Re:The decline in unionization has fed the rise in incomes a...
by jjoonathan on Sunday March 22, 2015 @06:20PM
(#9248498)
> what is the value according to which people should be paid? Who should decide it? Not easy.
On the contrary, it's economics 101. I have a feeling our disagreement is due to definitions so let me be more specific about my intended meanings.
There is a minimum price at which you are willing to not switch vocations and there is a maximum price at which you can be profitably employed. The latter is what I was calling value, as in "value to the company." Relative bargaining power determines where on that spectrum your salary will be. It's arguable that the final price is "value" but that's not the meaning I intended. What should happen is a question for the philosophers. What does happen is up to us.
The Wapping dispute is an example of a union failing to recognize that the value (same definition I was using above) of their employees had fallen below their asking price. Sure, it happens -- I have no doubt that unions increase friction, which is bad and hurts the economy. But underpaying workers "because you can" is also bad, also introduces friction (increased need for loans, decreased ability of workers to bootstrap), and also hurts the economy. So I don't buy the argument that one is better or worse. As far as I'm concerned it's a zero-sum power struggle, philosophically and morally speaking. I'd rather be on the winning side and I don't begrudge others for wanting to be on the winning side.
On the contrary, it's economics 101. I have a feeling our disagreement is due to definitions so let me be more specific about my intended meanings.
There is a minimum price at which you are willing to not switch vocations and there is a maximum price at which you can be profitably employed. The latter is what I was calling value, as in "value to the company." Relative bargaining power determines where on that spectrum your salary will be. It's arguable that the final price is "value" but that's not the meaning I intended. What should happen is a question for the philosophers. What does happen is up to us.
The Wapping dispute is an example of a union failing to recognize that the value (same definition I was using above) of their employees had fallen below their asking price. Sure, it happens -- I have no doubt that unions increase friction, which is bad and hurts the economy. But underpaying workers "because you can" is also bad, also introduces friction (increased need for loans, decreased ability of workers to bootstrap), and also hurts the economy. So I don't buy the argument that one is better or worse. As far as I'm concerned it's a zero-sum power struggle, philosophically and morally speaking. I'd rather be on the winning side and I don't begrudge others for wanting to be on the winning side.