicviously like Glenn Beck every time you say this.
The issue of CEO pay is not so much a distributive justice question, but one of business ethics. jmb275 asked if Dan has read Hayek, Friedman, or any Austrian school thinkers. Have any of you read Rawls, Rousseau, or Kant?
Chris,
A-[self-moderated]-MEN!
hawkgrrrl,
perchance if they don’t pay their CEOs so much, when a CEO fails, he won’t take the company down with him…just a thought…
They will never outlive their usefulness as long as workers are not paid what they are actually worth, and while CEOs are paid far more than they are actually worth. When that day comes, then you will have a point, that unions will no longer be needed.
Chris H.,
Mises was big into reading differing opinions from all sides. Of course, he was an academic so he had the time and passion for the subject to read and discuss it quite in depth. I agree with should all read differing opinions even though we all tend toward what we like.
I’ve read (listened to) Rousseau’s civil disobedience book. I thought it was pretty good, although not as succinct as I like it. I preferred “The Politics of Obedience” much better as the author went into much deeper insights.
Chris, I’ll initial position you six ways from Sunday.
And if Kant had anything to say about CEO compensation, I must have been dozing during that part.
Re: CEO pay, it’s gotten absolutely shameless, and shareholders are complete fargin’ morons to pay what they do for what is not remotely LeBron-level talent (except maybe for John Lasseter, in which case for heaven’s sake pay him whatever he asks to keep him on the court).
But it’s also mostly a symbolic issue, especially for large companies. Yes, it looks very, very bad for CEOs to talk about controlling costs when they’re taking $10 million bonuses — but typically, with the type of multibillion-dollar enterprises that hand out the more obscene executive compensation packages, those huge numbers are literally drops in the bucket. The CEOs could work for free, and it would barely budge the bottom line.
Ay, there’s the rub. Though I’d think that a better solution than “throw tons of money at people who are perfectly fungible” would be to rework white-collar crime laws, so there is actually proper notice of what will get you arrested. The laws right now give way too much power to prosecutorial discretion, meaning that if some ambitious DA decides to get your scalp, he can indict you for pretty much anything. It’s frickin’ Calvinball out there.
Does anyone ever recall anyone saying “You sound just like Ed Schultz” or “You sound like Rachel Maddow” or “You sound like Al Franken”?
Or, for that matter, “You must watch MSNBC”?
I’ve always wondered at the people who think a sneer is a substitute for an argument.
Beck (or Limbaugh, or whoever Emmanuel Goldstein is this week) may or may not be a manic drama queen. It may even be the case that mere exposure to his LIES!!! LIES!!! may result in a person being less well informed, or able to reason analytically.
But in that case, y’all shouldn’t have any problem demolishing your opposition’s actual arguments, instead of just resorting to the lazy man’s sneer.
Look, Ma! The Labor Theory of Value!
You’re worth what you can get someone to pay you.
I put a lot of work, once, into a painting. A heckuva lot more work, I’m sure, than it took some famous postmodern artist to fill a tin can with his own poop. And yet Merda d’artista sold for six figures, and my product of countless hours’ blood, sweat and tears would get maybe twenty bucks at a yard sale.
What I put into something, has absolutely no bearing on its worth. What matters is what the guy with the checkbook gets out of it, and so is willing to pay for.
Thomas,
The painting example is an interesting one. I didn’t say that people ought to be paid what they think they are worth. I’m saying the system right now is underpaying the regular workforce and overpaying the management. The worth of your painting has many variables to it (buyer mood, your own talent, right timing, etc). Very different than, say, being a garbage collector. The difference is that a particular standard of work is expected from the garbage collector that is not of a painter. I personally don’t find some Picasso paintings all that interesting, but their worth is not based on a standard, but on feelings and moods.
Thomas,
But we don’t usually go with talking points found on MSNBC or from Maddow. We actually think for ourselves. 😉
That said, how would you counter the “wealth redistribution” charge. It’s a beautiful catch phrase but has little basis in actual reality. Essentially saying “that sounds like Beck” is the equivalent of saying “that sounds like wealth redistribution.” Neither are very good, but they’re punchy.
Stan,
I recall there having been a coupla hiccups in the stock market over the past 100 years. What changed so that this latest bear market had such a horrific effect?
