Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Are Libertarians Pro-Union or Anti-Union?

by December 9, 2024
December 9, 2024
Are Libertarians Pro-Union or Anti-Union?

Jeffrey Miron

Are libertarians pro-union or anti-union?

Neither.

Libertarians hold that government policies should neither favor nor oppose unions. Employees should be free under the law to organize, request collective bargaining, or go on strike; and employers should be free under the law to fire employees who join a union or strike, or to hire replacement workers, or to move their operations to other states or countries. Thus, the libertarian perspective is not about unions per se but about government policy toward unions.

Assuming competition in the labor market, union protections imply higher wages but less employment than at the free-market wage. Thus, union protections distort economic activity. If employers have monopsony power (the ability to keep wages low because few firms hire a particular type of labor), then union-elevated wages potentially increase economic efficiency. Yet the degree of monopsony power in the United States appears to be modest, and nothing guarantees that government protection of union power will occur mainly in monopsonistic industries. Union power can also raise wages above the free-market level, thereby reducing efficiency even in the presence of monopsony.

Further, in the same way that monopoly prices incentivize the entry of new firms that undercut these prices, monopsony incentivizes the entry of new firms that offer more attractive wages and benefits to top employees. For instance, local taxi services were historically monopsony employers. Uber and Lyft, however, carved out major stakes in ride-hailing markets by providing drivers with better wages and the option to drive without leasing.

Thus, the libertarian position on monopsony power and union policy parallels the libertarian position on market power and antitrust policy. In neither case do libertarians insist that private arrangements are perfect, but that is not the right question. It is, instead, whether government intervention improves efficiency, and the libertarian assessment is that it does not.

This article appeared on Substack on December 8, 2024. Jonah Karafiol, a student at Harvard College, co-wrote this post.

0
FacebookTwitterGoogle +Pinterest
previous post
Progressive Dems rage at Biden for giving Trump the spotlight during final weeks in office
next post
Equities Remain in Strong “Go” Trend as Tech Returns to Leadership

You may also like

Friday Feature: St. Joseph Montessori School

October 20, 2023

California Forever Project Must Overcome Land-Use Restrictions

September 7, 2023

Trump Keeps Defying Established Law—What’s Up With That?

February 3, 2025

Competitiveness of Protected US Shipyards Continues to Erode

January 15, 2025

Rating the Presidents

February 20, 2024

Justice Thomas’s Individualist Concurrence

June 30, 2023

How Pharmacists Can Increase Access to Routine Health...

March 21, 2024

For Spending Cuts, How about the EDA?

June 20, 2023

If the Office of Civil Rights Is Removed...

April 4, 2025

Efficient, Timely and Reliable: A Framework for Election...

March 5, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,570)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved