Economics 101 – 5 of 8 – Labor and Unions – Murray N Rothbard

5. Labor and Unions

Rothbard covers the principles of demand and supply curves. Prices are at the seat of the whole system. Use the logic of reality. The most mobile labor force is teenagers. Over time, capital equipment per laborer increases. Real wage rates increase. Consumer prices decrease.

Unions cannot determine wage rates without putting companies out of business and causing unemployment. They attempt to control the labor market by restricting people. Unions have very little power when labor is ample. There were no labor unions from 1885 to 1935. Unions were first established in construction, coal mining, and entertainment fields, but they were a small percent of the workforce.

The National Labor Relations Board determined what a bargaining unit was. They preferred industrial unions to craft unions. Unions made employment government-regulated rather than free-market.

Union growth has been in government agency areas.

The fifth of eight sessions from Murray Rothbard’s Economics 101 series.

A collection of eight speeches and lectures by Murray N. Rothbard, spanning from the 1970s to the early 1990s. He is speaking in a small classroom setting, explaining economics from the ground up, and systematically in the manner of a classic 101 course on the topic—but with a revolutionary approach.

This lecture as a Podcast: http://enemyofthestate.podomatic.com/

Sourced from: https://mises.org/library/economics-101

Source: Economics 101 – 5 of 8 – Labor and Unions – Murray N Rothbard – YouTube

http://www.readrothbard.com/economics-101-5-of-8-labor-and-unions-murray-n-rothbard

TRANSCRIPT

00:00
he knows anything at all no employer is
00:03
gonna hire another worker to produce
00:05
less of a product isn’t it before paying
00:08
out money getting that let’s return how
00:10
does the idiotic also nobody know
00:13
workers annum nobody gonna be higher on
00:14
the line here is on the line the
00:18
marginal product is zero you’re hiring a
00:20
worker for a certain amount of money you
00:21
get no more you know they’re all
00:23
increasing product not gonna do that
00:25
either
00:25
so zone three is for boating in other
00:28
words the whole but that’s what happens
00:29
in zone three is a too many workers per
00:31
fix capital too many with so many
00:33
workers per land and perhaps for capital
00:35
equipment that producing in lower
00:37
product all apparent even have no more
00:39
product so nobody’s operating is that no
00:41
factor will be employed in zone three
00:44
that’s pretty self-evident the problem
00:46
with zone 1 zone 1 is a little trickier
00:48
I went through that so thing but point 1
00:50
zone 1 is in the area of zone 1 fixed
00:53
factors of 2 a too excessive compared to
00:56
the number of workers you have so few
00:58
workers per land and capital goods the
01:00
workers have to rush around trying to
01:02
use all of them they wind up with a
01:04
lower average product the marginal
01:06
product is negative the marginal product
01:08
of fixed factors is negative and zone 1
01:11
and on the line the marginal product is
01:13
0 for fixed factors so that if you take
01:17
if you have one two workers are kind of
01:19
trying to grow wheat in 10,000 acres you
01:23
get more wheat if you cut out half the
01:25
acreage you simply cut them out so the
01:27
work is going to find it’s more final
01:29
land they can be much better at it so in
01:32
other words here you have an excessive
01:33
amount of the variable factor of the
01:35
marginal product of a variable factor
01:38
labor in this case is negative and here
01:40
the module part of the fixed factor is
01:41
negative and therefore nobody employed
01:44
no faculty important zone either so you
01:46
wind up with a conclusion at all factors
01:48
of production land labor capital will
01:50
always be employed and zone 2 for any
01:52
product whatsoever in other words in the
01:56
area where the diminishing returns or
01:58
average product physical part of the
02:00
cleaning marginal for three-prong
02:02
declining a little less the greater than
02:03
0 this is this doesn’t need empirical
02:12
testing
02:13
they say those who want to do it can do
02:15
it but it’s not necessary part of the
02:17
logic of reality so next step was to
02:23
demonstrate what they put up the demand
02:24
curve is it overthrows we’re trying to
02:26
get at here the employer forces
02:28
interested not so much in physical
02:30
production because it’s selling and
02:31
getting an income we have to bring in
02:32
the price system by the way in general
02:34
and economic did you go to go good
02:37
opinion when life you’ll read economics
02:40
willy-nilly from time economy the
02:41
financial pages or whatever remember any
02:43
any model of the economy doesn’t mention
02:45
the prices than the crackpot prices I’ve
02:47
got to show up somewhere they don’t show
02:49
up example a much of macroeconomics
02:52
prices drop out some cold by Piper be
02:55
very suspicious of any economic model or
02:57
theory doesn’t mention prices prices are
02:59
the key to the whole system so similarly
03:02
here what happens is the employers are
03:05
just and total revenue and total course
03:06
of course maximizing profit in the case
03:09
of revenue is interested in Fangtasia
03:12
production which would bring him greater
03:13
revenue so the we have total revenue
03:22
important we know is price times the
03:23
price of the product times the quantity
03:26
produced so if you sell Wonder Bread
03:30
four buckle okay so a thousand loads of
03:32
one or baby getting a thousand bucks
03:33
that’s some money and the price system
03:34
comes into the picture and so now we’re
03:39
looking at what is the marginal revenue
03:40
productivity of each factor production
03:42
of each worker of each piece of land
03:43
etcetera how much money is brought in by
03:46
the product so to do is you multiply in
03:49
case of marginal
03:50
you have marginal physical product those
03:55
are Q over Delta alpha and a marginal
04:01
revenue how much each loaf of bread
04:04
Wonder Bread brings into the firmament
04:06
and money any term is equal to Delta P
04:09
are my results and Q in other words
04:15
someone more loaf of Wonder better one
04:16
more high five set you get certain um
04:20
total revenue coming in sell it for you
04:22
know whatever it is you get money out of
04:23
it if you multiply these two things
04:26
P times M R suffix Q drops out and you
04:31
get those a TR my my cell the alpha word
04:36
how much money is brought in how much
04:38
income revenue is brought in by one more
04:42
worker one more piece of land one more
04:44
machine now this is the marginal revenue
04:47
product the marginal physical product ty
04:50
the marginal revenue averages average
04:56
physical product Q why am i alpha the
05:01
number of bushes bushes a week per
05:04
worker let’s say times and you have
05:08
average revenue which is PR divided like
05:12
Q which by the way is the same thing as
05:15
a manager that’s what price is this is
05:17
the price curve or the main curve there
05:21
are friendly old friends of the man
05:22
curve this is the average revenue curve
05:26
the price quantity you remember price
05:29
times quantity total revenue so this is
05:31
the price curve of the man curve
05:33
marginal revenue curve is also falling
05:37
and below it so this lease and this
05:41
motley a multiplied average physical
05:43
product times average revenue at least
05:44
the quantity drops that the less was PR
05:48
or alpha was total revenue per worker
05:52
let’s say which is same thing an average
05:53
revenue revenue product in other words
05:58
revenue product how much total income is
06:02
brought in by each worker or each
06:03
machinery comes into the picture by
06:05
multiplying the physical product times
06:07
the price or times the marginal revenue
06:09
money the money system was brought into
06:12
the picture
06:13
my final contention was on Tuesday that
06:16
this is a demand curve for everybody
06:19
employer for every factor of production
06:21
will be the marginal revenue product
06:23
curve looking now the man curve for
06:29
workers or on machines or land
06:32
let’s say price or wage rate the case of
06:34
workers
06:37
this is the quantity hired alpha or
06:40
quantity bought server it is what I’m
06:42
contending is the demand curve or the
06:45
firm of the industry whatever fourth
06:47
worker is the same thing is the marginal
06:48
revenue product curve because the player
06:54
when the point is trying to hire a
06:55
worker let’s say you’re comparing the
06:57
cost of the benefit you apparently
06:58
revenue brought in by the work a little
07:00
coarse paying out remember you find him
07:01
you’re trying to you find of why acts at
07:06
each point you’re making a profit
07:07
maximizing your profit well that’s the
07:10
weight so it’s the wage rate let’s say
07:13
it’s five dollars an hour
07:14
this is a market wage rate which friends
07:17
certain type of Labor before have to pay
07:21
if you’re this is let’s say a hundred
07:23
workers and wage waited to find out how
07:27
much you’re paying at after the worker
07:29
brings in the marginal worker or was the
07:31
marginal one more worker will bring in
07:33
at the margin seven bucks an hour
07:37
that’s the productivity then he’s making
07:43
a profit or making an extra profit two
07:44
hours per hour and each additional
07:46
worker keep hiring workers as long as
07:49
they going to make a problem it was one
07:52
with the revenue product waited only
07:54
only and I’m wage rate as long as they
07:56
money of taking in there’s a greater
07:58
than money you’re shelling out you keep
08:00
hiring more workers so long as this is
08:01
positive tapping the surplus of the
08:04
space and but each time you hire more
08:07
workers is the larger of your product
08:09
curve is falling you get less and less
08:11
of a profit you finally wind up with
08:14
equality actually you really stop over
08:15
here it’s one of my arguments with micro
08:18
Theory really stop say over here our
08:20
purposes you don’t have doesn’t everyone
08:21
do that if you do is you keep going if
08:23
you maximize your profits you pulling
08:26
until you get this point we just just
08:28
rest makes a teeny bit more from working
08:31
on you know you’re paying out and after
08:33
that and you stops before you make
08:35
losses if you’re pure if you’re 200 if
08:39
you’re hiring three hundred workers
08:40
you’ve gotten in your situation since of
08:42
launch MRP is falling a little talk
08:44
because diminishing returns then you
08:47
have a situation you’re paying a final
08:48
is only gave me give me three dollars in
08:50
revenue pie
08:50
two dollars per worker for each
08:52
additional worker the you fire them get
08:56
back the situation you avoid your losses
08:58
you again you get back to here once
09:00
again have a built-in feedback mechanism
09:02
so to speak which keeps the number
09:04
employed or a number higher the number
09:06
bought wherever it happens to be equal
09:09
to the marginal revenue product of a
09:11
factor so in other words if the wage
09:14
rate is up here you all right listen
09:16
money from Stan he hardeneth out here I
09:18
meant money a sucker etc and we’ve
09:20
already seen a definition of a demand
09:21
curve definition of any demand curve
09:22
given the price this will shows you how
09:26
much will be purchased or hired in this
09:27
case given the pipe and the lower the
09:29
price of more will be purchased or
09:31
higher that’s Receptus if we’ve already
09:32
seen when we talk about minimum wage law
09:34
but the man curve for labor is falling
09:36
now he’s showing why it’s flowing
09:37
exactly what how it’s falling and what
09:39
what determines it it’s a marginal
09:41
revenue product curve which is also
09:43
flowing because you have a fully module
09:47
physical product curve falling in the
09:49
relevant zone – and a fully modular
09:52
system module revenue curve is always
09:53
pointing to the main card always flowing
09:55
you multiply these three got falling
09:56
larger of your product
09:58
what was my to flowing curves you have
10:00
to line up with a third flowing curve
10:01
that’s a product so this is a demand
10:06
curve for the factors of production
10:08
it’s the marginal revenue product curve
10:11
for labor different kinds of labor for
10:13
capital goods raw materials and land all
10:16
these things are this is a so-called
10:18
marginal revenue product so for short
10:20
it’s called a marginal productivity
10:22
Theory
10:24