California’s about average among states for property tax collections. The revenue that is lost because you can’t jack up assessed value as fast as California’s endemic housing bubbles jack up average sales prices, is largely offset by the fact that California’s endemic property bubbles jack prices up so high that — when a property sells, and thus comes out of Prop. 13’s shadow and can be assessed at its elevated new sales value — the state government gets a gold mine that states with less volatile property markets don’t get. (How many other states can assess a three-bedroom 1950s rancher at $500,000, even after a bubble bursts?)
So California has a middling property tax take — which is offset by one of the highest income tax rates, one of the highest sales tax rates, and one of the highest corporate tax rates. All of which translates out to an overall state tax burden that’s consistently in the top ten.
If there’s any problem on the revenue side, it’s that the base is too narrow. Progressive taxation, which relies on taxing the relatively more variable income of the well-off, is more susceptible (because of that variation) to major declines in revenue during recessions.
That alone ought to make people skeptical about giving people capable of such head-smackingly moronic assumptions control over more of the economy.
Even the vampire squids at Goldman Sachs understood that what can’t go on forever, won’t. They might be evil, but sometimes I confess to being less disgusted by evil than by sheer amoebic mindlessness. The former is at least interesting.
And this herd of independent minds just happens to exactly mirror the conventional wisdom of the folks mentioned. Could happen, I guess.
Dan: #144
I read your link. I noted that the severance package for CEO Killingsworth is noted in a filing to the State Division of Insurance, the state regulatory agency.
I presume it works the same in Blue Massachusetts as it does in Blue Maryland. If the cost is disallowed BY THE GOVERNMENT the money will NOT go to higher worker wages. It will be used to refund current rates, or more likely, reduce next year’s rates for the RATE PAYERS.
If we go back to the critical difference between public sector (and BC/BS is a regulated non-profit in Mass according to your source) and corporate life, any further taxes on corporations should go back to reduced taxes for taxpayers (or those too poor to pay taxes). The government workers would have NO CLAIM to higher wages or benefits because of those taxes.
Even though we are unlikely to agree on whether higher corporate or CEO taxes would be a good idea in the first place. 😀
“That alone ought to make people skeptical about giving people capable of such head-smackingly moronic assumptions control over more of the economy.
Even the vampire squids at Goldman Sachs understood that what can’t go on forever, won’t. They might be evil, but sometimes I confess to being less disgusted by evil than by sheer amoebic mindlessness. The former is at least interesting.”
RFLOL
The dissents on Andrew Sullivan’s blog show the power of unions in the workforce.
For the record, I’m no Glenn Beck fan. I love Jon Stewart because he’s funny and scores many points, but I don’t agree with all his views. I prefer Stephen Colbert to them all. Wealth redistribution is a topic (as mentioned in the OP) that Tony Blair, in trying to revamp the Labour party in the UK was butting heads with. Was he quoting Glenn Beck, too? As I recall from what Beck has said of his personal history, he had his head in the toilet dealing with alcoholism around the time the events in Blair’s book are described. Economic concepts like wealth redistribution are not byproducts of punditry, quite the reverse. Regardless of what pundits might say, people generally fall somewhere along the spectrum between wealth elitism and wealth equality.
Those who equate the unions with empowering the workers to control their wages and work conditions should simply remember that the unions are a middle man in that process and as a middle man, they have their own POV and interests.
Jon and Thomas,
I was more addressing hawkgrrrrtl and jmb275. Fitting to her name hawkgrrrl swoops in and bitches about the thread…but is not interested in either fighting or conversing.
Thomas, I have not watched MSNBC in over a decade.
Sorry, cross-posted with you. Tony Blair, like Bill Clinton, should be applauded in leading their respective parties is abandoning the working class and the poor. Now the middle class “moderate” can sleep tight.
Chris, nobody should care what you watch. It’s not what goes in your ears, it’s what comes out your mouth, that matters.
Sounds kinda like Matthew 15:11, come to think of it.
hawkgrrrl,
wealth redistribution is not an economic concept. It is a propaganda talking point.
Chris H: Tony Blair and Bill Clinton are too moderate for you? Hmmm. Not sure what to say to that. I suspect you live in the wrong country, unless you just like being disappointed all the time.
