Tuesday, December 30, 2008

what if the choice is unions or government?

One of the reasons I tend to be surprised by the level of anti-union sentiment among economic conservatives is that I see unionism as a natural, and private, alternative to the kind of regulatory and social services creep that conservatives dislike.

I understand that, in a perfect world for economic conservatives, there would be neither unions nor many workplace regulations nor the kind of social programs that liberals favor. It seems to me, though, that after a rather demoralizing series of electoral losses, it perhaps is not the time for triumphalism among economic conservatives. I know these things can turn on a dime. But to me the most salient and important aspect of the various election postmortems was the sense in which Americans have had enough of bootstrapping rhetoric. The congressional elections, I feel, are actually a more telling and important indicator of the national mood than the presidential election, and to me, the most obvious message sent was that Americans were looking for more from government. I'm not good on predictions, but it does seem to me that this is part of a long national shift in the way we view government, not a fickle and brief burst of political anger. Republican politicians now sound like moderate Dems from even 10 or 12 years ago; they seem to know that appeals to gumption or can-doism simply aren't cutting it anymore.

If you're an economic conservative, of course, you should be unhappy about the seeming likelihood of increased government intervention and government spending. Universal health care, of one form or another, looks more likely than not, for the first time in my lifetime. That's the perfect example of a service that, for complicated reasons, is not being provided by the shibboleth of the free market. Americans, feeling the effects of that, turn to government to provide health care. The consequences of such a thing, the wisdom of it, what it says about our evolving national character-- all are open questions, and they have been debated endlessly. What seems clear to me, though, is that this is what is happening. For a conservative, that notion that needs not filled by the market should be provided by government is frightening. I can't argue, though, that this is not a notion that has entered the public consciousness. But what if there was an alternative, another way to at once provide the necessary social and regulatory structures that working Americans need, without turning to government?

To me, that alternative is unions. Say whatever you want about unions-- that they're inefficient, that they're slow to evolve, that they are an affront to free market principles-- they are private entities. They are not wings of the government. And they are a way for working Americans to get a hold of the kind of social guarantees that they are demanding without turning to the coercive legal force of government. Are unions coercive? Sure, in a sense. But they're no more coercive than any other contractual obligation, and surely no more coercive than the coercion of being employed. There's a strange meme around that, while the unions can take or leave whatever the management puts out there, the managements of companies, such as the Detroit automakers, are forced to sign contracts, while unions could walk away from them with no negative consequences, free to go and work in, I don't know, the land of Honah Lee. Yes, not being able to hire anyone to work at your business is a detriment to any corporation. Not being able to have a job and feed your family is a detriment to any worker. Workers and business need each other; unions are the vehicle of workers to leverage that need, just as incorporation is a vehicle for business. It's a mark of our strange national conversation that at a time when corporate power is as entrenched and politically connected as it ever has been, and unions as small and beleaguered as they have been since the dawn of the American labor movement, so many talk about the big, powerful unions and the supposedly meek and retiring corporations.

Whatever else is true, it's the case that the coercion of unions is dwarfed by the coercive power of the government. More and more often, the same services and regulations that have been fought for by the American labor movement-- a movement celebrated around the world, by the way, if not here-- have become codified into law. Many people have decreed that unions are no longer necessary because the law has come to provide the things unions were started to ensure-- a system for capping working hours or for better compensating for hours beyond a certain point, safety and environmental regulations for providing for the health of workers, unemployment and severance benefits, retirement packages, and it seems likely in the near future, health insurance. This has always seemed strange to me, to punish unions for their own success. But it is true that many of the services brought to us by unions have found their way into law. Is this a victory, though? Certainly not for a conservative. Rather than the result of an agreement between workers and employers, these things are now decreed by government. People love to point out the gradual erosion of the number of union workers in the United States. They fail to point out that the benefits of unions have been replaced by government intervention.

