
'fair wages' are best determined through competition. sadly, the
actual "minimum wage" is
zero; and unions have a bad habit of increasing unemployment in order to pad their members pockets.
"High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns," Ohanian said. "As we've seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market's self-correcting forces."
The policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.
Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943....
The most visible effects of unionization in the U.S. economy are, first, the migration of the workforce away from unionized industries and professions toward nonunion employment, and second, the decline in those unionized firms and industries that have been unable to escape their unions... Throughout the 20th century, labor law in the United States has reduced the ability of individuals to contract for the terms of their employment, and has reduced the ability of employers to contract with the individuals they employ. Labor law has not only solidified the rights of unions to bargain collectively for their employees; it has compelled employees to be party to collective bargaining whether they want to or not. Meanwhile, employers have no freedom to avoid entering into collective bargaining with unions. They are required to bargain “in good faith,” which essentially means arriving at an outcome satisfactory to union leaders...
The rhetoric in labor law tends to be couched in terms of workers rights, but review of U.S. labor law shows that in fact workers have lost a substantial amount of their freedom to contract for the terms of their employment, because labor law has given union leaders the right to dictate conditions of employment. Baird (1984, chap. 3) gives a list of individual freedoms that have been compromised by U.S. labor law. It gives unions the right to be “exclusive representatives of all the employees” in a bargaining unit,
taking away individuals’ freedom of contract; makes it illegal for employers to refuse to bargain with unions, taking away employers’ freedom of contract; and requires employers to bargain “in good faith,” which has been interpreted to mean arriving at an outcome that is satisfactory to the union. The developments in 20th century U.S. labor law clearly show the erosion of individual rights and economic freedom, especially through the middle of the century. The 1947 Taft-Hartley Act and 1959 Landrum-Griffin Act did give some control of employment conditions back to workers, but the restrictions on freedom of contract imposed by labor law clearly reduce economic freedom for employees whose conditions of employment are governed by a union. There can be no doubt that the result of 20th century labor law was to give economic power to union leaders while reducing the economic freedom of both employers and employees... The literature shows that, as Gwartney and Lawson (2005) note, labor market restrictions not only reduce the economic freedom of employers and employees but also result in higher unemployment and slower economic growth...
yeah, unions consistently push to increae the minimum wage; many of their contracts are built around multiples of that figure. however, as has been repeatedly demonstrated, raising the minimum wage
hurts the poor and
raises their exposure to unemployment. on top of decreasing gowth and economic efficiency.