marginal revenue productivity here is
10:26
the correct word but for the I just say
10:29
larger account activity theory for short
10:30
and some people have challenges things
10:32
somehow it’s bet Eve or whatever this is
10:34
simply the fact in other words that any
10:37
any price of factors including wage
10:39
rates will equal the module review
10:41
correct curve this determines of a man
10:45
curve for labor or land or capital then
10:48
of course you have a supply curve we
10:56
have a demand curve for labor which or
10:58
any factor which is marginal revenue
11:00
product or supply curve which is
11:01
whatever you wind up with a market
11:04
equilibrium wage rate or quite rental
11:06
count of land or fights of capital goods
11:08
or whatever okay so this is the
11:11
summation of what we do that think it
11:13
had to do that but that’s going to much
11:15
at yeah and well now it was to
11:18
investigate the labor market in
11:19
particular which is the most important
11:21
of the factor mortgage i actually
11:22
obviously of course our interests of the
11:23
people they’re interested in late and
11:25
what happens the wage rates why they
11:26
were what they are what determines them
11:32
the the case of labor you don’t not yet
11:36
I really have you know not really get a
11:38
vertical supply curve a land will have a
11:40
vertical supply curve or or any given
11:43
capital equipment case of labor hour but
11:46
nobody’s going to work 40 hours a week
11:47
or whatever for a penny an hour you want
11:49
to stay home other words leisure
11:51
there’s always an alternative so it’s
11:54
something like that in other words you
11:55
least get something like this with a
11:58
sharp falling off of supply labor curve
12:01
if you get to a low wage rate area and
12:04
the greater the unemployment insurance
12:05
the welfare payment the high is going to
12:07
be a bigger floor you’ve got on how much
12:10
wage right people will accept so also
12:15
another thing and then it gets more
12:17
complicated by the fact that some people
12:18
are not in the labor force I think I’ve
12:21
already mentioned it’s ended up with
12:22
unemployment a minimum wage law labor
12:24
the whole population is not what the
12:26
labor force is the fine that those who
12:28
are employed or seeking employment so
12:31
it’s a sort of a variable thing because
12:33
some people are retired other people are
12:35
babies you know so there’s a lot of play
12:37
and assistance for example last 20 years
12:39
or so a 10 years a lot of housewives of
12:41
course I’ve entered the labor force so
12:43
you have a people who are the population
12:46
might have say the same want up a little
12:48
but the labor force is going way up for
12:49
that reason okay for that particular
12:51
reason so there’s a tendency of us even
12:56
on the short run to have a forward
12:58
sloping supply curve for labor because
13:00
if you raise wage rates and not people
13:03
will stop being half life and join the
13:05
labor force centum – it’s a little bit
13:10
it’s a little bit dependent on a
13:11
babysitter of prices or whatever you
13:13
want to call it they care prices or
13:15
something yeah
13:16
to raise wage right there for women
13:18
it’s certainly above the babysitting
13:20
price that they can’t rise and have more
13:21
women entering a labor force wage rates
13:23
go down over most of them of winter so
13:25
generally there’ll be a forward sloping
13:26
supply curve for labor even and then the
13:29
immediate you know are short run even
13:31
beta day so we can have a home now this
13:47
general supply curve will change reach
13:49
industry reach firm in other words this
13:52
is true for labor from the other factor
13:54
if you remember if you multiply that in
13:56
the alternatives open for you then you
13:57
have a more elastic again it becomes the
13:59
curve consumers the demand curve for a
14:02
number of her Wonder Bread is much
14:04
flatter than the banker for bread as a
14:06
whole
14:06
similarly the supply curve of Labor say
14:09
to one industry be much flatter more
14:11
elastic than supply cover labor in
14:13
general in other words as I said of
14:15
plumbers the big increase in man from
14:17
plumbing on saying them wage rate from
14:19
plumbing your life you’ll have people
14:20
going in and evermore a flatter supply
14:22
curve of plumbing a spike of labor to an
14:25
industry its flatter if you raise the
14:27
wage rates more people we brought into
14:29
plumbing or computer engineer or
14:31
whatever the lower where people got out
14:32
of it this is a more longer run thing of
14:34
course I’m is that get a woman run
14:36
perspective similarly supply curve each
14:38
firm will be very quite flat so for it
14:42
increases wage rates compared to General
14:43
Motors people tend to leave John what
14:45
ago in the Ford or vice versa so clunker
14:48
or labor to a firm will be flatter and
14:50
the supply current labor to an industry
14:52
or the labor in general so labor is
14:57
partially mobile and and it’s not
14:59
completely mobile but is mobile the
15:01
large extent in many cases of course
15:03
people leave it’s not that you leave in
15:05
industry the age of 50 I mean it’s
15:06
farmers is an overall shift over the
15:09
last two centuries from the farms of the
15:11
city because every farmer drops the
15:13
pitchfork and leaves is the sons of the
15:15
farmers growing up leave the farm and go
15:17
as a go to the city so the most mobile
15:20
labor force of course those are
15:21
teenagers or people just entering labor
15:24
force they’re much more mobile people
15:25
have been in the business for 20 years
15:27
and generally so generally the mobility
15:29
take fight among young people they’re
15:30
the ones with career
15:31
I’ll even go to California and all rest
15:33
of it so you have more you don’t need
15:36
everybody to be mobile for the thing
15:37
that work well you need some people and
15:38
that’s what exactly what they do they
15:40
leave for opportunities that leave
15:42
Michigan to go to California that’s sort
15:44
of Texas stuff like that on England
15:47
there’s much lower mobility people tend
15:48
to they born in Shropshire at live
15:50
instructors or they die never leave
15:51
never see beyond 20 miles of that so
15:55
their different cultures which have
15:57
different rates of mobility so to speak
16:03
okay the historically over time tends to
16:11
happen is that capital equipment per
16:14
worker goes up in other words you have
16:16
you have you start with crew so if you
16:20
remember way back on your first hour
16:21
talk about who’s does start with who so
16:23
you have one stick that’s its capital
16:25
equipment one net okay and or a bow and
16:29
arrow or something now we’ve got over
16:30
the centuries we’ve accumulated lots of
16:32
capital equipment and as we do that it
16:34
increases the productivity of labour
16:36
force in other words if this is a
16:38
marginal productivity of labour it keeps
16:42
increasing over the years because
16:43
there’s more capital equipment and
16:44
better technology of capital per worker
16:47
that’s really the key and the words you
16:49
have a labor force support goes up but
16:52
you have an even greater increase in
16:53
capital equipment and productive tabla
16:55
Club Med Center etc so the result of
16:57
that you have a full of pipes of
16:59
machinery full of pipes of capital
17:01
equipment and the foreman fights of
17:03
course a consumer goods an increase in
17:05
wage rates in other words the man for
17:08
labour as like as a productivity of
17:10
labour increases over time this is man
17:13
for labour we’re not talking about
17:15
fireplace we’re not talking about wage
17:18
rate over a time history and capitalist
17:21
development as a history of increase of
17:24
capital equipment and technology high
17:27
technology etc which constantly
17:29
increasing the demand curve for labor
17:31
and thereby increasing the wage rate so
17:32
this is a supply of labor you have
17:34
something like that but over time you
17:36
have a continual increasing real wage
17:38
rates
17:39
I mean wage rates per purchasing power
17:41
not just the money terms which could be
17:43
inflationary or
17:45
real term you buy and buy more and
17:46
better stuff in Stanton living those up
17:48
the reason why I say living goes up over
17:50
the century freshly since the Industrial
17:51
Revolution from the 18th century the
17:54
continuing increase of capital
17:55
investment capital equipment and and no
17:57
technology embodied in camera equipment
17:59
technology like cell phones just doing
18:01
anything the Romans probably had a lot
18:02
high-tech and development they they
18:05
never played an imply it much too real
18:07
for real life so just inventions isn’t
18:09
enough you have to apply them in
18:10
industry and capital investment and body
18:14
isn’t sort of speaking capital
18:15
investment so what you have over a time
18:17
tendency is to have higher wage rates
18:21
with more more jobs in other words is
18:23
room for more people as you keep
18:24
increasing banker for labor so wait you
18:29
have increased employment and higher
18:30
wage rates the labor market and so this
18:36
rest of what the oldest mostly rests on
18:39
is increased capital development capital
18:41
accumulation at a and high technology
18:44
embodied in capital accumulation
18:45
position need saving the investment and
18:47
will recipe neither a capitalist
18:49
function do this and over time that you
18:56
have more more jobs at higher wage rates
18:58
this is Lee this is the history of the
19:01
19th and 20th centuries fortunately ok
19:05
the for the route this is one route to
19:08
higher wage rate the other route
19:10
possible moved to higher wage rates of
19:12
the route taken by restriction isn’t my
19:14
cartel doesn’t if this cake cartels and
19:15
labor core labor unions namely if you’re
19:19
trying to do given the demand for labor
19:23
instead of increasing sort of promoting
19:26
the idea of increased capital investment
19:27
higher wage rates through jobs what you
19:30
try to do is restrict the supply of
19:31
labor push it to the left in some way
19:34
thereby increasing the wage rate at the
19:37
expense of those who would displace
19:39
other words you take you take the labor
19:41
force you restricted in some one way or
19:42
the other we’ll see various ways in
19:45
which it’s done and thereby decreasing
19:47
wage rates for some people and
19:48
increasing where it’s at other than
19:49
their expense this is the restriction of
19:51
solutions to this thing yeah
19:54
in this method the method of capital
19:56
investment or increasing the number of
19:57
job
19:58
and increasing wage rate in this method
20:01
you decrease the number of jobs and
20:02
increase wage rates so what you’re doing
20:04
is you’re excluding a bunch of people
20:05
either immigrants to immigration
20:07
restriction or through unions and
20:09
non-union people who are pushed into
20:11
other lower occupation lower wage
20:13
occupations so this is the labor market
20:18
the way it’s done you can’t unions don’t
20:20
have any Union can’t determine wagers I
20:23
can’t say okay we decide to have fifty
20:24
percent wage increase they does that
20:26
they can do it unlimited like you know
20:27
it’s just like minimum wage law Union
20:30
come and say we want quadruple the wage
20:32
rate for everyone okay we’ll do it can’t
20:33
do that because we’re firms with a lot
20:34
of business so what a way it’s done is
20:37
by kind of control the labor force
20:39
restricting it and pushing wage rates up
20:41
at the expense of other workers so what
20:43
you have in real life a contrast of the
20:44
Marx Marxist myths that you have a group
20:47
of capitalists on the one hand will come
20:48
in class and trust Google workers in the
20:50
other hand crime against the persons who
20:52
are at war just the opposite
20:53
handful it’s a competing among
20:54
themselves so goods and services all
20:57
that and workers compete among
20:58
themselves for jobs and wages etcetera
21:01
so the cartel of workers and unions are
21:04
very much like a cartel of way over
21:06
workers and similar some were an aim of
21:10
cutting cutting a supply and raising the
21:13
wage right we’ll see how they can be
21:16
done the next time that they so I have a
21:19
ten minute break and continue all of
21:20
that Union question what unions trying
21:25
to do is control the labor market notice
21:27
the total market a particular labor I
21:29
think a keep out entry in one way or the
21:31
other and raise the they can then waist