This isn't a happy change for conservatives. However coercive or impure the negotiations between business and union, they are negotiations, and there is at the heart of them principles of economic freedom. When law is made to supersede those kinds of arrangements, any notion of bargaining and deal-making are lost. That's not a big problem for me, I guess, but if you're a libertarian, it should be for you. Things change. I suppose it is possible that we will regress to a society less likely to provide certain benefits and regulations that workers demand. But that seems completely out of the character of the national mood, and contrary to recent political history, or the movement of American political history as a whole. Now just doesn't seem like the time for economic conservative triumphalism, with no allowances for the guarantees workers want at all. Sticking to that line seems to me to be a way for economic conservatives to consign themselves to irrelevancy. If these kinds of demands are going to be provided, isn't it for better for conservatives that they be provided by unions instead of by government fiat?

It just seems to me that an awful lot of conservatives are cheering the slow destruction of American unions while a vast architecture of government regulation and social programs is being built in their place, which conservatives should like much less. It's odd to me.

18 comments:

paul said...

I think you basically answered your own question; unions were once far more necessary, and now tend to be ossified and unhelpful ... this may be a partial reason for the conservative disdain for unions (apart from the general conservative distrust of actual functioning democracy and populist movements generally). Unions really do seem (in my limited knowledge of such things, personal experience with friends in unions, etc.) tend to be full of corruption and also tend to encourage workers to be as mediocre as possible; things that conservatives and libertarians are going to be annoyed by. As for their being inconsistent and as it were unaware that the consequence of this is greater government intervention (in the form of labor laws/regulations, incipient universal health care), well ... I guess you could ask Megan what she would say?

Will said...

Fair enough, and I don't think many conservatives object to voluntary associations aimed at improving employees' wages and working conditions. But unions don't exist in a vacuum. Like it or not, they're enmeshed in a regulatory structure that grants them special privileges to encourage workplace organizing. That, I think, gets at the root of conservative distaste for unionization.

Anonymous said...

Very interesting post and I sympathize with some of the points you are making. But I think you are overlooking the the incredible structural/regulatory advantages that labor has, but virtue of the NLRA and the like, over management. These advantages are not "natural"; they have been artificially created by the coercive and intrusive government. I'm also not saying that labor/unions necessarly have the uppder hand, just that the deck has already been stacked to some degree by government.

The Abstracted Engineer said...

You argue that health care is not being provided by "the shibboleth of the free market"...

First off, nice use of "shibboleth."

Second, its a fallacy to argue that health care is a part of a free market economy. The state of California estimates somewhere above 10 billion dollars has been spent providing legally-required medical services to illegal immigrants that will never pay it back.
The "complicated reason" the health care system is breaking down and people are calling for the government to step in and do something is because the government broke the health care system down when they stepped in and did something!

E.D. Kain said...

Unions are not "private" in the sense a business is. They are parasitic more than private. They cannot function without an actual private (or public) organization to feed off of, though they most certainly evolve into organizations that are self-perpetuating rather than actually beneficial to the workers who form their ranks.

Sadly, unions are a reaction to greedy, inhumane capitalism. The company I work for pays very high wages, provides excellent benefits, and is employee-owned and private. It probably wouldn't be able to provide so much for its employees if it were public, or if the management were greedy. Which they aren't. They are well-to-do but realize that they best way to run a good company is to pay your people well.

Thus, no need for a union. Of course, if we were to go public, we would suddenly be at the whims of the share-holders, of the endless quarterly projections, etc.

Quite possibly the current management would be forced out in favor of those who could promise big gains in the short term, with no vision for the long haul. Pay and benefits would be cut drastically.

Either we'd go out of business or we would see some move to unionize--either scenario not a good thing, as unions would cripple the efficacy of the business as bad as poor management.

Are unions always bad? Not necessarily. I don't see that much wrong with government unions, though I think whenever you enter the public or non-profit sphere you run less risk with unions.

