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Making America Poorer: The Cost of Labor Law
218 pages, Paperback
First published January 1, 1987
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July 25, 2024
A LIBERTARIAN CRITIQUE OF UNIONS AND LABOR LAW
At the time this Cato Institute book was published in 1987, Morgan O. Reynolds was professor of economics at Texas A&M University; he has also written books such as 'Economics of Labor,' 'Power and Privilege: Labor Unions in America,' etc.
He wrote in the Acknowledgements section that "This book began ... when Edward Crane, president of the Cato Institute, asked me if I would be interested in doing a monograph-length study of the air controllers strike and its implications for labor legislation and the U.S. economy... The mandate was broadened to include the economic drag caused by artificially high union wages, overmanning imposed by unions, and the obstacles to capital mobility caused by union power." (Pg. ix)
He notes, "There have been a few signs---but only a few---in recent years that unions have become more flexible than in the past... unions have increasingly renegotiated contracts before they were scheduled to expire, given up or deferred scheduled increases, been willing to adjust long-term wage and benefit formulas in mid-contract, deviated more frequently from industrywide provisions at the plant or company level, conceded two-tier wage systems, and modified work rules under the pressures of the marketplace." (Pg. 99)
He asserts, however, that "Union leaders amazingly refuse to adjust to market conditions, thereby accelerating the downward spiral in their membership, dues income, and union staff... Unemployment rises to disastrous levels before union officials admit their error in gauging market demand for their members' services, partly because such an admission creates the wrong psychological aura if the officials acknowledge they are powerless to generate the customary or desired level of income for their members through tough or skillful bargaining." (Pg. 104)
He admits that "These wasteful practices---shirking on the job and overstaffing---can occur in nonunion employment too. People who do boring and repetitive work often are not interested in the work itself, only in the pay and companionship on the job. Some try to take as much leisure on the job as possible." (Pg. 109)
Written back in an era when unions were much more powerful than at present, there are nevertheless some arguments and points in this book of current interest.
At the time this Cato Institute book was published in 1987, Morgan O. Reynolds was professor of economics at Texas A&M University; he has also written books such as 'Economics of Labor,' 'Power and Privilege: Labor Unions in America,' etc.
He wrote in the Acknowledgements section that "This book began ... when Edward Crane, president of the Cato Institute, asked me if I would be interested in doing a monograph-length study of the air controllers strike and its implications for labor legislation and the U.S. economy... The mandate was broadened to include the economic drag caused by artificially high union wages, overmanning imposed by unions, and the obstacles to capital mobility caused by union power." (Pg. ix)
He notes, "There have been a few signs---but only a few---in recent years that unions have become more flexible than in the past... unions have increasingly renegotiated contracts before they were scheduled to expire, given up or deferred scheduled increases, been willing to adjust long-term wage and benefit formulas in mid-contract, deviated more frequently from industrywide provisions at the plant or company level, conceded two-tier wage systems, and modified work rules under the pressures of the marketplace." (Pg. 99)
He asserts, however, that "Union leaders amazingly refuse to adjust to market conditions, thereby accelerating the downward spiral in their membership, dues income, and union staff... Unemployment rises to disastrous levels before union officials admit their error in gauging market demand for their members' services, partly because such an admission creates the wrong psychological aura if the officials acknowledge they are powerless to generate the customary or desired level of income for their members through tough or skillful bargaining." (Pg. 104)
He admits that "These wasteful practices---shirking on the job and overstaffing---can occur in nonunion employment too. People who do boring and repetitive work often are not interested in the work itself, only in the pay and companionship on the job. Some try to take as much leisure on the job as possible." (Pg. 109)
Written back in an era when unions were much more powerful than at present, there are nevertheless some arguments and points in this book of current interest.
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