21:33
raise the wage rate of the economic
21:36
power of Union and I will defined
21:37
economic power as the ability I so just
21:40
make noise the ability to raise wage
21:42
rates above the non-union level I’m you
21:44
cannot make tarragon is very different
21:47
from publicity the powerful unions have
21:50
it usually the one to a small highly
21:52
skilled craftsmen other people you have
21:54
a very small craft and where you need a
21:59
how a long long years or apprenticeship
22:01
to be a good at it and which is small
22:06
part of the labor force
22:09
in other words it depends again the
22:14
power of the Union depends a lot on the
22:15
elasticity of the man curve for labor in
22:17
other words if let’s take let’s say the
22:23
Automobile Workers Union we’re probably
22:24
putting a last it would take bitch
22:25
diggers very elastic well if anybody
22:29
with a pair of arms and shoulders can be
22:30
a ditch-digger does not take ten years
22:32
of degrees and stuff like that okay so
22:35
you have an elasticity of demand for it
22:38
so if you this is a man for
22:40
ditch-diggers and you have a disagrees
22:42
Union which pushes a wager right we
22:44
demand 50% way to increase then you get
22:46
something like yeah the quantity of
22:48
Labor higher falls off drastically have
22:50
huge unemployment this breaks the Union
22:52
in other words the unions are in a land
22:54
walking demand a certain wage rate
22:56
increasing even get it you have 80
22:58
percent unemployment the industry the
22:59
unemployed this sugar is going to
23:00
undercut the Union at the end of it so
23:03
in other words all any union of any
23:06
unions any successful union raising wage
23:08
rate will cause unemployment the point
23:10
is they cause a lot of but will destroy
23:11
the Union that’s why there’s no dictator
23:13
in Union no Union so it’s your heavy
23:17
successful you who tend to be those
23:19
attempts and an elastic demand curve for
23:21
that particular labor so that if you
23:24
raise the wage rate let’s say this is a
23:26
supply curve labor if you’re pushing my
23:29
curve to the left some way you raise the
23:31
wage rate will cause some unemployment
23:33
not too much maybe 5% except 10% of
23:36
whatever and I bet you’re gonna hope for
23:38
is they’ll be no visible on the point
23:39
all you do is to eliminate jobs like
23:41
teenagers coming in trees you won’t see
23:43
unemployment just just won’t be any jobs
23:44
available it would have been available
23:46
about the Union increase so to do that
23:48
you have to have a have an inelastic
23:50
demand curve for labor you have that
23:52
certain condition one of them is when
23:55
you have to control the labor force just
23:56
to get there in the first place but
23:57
another one is it should be a small
23:59
percentage of a course of the of the
24:01
business small percentage of a payroll
24:03
for the speech give you an idea the
24:05
beautiful example from history of Polly
24:07
here we used to have two mighty unions
24:11
here – a massive massive Union sort of
24:14
speaker faculty Union called American
24:16
Association of University Professors
24:17
which represented the entire
24:20
representing representing the entire
24:22
faculty of 280 who ever was and the
24:25
staff union which still exists the I
24:26
think it’s part of district 65 of a
24:28
wholesale retail cart Union something
24:30
like that
24:31
they represent the staff secretary’s
24:33
separate so there is a mass union so to
24:36
speak within poly 200 members how does
24:39
the team members whatever they get they
24:40
have never been succeeded in increasing
24:41
wage rates at all I’m a fairly barely
24:43
usually full behind the course of living
24:45
increase we had a faculty union for many
24:49
years easton spent a lot of time on
24:50
bargaining system oh you have hundreds
24:52
of hundreds of man-hours of hysteria
24:54
bargaining conflict hatreds over when
24:56
they wind up three years after the fact
24:59
other words in 1980 would be still
25:00
boring can I see 77 wage increases and
25:03
we get finally get 7% and usually beat
25:07
of course of living you know inflation
25:08
rate so after the union was off the
25:12
union was kicked out by the
25:13
administration we still get we foo got
25:15
to something but the next day he’s got
25:16
less than that we click up the course of
25:17
living your increase without any
25:18
bargaining time lost in other words the
25:21
whole thing was more left than that loss
25:22
of general conflict energy and we’ll
25:26
rest of it the other hand the only
25:28
successful union of this pipe of tini
25:30
you know we ever heard of the boiler
25:31
tenders local I think there are three
25:33
boiler tenders there’s one boiler and
25:36
feed two or three boil kind of as long
25:38
as the boiler kind of local whatever it
25:40
is the boiler 10 of the Union so one
25:42
time they had a little strike kind of
25:43
funny that one picket way off from a
25:45
corner around the corner nobody could
25:47
see them I said I’m strike very Decorah
25:50
the little strike when I’m striking
25:51
local 38 or whatever the boy attended
25:53
the Union so in those days we had a
25:55
mighty and powerful faculty and staff
25:57
Union what allegedly probably went to
25:59
them we said would you like solidarity
26:01
he wants to pick it with you he wants to
26:02
help propagandize leaflet go away leave
26:05
us alone
26:06
nothing to do with you people okay and
26:08
so after about three weeks of a very
26:10
beccarose strike the boil tender Mike
26:13
was subtle
26:14
I got a 50% wage increase why cuz only
26:17
two or three guys I mean probably gonna
26:19
40 or 50 percent increases three people
26:21
it can’t afford to give because the
26:22
expense of 200 people that’s the
26:23
difference in other words if you have a
26:25
teeny Union and the intercept the seeds
26:27
of the labor force of the speak okay I
26:29
don’t know how much skill it is there’s
26:32
only some skill involved in boiler
26:34
and so and you have a small labor force
26:36
so in the pocket of the situation the
26:38
employer can afford to give you a big
26:40
increase these are the successful unions
26:43
before the during the free label days of
26:45
free labor market even now in other
26:47
words the sort of unions which made it
26:49
you’re able to raise the wage rate for
26:52
this boy ease
26:53
well unions are a small skill craft but
26:58
they can restrict the labor for example
26:59
stonemasons the great few still making a
27:01
lot of the Magnificent lovable crap and
27:03
unfortunately sort of dying out the only
27:05
spell masons are early opinions were
27:07
trained in Italy I think and they’re
27:10
getting you know they’re getting fairly
27:11
old by this time for the only about five
27:12
stone masons wherever the United States
27:14
they have a strong Union because what
27:16
the hell you mean how many stonemasons
27:17
are hired you can afford to have a big
27:19
increase so if any rates were to have
27:21
been in the free labor market before
27:24
1935 in other words of 1880s to 1935
27:28
they more or less the free labor market
27:30
was no government intervention in the
27:31
Union labor market and this period of a
27:34
free labor market the only unions which
27:36
was successful where those are skilled
27:39
so-called craft unions skilled small
27:42
unions but we shouldn’t restrict their
27:44
labor force which are a small percentage
27:45
of the payroll glassblowers cigar band
27:48
workers stone masons particularly in the
27:52
building trades construction which is
27:53
gold true by the way the joiners
27:57
plumbers carpenters the thing about the
28:01
building trade is they’re local they’re
28:03
monopolistic within each locality in
28:06
other words if you’re let’s say in the
28:08
garment business or the printing
28:09
business and you unionize your course go
28:11
up or your prices go up business can
28:14
shift the North Carolina which has those
28:15
happen ever they have a Norman factory
28:18
in New York
28:18
it’s unionized that costs are high and
28:20
the buyer is simply go to know that
28:23
somebody sets up a clothing factory and
28:24
look for a while which is known you know
28:25
the undercut the current and your plan
28:27
the whole time your mind goes bankrupt a
28:29
union goes bust but a construction is
28:32
that you can’t do it that way in other
28:33
words Chicago construction or Houston
28:36
structure doesn’t really compete with
28:37
New York extortion
28:38
you’re not going to leave New York to
28:39
become a construction person and real
28:42
estate person in Chicago so it’s more or
28:44
less geographically monopolistic so to
28:46
speak
28:47
therefore Union able to take root the
28:49
building trades or construction more
28:52
than any other industry more than any
28:54
occupation you have a whole bunch of
28:56
construction the same unions craft
28:58
unions carpenters machinists
29:00
electricians joiners a whole bunch of
29:03
the Masons etcetera cetera Oh heavenly
29:05
restriction is monopolistic these firms
29:08
these unions control our labor force on
29:10
a mighty will increase their wage rates
29:12
and expense of other non-members how do
29:14
they do it
29:15
they cut the supply in other words you
29:17
can’t be at least until recently I don’t
29:19
know whether there’s a little primitive
29:21
action sort of stuff but before I say a
29:22
few years ago at least you could not
29:24
join the Carpenters Union like Christian
29:26
Union plumbers Union say in New York or
29:29
in Jersey City whatever unless you’re
29:30
the son or nephew of an existing union
29:32
member period in all non sons and non
29:36
nephews are X excluded otherwise you’re
29:38
very sharp restriction the result you
29:40
can increase your wages if you have an
29:42
inelastic demand curve it’s even better
29:43
you can increase your wage rate at the
29:45
expense of those who would like to
29:46
become carpenter to join an electrician
29:47
can’t become supermarket carts instead
29:49
nothing where they’re driven in have
29:50
pushed into non-union or non powerful
29:54
Union occupations so if you want to be
29:56
an electrician let’s say in Hoboken you
29:57
can’t do it you’re not a son or a nephew
29:58
of a union member you can’t do it just
30:00
can’t be out of crush you have to even
30:01
move the Texas of California become a
30:03
supermarket clerk or a gas station
30:05
attendant so what happens is in other
30:07
words as these these unions have accused
30:11
of being racist well it sense they’re
30:12
racist but also they hate all not only
30:14
other rates where they were discriminate
30:15
not only guys other races against
30:16
non-relative in front of the amounts to
30:18
non sons a non non nephews
30:21
now recent years women have entered the
30:22
construction trade so I guess a little
30:24
bit of loosening up on this but still I
30:26
think basically true the unions are
30:29
highly these craft unions are highly
30:30
restrictive so what happens is that this
30:33
is a union membership this is a craft
30:36
Union occupation you cut the supply
30:40
curve cut the supply drastically the
30:42
left by restricting and supply of say
30:44
electricians only relatives then you
30:47
increase your wage rate these people
30:49
however are excluded these people would
30:50
have been electrician like the VA like
30:52
Christian are pushed into other
30:54
non-union industry so they become let’s
30:56
say supermarket clerks or something like
30:58
that which increases the supply of
31:01
labour in the supermarket clerks or in
31:03
the gas station attendants so the wage
31:06
rate goes down other words but these
31:08
unions are doing they’re increasing the
31:09
wage rates of their members at the
31:10
expense of lower wage rates for other
31:11
people for competing workers so to speak
31:15
there’s no overall increase in wage rate
31:17
overall the entire labor force but
31:20
unions are they they can do it at all
31:22
they accomplish the raising of wage
31:24
rates for their members the expense of
31:25
other occupations who suffer lower wage
31:27
rates so what you have is competition
31:29
between and within the labor force not
31:32
so much employers are getting hurt by
31:33
the union restrictions if other workers
31:35
or not relatives or not so I don’t have
31:39
any fortune of me son of a number so
31:44
before 8 1935 in the free labor market
31:46
the union’s took Holland craft ok and
31:50
construction industry in particular
31:52
anthracite coal contrasted by two
31:55
minutes coal which is what most coal is
31:57
