Introduction to Microeconomics – 12 of 14 – Labor and Unions – Murray N Rothbard

INTRODUCTION TO MICROECONOMICS
Presented by Murray N. Rothbard in 1986 at New York Polytechnic University. Recorded by Hans-Hermann Hoppe.

12. Intro to Micro: Labor and Unions

In order for anyone to make ethical judgments, he must know the consequences of his various actions. In questions of union actions displacement or unemployment for oneself or others will be considered unfortunate by most people. Once understood, far fewer people will be pro-union or hostile to nonunion competitors. Unions lower the marginal productivity of all union workers.

Part 12 of 14. Presented in 1986 at New York Polytechnic University.

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

Sourced from: https://mises.org/library/introduction-microeconomics

Source: Introduction to Microeconomics – 12 of 14 – Labor and Unions – Murray N Rothbard – YouTube

http://www.readrothbard.com/introduction-to-microeconomics-12-of-14-labor-and-unions-murray-n-rothbard

TRANSCRIPT

00:00
he knows anything at all no employer is
00:03
gonna hire another worker produce less
00:05
of a product isn’t it before paying out
00:08
money getting that let’s return I’ll
00:10
just the idiotic also nobody no workers
00:13
on them nobody can be higher on the line
00:15
here are on the line the marginal
00:18
product is zero you’re hiring a worker
00:20
for a certain amount of money you get no
00:21
more you know zero increase in product
00:24
not gonna do that either so zone 3 is
00:26
for boating in other words the whole
00:28
because what happens in zone 3 is a too
00:30
many workers / fixed capital too many
00:33
with so many workers / land and perhaps
00:35
for capital equipment and producing a
00:37
lower product will apparent even have no
00:38
more product so nobody’s have operating
00:41
is that no factor will be employed of
00:42
zone three that’s pretty self-evident
00:45
the problem with only one don’t want a
00:47
little trickier I went through that
00:49
whole thing but point one zone one is in
00:51
the area of zone one the six factors of
00:54
2 a2 excessive compared to the number of
00:57
workers you have so few workers per plan
00:59
and capital goods the workers have to
01:01
rush around trying to use all of them
01:03
you wind up with a lower average product
01:05
the marginal product is negative the
01:07
marginal product of fixed factors is
01:10
negative and zone 1 and on the line the
01:13
marginal product is zero fixed factors
01:15
so that if you take if you have 12
01:18
workers are kind of trying to grow weed
01:21
in 10,000 acres you get more weed if you
01:24
cut out half the acreage you simply cut
01:26
them out so the work is going to find
01:28
themselves more final land may be much
01:30
better at it so in other words here you
01:33
have an excessive amount of a variable
01:34
factor of the marginal product of a
01:37
variable factor labor in this case is
01:39
negative and here the module part of a
01:41
fixed factor is negative and therefore
01:43
nobody employed no faculty appointment
01:45
zone either so you wind up with a
01:47
conclusion at all factors of production
01:49
land labor capital will always be
01:50
employed in zone 2 for any product
01:53
whatsoever in other words in the area
01:56
where the diminishing returns for
01:58
average product physical part of the
02:00
climbing marginal / through Prague
02:02
declining unless the greater than zero
02:06
ok this is this doesn’t need empirical
02:12
testing
02:13
no something and say those who want to
02:14
do it can do it but it’s not necessary
02:16
part of the logic of reality so next
02:22
step is to demonstrate what the puzzle
02:24
of the demand curve is it over suppose
02:25
we’re trying to get ad here the employer
02:28
forces interest that not so much a
02:29
physical production isn’t selling and
02:31
getting an income we have to bring in
02:32
the price system by the way in general
02:35
and economic there you go to go continue
02:38
in life you’ll do read economics
02:40
willy-nilly from time to time or the
02:41
financial pages or whatever remember any
02:43
any model of the economy doesn’t measure
02:45
the prices of a crackpot prices I’ve got
02:48
to show up somewhere they don’t show up
02:50
example a much of macroeconomics prices
02:53
drop out some called by bison be very
02:55
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
03:04
understand in total revenue and total
03:06
course of course maximizing profit in
03:09
the case of revenue is interested in our
03:11
bankers and production which will bring
03:13
him greater revenue so the we have total
03:21
revenue of course we know is price times
03:23
the price of the product kinds of a
03:25
quantity produced so if you sell wonder
03:30
bread for buck a low fee so a thousand
03:32
loads of one or baby getting a thousand
03:33
bucks that’s some money in the price
03:34
system comes into the picture and so now
03:39
we’re looking at what is the marginal
03:40
revenue productivity of each factor
03:42
production of each worker of each piece
03:43
of land etc how much money is brought in
03:45
by the product so to do is you multiply
03:48
in case of marginal you have marginal
03:52
physical product those r q / delta alpha
03:58
and a marginal revenue is how much each
04:03
loaf of bread Wonder Bread brings into
04:06
the fermentation and money any terms
04:08
legal is Delta P are my results and q in
04:14
other words someone more of a one or
04:16
better one more hifi set you get certain
04:20
total revenue coming in to sell it for
04:21
you know whatever it is you get money
04:23
out of it if you multiply these two
04:25
things
04:26
t times mr stuff a few drops out and you
04:31
get bills a TR by my fellow alpha words
04:36
how much money is brought in how much
04:38
income revenues 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
04:50
times a marginal revenue on averages
04:55
average physical product q why do i
05:00
alpha the number of bushes bushes a week
05:04
per worker let’s say times and you have
05:08
average revenue which is PR / q which by
05:14
the way is the same thing as a manager
05:15
that’s what price is this is a price
05:17
curve or the man curve numbers is up
05:20
there are friends old friends of the man
05:22
curve this is the average revenue curve
05:26
price the 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 Lisa this Moulton
05:42
you multiply average physical product
05:43
comes average revenue least the quantity
05:45
drops that unless was PR / alpha was
05:50
total revenue per worker let’s say which
05:52
is same thing an average revenue revenue
05:54
product the other words revenue product
06:00
how much total income is brought in by
06:02
each worker or each machinery comes into
06:05
the picture by multiplying the physical
06:06
product times the price or times of a
06:08
marginal revenue that’s have money the
06:11
money system is brought into the picture
06:12
oh my final contention was on Tuesday
06:16
that this is a demand curve for
06:18
everybody employer for every factor of
06:20
production will be the marginal revenue
06:22
product curve that is Lee Oh looking now
06:28
the man curve for workers or machines or
06:31
land this is a price or wage rate the
06:34
case of workers
06:37
this is the quantity hired alpha or
06:40
quantity bought server it is why I’m
06:42
contending is that the man curve of the
06:45
firm of the industry whatever for
06:46
workers is the same thing as a 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 comparing the cost of
06:57
the benefit apparently revenue brought
06:59
in by the work a little course paying
07:00
out remember you find you’re trying to
07:02
you kind of answered each points are you
07:07
making a profit maximizing your profit
07:09
well that’s the weight so if the wage
07:11
rate let’s say it’s five dollars an hour
07:14
this is a market wage rate which for
07:17
certain type of labor before exit pay if
07:22
you’re this is let’s say a hundred
07:23
workers and wage rate is final and
07:27
sometimes you’re paying out if the
07:29
worker brings in a marginal worker or
07:31
was the marginal one more worker will
07:33
bring in at the margin seven bucks an
07:35
hour that’s the productivity then he’s
07:42
making a profit boys making an extra
07:44
profit to oz per hour and each
07:45
additional worker you keep hiring
07:47
workers as long as the as long as you
07:51
make a problem it was one of the revenue
07:53
product waited only only and I’m wage
07:55
rate as long as we money you’re taking
07:57
in there’s a greater than money you’re
07:58
shelling out you keep hiring more
08:00
workers so long as this is positive
08:02
tapping the surplus of the speed and but
08:05
each time you hire more workers to the
08:08
larger of your product curve is falling
08:10
you get less and less of a profit you
08:12
finally wind up with equality actually
08:15
you really stop over here at one of my
08:16
arguments with micro theory to really
08:18
stop say over here from our purposes you
08:20
don’t have another go into that but you
08:22
do is you keep going if you maximize
08:25
your profits be pulling until you get
08:28
this point we just just let strikes a
08:29
teeny bit more from working than you’re
08:32
paying out and after that and you stop
08:34
before you make losses if you pure if
08:37
your sales in 200 if you’re hiring 300
08:40
workers you get in your situation since
08:42
of MRP is falling oil talks you have
08:44
diminishing returns then you have a
08:47
situation you’re paying out finally gave
08:49
me any three dollars in revenue player
08:50
using two dollars per worker for each
08:52
additional worker you fire them get back
08:56
the situation you avoid your losses you
08:58
again you get back to here once again
09:00
have a built-in feedback mechanism so to
09:02
speak which keeps the number employed or
09:05
a number higher the number bought
09:07
whatever it happens to be equal to the
09:09
marginal revenue product of a factor so
09:13
in other words if the rage rate is up
09:14
here you’ve tireless many since then he
09:17
hides many design here hi Matt many etc
09:18
etc and we’ve already seen a better
09:20
shove a demand curve definition of any
09:22
demand curve given the price this will
09:25
shows you how much will be purchased or
09:26
hired in this case given the pipe and
09:29
lower the price of mole will be
09:30
purchased or highest ever accepted sue
09:32
we’ve already seen what we talked with
09:33
my minimum wage law but the man curve
09:35
for labor is falling now he’s showing
09:37
why it’s flowing exactly what how it’s
09:38
falling and what what determines it it’s
09:41
a marginal revenue product curve which
09:42
is also falling because you have a
09:46
falling module physical product curve
09:48
falling in the relevant zone to fully
09:52
modular system or revenue curve is
09:53
always point to the main cargo is
09:55
calling you multiply these two you got
09:56
falling far w pod what was my tooth
09:59
boiling occurs you have to line up with
10:01
a surge boiling curve okay at the
10:03
present product so this is a demand
10:06
curve for the factors of production it’s
10:09
the marginal revenue product curve for
10:11
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 of soap for
10:20
sure it’s called a marginal productivity
10:22
theory marginal revenue productivity
10:26
here is the correct word but could be
10:28
you know just say margin account
10:29
activity theory for short and some
10:31
people have challenges thing somehow
10:33
it’s Betty bore whatever it is
10:34
specifically the fact in other words
10:36
that any any price of factors including
10:39