Dan: Samuel Adams said “The utopian schemes of leveling wealth, and a community of goods, are as visionary and impracticable as those that vest all property in the Crown. These ideas are arbitrary, despotic, and, in our government, unconstitutional.” James Madison said “I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence (including the poor – my add), the money of their constituents.” Wealth redistribution is an economic concept. It’s also a politically charged topic currently in vogue, which is I assume why you level the charge of “progaganda.” Well-intentioned, educated individuals fall on both sides of the debate. I just disagree with those who feel equality of outcome (vs. opportunity) is the goal. It’s the same reason I dislike early schemes in the church to live the united order. IMO, it just doesn’t work.
hawkgrrrl,
you quote political leaders to claim the concept is economic in nature. I do however love quotes taken out of context. The James Madison quote was in a Congressional debate over how Congress should help Haitian refugees from the Haitian Revolution. It was noted by another Congressman found here, second column, halfway down, that these same Founding Fathers had no problem providing this very kind of expenditures to the Indians.
But in any case, the problem with the phrase “wealth redistribution” is that it wrongly portrays what Democrats and liberals would like to see. And that is NOT an economic concept, but a political one.
Dan,
Just for clarification – what terminology do liberals prefer to describe economic redistribution? I have heard ‘economic justice’, ‘social justice’, etc.
In a true “free enterprise” system, there’s no debate about the RIGHT to collective bargaining…if by organising and banding together the workers can effectively negotiate under market conditions, then they should be free to do so. BUT…if market realities are such that involvement in union activity (currently protected under Federal law) or striking would cause the workers to lose their jobs (e.g. “union busting”), then there is no real use for a union.
In short, neither labor nor management should expect to turn to Government for help.
The reality is that unions have (d)evolved into organisations, often corrupt enough to satisfy RICO standards, that exist more for their own (or for the thugs that control them) sake than for the rank and file. Not unlike most Governments, our own included.
The current fight in Wisconsin shows how our government workers, who are supposed to be at least modestly diligent workers and good citizens, have become low-brow thugs when the chips are down. The current levels of wages and benefits cannot be sustained, let alone can the pension payouts be met, now or in the future. Many in the private sector have suffered in this recent economic hardship and the utter naivety of government workers in believing that somehow they should be insulated from economic realities is amazing. The Wisconsin governor should, if he has the “cajones”, fire everyone on the state payroll and open up the jobs to the many Wisconsinites who’d glad take them!
Thomas-I will ignore the invective and instead deal with the subsantive parts of your comments.
First, this is not a “hiccup” in the stock market. It is the most serious economic downturn since the Great Depression. STRS problems were compounded also by investments in Mortgaged Backed Securities and the effect of increasing life expectancies yielding more years that an individual recieves a pension (62 in 1935, 78 in 2005).
A pension plan being under funded in bad economic times is not the end of the world, as long as the amount is manageable. This appears to be the case. The key will come in good economic times, as that is when under funding should be taken care of (rise in stock market increasing fund value, use of increased state revenue to make up the difference, etc.).
Second, California taxation. Prop 13 threw everything out of whack. The way it was written has caused great inequities over the years. As an example, I owned my house in 1978 and when I sold it in 2000 I only paid 600$ in property tax. My neighbor, with a house slightly less in value than mine, paid over 1800$ because he bought his in 2000.
New houses and the resale of homes helped cities and counties to keep up with inflation. If your city or county did not grow or not very many people bought in it, you had to cut expenditures, even in the “good times”. If you were like my community (the fastest growing city in California for two years) you had a lot of money. Bedroom fees, new business charges and liscense fees and new homes being taxed at market value all raked in the bucks. Thus my comment about the trouble caused by decisions based on the boom continuing.
You are essentially correct about income taxes. It’s a bit more complicated and not as draconian for the wealthy as you apparently aver, but the effect on total taxes collected is clear.
Third, your snarky remarks about selecting people who would make decisions like my home community did hit home. As all seven city councilmen were rock ribbed Conservative Republicans, I’ll certainly be averse to electing people like that.
Seriously, the problem California (and other states) face are idealogues of all stripes and the power of special interests in politics. The Republican Party leadership in California tends to be Knuckle Draggers
who are scared they will be too liberal for the tea partiers. Their mantra is “no to spending, no to taxes, no to anything for poor people and no to even talk with a Democrat. Democrats, on the other hand, tend to be tied too much to special interests with everyone wanting “their share”. Getting both sides to work together to solve problems is going to be very difficult. Jerry Brown who is a fiscally conservative Democrat is already running into problems with Republicans who want to lower taxes and Democrats who want to protect their turfs, though the Democrats seem to have bargaining room.