In any case, the union question is much simpler than the poor management one. What to do about this greed? This huge disparity of pay? For some reason, I just don't think capitalism was meant to work this way...

Freddie said...

I have to tell you guys, you say lots of smart things, but you seem to be avoiding the central issue: I don't know how you can look at the current political or cultural situation and not think that the regulatory and social state apparatuses (apparati?) are going to grow. I'm just wondering aloud if unionism could be a viable alternative to that, which should be much less attractive to economic conservatives.

I don't mean to come down on you guys in particular; I just have not seen any kind of a concerted effort to confront the unpopularity of the basic conservative tactic of rhetoric in the face of public need. There's been a ton of talk about social conservatism since the election, but much less about economic conservatism. I'd like to see more new approaches ala Grand New Party.

E.D. Kain said...

Grand New Party offers lots of interesting ideas--and it's refreshing to see them, which is why I hold its authors in such high esteem--but it also chooses largely to ignore the problems associated with inflation (either on the dollar, or on our education should higher education be socialized to the extent argued in the text). This is all another story, however.

Regarding your notion that unions present a viable alternative to government, I would have to argue no. I would prefer more government to more unions, simply because at least government operates with some accountability to the electorate. At least oversight from the government can be used to prevent the sort of collapse we see today (it's possible, at least). Government can be changed every two or four or six years to reflect changing times, whereas unions become so entrenched as to become almost inoperable, cancerous.

Now--that said--I'm not a real huge proponent of globalism, and I see a place in all of this both for government protection, worker rights, and so forth. I guess the either/or nature of the question is the problem. I would prefer to see some reformation of how business is done, how free trade is viewed, how management and labor can work together more organically--but Lord knows I have no idea how to start restructuring this mess...

fowler said...

"the shibboleth of the free market"

I must disagree with this. This really makes no sense whatever, unless you believe that conservatives all speak with a lisp. Or that free markets have speech impediments. Neither of which seems to be the case in the argument.

Mark Thompson said...

Unions can be good, bad, or neither. Unfortunately, the quality of the organization is highly contingent upon the organization's leadership to an almost unusual degree, yet the processes that result in the selection of that leadership are highly subject to corrupt influences.

As to Freddie's actual question, I would absolutely prefer the growth of unions to the growth of government. The trouble is that the way the unions are largely seeking to grow is by pushing through government-growing regulations. That said, I don't see why independent-minded (and principled) libertarians and conservatives* should be opposed to ways of growing unions that involved, say, the repeal of significant portions of the Taft-Hartley Act. In fact, as such a libertarian, I'd have to say that I would probably actively support such a push. Admittedly, I'd think the remaining regulatory structure was marginally too unfair to employers, but it would still be a good step in the right direction - regardless of whether it prevented what is otherwise an inevitable growth of government in other sectors.

The problem is that you won't be able to get Republican politicians on board with this, both for good reasons and bad. First, Republican politicians have legitimate reasons to distrust unions - having observed some of this first-hand, it's difficult to underestimate the role that certain unions play in advancing the Democratic Party's agenda on issues that have absolutely nothing to do with labor. So, by strengthening unions, you strengthen the Democratic Party. Second, as much as certain unions play a role in advancing the Dem agenda, the Chamber of Commerce and other organizations that are fundamentally anti-union play that kind of a role in the Republican agenda. That's therefore a pretty powerful entrenched interest to overcome.

Finally, in terms of this statement:
"I just have not seen any kind of a concerted effort to confront the unpopularity of the basic conservative tactic of rhetoric in the face of public need. There's been a ton of talk about social conservatism since the election, but much less about economic conservatism."

I think an explanation for this problem is pretty well summed up here
And yes, I'm sorry for the self-promotion inherent with that link.

*Since ED is pretty much an outright independent, I exempt him from this.

Freddie said...

You're right, Mark, that's relevant, and a well-argued post.