wage rates will equal the module of you
10:41
park curb this determines of a man curve
10:45
for labor or land or capital then of
10:48
course you have a supply curve and we
10:56
had a demand curve for labor which are
10:58
any factor which is marginal revenue
11:00
product or a supply curve which is
11:01
whatever you wind up a market
11:04
delivery and wage rate are quite rental
11:06
count of land or price of capital goods
11:08
or whatever okay so this is the
11:11
summation what foods I think it had to
11:14
do that because going too much at you
11:15
and well now do is to investigate the
11:19
labor market in particular which is the
11:20
most important of the factor Morgan a
11:22
force you’re interested in people you’re
11:24
interested in layton my habits the wage
11:25
rates why they were what they are what
11:27
determines them the case of labor you do
11:36
not yet it really have you know not
11:37
really get a vertical supply curve a
11:39
land will have a vertical supply curve
11:41
or any given our capital equipment case
11:45
of labor however nobody’s going to work
11:46
40 hours a week or whatever for a penny
11:48
an hour you want to stay home other
11:50
words leisure there’s always an
11:52
alternative so it’s something like that
11:55
in other words you least get something
11:57
like this with a sharp pulling off of a
12:00
supply labor curve if you get to a low
12:02
wage rate area and the greater the
12:05
unemployment insurance the welfare
12:06
payments a higher that’s going to be a
12:07
bigger floor you’ve got on how much wage
12:11
rate people will accept so also another
12:15
thing and it gets more complicated by
12:17
the fact that some people are not in the
12:19
labor force I think I’ve already
12:21
mentioned us an adult with unemployment
12:22
of minimum wage law labor the whole
12:25
population is not the labor force is
12:27
defined as those who are employed or
12:29
seeking employment so it’s a sort of a
12:32
variable thing because some people are
12:33
retired other people babies you know so
12:36
there’s a lot of play and assistance for
12:38
example last 20 years or so a 10 years a
12:40
lot of housewives of course I’ve enter
12:41
the labor force so you have a people who
12:45
are the population might have say the
12:47
same one up a little bit the labor force
12:48
is going way up for that reason I thanks
12:50
for that was a particular reason so
12:53
there’s a tendency of us even on the
12:56
short run to have a forward sloping
12:58
supply curve for labor because if you
13:01
raise wage rates and not people will
13:03
stop being housewives and join the labor
13:05
force in other words of the senton to
13:09
it’s a little bit as a little bit
13:11
depending on babysitter prices or
13:13
whatever you want to call it take care
13:15
prices or something yet to raise wage
13:17
rates day for women
13:18
it’s certainly above the babysitting
13:20
price that they care prize it have more
13:21
women entering a labor force wage rates
13:23
go down a less of them a letter so
13:25
generally there will be a forward
13:26
sloping supply curve for labor even and
13:29
then the immediate you know our short
13:31
run even day today so we can have a home
13:38
business ah now this general supply
13:48
curve will change for each industry
13:50
reach firm other words this is true for
13:52
labor for any other factor if you
13:54
remember if you multiply the
13:56
alternatives opener for you though you
13:57
have a more elastic against it becomes
13:59
the curve consumers of the man curve for
14:02
a number of her Wonder Bread is much
14:04
flatter than anchor for bread as a whole
14:06
similarly the supply curve of Labor say
14:09
to one industry will be much flatter
14:11
more elastic than supply curve labor in
14:13
general in other words the set of
14:15
plumbers it’s a big increase in there
14:17
from plumbing on saying them wage rate
14:18
for pulling off you’ll have people going
14:20
in and ever more flatter supply curve of
14:23
plumbing a spike of labor to an industry
14:25
it’s flatter you raise the wage rates
14:28
more people we brought under plumbing or
14:30
computer engineer or whatever the lower
14:32
people got out of it this is some more
14:33
longer run thing of course I’m is that
14:35
it will run perspective and similarly
14:38
supply cart of each firm will be very
14:39
quite flat so if Ford increases wage
14:42
rates compared to General Motors people
14:44
tend to leave John what is going to
14:45
afford or vice versa so the pointer of
14:48
Labor to a firm will be flattered and
14:50
the supply current labor to an industry
14:51
or the labor in general so labor is
14:57
partially mobile and it’s not completely
14:59
mobile but is mobile the large extent in
15:02
many cases of course people leave
15:04
something you leave in industry the age
15:05
of 50 I mean it’s farmers has been an
15:08
overall shift over the last two
15:10
centuries from the farms of the city
15:11
except that every farmer drops with
15:13
pitchfork and leaves if the sons of the
15:15
farmers growing up leaves a farm and go
15:17
as a go to the city so the most mobile
15:20
labor force of courses are teenagers or
15:22
people just entering labor force they’re
15:24
much more mobile people been in the
15:26
business for 20 years and general so
15:28
generally the mobility take fight among
15:29
young people than the ones with freer to
15:31
move
15:31
we’ll even go to California and we’ll
15:33
rest of it so you have mote you don’t
15:35
need everybody to be mobile for this
15:37
thing that worked well you need some
15:38
people and that’s what exactly what they
15:40
do they leave for opportunity that leave
15:42
Michigan and go to California sort of
15:44
Texas stuff like that on England is much
15:47
lower mobility people tend to born in
15:49
Shropshire at live instructors allayed I
15:51
never leave ever see beyond 20 miles of
15:54
that so they’re different cultures which
15:57
have different rates of mobility so to
15:59
speak ok the historically over time
16:10
tends to happen is that capital
16:14
equipment per worker goes up in other
16:15
words you have you have you start with
16:19
crew so if you remember way back on your
16:21
first hour talk about Cousteau start
16:23
with who so you have one stick that’s
16:24
his capital equipment one net okay and a
16:28
bow and arrow or something now we’ve got
16:30
over the centuries we’ve accumulated
16:31
lots of capital equipment and as we do
16:34
that increases the productivity of
16:36
labour 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 let
16:45
our technology of capital per worker
16:47
that’s really the key of the words you
16:49
have a labor force court goes up but you
16:52
have an even greater increase in capital
16:54
equipment and productive tamil equipment
16:55
etcetera etcetera so the result of that
16:57
you have a full of pipes of machinery
17:00
for pipes of capital equipment and the
17:03
foreman quites of course a consumer
17:04
goods an increase in wage rates in other
17:06
words the man for labor as like as a
17:09
productivity of labour increases over
17:11
time this is man for labor we’re not
17:15
talking about fireplace I’m not talking
17:17
about wage rate differently over at
17:20
crime history of capitalist development
17:22
as a history of increase of capital
17:25
equipment and technology high technology
17:27
of cyber which constantly increasing the
17:29
demand curve for labor and thereby
17:31
increasing the wage rate so this is a
17:33
supply of labor you have something like
17:35
that but over time you have a potential
17:37
increasing promoted real wage rates
17:39
means wage rates per purchasing power
17:41
not just in money terms which could be
17:43
inflationary or
17:45
real term you buy and buy more and
17:46
better stuff and stand on living those
17:48
up the reason why a standard living goes
17:49
up over the century especially since the
17:51
Industrial Revolution from the 18th
17:52
century when continuing increase of
17:55
capital investment capital equipment and
17:57
no technology embodied in chemical
17:59
technology are suddenly just doing
18:01
anything the Romans probably had a lot x
18:03
and development they never imply it much
18:06
too real for real life so just
18:09
inventions isn’t enough you have to
18:10
apply them in industry and capital
18:12
investment and body isn’t sort of
18:14
seeking capital investment so what you
18:16
have over time Tennessee is to have a
18:19
higher wage rates with more more jobs in
18:22
other words is room for more people as
18:24
you keep increasing demand curve for
18:26
labor so wait you have increased
18:29
employment at higher wage rates as a
18:32
labor market and so this rest of what
18:37
the oldest mostly rests on is increased
18:39
capital development capital accumulation
18:41
at a and higher technology embodied in
18:44
capital English position needs saving
18:46
the investment and will recipe neither a
18:48
capitalist function do this and it’s
18:55
over time and you have more more jobs of
18:57
higher wage rates as Lee this is the
19:00
history of 19th 20th century fortunately
19:04
ok the for the roof this is one route to
19:08
higher wage rate the other route
19:10
possible move to higher wage raise of
19:12
the route taken by restriction ISM my
19:14
car tells us that this cake fart all the
19:15
labor Corps labor unions namely if
19:18
you’re trying to do given the demand for
19:22
labor instead of increasing sort of
19:25
promoting the idea of increased capital
19:27
investment higher wage rates through
19:29
jobs what you try to do is restrict the
19:31
supply of labor push it to the left in
19:33
some way thereby increasing the wage
19:37
rate at the expense of those who this
19:38
place other words you take you take the
19:41
labor force you restricted in some one
19:42
way or the other will see various ways
19:45
in which is done and thereby decreasing
19:47
wage rate for some people in increasing
19:49
whereas others of their expense this is
19:50
the restriction of solution to the speed
19:52
we actually and this method a method of
19:56
capital vessel you’re increasing the
19:57
number of jobs
19:58
and increasing kappa wage rate and this
20:01
method you decrease the number of jobs
20:02
and increase wage rates but you don’t
20:04
either excluding a bunch of people
20:05
either immigrants to immigration
20:07
restrictions 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 unlimitedly you know it’s
20:27
just like minimum wage law union come
20:30
and say we want quadruple the wage rate
20:32
for everywhere okay we’ll do it can’t do
20:33
that because firms with a lot of
20:35
business so what a way it’s done is by
20:38
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
marks Marxist myths that you have a
20:46
group of capitalists in the one hand
20:48
will come in class interests Google
20:50
workers in the other hammock i’ma catch
20:51
the persons who are at war just the
20:52
opposite have Alyssa competing among
20:54
themselves to goods and services all
20:57
that and workers compete among
20:58
themselves for jobs and wages etc so the
21:02
cartel workers union is very much like a
21:05
cartel of way over workers and similar
21:09
similar name of cutting cutting a supply
21:12
and raising the wage right we’ll see how
21:16
they can be done the next time that they
21:18
so I have a 10 minute break and continue
21:20
on with a union question what unions
21:24
trying to do is control the labor market
21:27
notice the problem mark of that
21:28
particular labor as they can keep out
21:30
entry in one way or the other and raise
21:32
the they can then waste raise the wage
21:34