Wyoming,
Social justice is a better term, because the programs liberals back are available to all, including those from whom the money is supposedly “taken from.” Using public funds to create roads, for instance, is an aspect of social justice, because it provides an opportunity for all to travel to their various destinations. All have access to a minimum standard of a retirement package for simply being citizens of this country, whether rich or poor. Wealth redistribution is a poor phrasing to describe these things, because it’s not meant to describe these things but to deride and undermine the idea of being a part of a community. I mean, frankly, why do we even have public police? Why should the rich fork over cash to pay for a police force that services all? Should not they be free of that “theft” so they can pay for their own private security force, and let everyone also pay for their own private security force? The idea of social justice is that there should be a minimum standard of living for the citizens of this country.
Douglas,
Curious…what makes those “citizens” “low-brow thugs?”
Stan,
wow….only $600 in property tax. Here in the nearby suburbs of New York, property taxes range from $6000 up to $12000 a year. How exactly has California been paying for their services with such awfully low property taxes?
by the way, here’s a graph that perfectly illustrates the relationship between union membership and middle class wages.
Dan,
Herein lies the problem with liberalism, which goes right in line with your profession. Liberals live in a land of make believe. They come up with all these socialist plans that are broken — pensions, social security, Medicare, etc. Plans with small contributions relative to the payout. They believe one can pay a small amount in FICA (even with an employer match) and get paid from retirement to death. This is why all of these states are in financial trouble. The federal government is in the same boat, but the liberals stop any reasonable adjustment to the plan.
How is social justice different from regular justice?
#173 – The violence, destruction, and vandalism of Wisconsin state property by those entrusted with employment is what I consider “thuggery”. That along with the near-lynching of one of the state senators (a Republican, he was rescued by a Democrat colleage) last week. I could list mine own gripes regarding my long-time employer (USAF), but my office, humble as it may be, is still a public trust. My own integrity is sufficient to treat Government property with utmost care. Integrity that these Wisconsinites seem to lack.
Being a CA resident, and have property taxes to the tune of $322/month, I could gripe as well about how little my neighbors pay. But at least I knew it when I signed the loan documents. The issue with Prop 13 was that seniors were being literally taxed out of their homes. My own grandparents suffered because of it.
There are two issues, somewhat conflated.
First, unions are a counterforce. If you’ve ever been treated unfairly by a boss or seen it happen to others, you understand the concept of a need for counterforces. The kinds of counterforces and the way they work varies, depending on externalities and the economy, which makes a discussion of any one coutnerforce interesting.
Second, counterforces can engage in capture. Capture is where the most interested party ends up in control of the force they were originally there to resist. When a regulatory group is controlled by those it regulates, capture has occurred. When United Airlines ended up controlled by its pilots union, it had undergone capture.
Many times a political group or party ends up captured by a group, with interesting effects. We are currently seeing those.
Civil service programs existed to protect workers in government from abuse, as an alternative and a supplement to unions. Some times they work well, sometimes you get all the Democrats in the White House travel office fired for the lack of protection.
It is a complicated issue, more complicated than often understood, and made messy in the discussion because the capture issue is not separated from the counterforce issue nor from a few other issues (which this comment does not have enough space to address).
And Dan, California has income taxes and a variety of other ways to attempt to pay for services going on, though one thing Prop 13 does is slow down the sale of land, which increases the price of property. Prop 13 is one of the forces behind the bubble in California.
Interesting how things work out.
Re: Prop 13. Don’t get me wrong. There IS an inequity in that two neighbours, having practically identical properties, paying widely disparate tax rates (based solely on valuation at date of purchase, or, in now a minority of cases, to the values set in 1978 when Prop 13 was passed). Liberals, advocates for “social justice”, and like-minded fools who treat the taxpayer as like a cow that gives endless milk, have howled vociferously at Prop 13 for years because when property values rose dramatically, raising likewise taxes (which were then based on recent valuation), since it cut off a cash cow that had little ability to resist. An example was my own grandmother who bought a home in Fresno in 1969 for $23K and in only eight years saw her property taxes rise to become about a third of her mortgage payment (due to the home having increased in value by about 250%). Had not Prop 13 passed, it is quite likely that her property taxes would have exceeded her mortgage in short order, as did many seniors already experience. This is but a symptom of the real problem…an out of control government, expanding to spend the tax revenues available to it. True, there is SOME resistance to selling property when you keep a low tax rate (not unlike keeping an apartment in a “rent control” city), but I see no evidence that it’s even a signficant factor in the runup of property values in the 33 years since.
