In a weak economy, the government should not erect barriers to hiring. But two government policies have hindered the already slow recovery: increases in the minimum wage and government unionization. Eliminating these policies would not be enough to spur a robust recovery—the cause of our current economic weakness goes far beyond these measures—but removing them would help. In a truly free market, each individual pursuing his or her own interest has the freedom to choose where to work. Likewise, each employer has the freedom to decide whom to hire. Overall, …
State governments across the nation are looking for ways to tighten their belts in the face of declining tax revenues and growing budget shortfalls. In Pennsylvania, legislators have offered a measure that would, they claim, dramatically reduce the state’s construction costs on public works projects by bringing contractors’ wages in line with the prevailing market rates. On Thursday, the Pennsylvania Assembly’s Labor and Industry Committee debated a measure offered by Rep. Ron Miller (R) that would bring the prevailing wage – or the wage contractors must pay workers when working …
Looking for a raise during these tough economic times? You may want to try working for a larger company. Though largely unpublicized, the fact that wages rise with firm size is a well established result in labor economics. We might call this the “Big Business wage premium,” which exists even when we compare workers with the same observable skills and experience. Imagine that you work at a tiny business that employs fewer than 10 people. Now imagine a veritable clone of yourself—someone of the same race, gender, and marital status …
Earlier this month, Service Employee International Union President Andy Stern told the Las Vegas Sun, “We spent a fortune to elect Barack Obama — $60.7 million to be exact — and we’re proud of it.” Stern should be proud of his $60.7 million investment. There is a good chance that thanks to the Obama administration, big labor will succeed in passing legislation that has the potential to reverse big labor’s decades long decline. And that will mean less jobs and a slower economic recovery for all of us. Proponents of …
This Fox News story perfectly encapsulates why American workers deserve to keep a secret ballot for union organizing consistent with our democratic principles. Whether the union needs 51% of workers to sign on, or 75% of the workers to sign on; without a secret ballot, they will intimidate workers at their work, home and elsewhere until they get what they want. As the video shows, this method tears businesses, communities and friendships apart.
George Mason University economics professor Don Boudreaux writes a letter to The Washington Post correcting columnist E.J. Dionne’s mistaken defense of Barack Obama’s health care plan: According to E.J. Dionne, “Few investments would help businesses more than offloading a share of their health-care costs to the government. It’s social justice with an economic kick” (“Hoover vs. Roosevelt?” October 10). Overlooking the questionable “justice” of forcing Peter to pay Paul’s insurance premiums, Mr. Dionne’s economics is wrong. Government provision of universal health insurance won’t reduce employers’ costs of employing workers. Worker …