by two minutes calls all over the places
32:00
there you know all over the eastern
32:01
seaboard and West Virginia Kentucky
32:02
Pennsylvania whatever throw in the
32:05
mountainous state anthracite coal is
32:06
only a little area of eastern
32:09
Pennsylvania around scram and so it’s
32:10
very easy that it’s geographically
32:12
monopolistic so to speak and it’s so
32:14
easy to organize a powerful anthracite
32:17
coal union which was done because then
32:19
be restrictive and all the rest of it
32:20
but not in by two minutes Co which only
32:23
came in after 1935 I’m a government into
32:25
being heavily in labor labor market so
32:28
um the only other big construction have
32:32
aside a few skilled crafts glassblowing
32:35
and things like that um and the other
32:39
only other one I can stucco this MoMA’s
32:41
Musicians Union the strange paradox
32:45
apparently a thing with musicians that’s
32:48
a so true actors the acting the
32:50
stagehands union manning a theater very
32:52
very powerful crack unions they suffer
32:56
very heavy unemployment other words they
32:57
push up the wager an enormous late so
32:59
the yeah
33:00
unemployment a musician in the streams
33:03
by eighty ninety percent thing with
33:04
actors jack is mostly waiters
33:06
restaurants like that they wait for the
33:08
big break so apparently acting in muse
33:11
and theater musicians of such that
33:13
people let the play music
33:15
such an extent I love me in the fear
33:16
they’re willing to accept them 90
33:17
percent unemployment right most of the
33:19
time hanging around on any occupation
33:21
waiting for that big break and that sort
33:22
of situation they don’t break the union
33:24
in other words it’s a very it’s a very
33:26
sort of a bizarre accepted kind of
33:28
occupation I learned like labor
33:31
economics from former Union economist
33:34
was very knowledge is very savvy and all
33:36
listening what’s down this list but he
33:37
said well musicians are how Cummings
33:40
ition to break the Mohawk um you’re
33:41
gonna have a big unemployment rate which
33:43
wouldn’t be tolerated saying SSI coal
33:45
construction so while musicians are
33:47
crazy anyway anyway that’s the reason
33:50
other words they’re they’re willing to
33:52
accept a union wage rate which which
33:54
unemployed most of them most of the time
33:56
because they’re waiting for a big break
33:57
this is these really the only the only
34:01
unions that were successful before 1935
34:03
within that framework with a very small
34:06
percentage of labor force obviously in
34:08
other words between 1886 a year I let’s
34:14
say 1935 proportion of union membership
34:18
the total labor force was very between
34:20
three and eight percent something like
34:23
that a very small proportion other words
34:25
it’s a union problem whatever it is it
34:27
was fairly limited was limited mostly as
34:29
I said construction emphasis and
34:31
anthracite coal and the rest of the time
34:35
within this tree an eight percent it
34:37
would fluctuate and according to the
34:38
business cycle in other words in the
34:39
boom periods okay have a boom period the
34:42
manful labor goes up so it’s increased
34:45
wage rates so in other words wage rates
34:48
go up in a boom printer play shimmery or
34:49
boom period and unions took a credit for
34:52
it I say hey look where I’m really
34:53
increasing our wage rates and clothing
34:55
industry people join the Union because
34:57
of that and then it comes a recession
34:59
man for labor goes down again wage rates
35:01
were full on the free market but Union
35:04
try to keep the wage rates up is heavy
35:05
unemployment and it’s breaks the Union
35:07
so what you have then but then the three
35:10
and eight that says a three-day percent
35:11
reflect of the business cycle other
35:12
words a recession be down a three
35:14
percent and a boom we’ve got the e
35:16
percent then go back there fluctuate
35:18
with a business cycle and within a very
35:20
small range
35:20
what’s way less than ten percent well
35:22
you eight in according to the
35:23
business cycle factor so unions are
35:28
always collapse
35:29
and recessions because the reality with
35:31
hit wage rates look full and try to keep
35:33
the wage rates up
35:34
bingo hoping to collapse yeah so um so
35:39
even though historians like to talk
35:40
about unions for one thing they’re
35:41
usually ideologically in favor of
35:42
another thing it’s sort of dramatic they
35:44
have a strike and live free makes the
35:46
headlines that really wasn’t that
35:47
important really only covered a small
35:49
percentage of the workforce and what
35:55
happens then is that with World War one
35:58
every time he worked with the New Deal
36:00
peri in 1930s everything shifts there’s
36:02
a massive government intervention which
36:03
still exists the a massive intervention
36:12
of two basically two major pieces of
36:15
intervention one was 1932 with a
36:18
norris-laguardia act and still exists
36:23
which outlaws injunctions for labor
36:26
disputes how will these are than the
36:28
injunction that was an injunction
36:33
injunction is a weapon that came in in
36:36
court system of the early 19th century
36:42
usually if somebody’s aggressing against
36:44
you somebody you know stealing your
36:45
watch or something it call the cops you
36:48
kind of punish in ravenna get the watch
36:51
back or whatever another case is however
36:53
you have a continuing pattern of
36:55
aggression and the words let’s say
36:56
somebody’s always driving a truck across
36:58
your lawn let’s say there’s a traffic
37:00
jam in your corner the trucks would like
37:02
this sort of goal of course you don’t
37:03
want they can avoid having to do it some
37:05
trucker keeps doing it week after week
37:06
you go to court get an injunction then
37:09
the judge says thou shalt not do if you
37:11
do it again we have you in jail or
37:13
whatever so the injunction is a way of
37:16
preventing a continuing pattern of
37:19
aggression or or or what violation of
37:23
your rights it’s a very important weapon
37:26
of the courts which didn’t exist before
37:28
by 1810 or so well in almost look wari
37:31
act the way injunctions came in labor
37:33
more on the fuses on a strike situation
37:36
going on strike what you’re doing is
37:37
you’re saying we won’t work anymore for
37:39
your company until you give us a 20% way
37:41
you increase
37:41
whatever the employer tennessee say all
37:45
right that’s to you well hi somebody
37:46
else if you don’t want to work for you
37:47
know three dollars an hour whatever
37:48
there’s will hire people who will go
37:50
work and that’s that immediately creates
37:52
a problem for the strikers will then
37:54
proceed to trying to beat up the one
37:56
where the other prevent non strike and
37:58
non-striker’s from from taking from cool
38:01
taking a job in other words from doing
38:02
the work at a rate which strikers don’t
38:05
want to do so in other words essential
38:07
to the victory of any strike for the
38:10
union is to use violence against non
38:12
striking workers against replacement
38:14
workers known as scabs in the vernacular
38:16
so in order to keep scabs out or keep
38:19
the non-striker’s out have massive
38:23
picket lines which intimidate people or
38:24
beat them up or blow up their homes or
38:26
the cars stuff like that the homewards
38:28
violence and labor dispute is almost
38:29
always done by the Union the reason is
38:31
because the only way you can really win
38:34
as winners strike is to prevent
38:36
non-striker from replacing you employers
38:39
don’t really have any incentive the
38:40
committed ones except for the defense’s
38:41
weapon to try to keep their and plan an
38:44
order and trying to keep the non-striker
38:45
from being beaten up so generally
38:47
there’s an AA priori insight and most
38:50
labored issues most of the violence is
38:52
violence the committed by the unions I
38:54
can I have all sorts of stories of this
38:57
sort still exist follow like the a few
39:01
years ago I was a student in this class
39:02
was working for Con Ed over the con-ed
39:04
strike and the planet con that was down
39:07
a Madison Avenue or something somewhere
39:08
midtown Manhattan and the Union sort of
39:12
established control over who could get
39:13
in and out in other words unions said
39:14
well we will allow managers to stay in
39:16
and the minute we allow managers to keep
39:19
the content going we won’t allow any
39:22
manage to come back in play leaves they
39:25
had to stay there for a three-week know
39:27
whatever the length of the strike that
39:28
it allows food to be shipped then very
39:31
very nice of them food in but they won’t
39:35
allow they won’t allow the managers to
39:37
come back they have to stay there cuz
39:38
they’re going to sleep there
39:40
fortunately only last a week after my
39:42
father unfortunately in the situation he
39:44
was it was a chief chemist of I was anti
39:48
water all company airport of giddy now
39:50
part of what Texaco I guess or something
39:52
anyway this PI work on they trying to
39:54
plan a Bayonne
39:55
Jersey and Union went on strike the
39:59
union is a so-called company Union which
40:00
appointee of the textbox must be a weak
40:02
dominated Union we you know the tool be
40:04
employed and we’re not a tool imported
40:05
or very feisty and so they call a strike
40:08
and oil oil refineries have to kept keep
40:10
going can’t shut them down is gonna take
40:12
a couple of years as we bring them up
40:14
again you have to keep a maintenance
40:16
plant going so so the managers were
40:20
allowed to stay there and running you
40:21
know keep the plant going however they
40:23
want we’re not allowed to come back in
40:24
Union wouldn’t allow it
40:25
Union sandwich has control over them
40:28
territory so to speak cops that worked
40:30
look the other way and so they allows
40:33
food to be shipped in in this case my
40:35
forefathers they’re about three months
40:37
and literally the three months strike
40:39
and look like prison like being a
40:40
concentration camp they can allow the
40:43
stay in this crummy dump
40:44
I mean wineries not a sort of a luxury
40:46
resort so other what the Union seizes
40:51
control instead of the police performing
40:52
their alleged function of preventing
40:54
violence and keeping the peace the
40:57
police abandon its responsibility to
40:58
turn over the the rule over the street
41:00
so to speak to the for the Union so any
41:02
right this is fairly common it’s
41:05
throwing really still lives except on
41:07
the south for example always have a
41:08
sound attitude going Union in question
41:11
mainly if they don’t the police prevent
41:14
any kind of union violence whether
41:15
prevent whether the police really
41:16
prevent you meanwhile strikes usually
41:18
collapse but usually very little union
41:20
power for that reason famous case of
41:23
that the
41:25
Kingsport strike and Kingsport Tennessee
41:26
about 10-15 years ago the Ranger it’s
41:30
very interesting very illustrative kind
41:31
of situation at Kingsport things for was
41:33
a pennant of modern planted kind of
41:34
scene in Appalachia country yeah and and
41:38
here’s this plant which is hiring have a
41:40
cup wage rate of the area beautiful
41:43
working in this great place everybody
41:45
one of the workings portraying plant
41:46
high unemployment in the area
41:48
it’s a palatial which is next time I’ll
41:51
tell you why does that relate to the
41:52
coal miners Union activities anyway a
41:54
whole bunch of unemployed people wanting
41:57
to get good jobs
41:58
supply my Kingsport Kingsport Union goes
42:00
out and strike the man a higher wage
42:01
probably crazy like a kamikaze of salt
42:03
because there’s no way have a heaviness
42:06
there’s the the printer has always have
42:09
the
42:09
they have propound of the doctrine you
42:11
have to take years to be a good printer
42:12
using apprenticeship it like being per
42:14
like being a physician a lot of baloney
42:16
you can train a good printer in a couple
42:18
of months and of course they’re pretty
42:19
people knew that so the printers went on
42:23
strike first of all unions couldn’t use
42:24
violence in the South you you can’t get
42:26
away with that you can you don’t own the
42:27
streets so to speak so they had to take
42:30
their chances and this and the kingsport
42:32
press simply hire more workers and train
42:35
them in a couple of months that was it
42:36
workers are very happy.i getting good
42:37
job hey we got a great job at Kingston
42:39
for it for a frame plant and the Union
