The Theory of Collective Bargaining: A History, Analysis, and Criticism of the Principal Theories Which Have Sought to Explain the Effects of Trade Unions and Employers' Associations upon the Distribution of the Product of Industry

The Theory of Collective Bargaining: A History, Analysis, and Criticism of the Principal Theories Which Have Sought to Explain the Effects of Trade Unions and Employers' Associations upon the Distribution of the Product of Industry

The Theory of Collective Bargaining: A History, Analysis, and Criticism of the Principal Theories Which Have Sought to Explain the Effects of Trade Unions and Employers' Associations upon the Distribution of the Product of Industry

The Theory of Collective Bargaining: A History, Analysis, and Criticism of the Principal Theories Which Have Sought to Explain the Effects of Trade Unions and Employers' Associations upon the Distribution of the Product of Industry

Excerpt

Economics teaches that there is but one method available to raise wage rates for all those eager to earn wages, viz., to increase the per-head quota of capital invested and thereby the marginal productivity of labor.

At the wage rate established on a free labor market all those who are eager to hire workers can hire as many as they want and all those who want to earn wages can find a job. On a free labor market there prevails a tendency to make unemployment disappear. Not to interfere with the operation of the labor market is the only effective full-employment policy.

If either by government decree or by union pressure and compulsion wage rates are raised above the potential market rate, unemployment of a part of the potential labor force becomes a lasting phenomenon. It is impossible for the unions to raise wage rates for . . .

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