rate of the economic power of Union I
21:37
will define economic power as the
21:39
ability I so just make noise the ability
21:41
to raise wage rates above the non-union
21:43
level I’m economic tarragon is very
21:46
different from publicity the powerful
21:49
unions it usually the one to a small
21:51
highly skilled craftsmen other people
21:54
who have a very small clock crap and
21:58
where you need a long long years or
22:01
apprenticeship to be a good at it and
22:03
which is small part of labor force in
22:10
other words it depends again the
22:14
powerful Union depends a lot on the
22:15
elasticity of demand 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
pretty elastic let’s take bitch digger
22:26
very elastic once anybody with a pair of
22:29
arms and shoulders and be a digit it
22:31
does not take ten years of degrees and
22:33
stuff like that okay so you have an
22:36
elasticity of a man sport so if you this
22:39
is a man for ditch diggers and you have
22:42
a disagrees union which pushes the way
22:43
to write we demand fifty percent way to
22:45
increase then you get something like
22:46
yeah the quantity of Labor higher falls
22:49
off drastically have huge unemployment
22:51
this breaks the union in other words
22:53
these are in a last for a long the man a
22:55
certain wage rate increasing even get it
22:57
you have eighty percent unemployment the
22:59
industry the unemployed the sugar is
23:00
going to undercut the union at the end
23:02
of it so in other words all any Union
23:06
any Union any successful union raising
23:08
wage rate will cause unemployment the
23:10
point is they cause a lot of us will
23:11
destroy the Union that’s why there’s no
23:13
bitch nigger in Union otherwise no
23:15
absolutely sir your Union so what you
23:17
have a successful union will tend to be
23:19
those are kept and inelastic demand
23:21
curve for that particular labor so that
23:24
if you raise the wage rate let’s say
23:26
this is a supply curve labor if you push
23:28
it by curve to the left some when you
23:30
raise the wage rate will cause some
23:32
unemployment not too much maybe five
23:35
percenters up ten percent of whatever
23:36
and I bet you’re gonna hope for is
23:38
they’ll be no visible on a point all you
23:40
do is to eliminate Josh like teenagers
23:41
coming Anthony’s 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 first place but another one
23:58
is it should be a small percentage of
23:59
the course of the of the business small
24:02
percentage of a payroll of the speed
24:04
give you an idea is a beautiful example
24:05
from history of poly here we used to
24:08
have two mighty unions here to a massive
24:13
massive unions are speaking of faculty
24:15
union call you Marc
24:16
university professors which represented
24:19
the entire represent the entire focus on
24:22
the entire faculty of 280 whoever was
24:24
and the staff union which still exists
24:26
the I think there’s part of district 65
24:28
of a wholesale we killed Kurt Union
24:30
something like that they represent the
24:32
staff secretary’s and etc so there’s a
24:35
mass union so to speak with Impala 250
24:39
members wherever they have never been
24:41
succeeded in creating wage rates at all
24:42
after we barely usually fall behind the
24:44
course of living increase we had a
24:47
faculty union for many years these two
24:49
spend a lot of time on bargaining system
24:51
oh you have hundreds of hundreds of
24:52
man-hours of hysteria bargaining
24:55
conflict hatreds over where they wind up
24:57
three years after the fact other words
24:59
in 1980 we’d be still boring tonight
25:01
each 77 wage increases and we get
25:04
finally get seven percent and the which
25:06
would usually be the course of living in
25:08
inflation rate so after the union was
25:11
this dissolve the Union was kicked out
25:13
by the administration you still get we
25:15
spoke out 27 perfect days ago less than
25:16
that we forgot the cost of living
25:17
increase without any bargaining time
25:19
lost in other words the whole thing was
25:21
more than that loss of general country
25:25
like energy and will rest of it the
25:27
other hand the only successful union of
25:29
this type of teeny Union shall we ever
25:30
heard of the boiler tenders local I
25:32
think there are three boiler tenders one
25:34
boiler and the fries two or three boiled
25:38
kind of signal to the boil attentive
25:39
local whatever it is the boil attendant
25:41
at union so one time they had a little
25:42
strike kind of funny I one picot where
25:45
you all from a corner around the corner
25:46
nobody can see them said on strike very
25:49
decorous little strike one strike local
25:52
38 or whatever the boil attended the
25:53
union so those days we had a mighty and
25:55
powerful faculty and staff union we went
25:57
allegedly probably went to them we said
26:00
would you like solidarity wants to pick
26:02
it with you he wants to help
26:03
propagandize leaflet go away leave us
26:05
alone nothing to do with you people okay
26:08
and so after about three weeks of a very
26:10
Becker a strike the boil up tender Mike
26:13
was subtle I got a 50-percent wage
26:15
increase why there’s only two or three
26:18
guys I mean probably get a forty to
26:19
fifty percent increases three people it
26:21
can’t afford to give because they can
26:22
sense of 200 people that’s the
26:23
difference in other words if you have a
26:25
teeny union the enters the Seas of the
26:27
labor force of the speak okay I don’t
26:30
know how
26:31
skilled it is there’s only some skill
26:33
involved and boiled pending and so and
26:35
you have a small labor force or in the
26:37
pocket of the situation in the employer
26:39
can afford to give you a big increase
26:41
these are the successful unions before
26:43
the during the free labor day is a free
26:45
labor market even now other words the
26:48
sort of Union which made it you’re able
26:50
to raise the wage rate for this boy ease
26:53
but unions have a small skill craft but
26:58
they can restrict the labor for example
26:59
stonemasons the grief you still making a
27:01
lot of a magnificent lovable crap
27:03
unfortunately sort of buying out the
27:04
only stone masons are only opinions were
27:07
trained and it’ll lay aside and they’re
27:10
getting you know they’re getting fairly
27:11
old letters cons with only about five
27:12
stone masons whatever 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 many rates what you have
27:21
then in the free labor market before
27:24
1935 in other words of 1880s 290 35 they
27:29
more or less a free labor market was no
27:30
government intervention in the in the
27:32
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 of which can restrict their labor
27:44
force which are small percentage of the
27:46
payroll glassblowers cigar band workers
27:49
stonemasons particularly in the building
27:52
trades construction which is called true
27:54
by the way the joiners plumbers
27:57
carpenters the thing about the building
28:01
trades as ice n assess their local their
28:04
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 your prices go up business can shift
28:14
the North Carolina which has those
28:15
happen ever they have a Norman factory
28:18
in New York its unionized that costs are
28:20
high and the buyer is simply go to you
28:22
know somebody sets up a clothing factory
28:24
look for a while which is on you know
28:25
Android cut the current and your plan
28:27
the whole time you’re kinda goes
28:29
bankrupt a union goes bust but a
28:31
construction is that you can’t do it
28:33
that way in other words Chicago
28:35
construction Erica structures really
28:36
compete with New York instruction you’re
28:38
not going to leave New York to become a
28:41
construction person and real estate
28:42
person
28:43
so it’s more or less geographically
28:45
monopolistic so to speak construction
28:47
therefore unions have been able to take
28:49
root the building trades or construction
28:51
more than any other industry one of any
28:54
occupation you have a whole bunch of
28:56
construction the say unions craft unions
28:58
carpenters machinists electricians
29:00
joiners a whole bunch of the Masons at
29:03
that stuff Oh heavily restriction is
29:06
monopolistic these firms these unions
29:08
control our labor force with a mighty
29:10
will increase their wage rates and
29:13
expensive other non-members how do they
29:14
do it they cut the supply in other words
29:17
you can’t be at least until recently I
29:19
don’t know what it is the only primitive
29:21
action sort of stuff but before let’s
29:22
say a few years ago at least you cannot
29:24
join the Carpenters Union electrician’s
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 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 we’re the driven in it pushed
29:51
into non union or non powerful Union
29:54
occupations so if you want to be an
29:56
electrician let’s say in Hoboken you
29:57
can’t do it you’re not a son or nephew
29:58
you remember you can’t do it just can’t
30:00
be not rushing after you move the Texas
30:02
or California or become a supermarket
30:04
clerk or gas station attendant so what
30:06
happens is in other words these these
30:10
unions of accused of being racist well
30:12
it’s sense they’re racist but also they
30:13
hate all not only other race but they
30:14
were discriminate not only guess other
30:15
races against non-relative sort of the
30:17
amounts to non sons are non non nephews
30:21
in recent years women have entered the
30:22
construction trade so it’s a little bit
30:25
of loosening up in less but still I
30:26
think basically true the unions are
30:29
violent these craft unions are highly
30:30
restrictive so what happens is that this
30:33
is a union membership this is a crack
30:36
Union occupation you cut the supply Kerr
30:40
cut the supply drastically the left by
30:43
restricting the 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 to be out
30:52
Christian are pushed into other non
30:54
union industry so they become let’s say
30:56
super more
30:57
clarks or something like that which
31:00
increases the supply of labor in the
31:01
supermarket clerks or in gas station
31:04
attendants so the wage rate goes down in
31:07
other words but these unions are doing
31:08
they’re increasing the wage rates of
31:09
their members at the expense of lower
31:11
wage rates for other people for
31:12
competing workers so to speak there’s no
31:16
overall increase in wage rates over the
31:18
entire labor force but unions are they
31:20
they can do it at all they can
31:22
accomplish the raising wage rates for
31:24
their members the expense of other
31:25
occupations who suffer lower wage rates
31:28
so what you have is competition between
31:30
and within the labor force not so much
31:32
employers again hurt by the union
31:34
restrictions with other workers or not
31:36
relatives or not doesn’t have any
31:39
fortunately son of a drifting union
31:41
member so before eight 1935 in the free
31:45
labor market the union’s tech Holland
31:49
crafts okay and construction industry
31:51
particular anthracite coal contrasted
31:55
bituminous coal which is what most coal
31:57
is by two minutes cause all over the
31:59
places that are you know all of the
32:01
eastern seaboard West Virginia Kentucky
32:02
Pennsylvania whatever goes on the
32:05
mountain estates anthracite coal is only
32:06
a little area of eastern Pennsylvania
32:09
around scram and so it’s very easy that
32:11
it’s geographically monopolistic so to
32:13
speak and it’s so easy to organize a
32:15
powerful anthracite coal union which was
32:18
done because then be restricted and all
32:20
the rest of it but not in bituminous