42:42
the strike is still going supposedly but
42:45
it’s not they just fade it away though
42:46
officially it’s still on strike twenty
42:48
years later ten years later and practice
42:51
they’ve all gone the union’s shut up
42:52
shop and left so the class if you look
42:56
at the classic pattern of unions there’s
42:59
no way they could win it it would be
43:01
like a suicide squad it couldn’t use
43:03
violence they couldn’t restrict the
43:05
supply but it was plenty of heavy
43:06
unemployment in the area and so why do
43:10
they do it interesting question were
43:11
they totally dumb were they crazy no
43:14
they weren’t whether what happened was
43:15
unions are now are dominated by the
43:17
National Union was the way the structure
43:19
of Union power goes is that every Union
43:25
has a National Union whatever it is the
43:28
blood workers union machinists or veal
43:30
workers whatever printers the gun
43:33
National Union which has the locus of
43:34
power each the National have a bunch of
43:38
locals which are mostly dominated by the
43:40
National national to tell them what to
43:41
do
43:42
locals in different regions whatever the
43:46
National often join a federation our
43:48
case right now the AF of l-cio an
43:51
American Federation of Labor Congress of
43:54
Industrial Organizations but the
43:55
invalids no power in itself they try to
43:57
arbitrate disputes within the National
43:59
Union locus of power the National you
44:01
which is represented in the eighth of
44:03
all but they really don’t it’s like the
44:04
UN in a sense it’s no there’s no
44:05
government power over the National Union
44:08
so what happened was this the the prayer
44:13
New York State and and knowing one of
44:17
the many ways decaying areas in other
44:19
words if you ever going to see textile
44:21
plants or printing plant or ever
44:23
wingman they were pulling apart like
44:24
19th century buildings and they’re
44:28
inefficient they’re too small and
44:29
heavily unionized with raising their
44:31
costs of a separate what’s happened in
44:33
the United States over time the
44:39
Northeast has major originally a major
44:42
industrial area
44:44
in other words northeast quadrant has
44:47
industrialized New York Pennsylvania
44:49
Michigan etcetera etc and the man for
44:52
labor went up as the capital listen when
44:54
I wage rates went up so we had wage
44:56
rates higher in the Northeast than the
44:58
south that was less much less
45:00
industrialized in that kind of situation
45:02
the trend over time though in the long
45:04
run remember a long-run equilibrium it’s
45:07
for workers to leave of south and go to
45:08
the north to get higher more jobs higher
45:10
wage rates and for capital will leave
45:12
the north the fact of the South with
45:14
lower wage rates so we have a sort of
45:17
mutual flow here tending in the long run
45:19
toward equality of wage rates very warm
45:22
when you have ten toward equalization of
45:24
span of living
45:24
so of course southerners people have
45:27
migrated in the north and capital
45:29
especially in an inefficient industries
45:31
again some migrated to the south already
45:33
talked about how minimum wage laws acted
45:36
as a tariff a sense kind of cripple
45:39
southern competition so what happens is
45:41
in kingsport kind of see if we examine
45:42
have a brand new modern plant no unions
45:44
lower wage costs were lower everything
45:47
cause higher productivity out competing
45:49
these an efficient backward company
45:51
between New York and New England and so
45:53
the New York headquarters told a local
45:56
man well first of all happen with the
45:57
printers of the printing companies in
46:00
New York and we went to the union said
46:01
look we being out-compete about these
46:02
guys and looking online at kind of
46:03
seeing whatever do something about find
46:05
a cripple looking other words try to
46:07
impose higher labor costs on the south
46:09
you can’t do two a minute federal
46:12
minimum wage law you do it through the
46:13
trying to unionize book try your best
46:15
try to unionize them so we can get rid
46:17
of the competition so the National Union
46:19
gives an order to their local Kingsport
46:21
Tennessee strike for higher wage rates
46:23
even though they they had nothing to
46:25
lose and the National Union nothing a
46:26
little bit sacrificing the Kings for a
46:28
local sort of speak yeah okay go for it
46:32
chances are low we can do anything about
46:34
what you know we have nothing to lose
46:36
only only the Kingsport people want
46:38
something lose and sure enough of course
46:39
they collapsed but the whole thing is
46:41
that the collusion between the printers
46:43
the northern printers northern employers
46:46
and the northern union trying to get a
46:48
cripple fill and competition get
46:51
unionized sap now this is a story which
46:54
which repeats several throughout
46:55
industry in other words the set of
46:57
unions versus capitalists what usually
46:59
happens is it’s capitalist plus unions
47:02
trying to screw the rest of us either
47:04
through tariffs or through minimum wage
47:06
lower composing unionization on other
47:08
cars on the street separate separate
47:10
time and again this is what happens and
47:11
violate the Marxian myth but somehow
47:14
have solidarity of the workers against
47:15
capitalist
47:19
how much I’ll just start on the coal
47:22
miners Union they all know about
47:23
Appalachia a very heavy unemployment and
47:26
coal fields really a Kentuckian but West
47:29
Virginia said what happened was is all
47:31
deliberately brought about more or less
47:32
by Johnny Lewis was the brilliant head
47:35
of the mine work United Mine Workers
47:36
Union which came in in 1930s I already
47:39
mentioned norris-laguardia act as
47:40
another act even more important so I’ll
47:42
get to the next time the Wagner Act as a
47:44
result of which John Ellis is able own
47:47
unionized by two minutes co workers for
47:49
the first time successfully he goes into
47:52
a bank relief from large mine operators
47:54
basically saying let’s the only all
47:57
Lewis was Everson as maximizing a wage
47:59
rate of his union workers would see
48:01
seniority it’s pretty clear didn’t care
48:03
about anybody them care about young
48:04
people about mine and manya didn’t care
48:06
about any of that stuff so essentially
48:08
he colluded with a large miner my owners
48:11
to push the wage rates way up there by
48:15
imposing higher wage costs on a small
48:17
mines of putting them out of business
48:18
which is but the large- wanted to do you
48:20
it’s true your competition by having a
48:22
national national bargaining rate
48:24
Marshall bargaining wage late the entire
48:28
coal in the street push up the wage rate
48:31
bankrupt the smaller coal mines and
48:34
cause unemployment for a pool younger
48:37
morning workers know those with AB
48:38
seniority owes growing up I just want to
48:40
get a job right now I’ll employ them you
48:43
listen carreño brain Lewis understood
48:44
about the demand curve and it was very
48:46
well the man curve had called the
48:48
unemployment care when
48:50
why there was maximizing pension funds
48:52
and the letters the union leaders then
48:55
stole later on though from the moogle
48:58
was fun maximize the benefits for the
49:00
existing workers with seniority and
49:02
hello everybody else as a result of that
49:04
we had massive unemployment a massive
49:06
bankruptcies in the coal fields
49:07
Pennsylvania some West Virginia Kentucky
49:10
and worst of it which really created a
49:12
hole Appalachia problem there was no
49:14
real Appalachia problem wasn’t exactly a
49:15
flourishing area but wasn’t a massive
49:17
area poverty unemployment before John
49:19
Ellis colluded with a mine owners to
49:21
bring this about now next time we’ll
49:23
start with talk about the Wagner cuz the
49:25
key thing was changed the whole face of
49:26
unionism market and government
49:33
intervention it mid-1930s a federal
49:40
government massively intervene and labor
49:41
market this to substitute for free labor
49:43
market a government dominated dominated
49:46
one control one there two basic two
49:50
major pieces of legislation Express then
49:53
the first and less important was a
49:54
norris-laguardia act 1932 which
49:57
prohibited its Cola for had but federal
50:00
injunctions in labor disputes and really
50:03
just court injunctions period because
50:05
states followed after the federal
50:07
government on this so which means that
50:12
you can’t take a union to court and have
50:14
an injunction to prevent us from
50:17
engaging in violence and strike
50:19
situations so prohibiting injunctions
50:31
there also prohibits employers from
50:33
using violence until you almost ever do
50:35
but it really means
50:40
eliminating most effective weapon
50:42
against anybody engaging in continuing
50:45
patterns of violence which almost always
50:47
means labor unions the by the way one of
50:53
the reasons why so many unions are
50:55
controlled by the organized crime is
50:57
that because the union activity engages
51:00
and you music agent activity which
51:02
organized crimes also very ex
51:03
in like violence and controlling the
51:07
labor supply another keeping excluding
51:09
some groups of workers and a half of
51:12
other groups of workers there’s
51:13
something organized climb is quite
51:14
expert in doing so I tell the natural
51:17
feel for organized crime to work in also
51:22
the meaning that builds out huge pension
51:23
funds which since the 30s which of
51:26
course was a nice plum term people get a
51:28
whole love any rate the most important
51:34
mechanism came in 1935 with the Wagner
51:38
Act which is still on the books it’s
51:41
been modified a little bit the basic the
51:44
basic Wagner Act provisions gonna hold
51:48
basically what the Wagner Act does is it
51:51
compels collective bargaining compelled
51:57
to watch the murder
51:57
find the weight of textbooks every
51:59
textbook that I know of miss leaves
52:01
every mislead you about what the Wagner
52:02
Act says it usually says the Wagner Act
52:04
the Magna Carta for labor because the
52:06
guarantee the right of collective are
52:08
and hath baloney unions always having
52:10
workers always have the right of
52:11
collective barn in United States it
52:12
didn’t have it in Britain its linking
52:13
o-6 United States work has always had
52:17
the right to form you can try to bargain
52:19
but so what the Langham I guess is
52:21
compelled bargaining by employers and by
52:23
other by non-union workers in other
52:25
words compelled
52:26
kind of boring forced collective
52:28
bargaining with a union has a majority
52:42
of workers in a bargaining unit that’s
52:53
the basic all the provisions of the
52:55
National Highways officially call the
52:57
National Labor Relations Act Mike and I
53:02
for short that’s a son of the Wagner of
53:04
New York
53:06
National Labor Relations back in a
53:11
bargaining unit all the provisions are
53:14
logically deduced deducible
53:17
this basic axiom though there was a
53:18
basic fundamental clause putting the
53:21
lessons of the Wagner Act the compelled
53:23
collective bargaining with the union has
53:25
the majority of working of workers in a
53:26
bargaining unit and the first question
53:30
is what’s a bargaining unit good
53:32
question and that’s the it’s up to the
53:35
government of the side water bargaining
53:36
unit is it’s not a natural situation and
53:39
so the my graph is administered by a
53:42
National Labor Relations Board queen
53:44
about the federal government NLRB short
53:48
which decides what a bargaining unit is
53:52
it’s not automatic for example take for
53:55
example say the steel industry here’s a
53:59
steel us do inside your company and
54:01
there’s a machinist and working in steel
54:03
in a steel plant which one have their
54:05
own union machinist union which is a
54:07
craft union a traditional construction
54:11
cracking the construction industry they
54:13
want their own union the steel workers
54:15
then form of an industrial union the
54:17
only a worker union they want to include
54:19
everybody they want to represent
54:20
everybody working in the steel industry
54:21
well this is what occupation there in
54:23
machinist want to have their own union
54:25
the steel workers doing which are
54:28
industrial you you will get to that in a
54:30
minute
54:31
contrast little craft union so the craft
54:35
union wants to exclude people craft
54:36
union some want or just as power by
54:39
excluding pushing my curve the left and