Doug,
Good to know you are an other-mind fool. Would add more…cannot think of anything without the f-bomb.
#181 – ah, the fall-back of liberals and so-called “Progressives” all…when they lose the argument, out comes the polemics and name-calling. If advocating fiscal sanity and standing up to union thugs makes me any sort of “fool” or gets me a torrent of “f-bombs”, bring it on…
The current situation with out-of-control public employee unions strangling local and state governments (re: taxpayers) is but another example of what the fictional Benjamin Martin of “The Patriot” (loosely based on Frances “Swamp Fox” Marion) had misgivings about in supporting South Carolina’s joining with the other colonies in breaking with the King..”why should I trade a tyrant 3000 miles away for 3000 tyrants a mile away”.
Re Dan
Dan, it’s an opinion piece! I don’t do research in the labor and jobs area, nor am I trying to convince anyone that I’m right. It’s an OP. The fact that you read into it that I’m a complete dolt, that I must be only taking talking points from FoxNews, and that there couldn’t possibly be evidence for my views (even if I didn’t give any) says A LOT more about you than it does me. It makes you look foolish.
A little fact you could have acknowledged in the first place instead of insulting me.
For the record, I DO NOT attribute our country’s wealth to unions. Perhaps there is correlation (I saw the graph you posted, which was most certainly not a scholarly paper), but I’d be surprised to see a scholarly paper indicating statistical significance anywhere near the level required to conclude causation.
Dan, despite the title (which is a bit unfortunate as Hawkgrrrl admitted), there is plenty within the OP to suggest just what you’re saying. I said:
Dan, just face it, you read into the OP what you wanted to. You believed, when you first read the words, that we were FoxNews watching, fear-mongering, rich supporting, conservative right-wingers. And no matter what else I said in the OP, or in the comments, doesn’t matter because you’ve already made up your mind. It seems like our viewpoints don’t differ that much since we both acknowledge an upside and downside to unions. Yet you’ve berated me and Hawkgrrrl this whole thread, consistently returning to FoxNews, Glenn Beck, and whatever other pundit propaganda you can charge us with.
And guess what, Dan, this is why it’s no fun to talk to you. You’re insulting and degrading and don’t do anything to further a discussion. Unless I provide a nearly Thomas-esque bullet proof post complete with legalese (which is not my forte) I can’t even get the benefit of the doubt from you. It’s just not worth it. You clearly have access to lots of material, and as a librarian, are likely well read. I really would expect a more nuanced response and understanding from someone in that position.
#145, 153 (Stan Beale) – I could do the name calling myself and merely quip, “Union Hack”. However, some of the abuses committed by “Educators” (what pompous ninnies that don’t have to actually teach anymore like to call themselves) against their (former) colleagues is astounding, and its a sign of a dysfunctional organisation that a teacher’s union is necessary to combat them.
As for the property tax (Prop 13) issue in CA, this has been adequately addressed. Local and School district budgets, let alone the State (CA) educational budget, have somehow managed to well outpace inflation since the 1978 elections (that’s 32 years and four months, folks!). All Prop 13 does is fix a property owner’s tax liability, which serves a person to many pensioners (teachers included!) well. Still, property tax revenues have shot up as properties have changed hands. Like many home owners who experienced a huge equity runup in the first half of the previous decade, so did many municipalities and school districts hear the “cha-ching” as the tax revenues swelled. The property “bust” has likewise severely impacted local governments that spent as if the gravy train would keep rolling.
As for State Income tax on the top earners being “reduced”, it was actually allowing a surcharge mandated by a REPUBLICAN (Deukmejian) and reauthorized by his sucessors Pete Wilson (R) and Gray Davis (D). Ex-Gov. Schwarzenegger fulfilled a campaign promise and had the surcharge sunset. Get your facts straight, sir. “Temporary” taxes and surcharges tend to acquire a permanency. I didn’t like everything the “Governator” did, but that was one that I endorsed. And I don’t make enough to be affected by it, either, it’s a principle that matters.