32:22
coal which only came in there for 1935
32:24
in the government into the heavily in
32:26
labor labor market so the only other
32:30
let’s the construction ever site a few
32:32
skilled crafts glassblowing and things
32:35
like that um and the other only other
32:39
like a second of this moment as
32:41
musicians union the strange paradox
32:45
apparently a thing with musicians this
32:48
is so true actors the acting the
32:50
stagehands union landing a theater very
32:52
very powerful craft unions uh they
32:55
suffer very heavy on employment other
32:57
words they push up the wager an enormous
32:58
light so the unemployment a musician
33:02
industries by eighty ninety percent
33:03
thing with actors that goes mostly
33:05
waiters restaurant way to fight back
33:07
they wait for the big breaking so
33:10
apparently acting in
33:11
and theatre musicians as such that
33:13
people love to play music at such an
33:15
extent a lot of me interfere they’re
33:16
willing to accept the ninety percent
33:17
unemployment right for most of time
33:19
hanging around Nene occupations waiting
33:21
for that big break and that sort of
33:22
situation they don’t break the Union
33:24
other words it’s a very it’s a very sort
33:26
of a bizarre except it kind of
33:28
occupation I earned like labor economics
33:32
from a former Union autonomous was very
33:34
knowledge of a savvy no listen what’s
33:36
down this list but he says when
33:38
musicians are how come musicians that
33:40
breaks them all how come you can have a
33:41
big unemployment rate which wouldn’t be
33:43
tolerated say an SSI kohler construction
33:46
so what musicians are crazy anyway if we
33:48
cleanse us pat anyway that’s the reason
33:51
other words there they’re willing to
33:52
accept a Union wage rate which which
33:54
unemployed most of the most of the time
33:56
because they’re waiting for a big break
33:57
so this is these really the only the
34:01
only unions that were successful before
34:02
9035 within that framework with very
34:06
small percentage of labor force
34:07
obviously in other words between 1886 a
34:13
year I let’s say 1935 proportion of
34:17
union membership to the total labor
34:19
force was very between three and eight
34:22
percent something like that very small
34:24
proportion other words this the union
34:26
problem whatever it is fairly limited
34:28
limited mostly as I said construction
34:29
Memphis and anthracite coal and the rest
34:35
of the time within this green eight
34:36
percent it would fluctuate in accordance
34:38
with a business cycle in other words in
34:39
the boom periods okay have a boom period
34:42
the mantle labor goes up so that’s
34:45
increased wage rates so in other words
34:47
wage rates go up in a boom printer
34:49
fascia nari or boom period and unions
34:51
put the credit for it say hey look we’re
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
look full on the free market but union
35:04
try keep wage rates up as heavy
35:05
unemployment and it breaks the Union so
35:07
what you have then but then the three
35:10
and eight that sets a three-day percent
35:11
reflective the business cycle in other
35:12
words a recession be down a three
35:14
percent and a room we’ve got the e % and
35:16
go back there with fluctuate with a
35:18
business cycle and within a very small
35:20
rain less way less than ten percent
35:22
fluctuating according to this
35:24
psychol factors so unions always
35:28
collapse and recessions because the
35:30
reality would hit wage rates with full
35:32
and probably keep the wage rates up
35:34
bingo hoping to collapse so um so you
35:39
know historians like to talk about
35:40
unions for one thing they’re usually
35:41
ideologically in favor of other things
35:43
sort of dramatically have a strike and
35:44
would free makes the headlines but
35:46
really wasn’t that important really only
35:49
covered a small percentage of the
35:50
workforce and what happens then is that
35:55
with for wall one every time he worked
35:58
with the New Deal Perry in 1930s
36:01
everything shifts as a massive
36:02
government intervention which still
36:04
exists the massive intervention of to
36:12
basically two major pieces of
36:15
intervention was 1932 with an arse
36:19
LaGuardia act and still exists which
36:24
outlaws injunctions her labor disputes I
36:27
will user than the injunction that
36:31
wasn’t injunctions ah injunction is a
36:35
weapon that came in court system of the
36:37
early 19th century usually if somebody’s
36:43
aggressing against you something you
36:45
know stealing your watch or something it
36:47
call the cops you trying to punish him
36:50
ravenna get the watch back or whatever
36:52
another case is however you have a
36:54
continuing pattern of aggression in the
36:55
words let’s say somebody’s always
36:57
driving a truck across your lawn let’s
36:59
say there’s a traffic jam in your corner
37:01
the trucks would like this sort of goal
37:03
of course you don’t want they can avoid
37:04
having to do it some trucker keeps doing
37:06
it week after week you go to court get
37:08
an injunction then the judge says thou
37:10
shalt not do if you do it again we crap
37:13
you in jail or whatever so the
37:15
injunction is a way of preventing a
37:17
continuing pattern of aggression or or
37:21
or what violation of your rights a very
37:25
important weapon of a quartz which
37:27
didn’t exist before by 18 10 or so well
37:30
in almost laguardia act the way
37:32
injunctions came in labor in water
37:33
disputes is on a strike situation go on
37:36
strike what you’re doing as you saying
37:38
we
37:38
won’t work anymore for your company so
37:40
you give us a 20-percent way you
37:41
increase or whatever the employers
37:44
Tennessee to say all right that’s two
37:45
you will hire somebody else you don’t
37:47
want to work for three dollars an hour
37:48
of it as well 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
38:00
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 flow up their homes or
38:26
the cards stuff like that though most
38:28
violence and labor tissue is almost
38:29
always done by the Union the reason is
38:31
because the only way you can really
38:34
winners win a strike is to prevent
38:36
non-striker’s from replacing you
38:38
employers don’t really have any
38:39
incentive the commitment I was except as
38:41
a defensive weapon to try to keep their
38:42
that plan in order to try to keep the
38:44
non-striker’s from being beaten up so
38:46
generally as an AA priori insight and
38:50
most labored issues most of the one
38:52
else’s violence committed by the unions
38:53
I can I’ve also the personal stories of
38:57
the sort it’s loaded still exist follow
38:58
like the a few years ago the student in
39:02
this class was working for coned or the
39:04
coned strike and the planet con I was
39:07
down in Madison Avenue or something
39:08
somewhere midtown Manhattan and the
39:11
Union sort of established control over
39:13
who could get in and out in other words
39:14
union said well we’ll allow managers is
39:16
to stay in another minute rule allows
39:18
managers to keep the content going we
39:22
won’t allow any manage to come back in
39:24
play leaves they had to stay there for a
39:26
three-week know whatever length of
39:28
strikers it allows food to be shipped in
39:30
very very nice of them a lot of a
39:34
percent food in but they won’t allow
39:35
they won’t allow the managers to come
39:37
back they have her stay there physically
39:38
sleep dancers fortunately only last a
39:42
week after my father unfortunately in
39:43
the situation he was he was a chief
39:46
chemist of other than pie world company
39:48
airport of giddy now part of what Texaco
39:51
I guess
39:52
but anyway this tie work i’ll be trying
39:54
to plan a Bayonne New Jersey and union
39:58
went on strike the union’s a so-called
39:59
company Union which the point of the
40:01
text box must be a week dominated Union
40:03
week you know the tool be employed we’re
40:04
not a tool imported or very feisty and
40:07
so they call a strike and oil oil
40:09
refineries have to kept keep going can’t
40:11
shut them down take a couple of years as
40:13
we bring them up again you have to keep
40:15
it a maintenance plant going so so the
40:20
managers were allowed to stay there and
40:21
letting you keep a plant going however
40:23
they weren’t allowed to come back in
40:24
Union wouldn’t allow it Union sandwich
40:26
has control over them with territory so
40:29
to speak cop support look the other way
40:30
and so they allows food to be shipped in
40:34
in this case my poor father’s ever about
40:36
three months and literally the three
40:38
months strike and look like prison like
40:40
being a concentration camp they allow
40:43
the stay in this crummy dump I mean
40:44
wineries not a sort of a luxury resort
40:46
thanks if you’re a teen or requiring so
40:49
the other what the union seizes control
40:51
instead of the police performing their
40:53
alleged function of preventing violence
40:55
and keeping the peace the police abandon
40:58
its responsibility to turn over the rule
41:00
over the streets of the speak to the for
41:01
the Union so any rate this is fairly
41:05
common it’s still in really still is
41:06
except on the south for example always
41:08
have a sound matter to the Union in
41:09
question namely if they don’t the police
41:13
prevent any kind of union violence
41:15
whether prevent where 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
41:24
that the kingsport striking Kingsport
41:26
Tennessee about 10-15 years ago Granger
41:30
it’s very interesting very illustrative
41:31
kind of situation in Kingsport things
41:32
for was a pennant of modern planted kind
41:34
of scene in Appalachia country and um
41:37
and here’s this plant which was hiring
41:40
have a cup wage rate of the area
41:42
beautiful working in this great place
41:44
everybody one of the work or at
41:45
Kingsport praying plant high
41:47
unemployment in the area it’s Appalachia
41:49
which is next time I’ll tell you why
41:51
does that relate to the coal miners
41:53
union activities anyway a whole bunch of
41:55
unemployed people wanting to get good
41:57
jobs supply my Kingsport kingsport Union
41:59
goes out and strike demanding higher
42:00
weight probably crazy like a kamikaze of
42:03
salt because there’s no way you have a
42:06
is this the the printers always have the
42:09
proponent of the doctrine you have to
42:11
take years to be a good printer of using
42:13
apprenticeship with like being for like
42:15
being a physician it’s a lot of baloney
42:16
you can train a good printer in a couple
42:18
of months of course the printing people
42:20
knew that so when 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 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
correct simply hired more workers and
42:34
train them in a couple of months that
42:35
was it work is very happy I getting good
42:37
job hey we got a great job at Kingsport
42:40
sporting plant and the Union swam the
42:43
strike is still going supposedly but
42:45
it’s not is faded away officially
42:47
they’re still on strike twenty years
42:48
later ten years lawyer and practice
42:51
they’ve all go on the unions 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 but what happened was
43:15
unions are now are dominated by the
43:17
National Union was the way the structure
43:19
union power goes is that every union has
43:26
a National Union of whatever it is the
43:28
good workers union machinists or real
43:30
workers whatever printer is the gun
43:32
National Union which has the focus of
43:34
power each the national have a bunch of
43:38
local which are mostly dominated by the