54:43
pushing wage rates up at the expense of
54:45
workers or excluded industrial you need
54:47
to try to maximize higher to include
54:48
everybody I can maximize a number of
54:49
people in the union so that immediately
54:52
goes against the craft unions the
54:54
question is what is the bargaining unit
54:55
what’s up to the NLRB this on if they
54:56
decide the machinists of their own
54:58
bargaining unit then the machinist Union
54:59
will win if they decide the bargaining
55:01
unit is the whole plant near the steel
55:05
work of the Union when all if they
55:06
decide the whole look inside the hole in
55:07
this the whole fun
55:09
firm might have about twenty plants in
55:11
it so the bargain you know the plant is
55:12
it the whole firm it’s the whole
55:14
industry in some cases they decide a
55:15
whole industry in the bargaining unit so
55:17
purely arbitrary and the dependent on
55:20
the ideology National Labor Relations
55:22
Board members basically it the 1930s
55:25
when the NLRB was formed was a very
55:27
left-wing
55:27
period and then he was very less
55:29
they always decided against crap you
55:31
needs a favor Industrial they’re always
55:33
an aside in favor of maximizing union
55:35
membership but this of course is not
55:39
unnecessarily has to be that way can
55:41
depend again I’m and how the NLRB
55:43
members see it I think there are five
55:44
members and have the staff and all that
55:46
sort of stuff they had regional Loeb
55:48
goals and Alessa and but basically they
55:50
have their have their appointed members
55:53
making a sigh which ever late where they
55:54
want so it’s not it’s not obvious what a
55:56
bargaining unit is who decides who has a
56:01
majority well in all Abby has to call an
56:02
election I have the majority in an
56:04
officially sanction election which
56:06
anavar behold at a certain date they
56:08
don’t have to hold a certain date they
56:09
have they can decide when they whether
56:11
or not to hold an election when the
56:12
Holman so in other words you have
56:14
unlimited power virtually going to the
56:16
guys in NLRB who how to interpret these
56:21
vague provisions so another thing that
56:24
happens is that the compelled collective
56:28
bargaining so what’s collective barn and
56:29
amplifier collective bargaining is it’s
56:31
also not very obvious what does it mean
56:33
on the old days during the thirties and
56:34
forties left-liberal than a hay day if
56:38
an employer said those have to meet with
56:41
a union how often does he have to meet
56:42
well who knows and it was originally the
56:45
30s and 40s it was a sight of that the
56:47
if the employer doesn’t offer a wage
56:48
increase that he’s not bargaining and
56:49
quote in good faith on crow oh yes a
56:51
bargain in good faith in the law so what
56:56
is the good faith is a very subjective
56:58
kind of decision so usually if the
57:01
employer didn’t come in and offer a wage
57:03
increases with a certain Island good
57:04
faith it wasn’t really bargaining
57:06
illegal of course so in other words this
57:09
whole sort of mandates cutting the wage
57:10
increases the nowaday nowadays of course
57:16
the last 20 years or so it’s and very
57:17
different and there are many
57:19
conservatives in the NLRB or anti union
57:21
or non-union or wherever it is and so
57:23
they now of course what’s been happening
57:25
especially since the recession ranking
57:26
80 and 81 is that the employer comes in
57:30
as a man to wage cut wasn’t happening
57:32
last four or five years and last few
57:34
years now that you need to know more
57:36
where that happy with in all our baby
57:37
used to love it these before the Magna
57:39
Carta Labor’s rights long so now they
57:41
see the NLRB rule
57:43
and the five well oh yeah why can’t you
57:45
come in with a wage cut why not or for a
57:48
wage cut and then they have to bargain
57:49
so this question how often they have to
57:52
meet what a bargain in good faith mean
57:53
for example in General Electric I’m I’m
57:56
nineteen sixties the famous vice
57:59
president public personnel relations
58:01
lemming Boulware let me move where came
58:06
up with a theory of Boulware ISM
58:08
Boulware ISM is said look what you do is
58:11
present when you come to the wait at the
58:13
bargaining table torque telling
58:15
employers give them your final offer
58:17
first in other words this is the offer
58:19
and that’s it take it or leave it and
58:20
then we offer a 10 to 10 percent wage
58:22
increase or five percent way jakarta
58:24
whatever happens with me and don’t
58:26
forget any further well this is a big
58:27
for this this has been adopted by he’s
58:29
quite successful about them i many
58:31
lawyers and the question is is this
58:33
really legal is a bargaining good paid
58:34
to prevent one offer well if you don’t
58:36
say according to so how many already
58:38
supposed to prevent how many the whole
58:40
thing is very murky and indeed it was
58:42
declare legal by the in the lobby but
58:44
the point is none of these things are
58:45
obvious another thing and probably
58:49
collective bargaining also was
58:50
interpreted as meaning statue but the
58:54
employer cannot discriminating at the
58:55
union organizers so it’s illegal in
58:58
other words you’re gonna have a lection
59:00
and have a free and fair election so to
59:02
speak then it was a clearly illegal to
59:04
discriminate union organizers so so they
59:10
couldn’t fire union organizers and meant
59:17
they couldn’t keep a black listen the
59:18
old run union days implore you to keep a
59:21
black list so that no jokes no wasn’t
59:25
you can’t even organize their his name
59:27
would be even his name of these set
59:28
other employers watch out for jose Okies
59:31
things are bad apple this is now we only
59:33
go Sophia legal for the feminized also
59:35
is also as part of this was interpreted
59:38
by in our be a mean the employers have
59:40
to present of a supply union arrives
59:42
with a clue the meeting halls on the
59:45
plant property kind of a peculiar
59:47
situation here the employer let’s say
59:48
doesn’t want doesn’t want to have in
59:49
Union yet he’s compelled by a lot of
59:51
rioting and organizers when a whole all
59:53
of leaflet space you know that’s our
59:55
stuff
59:56
is that that their point of view also in
59:59
the heyday of 30 to 40 even purposely it
60:02
will employ a little private free speech
60:03
is interpreted employs free speech in
60:10
there an apical that’s going to use it
60:11
also for someone as a result of this
60:15
compulsory collective bargaining system
60:17
union membership which had been remember
60:20
between two and eight percent was around
60:22
three percent when the NLRB was power a
60:25
was passed skyrocketed and during the
60:29
late 30s and also during World War two
60:32
on the of the war labor board compelled
60:34
Union had compulsory unionization for
60:36
defense plants or war plants as a result
60:39
of this this kind of privilege in unions
60:43
the percentage of membership
60:46
Senna’s union membership of the labor
60:49
force which had remember fluctuated from
60:55
that to 80 percent
60:56
suddenly increased to about skyrocket to
60:58
about put the five percent think it was
61:01
an axle or something like that a lot
61:04
depends on how you define hey if you
61:06
include agricultural workers and
61:07
government employees in there but anyway
61:09
around 25 percent by 1945 this is
61:13
reports a quantum leap in other words
61:15
all of a sudden unionism becomes an
61:16
important part the American economic
61:18
system which really wasn’t before due to
61:21
the fact we haven’t compiled a
61:22
government regulated labor market
61:24
instead of a free labor market and the
61:27
unions which came in there in late 3035
61:29
but mostly industrial unions which are
61:32
in were favored by the NLRB let’s try to
61:35
include everybody in the community the
61:37
Steel Workers Union the rubber workers
61:39
doing Electrical Workers Union by two
61:41
minutes coworkers Newton month you know
61:43
in mine workers a separate set all of
61:44
them mass organizing right it’s very
61:46
dramatic also so it was a very dramatic
61:48
organizing Drive the automobiles steel
61:51
industry want to be on the street coal
61:52
mine etcetera etc so all these came in
61:55
in the late 30s the a of evelle was
61:58
structured they were crafting he’s gonna
62:00
guess the glossary means they formed
62:01
their own group late thirties full of
62:03
CIO well the Congress of Industrial
62:06
Organizations notice the industrial
62:08
organization is a key
62:10
turn the distinguish that from the craft
62:13
union so politically the CIO unions were
62:19
pretty leftist and late thirties and
62:21
forties and there were say organized
62:24
along different lines the the late after
62:31
World War Two the Communists will
62:33
control a lot of the CIO unions were
62:34
kicked out while the Union people and
62:38
after by around the 50s or 60s somewhere
62:41
around there the two of them AF of l-cio
62:42
began to sort of merge you got a sort of
62:45
peacefully coexist and finally merged
62:47
again to form the current AF of l-cio
62:51
they still have your fictional excuses
62:53
more like they’re trying to iron it out
62:55
and now we have umbrella Union including
62:58
the old layer favela on the end like I
63:00
mean nowhere CIO the CIO bio is the
63:05
first organization set up political
63:07
action committees PACs which can afford
63:10
a little bit of place set up by
63:12
corporations also have other
63:13
organizations well since that since
63:20
world war two unionism has going to
63:24
study decline even with the Wagner Act
63:27
when the Kolani ever since is now down
63:29
about 18 percent something like that
63:31
there’s a long run decline that many
63:34
reasons for this is the important thing
63:36
with a greater affluence people less
63:38
interest in unions another thing for us
63:40
has been a shift of the economy toward
63:42
the Southwest which has never been
63:45
thicker unionized and toward new high
63:48
tech industry computers and whatever
63:51
calculators or etc and a toward
63:53
white-collar jobs engineers and so forth
63:56
with whom never been particularly
63:57
unionized the unit unionize a bowl so in
64:01
other words of the old smokestack
64:02
industry decline deal with somebody
64:05
lines have industry declined have more
64:06
and more service industries and
64:07
engineering and professional occupations
64:10
unions keep are steadily in the client
64:12
probably will continue in doing so file
64:14
frequently on of repeated history and a
64:16
kind of Union that’s finally do
64:17
something gonna do something to reverse
64:18
it what the sub what the I’m I’m a
64:23
most of the industrial unions have no
64:24
real economic power because they don’t
64:26
restrict the supply and members even
64:28
though they make a lot of noise they
64:29
have a lot of publicity and so for they
64:31
don’t really they don’t really increase
64:32
the wage rates of their members as the
64:34
craft unions can do I mentioned already
64:37
been above a faculty and staff here so
64:38
the microcosm they talk a lot and hell
64:41
out of members and a lot of some
64:44
bureaucrats and it but but they really
64:46
have much power so the industrial unions
64:49
do what the success in the doctor union
64:52
basically is they have a lot of voting
64:53
power they can again they’re politically
64:55
powerful so they have a lot of voters
64:56
it’s cracking into them so they vote and
65:00
they have a big union bureaucracy the
65:03
big union dues and huge Union
65:06
bureaucracy or very well pay to the top
65:09
and who and I have a whole network of
65:12
professional union bureaucrats so you
65:14
have a union of unions in the United
65:16
States are not very different probably
65:17
or they were in the 30 but much less
65:19
quickly much less ideological much less
65:22
leftist and also they today sort of
65:24
bureaucrat and sort of people who open
65:26
go to college and never work say if
65:28
you’re a head of a pipe fitter you and
65:29
you often never a pipe fitter you never
65:30
see a pipe but go to MV I’m an MBA or
65:34
whatever and I’m a labor expert you
65:36
become a head of or vice president some
65:38
steam Twitter’s Union or Alcoa Union but
65:40
you know you ever seen a think fit so
65:43
and it’s of course sets up resentment on
65:45
the part of the workers because they
65:47
begin to feel that not only quote
65:50
exploited by the employer I’m probably
65:51
also exploited by the Union their own
