Tuesday, March 1, 2011

"Unions generally reduce welfare"

Some rational dispassionate economics from Gilles Saint-Paul at the Economist:
"ACCORDING to standard economics, wage bargaining by unions is similar to price agreements in cartels and in good logic should fall under antitrust laws and be prohibited."
The piece is short but full of well reasoned economics.

Hat tip to Jeff Smith

1 comment:

  1. Wouldn't a better option be just to remove their government-protected status? You don't have to go after them, but at the same time, the state shouldn't enforce union monopoly type contracts.