43:40
national natural to tell them what to do
43:42
locals in different regions whatever ah
43:45
the National often joint of Federation
43:48
our case right now the AF of l-cio
43:50
America Federation labour congress
43:53
Industrial Organizations for the invalid
43:56
no power in itself they try to arbitrate
43:58
disputes within the National Union locus
44:00
of power the National you which is
44:02
represented in the AF of L but they
44:03
really go it’s like the UN in a sense it
44:05
so there’s no government power over the
44:07
National Union so what happened was this
44:11
the new york state and and knowing one
44:17
of the many ways decaying areas in other
44:19
words if you ever going to
44:20
the textile plants or printing plants
44:22
were ever in New England they’re all
44:23
falling apart like 19th century
44:25
buildings and they’re inefficient
44:28
they’re too small and heavily unionized
44:30
which raising their costs of receptor
44:32
what’s happening in the United States
44:34
over time is that the Northeast has
44:40
major originally a major industrial area
44:43
in other words northeast quadrant of
44:47
industrialized New York Pennsylvania
44:49
Michigan etc etc and the man for labor
44:53
went up as the capital listen when I
44:54
wage rates went up so we had wage rates
44:57
higher in the Northeast than the south
44:58
go south with less much less
45:00
industrialized in that kind of situation
45:02
the trend over time building a long line
45:05
member of all run equilibrium it’s for
45:07
workers to leave us and go to the north
45:08
to get higher more jobs higher wage
45:10
rates and for capital will leave the
45:12
north the attractive the sassanids lower
45:14
wage rates so we have a sort of mutual
45:17
flow here tending in the long run toward
45:19
equality of wage rates very warming you
45:22
have 10 toward equalization span of the
45:24
living so of course southerners people
45:27
have migrated in the north and capital
45:29
especially in it an inefficient
45:30
industries against the migrated South
45:32
already talked about how minimum wage
45:34
laws acted as a tariff of a sense quite
45:38
a cripple southern competition so what
45:40
happens is in Kingsport Tennessee for
45:42
exam have a brand-new modern plant no
45:44
unions lower wage costs will ignore
45:46
everything course higher productivity
45:48
out competing these are an efficient
45:50
backward companies in New York and New
45:52
England and so the New York headquarters
45:54
told a local down well first of all
45:57
happened with the printers of the
45:58
printing companies New York and we went
46:00
to the union said look we being out
46:02
compete about these guys and walking on
46:03
line up kind of seeing whatever do
46:04
something about find a crippled one
46:06
other words try to impose higher labor
46:08
costs on the south you can’t do to a
46:11
minute federal minimum wage law you do
46:12
it through the trying to unionize book
46:14
try your best kind of unionizing so we
46:16
can get rid of the competition so the
46:18
National Union gives an order to their
46:20
local Kingsport Tennessee strike for
46:22
higher wage rates even though they they
46:24
had nothing to lose and the National
46:25
Union nothing a little bit sacrificing
46:27
the Kingsport local so to speak okay go
46:31
for it chances are low we can do
46:34
anything about we
46:34
we have nothing to lose only only the
46:37
kingsport people want something lose and
46:39
sure enough course they collapsed but
46:40
the whole thing is of collusion between
46:42
the printers the northern printers
46:44
northern employers and the northern
46:47
Union trying to get a crippled southern
46:49
competition get unionized south now this
46:53
is a story which which repeats several
46:55
throughout industry in other words the
46:56
set of unions versus capitalists what
46:59
usually happens is its capital S Plus
47:01
unions trying to screw the rest of us
47:04
these are from Paris or through minimum
47:06
wage law to imposing unionization on
47:08
other parts under straight separate
47:09
separate time and again this is what
47:11
happens violates the Marxian myth but
47:13
somehow you have solidarity of the
47:15
workers again capitalist republican how
47:20
much it’s just start on the coal miners
47:22
union they all know about appalachian
47:24
very heavy unemployment and coalfields
47:27
really a Kentucky in West Virginia said
47:30
what happened was is all deliberately
47:31
bought a bat more or less by john l
47:33
lewis was the brilliant ahead of the
47:35
mine work United Mine Workers Union
47:37
which came in in 1930s I already
47:39
mentioned norris-laguardia is another
47:41
act even more important so I’ll get to
47:42
the next time the Wagner Act as a result
47:45
of which John Ellis is able to unionized
47:48
bituminous coal workers for the first
47:50
time successfully he goes into a pact
47:52
really large mine operators basically
47:55
saying this the only all Lewis was ever
47:57
sent as maximizing a wage rate of his
48:00
union workers with seniority a pretty
48:02
care didn’t care about anybody them care
48:04
about young people about mine and monya
48:06
people didn’t care about any of that
48:06
stuff so it’s actually colluded with a
48:09
large minor my owners to push the wage
48:12
rates way up there by imposing higher
48:16
wage course on a small mind and putting
48:17
them out of business which is what the
48:19
large miners wanted to do you it’s true
48:21
your competition by having a national
48:23
national bargaining rate narshall
48:25
bargaining wage rate the entire coal in
48:28
the street push up the wage rate put
48:31
bankrupt the smaller coal mines and
48:34
cause unemployment for a pool younger
48:37
mine worker no those were that seniority
48:39
it was growing up I just want to get a
48:40
job right now I’ll employ them you
48:43
listen Carrie new brain Lewis understood
48:44
about the demand curve
48:45
this is very well the man curve had
48:48
clothing on a poem he didn’t care what
48:49
do you want to do is maximizing pension
48:51
funds and Lee actually letters the union
48:54
leaders then stole later on so from the
48:57
booboo fund maximize the benefits for
49:00
the this thing work as a seniority and
49:02
hello everybody else as a result of that
49:04
we had massive unemployment of mass with
49:06
bankruptcies in the coal fields
49:08
Pennsylvanians of West Virginia Kentucky
49:10
and worst of it it really created a
49:12
whole 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 of poverty unemployment before
49:19
Johnny Lewis colluded with a mine owners
49:21
to bring this about now next time we’ll
49:23
start with talk about the Wagner because
49:25
the key thing which changed the whole
49:26
face of unionism market and government
49:33
intervention it I mid-1930s a federal
49:40
government massively intervene and labor
49:41
market this to substitute for a free
49:43
labor market a government nominee
49:46
dominated one control one there are two
49:49
basic two major pieces of legislation
49:51
express then the first one less
49:54
important with the norris-laguardia ACT
49:55
1932 which prohibited its cold us
49:59
prohibit federal injunctions in labor
50:01
disputes and really just court
50:04
injunctions period because state
50:06
followed after the federal government on
50:08
this so which means that it can’t take a
50:13
union a court and have an injunction to
50:16
prevent it from engaging in violence and
50:19
strike situations so prohibiting
50:22
injunctions course it also prohibits
50:32
employers from using my office until you
50:34
almost never do it really means in labor
50:37
and eliminating most effective weapon
50:42
against anybody engaging in continuing
50:45
patterns of violence which almost always
50:47
means labor unions ah the by the way one
50:53
of the reasons why so many unions are
50:55
controlled by the organized crime is it
50:58
over
50:59
union activity engages and you use
51:01
engaged activity which organized crime
51:03
laws are very expert in like violence
51:04
and controlling a labor supply another
51:08
keeping excluding some groups of workers
51:11
and other groups of workers or something
51:13
organized crime is quite expert in doing
51:15
so I tell the natural feel to organized
51:18
crime to work in also the meaning to
51:22
build out huge pension funds which since
51:26
the 30s which of course was a nice plum
51:27
for people got a whole love any rate the
51:32
most important mechanism came in 1935
51:36
was the Wagner Act which is still on the
51:41
books it’s been modified that the basic
51:43
the basic Wagner Act provisions school
51:46
hold basically what the Wagner Act does
51:50
is it compels collective bargaining
51:56
compels to watch emerge by the way the
51:58
textbooks every textbook that I know of
51:59
miss leaves every mislead you about what
52:02
the Wagner Act says it usually says the
52:04
Wagner Act the Magna Carta for labor
52:06
because a guarantee the right of
52:07
collective Warren has Bologna the
52:09
union’s always have that work has always
52:10
had a right of collective born in United
52:12
States didn’t have it in Britain it’s
52:13
linking 06 United States work has always
52:17
had the right to form you can try to
52:18
bargain but so what the wagon I guess is
52:21
compelled bargaining by employers and by
52:23
other by non-union workers in other
52:25
words compelled collective boring force
52:28
collective bargaining with a union has a
52:40
majority of workers in a bargaining unit
52:52
that’s the basic all the provisions of
52:55
the aunt of the National Highways
52:56
officially called a National Labor
52:58
Relations Act Wagner I for short at the
53:03
son of the Wagner menorca
53:06
National Labor Relations back okay in a
53:11
bargaining unit all the provisions are
53:14
logically deduced deducible from this
53:17
basic axiom there was basic fundamental
53:20
clause putting my lessons of the winery
53:22
the compel collective bargaining with
53:24
the union has the majority of working of
53:26
workers in a bargaining unit in the
53:30
first question is what’s the bargaining
53:31
unit good question and that’s the it’s
53:34
up to the government of the side water
53:36
bargaining unit is it’s not a natural
53:37
situation and so the minor axis is
53:41
administered by a National Labor
53:42
Relations Board pointed by the federal
53:45
government NLRB short which decides is
53:50
what I bargaining unit is is not
53:53
automatic for example take for example
53:55
say the steel industry here’s a steel us
53:59
deal excite your company and there’s a
54:01
machinist and working in stealing a
54:03
steel plant which one have their own
54:05
union machinist union which is a craft
54:07
Union a traditional construction
54:11
cracking the construction industry they
54:13
want their own Union the steelworkers
54:15
then form of an industrial union b union
54:17
workers union they want to include
54:19
everybody they want to represent
54:20
everybody working in steel industry
54:21
relative what occupation there in
54:23
machinist want to have their own Union
54:25
the steelworkers giving which are as an
54:28
industrial union will get to that in a
54:30
minute contrast will crash union so the
54:34
cramps doing you wants to exclude people
54:36
cramp union symbol on or guess is power
54:39
by excluding pushing my curve the left
54:42
and pushing wage rates up at the expense
54:45
of workers who are excluded industrial
54:47
union try to maximize how to include
54:48
everybody that’s a maximized number of
54:49
people in the union so that immediately
54:52
goes against the crash unit the question
54:54