65:53
union who is forcing them to pay heavy
65:55
news it’s up to set these people up and
65:58
where they really don’t accomplish much
66:00
I know they don’t really raise the wage
66:02
rates of the worker so there’s a lot of
66:03
friction and uh the old egalitarian
66:06
spurt immunes is long gone I have big
66:08
flush offices and one rest of it so so
66:17
we have it has also been of course a
66:18
falling back or loss of unions unions
66:21
solidarity spirit
66:22
most people are not that Pro Union
66:25
anymore these would be that everybody
66:26
never nobody of course a picket lines
66:28
everybody what unions are great now even
66:31
liberals are pretty sour on unions you
66:33
need to don’t have they don’t have a
66:33
mystique they had in the 3040
66:37
publicans first took over Congress 1946
66:40
for the first time since 1930 they had
66:44
been pledged to repeal the Wagner Act
66:45
get rid of this whole system they didn’t
66:46
do it but they did is they added some
66:48
stuff in 1948 called a pat hartley act
66:51
becomes really just an amendment of the
66:53
Wagner Act in addition to it so we have
66:56
now a Wagner and taft-hartley structure
66:58
48 and the taft-hartley Act is
67:05
essentially they added stuff on top
67:07
there was an addition to the unfair
67:09
labor practices by by employers unions
67:12
can now engage in unfair labor practices
67:14
know if you need is now another being
67:16
regulated as well as employers for
67:19
example if unions are too blatant even
67:20
have to have elections once in a while
67:21
they don’t lose them but they it’s now
67:25
it’s not considered unfair labor
67:26
practice not never to have an election
67:28
in the old days most unions ever had an
67:29
election you come in your union
67:30
president it was a great saying and
67:32
labor movement I mean what the union
67:33
president always union president once
67:35
you get into power you are there for
67:36
life it’s still more or less true even
67:38
with elections in some cases like the
67:40
United Mine Workers have been a big big
67:43
changes but most cases once you get in
67:46
you’re there for you there forever you
67:47
can never be this law I just don’t like
67:48
to have any a political machine so I
67:52
also they can’t engage in too much
67:53
racial discrimination of a phony agent
67:55
some some extent this in other words a
67:57
certain amount of certain curves now in
67:58
Union through so essentially what the
68:01
Wagner at the NLRB is attitude with the
68:02
power it kept the same Wagner Act
68:05
provisions and added on Union regular
68:07
provisions regulating unions the closed
68:12
shop is now illegal closed shop in
68:16
situation you can’t get a job unless you
68:18
belong to a union first than what you
68:19
can’t the equivalent you couldn’t get a
68:21
job as the poly professor unless you
68:24
first joined a EMP or any other
68:27
occupation that’s now illegal but the
68:29
union shop is still legal so the Union
68:31
shopping you get a job on your own but
68:34
then you have to join the union and but
68:36
then 30 days whatever the provision is
68:37
so it’s basically the same thing that’s
68:38
slightly less restrictive a closed shop
68:40
but it’s not – I’m too different then
68:43
there’s other provisions and probably
68:44
familiar whether you can’t have a strike
68:46
against the government employee strike
68:48
after wait 30 days
68:50
various provisions of slowing down
68:51
strike but these are mostly sort of
68:54
marginal provisions like the key
68:55
provisions of the layout of Wagner Act
68:57
provision I’m still there now the
69:00
various faith states which are passed to
69:04
outlaw the union-shop to a whole bunch
69:06
of states up again and mostly in the
69:08
southwest of the mountain estates let’s
69:11
just see something it goes against
69:12
private property in a tree market
69:14
because what you’re doing we outlaw the
69:15
union-shop you’re preventing the
69:16
employer from solitary signing an
69:18
agreement for the union saying we will
69:20
only have doing workers the various
69:22
reasons why many employers of pro-union
69:24
for example the take for example the
69:29
poor Metropolitan Opera every every few
69:31
years and the striking from the drawn
69:32
opera they have to confront about 30
69:34
craft unions each one has which has a
69:36
different contract deadline at the
69:39
stagehands Union the actors Union a
69:41
scene designer human cover and so on and
69:44
each one of them can strike and and none
69:46
of them is bound by the other people and
69:47
each one will then also honor the picket
69:49
line of the other Union so so the for
69:51
the employer of the metro pollen has to
69:53
confront about 30 different unions which
69:55
the only ever extremely difficult they
69:57
much rather have one union just make an
69:58
agreement that ended so many employers
70:02
kind of favor industrial unions even
70:04
because I figured craft unions there’s
70:06
too many of them to deal with too feisty
70:08
and too much he cannot make power in a
70:11
sense as one classic cases so in other
70:13
words some employers were all in favor
70:15
of the Wagner right most of them were
70:16
against it then various employers were
70:18
Pro corporate state pro-business
70:20
industry partnership so to speak in
70:23
favor of the Wagner Act was one classic
70:26
case of the poll situation where Gerard
70:28
Swope who was head of General Electric
70:30
for many years wrote a letter to William
70:33
in green and head of the American
70:34
Federation of Labor this was written
70:35
under like late 1920s
70:37
please mr. Greene why don’t you organize
70:39
General Electric come in and organize it
70:41
we have too many craft unions here in
70:42
other words we have machine of ever
70:44
Buell is four or five Union why’d you
70:46
come with one Union just organize the
70:47
whole girl like her then we have an
70:48
agreement and Greenwell banks that god
70:52
bless you mr. swoop we love you a great
70:54
Pro Union person however we can’t do it
70:56
if we’re committed to the Kraft Union we
70:57
can’t form an industrial union so when
71:00
the CIO came in people like Swope helped
71:02
write it or lobby
71:03
for it because then you say okay we’ll
71:05
deal with one industrial Union a general
71:06
light break and make an agreement and
71:07
the workers gonna have to shut up know
71:09
the many cases the employer preferred
71:13
dealings I say with one union and if the
71:15
union is willing to collaborate so to
71:17
speak they can just you know form
71:19
so-called sweetheart agreements and
71:22
where all the workers will then be
71:25
committed to it because of this collect
71:27
compulsory collective bargaining the
71:28
individual worker can also be screwed
71:30
here but in the New York often suffer
71:32
from the faculty at the union organizer
71:34
of the Union the National Union is in
71:36
favor of a mild mild wage increase or
71:39
whatever so custom conflict from below
71:44
and it’s sort of sort of base is right
71:47
now a big strike has been going on for
71:48
last eight months and after the
71:49
Minnesota which is a small city and a
71:51
prairie out there the Hormel plant just
71:54
was a big food manufacturer and the
71:58
local is all a favor of big strike and
72:00
then striking the National Union is very
72:01
much against the national unions gonna
72:02
put the local and her spaceship I mean
72:04
an out of the words crackdown and
72:06
displace for the UM the leadership and
72:08
local sweareth to fight on the whole big
72:11
struggle over this of the local versus
72:12
national and there’s Rory he said he had
72:16
a national unions of the boys a big
72:17
power center and locals every little
72:18
power so there’s a big fight over this
72:21
one of the classic things that happened
72:24
oh yeah mention us already but this is
72:27
like resultantly
72:29
I mentioned Johnny although with me and
72:31
I have mine Workers Union yet no
72:34
bituminous coal industry they try to
72:37
have a United Mine Workers and Lee the
72:39
tunas : asleep never successful because
72:42
of the free market in other words you’re
72:43
gonna like some cute coal mines with
72:45
Pennsylvania the court the wage rate
72:46
would go up the course would go up they
72:48
go bankrupt maybe out competed by
72:50
non-union mines and West Virginia
72:52
whatever so the United Mine Workers
72:55
Union didn’t succeed until the winder I
72:57
came in which then are compelled
72:59
collective bargaining then set forth the
73:01
conditions set up a condition for a
73:03
successful Union the head of the United
73:05
Mine Workers was Johnny Lewis a famous
73:08
bushybrows figure vultureman motion
73:13
Merrigan who understood about the demand
73:16
curve
73:17
you said about the whole demand curve
73:18
and yet demand for labor he understood
73:21
that this is way great quantity of
73:28
labour hired that the only way to raise
73:31
wage rate strengthened by union
73:33
activities it’s a cup of supply ship
73:35
with the plan of the left at the expense
73:38
of diminished employment time and so
73:45
with you realizes the union action
73:47
pushing up the way dress will unemployed
73:49
a whole bunch of coal miners you didn’t
73:51
care about that he’s all in favor of
73:52
because let his object like to maximize
73:54
the income wage income first for those
73:57
union workers with seniority where those
73:59
were have been on the Union for 10 years
74:00
of something at the expense of younger
74:03
workers those are the nephew Ronnie and
74:05
new people coming up younger people who
74:07
you know teenagers of a coming of age
74:10
and wanting to kind of get a job like
74:11
Houma I didn’t care about that what do
74:13
you want to do with the maximizing
74:14
income from existing union members of
74:16
seniority so he had industry-wide
74:18
bargaining with the coal miner the whole
74:20
coal mining Association the coal miners
74:22
the large coal mine operators were more
74:26
favored that their favor of higher wage
74:27
rate to impose crippling higher cost and
74:29
that’s more competitors small miners
74:31
they rely couldn’t pay it in other words
74:33
had industry-wide agreements between the
74:35
between Acoma co-operators and the coal
74:39
Union tremendously pushing out wage rate
74:42
and leading to the bankruptcy of a small
74:47
mine total depression in the coal mine
74:49
in the streak bankruptcy the smaller
74:51
lines have massive unemployment the coal
74:53
fee of the katinhat to the face it’s so
74:54
cool Appalachia problem there was no
74:57
Appalachian problem with Boylan
74:58
unions came out of a coal mine in
75:00
Indiana because the coal mining industry
75:02
was a major employment point Center in
75:04
that whole area so as a result you have
75:08
depression of the coal industry and but
75:10
but the large operators continued the
75:12
union members continuing on with
75:14
seniority they were in great shape and
75:16
it sort of wrote into the fence of the
75:17
sunset destroying the entire in this
75:19
between that’s waiting but building up a
75:21
huge pension fund and everything else
75:22
does have to be looted by the union
75:24
organizers so here’s an a bit aful
75:28
example a crystal clear example how
75:30
the myth the Marxian myth of the workers
75:33
always in solidarity against the
75:34
employers employers of competing with
75:35
each other for products to sell stuff
75:38
and to buy stuff and workers competing
75:40
at each other we saw an immigration
75:42
restriction everything out and with
75:43
craft means and with the coal mining
75:46
situation when one group of workers
75:48
benefit expected unemployment for the
75:50
other group for the younger people
75:51
coming up so we have collaboration
75:55
between the 1000s of monopolistic
75:57
collaboration between the 15 large
75:59
employers and the Union similar the
76:02
collaboration between the printing union
76:03
member and the printing employers and
76:07
New York New England that’s how to
76:08
hobble to impose higher costs on a
76:11
southern efficient southern printers
76:13
Kingsport’s right so similar things
76:15
happening what happened on the coal-hole
76:17
situation so the whole Appalachia
76:25
problem is really a product when mine
76:27
workers with a mine worker employer a
76:29
large employer collaborations in the 40
76:31
to 50 60s
76:38
most of the increase whatever increasing
76:40
unions are have been on last 20 years
76:42
has been a government employee unions
76:43
which is really like that not really the
76:45
same thing as I mean that depends on
76:47
what the government’s willing to pay
76:48
it’s hardly an employer versus employer
76:51
employee situations it’s how much does
76:54
the government official with taxpayers
76:55
or whatever willing to shell out so the
76:59
only union growth has really been on
77:01
that in the government employee area
77:03
this of course has also made him
77:05
government caught very costly like the
77:08
post office and garbage collection and
77:10
so there’s now a big drive toward
77:12
privatization we people get fed up with
77:15
paying very high garbage costs or
77:16
whatever running and then contract out
77:18
to private firms that you’re either
77:20
non-union a truck use that unionize they
77:22
don’t have the same sort of cloud of the
77:23
government unions simply this is the
77:25
taxpayer pays the government really care
77:28
you’d be a nice guy but he’s a
77:29
government official they’re dealing with
77:30
big Union unions a big membership say
77:33
yeah sure we’ll give you a 20% wage
77:35
increase why not the tax payer shelter
77:36
that an updating up a guy not the
77:38
president of a mayor or the governor but
77:40
this has now come to roost over the get
77:42
to the situation government of soap
77:43
hoarsely but even the government’s now
77:45
looking around for privatizing
77:47
alternatives and so we have garbage
77:51
collection many cities in our state
77:52
their private fire companies well the
77:54
government simply contracts out of the
77:56
fire company some of the fire department
78:00
also as I’ve said the government
78:02
official don’t have any real incentive
78:04
to be efficient of it the benefit the
78:06
consumer because they the taxpayer kicks
78:08
it’s worth the kick in the fire many
78:12
buddies any any any experience in fire
78:15
department for example in New York the
78:17
usual usually don’t care about the
78:18
private property they were trying to
78:20
allegedly kind of say no where the
78:22
objective is to put the fire out of
78:23
rotten buddy having a store how much of
78:25
apartment and the name of putting out
78:28
the fire and because of that there’s no
78:32
there’s no there’s no consumer payment
78:35
because of the line I consumer at the
78:37
shell out so there’s a very different
78:41
sort of situation with it with a private
78:42
the private farm that’s service same way
78:46
of course with a mail and notices of
78:48
other government government services I
79:01
think this is absolutely sums up the
79:05
Union situation I’d say there’s no real
79:07
as though the union’s the pro Union
79:08
spirit is more like window a lot in the
79:11
United States you don’t have the backing
79:13
for the stuff and one more fan should
79:15
say about the about unionization the
79:19
twenty years ago was a famous of boycott
79:23
and great yeah great boycott say Java is
79:27
one of their new knives with great
79:29
workers in California in other areas
79:31
that’s the idea was that we that the
79:33
consumer should kick into bed should
79:35
help out the yeah great great and
79:36
workers union by boycotting grapes so
79:39
the effect of this of course boycotting
79:42
grapes in his with a man for grapes it’s
79:47
like a horse of the diminished cut the
79:48
supply the man car for grapes
79:50
see the fights of grapes and reduce it
79:54
because you’re boycotting for another
79:56
thing you know the qu thing about the
79:57
whole
79:57
Sansa’s you can’t see when you look at a
79:59
grape you can’t tell up at the union
80:01
great for a non-union great they all
80:02
look the same
80:03
there’s always courses diminishing the
80:05
man car for all grapes including the
80:06
poor guys who are Union
80:07
well unionized grapes anyway the result
80:10
of this course of you know you cut the
80:12
demand curve for grape shifted to the
80:13
left and reduce the profits of the incur
80:17
losses and great ministry and the result
80:19
the main kerf a great workers does them
80:22
so the result of boycotts the lower the
80:26
wage rate for grape workers sort of
80:27
increasing them eventually when they
80:31
finally knuckle under did increase they
80:34
just have unionization that increase the
80:35
great fire rate viewing is that although
80:37
that’s that’s sort of been diminished
80:38
now why ten years but the interesting
80:41
thing is with in other words if you look
80:43
at the direct action here boycotting
80:45
what kind does are the losses of a man
80:46
Kirk or something and every buy low as
80:48
the wage right so one of the goal the
80:51
objective of the benefit the great
80:52
workers instead of that I really enjoy
80:53
the great worker at least for the for
80:55
the whole period when the global boycott
80:57
was going on it doesn’t seem to be right
80:59
another as one one economist wrote of
81:02
the time he said if you want to really
81:03
help the great board you should use
81:05
money as money greats as possible we
81:06
should increase the demand curve for
81:07
grapes which none of course increases of
81:10
great workers and increases that wage
81:12
rate and increasing the employment so
81:14
that the other way around which cuts the
81:15
way grant cuts the employment so
81:17
boycotts are generally a self-defeating
81:19
way of going I’m kind of benefit the
81:21
workers involved and at least while a
81:25
boycott is going on you say well
81:27
actually what kind of Victorious who
81:28
helps them that’s kind of though but you
81:30
know I’m not sure the great board is
81:32
really consulted about this in depth at
81:35
least at least the folk I’m not sure the
81:37
full consequence it was still after them
81:38
before the boycott
81:39
got underway this is a trouble of Iowa a
81:44
little boycott in general avoid an
81:46
ideological boycott say boy kind of
81:48
Russia or South Africa or whatever the
81:51
problem it doesn’t help the workers were
81:53
involved in this thing but it doesn’t it
81:55
cuts the demand curve and thereby
81:57
reduces their wages and their and our
81:59
employment so that it’s a very tricky
82:02
kind of weapon the user the weapon which
82:04
is much more at self-indulgence the
82:07
weapon which is usually employed by
82:08
people are far removed from the action
82:11
so don’t see the consequences along with
82:13
other people involved uh carry now are
82:22
we not cover the Union question the next
82:24
step on a you know I deal with on some
82:28
extent with next step is talk about the
82:30
supply of labor talk about the union of
82:33
the effective supply of labor while ever
82:35
and population in other words one of the
82:37
big term of the latest fire force the
82:38
number of people around and so the
82:41
question then is question of population
82:44
growth which about 10 years ago was a
82:46
big thing there were a lot of the
82:50
opinion of population growth has
82:51
fluctuated a lot and the 20th century
82:56
usually the old days the idea was a
82:58
bigger the population of better and then
83:02
with a mouth fujian theory the Reverend
83:06
Thomas Robert Malthus the an English
83:10
minister and economist
83:12
around late 18th early 19th century and
83:23
in writing in a period that interesting
83:24
enough writing a period will permit us
83:26
Industrial Revolution where population
83:27
was going up and standards of living or
83:29
going out at the same time writing in
83:31
this period around 1790s Malthus
83:33
concluded the world is going to hell
83:35
because of increased population growth
83:37
the way he put it was famous phrase was
83:41
of the the population test to grow
83:43
geometrically in other words that’s the
83:45
bubble and what a quadrupling whenever
83:47
is everybody has two kids or four kids
83:49
and they have each one of them has four
83:50
kids you know sort of a skyrocket or
83:52
exponential increase in population
83:55
whereas the food supply grows only
83:58
arithmetic Li we’ve only groves I guess
84:01
more moderately it’s a very cured
84:02
structure but anyway the population
84:05
grows geometrically and food supply
84:10
grows Bharath medically and so therefore
84:12
he said population always trying to
84:15
tense the press on the food supply
84:17
people tending to die at the words that
84:21
people always been a subsistence level
84:24
if that and this population presses on
84:27
the food supply
84:29
this causes famine Wars with everybody’s
84:32
young warring for the toilet for the
84:34
only waterhole left that sort of thing
84:37
killing each other off of the scarce
84:38
food and disease and famine all these
84:42
things are coming they awake which has
84:44
to keep the population down down in
84:45
other words as population becomes
84:47
excessive people kind of died out and
84:49
starve as diseases and they kill each
84:52
other so this is the it’s a very gloomy
84:54
picture of 4th of world history a
84:58
peculiar thing he wrote the fifth at a
85:00
time in a period when the population was
85:02
going up and be but when the fuku-san
85:03
living was going out he wrote it very
85:05
odd for the guy like this just as family
85:08
living was taking you off another
85:09
stratosphere for the first time in five
85:11
hundred years other words what you
85:13
really had is the population remain
85:16
about the same in Europe about about
85:19
continent amount until about a thousand
85:21
AD until about 1750 three is a
85:24
simplification but basically a sort of
85:26
then really fluctuate much it didn’t
85:28
keep increasing it we used to a
85:29
situation populations always going up
85:31
didn’t happen 1750 you thought of taking
85:34
you on doubling every 30 years of some
85:36
and the reason is because the fan of
85:38
living went up
85:39
that’s basically the reasons we’ll go
85:41
into so he’s running this thing just at
85:44
a time when everybody
85:45
whenever the population was really
85:46
improving not only going out but also
85:48
improving santa living and its influence
85:50
economics the classical economists
85:52
became Malthusian is always worried
85:54
about the population testing on the food
85:56
supply just at the time obviously wasn’t
85:57
pressing the truth of life real the cure
85:59
simple of economist I think them to
86:01
worry about the wrong problem of the
86:03
long time
86:03
at any rate in the early of the early
86:09
20th century as the pot as as
86:13
population growth population started
86:16
declining in Western Europe and France
86:17
and other places in Western Europe
86:18
population is declining and so the
86:21
theoreticians thought of belly aching
86:22
about race suicide they call it look
86:24
we’re all gonna die out but they do is
86:27
they project trends they say well if the
86:28
French population is going down like two
86:30
percent year or something it means then
86:31
80 years the punch rapidly wipe that in
86:34
other words given the this thing rate
86:36
it simply extrapolate
86:37
trannies IV Franklin will disappear in
86:39
80 years or 100 years whatever it is
86:42
this by the way is the way especially
86:44
the way the Ahmad refers operated very
86:45
it’s a very simplistic like we just take
86:49
existing transit extrapolate them and
86:50
but you can have any sort of horror or
86:52
result so then they thought of having
86:55
bounties for kids in France and other
86:57
parts of Western Europe subsidized
86:58
number and kids they were also worried
87:00
about cannon fodder in other words the
87:01
word of the French population declines
87:03
how they gonna fight how you gonna can
87:04
script people in the army but those
87:05
people will be conscripted
87:06
so they started giving bounties for kids
87:09
you know give you a thousand dollars per
87:10
kid born and this indeed tended to turn
87:14
around the population growth and about
87:18
10 15 20 years ago they thought of EPG
87:20
history and anyway population is going
87:22
through fast and I won’t have your room
87:23
the standoff will be full disappear will
87:26
be starving too therefore we should
87:28
limit population growth now big
87:29
so-called vpg movement anyway that coin
87:33
equal zero population growth
87:34
okay well resume this next time like to
87:37
today ok we’ll resume that’s next time
87:39
like to today ok we’ll resume that’s
87:42
next time like to today ok we’ll resume
87:44
that’s next time like to today ok we’ll
87:47
resume that’s next time like to today ok
87:50
we’ll resume that’s next time like to
87:52
today ok we’ll resume that’s next time
87:54
like to today ok we’ll resume that’s
87:57
next time like to today ok well resume
87:59
that’s next time next to today

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