is what is the bargaining unit what’s up
54:55
to the NLRB t’zan if they decide the
54:57
machinist of their own bargaining units
54:58
and the machinist union will win if they
55:00
decide the bargaining unit is the whole
55:02
plant near the steelworkers union when
55:06
or inside the whole you can side the
55:07
whole industry hold fun fur might have a
55:10
20 plants in it so the boring you know
55:12
the plant is it the whole firm in the
55:14
whole industry in some cases that aside
55:15
a whole industry in the bargaining unit
55:16
so purely arbitrary and unjust
55:19
depends on the ideology national labor
55:21
relations board members basically it the
55:24
1930s when the NLRB was formed was a
55:26
very left-wing period and then I’ll be
55:28
was very left wing they always decided
55:31
against crap you needs a favor
55:32
industrial there was a site in favor of
55:34
maximizing union membership but this of
55:38
course is not unnecessarily has to be
55:40
that way can depend again them and how
55:42
the NLRB members see it I think there
55:44
are five members and have the staff and
55:46
all that sort of stuff there regional
55:48
locals in lesser and basically they have
55:50
their ever appointed members negative
55:53
side whichever they where they want so
55:55
it’s not it’s not obvious what a
55:56
bargaining unit is right now who decides
56:00
who has a majority when the NLRB have to
56:02
call an election I have the majority in
56:04
an officially sanction election with you
56:06
know how i behold at a certain date they
56:08
don’t have to hold a certain date they
56:10
can decide when they whether or not to
56:11
hold an election and when to hold it so
56:13
in other words you have unlimited power
56:15
virtually going to the guys NLRB power
56:19
to interpret these vague provisions so
56:24
another thing happens is that the
56:27
compelled collective Barney so what’s
56:29
collective barn and after the five
56:30
o’clock the bargaining is it’s also not
56:31
very obvious what does it mean on the
56:33
old days during the 30s and 40s left
56:36
liberal than a heyday from employer said
56:39
those have to meet with the union how
56:41
else does you have to meet well who
56:42
knows and it was originally the 30s and
56:45
40s is it was a sight of that the if the
56:47
employer doesn’t offer a wage increase
56:48
that he’s not bargaining and quote in
56:50
good faith unquote oh yes a bargain and
56:53
good facing us in the law so what does
56:56
good face me is a very subjective kind
56:59
of decision so usually if the employer
57:02
didn’t come in then offer a wage
57:03
increases with a set an island good
57:04
faith it wasn’t really bargaining
57:06
illegal of course so those words this
57:09
whole sort of mandates touching the wage
57:10
increases the nowadays of course in last
57:16
20 years and so it’s been very different
57:18
and there are many conservatives in a
57:20
lobby or anti union or non-union or
57:22
whatever it is and so they now of course
57:24
what’s been happening especially since
57:26
the recession 1980-81 is that the
57:29
employer comes in and demands of wage
57:31
cut that doesn’t happening last
57:32
for five years and last few years now
57:35
that you need to know more where that
57:36
happy within our baby used to love it
57:38
these before the Magna Carta of Labor’s
57:39
rights love so now they see the NLRB can
57:42
rule against them and the side well oh
57:44
yeah like why can’t you come in with a
57:46
wage cut why not or for a wage cut and
57:48
then they have to bargain so this
57:51
question how often they have to meet
57:52
what a barn in good faith mean for
57:54
example in general electric around 1960s
57:57
the famous vice president public
58:00
personnel relations lemme boulware let
58:04
me lool where came up with a theory of
58:06
bull where ISM full where is amiss said
58:10
look what you do is present when you
58:13
come to the way to the bargaining table
58:14
truck towing employers give them your
58:16
final offer first in other words this is
58:18
the offer and that’s it take it or leave
58:20
it and then we offer attending
58:22
ten-percent wage increase or five
58:23
percent wage Accardo ever happens would
58:25
be and don’t bargain any further well
58:27
this is a big for this this has been
58:28
adopted by he’s quite successful about
58:30
them on many lawyers and the question is
58:33
is this really legal as a bargaining
58:34
good pay to prevent one offer well if
58:36
you don’t play according to so how many
58:37
more videos to prevent how many the
58:40
whole thing is very murky and indeed it
58:42
was declared legal by being a lot baby
58:44
but the point is none of these things
58:45
are are obvious another thing compelling
58:49
collective bargaining also with
58:50
interpret of meaning the statute but the
58:54
employer cannot discriminate against
58:55
union organizers so it’s illegal in
58:58
other words you’re going to have a
59:00
lection or have a free and fair election
59:02
so to speak and it was declared illegal
59:04
to discriminate yes you need organizers
59:07
so it’s not they couldn’t fire union
59:11
organizers and it meant they couldn’t
59:17
keep a blacklist in the old non-union
59:19
days and poor you to keep a blacklist so
59:22
that if ya Joe zilch the militant you
59:26
can organize her his name would be even
59:28
his name of these have other employers
59:29
watch out for Joe’s okies things is that
59:31
Apple this is now a legal totally
59:34
illegal to discriminate also it’s also
59:36
as part of this as interpreted by NLRB
59:39
and mean the employers have to prevent
59:41
have a supply unit arrives with a cliff
59:43
the meeting halls on the plant property
59:46
peculiar situation here the employer
59:48
let’s say doesn’t want to have in union
59:49
yet he’s compelled by a lot of the
59:51
provider union organizers in a Hall of
59:53
leaflets space you know that sort of
59:56
stuff is that that their point of view
59:58
also in the heyday and 30s and 40s
60:01
purposely employers of the private free
60:03
speech is interpreted employs free
60:09
speech in an appetite 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 analog be was
60:25
power a was passed skyrocketed and
60:28
during the late 30s and also during
60:31
World War two on the the war labor board
60:34
compelled union had compulsory
60:35
unionization for defense plants or war
60:37
plants as a result of this this kind of
60:41
privilege and unions the percentage of
60:44
membership Senna’s union membership of
60:48
the labor force which had remember
60:54
fluctuated for about two days percent
60:56
suddenly increased to about skyrock up
60:58
to about put the five percent regular
61:01
the maximum something like that a lot
61:04
depends on how you define how you coo
61:06
agricultural workers and government
61:08
employees in there but anyway around
61:09
twenty five percent by 1945 this is of
61:13
course a quantum leap in other words all
61:15
of a sudden unionism becomes an
61:16
important part the American economic
61:18
system it really wasn’t before due to
61:21
the fact we have a comprar a government
61:23
regulated labor market instead of a free
61:24
labor market and the unions which came
61:27
in there in late 30s 35 but mostly
61:30
industrial unions which are in were
61:32
favored by the NLRB let’s try to include
61:35
everybody in the ministry the
61:37
steelworkers union the rubber Workers
61:39
Union Electrical Workers Union by two
61:41
minutes co-workers knew in month you
61:43
know mine worker that separates up all
61:44
of them mass organizing right is very
61:46
dramatic also so it was a very dramatic
61:48
organizing driving automobiles steel
61:51
industry want to be on the street col-
61:53
separate cetera so only came in in the
61:55
late 30 since the AF of L was structured
61:58
they were crafting
62:00
against the Russian you they form their
62:01
own group 830 full of CIO or the
62:05
Congress of Industrial Organizations
62:07
notice the industrial organization is a
62:09
key term the distinguish that from the
62:13
craft union so politically the CIO
62:19
unions were pretty leftist in late
62:21
thirties and forties and there were say
62:24
organized along different lines the the
62:30
late after the World War 2 the
62:32
Communists will control a lot of the CIO
62:34
genes were kicked out why the Union
62:37
people and after by around the 50s or
62:40
60s somewhere around then the two of
62:42
them a favela CIO began to sort of merge
62:44
you gotta sort of peacefully coexist and
62:46
finally merged again to form the current
62:49
AF of l-cio I still have your fictional
62:53
excuses more like they’re trying to iron
62:55
it out so now we have umbrella Union
62:58
including the old lair favela only am i
63:00
coming newer CIO the CIO bio is the
63:05
first organization set up political
63:07
action committees packs such an app
63:10
works a little place set up by
63:12
corporations also other organizations
63:18
well since that since world war two
63:22
unionism has quite a study decline even
63:25
with the Wagner Act HIPAA the Colonia
63:29
versus is now down about eighteen
63:30
percent of the conferences the long run
63:32
decline that many reasons for this as
63:35
the report thing with a greater
63:37
affluence people less interest in Union
63:39
another thing for us has been a shift of
63:41
the economy towards the southwest which
63:44
has never been sicker unionized and
63:46
toward a new high-tech industry
63:49
computers and whatever calculators the
63:52
preceptor and a toward white collar jobs
63:54
engineers and so forth with who never
63:57
been particularly unionized the unit
63:58
unionize a bowl so in other words of the
64:01
old smokestack industry decline deal
64:04
with somebody life happens to be the
64:05
client have more and more service
64:06
industries and engineering and
64:08
professional occupations unions keep are
64:11
steadily in the client probably will
64:12
continue doing so by
64:13
with frequent on a repeat of history and
64:16
upon a union is finally do something to
64:18
do something to reverse it what the sub
64:21
what the I’m I maintain that most of the
64:23
industrial unions have no real economic
64:25
power since they don’t restrict the
64:26
supply and members you know they make a
64:29
lot of noise they have a lot of
64:30
publicity and so for they don’t really
64:31
don’t really increase the wage rates of
64:33
their members as the craft unions can do
64:35
I mentioned already bringing up of a
64:37
faculty and staff here sort of a
64:39
microcosm they took a lot of Hell a lot
64:41
of members a lot of some bureaucrats and
64:45
is it but but they really have much
64:46
power so the industrial unions do what
64:50
the success of the doctor Union
64:52
basically is they have a lot of voting
64:53
power they can again they’ve 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 of 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 unites
65:16
states are now very different probably
65:17
or they were in the thirties with much
65:19
less politically much less ideological
65:21
much less leftist and also they today
65:24
sort of bureaucrat and sort of people
65:25
who often go to college and never work
65:27
say if you’re ahead of a pipe fitters
65:29
union often never a pipe fitter you
65:30
don’t see a pipe you go to MV prime mba
65:34
or whatever i’m a labor expert you
65:36
become a head of our vice president some
65:38
stinkers union or cone you know you know
65:40
you ever seen a stink fit so this of
65:44
course sets up resentment on the part of
65:45
the workers because they begin to feel
65:48
that not only quote exploited by the
65:51
employer i’m probably also exploited by
65:52
the union their own union was forcing
65:54
them to pay heavy use except to set
65:57
these people up and where they really
65:59
don’t accomplish much and I didn’t
66:00
really raise the wage race of the
66:02
workers there’s a lot of friction and
66:04
I’ve lived with the old egalitarians
66:06
spirit of you need is long gone i have
66:08
been big plush offices in all most of it
66:10
so uh so we have it has also been of
66:18
course a falling back or loss of unions
66:20
union solidarity spirit most people are
66:24
not that pro-union anymore these to be
66:26
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
don’t have they don’t have a mystique
66:34
they had in the 30 40 s when the
66:37
Republicans first took over Congress
66:39
1946 for the first time since 1930 they
66:43
had been pledged to repeal the Wagner
66:45
Act get rid of this whole system they
66:46
didn’t do it but they did is they added
66:48
some stuff 1948 called a path hartley
66:51
act becomes really just an amendment of
66:53
the wine racks in addition to it so we
66:55
have now Wagner and half Hartley
66:57
structure 48 and for the path holiday
67:04
act is essentially they added stuff on
67:06
top and was addition the Sedition unfair
67:09
labor practices by by employers unions
67:12
can now engage in entre labor practices
67:14
know if you need now are now being
67:16
regulated as well as employers for
67:19
example if unions are too blatant you
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 consider unfair labor practice
67:27
not never to have an election in the old
67:28
days most unions ever had an election
67:29
you come in your union president I was a
67:31
great saying and labor movement I mean
67:33
what’s the union president always union
67:34
president once you get at the power
67:36
you’re there for life it’s still more or
67:38
less true even with elections at some
67:40
cases like the United Mine Workers have
67:42
been a big big changes but most cases
67:44
once you get in you’re there for you
67:46
there forever you can never be dislodged
67:48
just don’t like to have your political
67:49
machine so I also they can’t engage you
67:53
too much racial discrimination of a
67:55
phone gauge of some some extent this in
67:56
other words a certain amount of certain
67:58
curves now in Union through so
68:00
essentially what the Wagner of the NLRB
68:02
is added to its power it kept it the
68:04
same Wagner Act provisions and added on
68:06
Union regular provisions regulating
68:09
unions the clothes shop is now illegal
68:13
clothes shop in situation you can’t get
68:17
a job unless you both reunions first and
68:19
what you can’t the equivalent you
68:21
couldn’t get a job as the poly professor
68:23
unless you first join the ASP or any
68:27
other occupation that’s now illegal but
68:29
the union shop is still legal so the
68:31
Union shopping could get a job on your
68:33
own but then you have to join the union
68:35
friend but then 30 days whatever the
68:37
provision it so it’s basically the same
68:38
thing
68:39
slightly less restrictive approach shot
68:40
but it’s not to two different then as
68:43
other provisions and probably familiar
68:44
whether you can’t give a strike against
68:46
the government employees strike after
68:49
week 30 days of various provisions of
68:51
slowing down strikes but these are
68:53
mostly sort of marginal provisions like
68:55
the key provisions of so layout of
68:57
Wagner Act provisions and still there
68:59
now the various faiths states which are
69:03
passed through outlaw the union shop to
69:05
whole bunch of state up again and mostly
69:08
in the southwest and the mountain
69:09
estates which to see me it goes against
69:12
private property in a free market
69:13
because what you’re doing we outlaw the
69:15
union shop you’re preventing the
69:16
employer from solitarily signing
69:18
agreement for the Union saying we will
69:20
only have doing workers the various
69:22
reasons like many employers of pro-union
69:24
for example the take for example of the
69:29
poor Metropolitan Opera every every few
69:31
years and the striking control an opera
69:32
they have to confront about 30 craft
69:35
unions each one has which has a
69:36
different contract deadline as a
69:39
stagehand Union the actors Union a scene
69:41
designer Union discover and so on and
69:43
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 the employer
69:52
of the Metropolitan have to confront
69:53
about 30 different unions or something
69:55
ever extremely difficult they much
69:57
rather have one Union just make an
69:58
agreement that an unsubtle ever ended so
70:02
many employers kinds of favor industrial
70:04
unions even because they figure craft
70:06
unions are just too many of them to deal
70:07
with two feisty a too much economic
70:10
power in a sense it’s one classic cases
70:13
so in other words some employers all in
70:14
favor of the Wagner Act most of them
70:16
were against it then various employers
70:18
were 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 pole situation where gerards
70:29
waffles head of General Electric for
70:30
many years wrote a letter to William
70:33
green head of the American Federation of
70:34
Labor this was written under like eight
70:36
1920s please mr. green why don’t you
70:39
organize General Electric come in and
70:40
organize it we have too many craft
70:42
unions here in other words we have
70:43
machinist have a viewer was four or five
70:45
Union why’d you come with one Union just
70:47
organize the whole gel-like are then we
70:48
have an agreement and green pro banks
70:52
bless you mr. Swope we love you a great
70:54
pro-union person however we can’t do it
70:56
if we’re committed to the craft 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 and lobbied for it because then
71:04
you say oh ok we’ll be with one
71:05
industrial union a general like breaker
71:07
make an agreement and workers when I
71:08
have to shut up no the many cases the
71:12
employer prefers dealings I say with one
71:14
Union and if the Union willing to
71:17
collaborate so to speak that can just
71:18
you know form so-called sweetheart
71:20
agreements and where all the workers
71:24
will then be committed to it because of
71:27
those collect compulsory collective
71:28
bargaining the individual worker can
71:29
also be screwed here but in the New York
71:31
orphans suffer from the faculty the
71:33
union organizer on Union the National
71:35
Union is in favor of a mild mild wage
71:39
increase or whatever so custom conflicts
71:43
from below and it’s sort of sort of
71:45
basis right now a big strike has been
71:48
going off last eight months and often
71:49
Minnesota which is a small city and a
71:51
prairie out there of the hormel plant
71:54
which is a big crew manufacturer and the
71:57
local is all a favor a big strike and
72:00
then striking the national union very
72:01
much against the National you use going
72:02
to put the local and crusty ship any
72:04
nine out of the words crack down and
72:05
displace the leadership and local swear
72:10
to fight on the whole big struggle over
72:11
this as a local versus national guys
72:15
Rory said here the national unions of
72:16
the boys a big power center and locals
72:18
every rule power so there’s a big fight
72:20
over this one of the classic things that
72:23
happened ah yeah Michos already but like
72:27
this is like resulted lee i mentioned
72:30
jonylah with me and I Mine Workers Union
72:31
yet no by 2 Anna’s coal industry they
72:36
try to have a united mine workers and
72:39
the bituminous coal industry would never
72:41
successful because of the free market
72:42
other words they organize some cute coal
72:45
mines in Pennsylvania the court the wage
72:46
rate would go up the course will go up
72:47
they go bankrupt maybe out competed by
72:50
non-union minds and West Virginia
72:52
whatever so the United Mine Workers
72:55
Union didn’t succeed until a whitener I
72:57
came in which then are compelling
72:59
collective bargaining then sub for the
73:01
conditions set up a condition for a
73:03
successful union the head of the United
73:06
workers with Johnny Lewis the famous
73:08
bushy-browed figure Welshman Moshe
73:13
Merrigan who understood about the demand
73:16
curve he’s brilliant no they understood
73:17
about the whole demand curve I’m getting
73:19
you demand for labor he understood that
73:22
this is way great quantity of Labor
73:28
hired that the only way to raise wage
73:31
rate strengthened by union activities to
73:34
cut the supply ship with supply to the
73:36
left of the expense of diminished
73:40
employment time and so if he realizes
73:45
the union action pushing up the way
73:48
dress will unemploy a whole bunch of
73:49
coal miners you didn’t care about that
73:51
whole a favor of because it has I’m Jake
73:53
what to maximize the income wage income
73:56
first for those union workers with
73:57
seniority where those were been on the
74:00
Union for ten years of something at the
74:02
expense of younger workers those are the
74:04
nationally and new people coming up
74:06
younger people who know teenagers of the
74:08
coming of age and wanting to come get a
74:11
job my coma I didn’t care about that
74:12
money want to do is the maximizing come
74:14
from existing union members of seniority
74:16
so he had industry-wide bargaining with
74:19
the coal miner the whole coal mining
74:20
association the coal miners the large
74:23
coal mine operators were more favor that
74:26
their favor of higher wage rate to
74:27
impose crippling higher costs and it’s
74:29
more competitor small miners they
74:31
realize couldn’t pay it the other words
74:34
had industry-wide agreements between you
74:36
Nicole Monaco operators and the coal
74:39
union tremendously pushing out wage rate
74:42
and leading to the bankruptcy of a small
74:47
minds total depression of the Kauai
74:49
industry bankruptcy the smaller lines of
74:51
massive unemployment the coal fields
74:53
which continues to this day it’s so cool
74:54
appellate your problem there was no
74:57
Appalachian problem with coil and unions
74:58
came of the coal miners and camera as a
75:01
coal mining industry with a major
75:03
employment point Center in the whole
75:05
area so as a result after depression of
75:08
the coal industry and but the large
75:11
operators continue the union members
75:13
continue on with seniority they were in
75:14
great shape and sort of wrote into the
75:17
fifth of the sunset destroying the
75:19
entire industry in
75:19
waiting but building i’m a huge pension
75:21
fund and everything else to have to be
75:23
looted by the union organizers so here’s
75:27
an example a crystal clear example how
75:29
the myth of the moxie and myth that the
75:32
workers always in solidarity against the
75:34
employer employers of competing with
75:35
each other for products to sell stuff
75:38
and the buy stuff and workers competing
75:40
at each other we saw an immigration
75:42
restriction everything out and with
75:43
crafts knees and with the coal mining
75:46
situation when one group of workers
75:48
benefit the expected unemployment for
75:50
the other group for the younger people
75:51
coming up so we have collaboration
75:55
between with another sub monopolistic
75:57
collaboration between the 15 large
75:59
employers and union similar the
76:02
collaboration between the printing union
76:03
member in the and the printing employers
76:06
and New York New England that’s how to
76:08
hobble to impose higher costs on the
76:11
southern efficient southern printers
76:13
kingsport strike so similar things
76:15
happen it will happen in a coal whole
76:17
situation so the whole Appalachia
76:25
problem is really a product when mine
76:27
workers of the mine worker employer a
76:29
large employer collaboration in the 40
76:31
50 60 s most of the increase whatever
76:40
increasing unions are been on last 20
76:42
years has been a government employee
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
76:51
employer-employee situations it’s how
76:53
much does the government official and
76:55
taxpayers or whatever willing to shell
76:56
out so the only union growth has really
77:01
been on that in the government employee
77:02
area this of course was also made a
77:05
government court very costly like the
77:08
post office of garbage too much and so
77:11
there’s now a big drive to a
77:12
privatization reads that people get fed
77:15
up at paying very high garbage course or
77:16
what I’ve running and then contract out
77:18
to private firms that you’re either
77:20
non-union a truck use that Union I don’t
77:22
have the same sort of cloud of the
77:23
government unions simply this is a
77:25
taxpayer pays the government really care
77:27
it’d be a nice guy Mokey’s a government
77:30
official is dealing with big you you
77:32
need the big members
77:33
yeah sure we’ll give you a 20-percent
77:35
wage increase why not the taxpayer
77:36
shelter that updating up the guy not the
77:38
president of a mayor or the governor but
77:40
this has now come to roost over the gift
77:42
of a situation government is so costly
77:44
but even the government is now looking
77:46
around for privatizing alternatives and
77:49
so you have garbage collection many
77:51
cities now a third five with fire
77:53
companies the government simply contract
77:55
out of the fire company some of the fire
77:57
department it also as I’ve said the
78:01
government official don’t have any real
78:03
incentive to the efficient of the hope
78:05
the benefit the consumer because they
78:07
the taxpayer kicks is forced to kick in
78:09
the many buddies any any any experience
78:14
and Fire Department for example New York
78:16
the usual these you don’t care about the
78:18
private property they were trying to
78:20
allegedly kind of say know where the
78:22
objective is to put the fire out of
78:23
ultimately have a destroy a whole bunch
78:24
of apartments and in the name of putting
78:28
out the fire and the cousin that does oh
78:32
there’s no there’s no consumer payment
78:35
have to rely on a consumer at the shell
78:37
out so there’s a very different sort of
78:41
situation with it with a private the
78:43
private farm service same way of course
78:46
with a male and notice of other
78:48
government terminal services I think
79:02
this is actually sums up the Union
79:05
situation I say there’s no real as
79:07
though the union’s the pro-union
79:08
spirited window a lot the United States
79:12
you don’t have the backing for the stone
79:14
one more thing should say about the
79:16
about unionization the 20 years ago was
79:21
a famous of boycott a great yeah great
79:24
boycott sage of Shaba is one of the guys
79:28
with great workers in California in
79:30
other areas in that’s the idea was that
79:33
we that the consumer should kick in
79:34
Tibet should help out the Great Britain
79:36
workers union by boycotting grapes
79:39
effectiveness of course boycotting grape
79:43
from him to the man for grapes
79:46
the effect of horses diminish the cut
79:48
the supply the man car for drapes see
79:50
the price 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 great thing is since you can’t see
79:59
when you look at a grape you can’t tell
80:00
up at the Union great for an onion great
80:02
they all look the same there’s always
80:04
questions diminishing the man Carver all
80:06
grapes including the poor guys were you
80:07
for unionized grapes anyway the result
80:10
of this course of you know your cousin a
80:12
man curve for great shift to the left
80:13
and reduce the profits of the incur
80:17
losses and great ministry and the result
80:19
the man curve for great workers of them
80:22
so the result of boycott was the lower
80:25
the wage rate for great 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 great viewing isn’t although
80:37
that’s the sort of them the diminished
80:38
now last 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
with what kind does the losses of a man
80:46
curve for stopping by lowers the wage
80:48
right so in order the goal the objective
80:51
was to benefit the great workers instead
80:52
of that I really enjoy the great worker
80:54
at least for the food for the pic hold
80:56
period in the global boy I was going on
80:58
it doesn’t seem to be right another as
81:00
11 economists wrote of the timing so if
81:03
you want to really help the great board
81:04
you should use money as money grapes as
81:06
possible you should increase the demand
81:07
curve for grapes which none of course
81:09
increases a curve great workers and
81:11
increases their wage rate and increases
81:13
the employment some of the other way
81:14
around which cuts the way grant cuts the
81:16
employment so boycotts is generally a
81:18
self-defeating way of going I’m trying
81:20
to benefit the workers involved and at
81:25
least while of what I was going on you
81:27
say well actually what causes victorious
81:28
who helps them that’s kind of a 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 we the I’m not sure
81:37
the full consequences would spell after
81:38
them before the boycott got underway
81:42
this is a trouble vile a little boy
81:44
in general the boy died an ideological
81:46
boycott say boy kind of Russia or South
81:49
Africa or whatever the problem it
81:51
doesn’t help the workers were involved
81:53
in this thing but it doesn’t it cut to
81:55
the man curve and they buy reduces their
81:58
wages in there
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 self-indulgent as a weapon
82:07
which is usually employed by people are
82:09
far removed from the action go don’t see
82:12
the consequences on the count of people
82:14
involved hey we now are we not cover the
82:22
Union question the next step on a you
82:26
know I deal with all some extent when we
82:28
mixed up with the talk about the supply
82:31
of labor talk about the Uni of the
82:33
effective supply of labor while ever and
82:35
population in other words one of the big
82:37
of terminus of latest by force the
82:38
number of people around and so the
82:41
question then is a question of
82:44
population growth which about ten years
82:46
ago was a big thing there were a lot of
82:49
the opinion of population growth has
82:52
fluctuated a lot in the 20th century
82:56
usually the old days idea was a bigger
82:58
the population of better and then with a
83:03
mouth fujian theory was the Reverend
83:06
Thomas Robert Malthus the English
83:10
minister and economists around late 18th
83:13
early 19th century and in reining in a
83:24
period interesting enough writing a
83:25
period where Menace Industrial
83:26
Revolution where population was going up
83:28
and stan is living or going up at the
83:29
same time writing in this period around
83:31
1790s Malthus concluded the world is
83:35
going to hell because we’re increase
83:36
population growth the way you put it was
83:39
a famous phrase was that the population
83:42
test to grow geometrically in other
83:44
words test the bubble and what a
83:46
quadruple whenevers everybody has two
83:48
kids or four kids me how each one of
83:49
them has four kids you have a sort of
83:51
sky rocking our exponential increase
83:53
population whereas the food supply grows
83:58
only arithmetic Lee we’ve only grows I
84:00
guess more moderately it’s a very
84:02
peculiar construction anyway the
84:05
population grows geometrically and food
84:10
supply grows our if medically and so
84:12
therefore
84:12
or he said population always tends to
84:16
press other food supply people attending
84:17
the diet the words people always down a
84:22
subsistence level if that and this
84:26
population presses on the food supply
84:29
this causes famine war is everybody’s
84:32
young warring for the toilet for the
84:34
only water hole left nut sort of like
84:37
killing each other off of the scarce
84:38
food and disease and famine all these
84:42
things are coming awake which tends to
84:44
keep the population down down in other
84:46
words as population becomes excessive
84:48
people kind of died out and starve as
84:50
diseases and they kill each other so
84:52
this is the very gloomy picture of
84:54
course of world history a peculiar thing
84:59
he wrote this just at a time in a period
85:01
when the population was going up and
85:02
even when the foodland family living was
85:04
going up you wrote it very odd till I
85:06
are like this just as Santa living was
85:08
taking off into the stratosphere for the
85:10
first time in 500 years other words what
85:13
you really had is the population remain
85:16
about the same and Europe about about
85:19
countenance amount until about a
85:21
thousand 8d until about 1753 the
85:24
simplification was basically a sorta
85:26
resident that they fluctuate much it
85:27
didn’t keep increasing we used to
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 Sun
85:36
and the reason is the fan of living went
85:38
up you know it’s basically the reasons
85:41
will go into so he’s running this thing
85:43
just at a time when everybody when
85:45
everyone the population was really
85:46
improving not only going out but also
85:48
improving Santa living and its influence
85:50
economic so the classical economists
85:52
became Malthusian is always worried
85:54
about the population pressing on the
85:55
food supply just at a time I obviously
85:57
wasn’t pressing the food supply 30 the
85:59
Cure several of autonomous I think them
86:01
to worry about the wrong problem with a
86:03
long time at any rate in the early is
86:09
the early 20th century as the population
86:14
growth population started reclining in
86:16
Western Europe in France and other place
86:18
in Western Europe population is
86:19
declining and so the theoretician
86:22
started bellyaching about race suicide
86:23
they call it look for the world
86:25
died out but they do is they project
86:27
trends they said well it’s a French
86:28
population is going down my 2% year or
86:30
something it means 80 years the punch
86:32
rapidly wiped out other words given this
86:34
thing right I simply extrapolate the
86:37
trannies IV France will disappear in 80
86:39
years or a hundred years wherever it is
86:42
this by the way is the way essentially
86:44
why demographers operators very it’s a
86:46
very simplistic let me just take
86:49
existing transit extrapolate them and
86:50
you have any sort of horror or result so
86:54
then they thought of having bounties for
86:55
kids in France and other parts Western
86:57
Europe subsidized number and kids
86:59
whether we’re all so worried about
87:00
cannon fodder in or was the word of the
87:01
French population declines how they
87:03
going to fight how you Anakin script
87:04
people in the army but though people to
87:05
be conscripted so they started giving
87:07
bounties for kids you know give you a
87:09
thousand dollars per kid born and this
87:12
indeed tended to turn around the
87:14
population growth and about 10 15 20
87:19
years ago they thought of EPG history
87:21
and the populations going through fast
87:22
and I won’t have your room the standoff
87:24
will be full disappear what will be
87:27
starving too therefore we should limit
87:28
population goes now big so-called vpg
87:31
movement namely the corncrib zero
87:33
population growth okay will resume this
87:36
next time

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