E.D. Kain said...

Mark, you bring up some very good points...especially regarding the government-growing regulations (and unions are, in a sense, a sort of regulatory organization in and of themselves, are they not?) and the way this would play into the hands of the Democrats--though I think it's important to remember that with conservative leaders in the vein of Reagan, America saw the creation of Reagan Democrats, and with a little more care given to the blue-collar workers of this country, the GOP could gain that voting bloc again.

The fallacy with this whole debate as the either/or question--either there will be growth in unions or there will be growth in government.

More than likely one will usher in the growth of the other, so it really isn't down to a choice between the two.

It might, on the other hand, be a choice between how the government and unions grow, and certainly if unions are to remain afloat in the global economy they will have to evolve, and so will government.

Interesting notion re: the Taft-Hartley Act. I'll have to read over it again, though off the top of my head, I wonder if it might be a little dangerous to do in the current economy...?

Mark Thompson said...

Freddie and ED:

Thanks for your compliments.

ED:

I agree that there's little reason to think that Republicans can't once again make inroads into the blue collar vote, particularly if they were to push to repeal Taft-Hartley. The problem is that it's extremely risky politically because: 1. Past GOP inroads into blue collar voters were largely achieved through social conservatism and Reagan's taste for the Cold War - Reagan himself always maintained an extremely strong anti-union stance on labor issues; 2. Those past inroads thus did not involve alienating a key constituency such as the Chamber of Commerce, which would be the case here; and 3. The previous inroads into the labor vote were, I think, relatively short-lived, and the union leadership itself remained staunchly in the Dem camp throughout. Strengthening unions would have long-run effects that would outlast any short-run electoral rewards - unless, of course, the change in position actually pulled some of the union leadership away from reflexive support of the Dem agenda. And therein lies the gamble.

In terms of whether repealing Taft-Hartley is a bad idea in this economic climate, I guess the answer is that it would be no worse an idea than card-check legislation, which I think is coming one way or another. It would also marginally increase consumer spending due to the fact that it would likely increase wages, either by creating an inflationary pressure (which would combat the prospect of deflation) or by taking money out of corporate investment and putting it in the pockets of workers who will spend it. This would be an undeniably good thing if you take a Keynesian view of economics in which an increase in consumption can stimulate an economy out of a recession. If you take an Austrian view of economics, though, this is probably not the greatest thing in the world (though it's not the worst either since it doesn't involve government spending).

Finally, as for the idea of this not being an either/or question, I'm not entirely sure I agree. Certainly, you are correct if you strengthen unions through card check. But obviously if you do it through what is effectively deregulation, you marginally decrease the size of government overall while significantly reducing the role of government in employer-employee relations. Since you're increasing wages, you're also marginally decreasing demand for government safety net programs.

E.D. Kain said...

Mark--

But obviously if you do it through what is effectively deregulation, you marginally decrease the size of government overall while significantly reducing the role of government in employer-employee relations. Since you're increasing wages, you're also marginally decreasing demand for government safety net programs.

Indeed, you're absolutely right on this point--I would just add that since we're entering a Democratic period we're more likely to see more regulation and a bulk-up of unions, rather than the deregulation you speak of. It's a novel idea, and I think you make a strong case for it, but I don't see it in the cards...at least not any time soon.

Clayton said...

My natural instinct is to recoil at the thought of unions and it's easy to point at the UAW and see one run mad. However, we have a large union at my employer whom I have to deal with on health and safety issues - they're by far the easiest constituent of the process to deal with - one place I can go to negotiate with 25,000 people and they're generally sensible and flexible. It's put a real dent in my normally right wing thinking about them.
The overall idea that unions could replace the government assumes that there's some service in there we need from either of them - that said if there's a sensible balance of power between employer and union then the system makes sense. Transaction costs for salary negotiations are lowered for the business and employees can resist the worst impulses of business. I've seen heath and safety, working hours, leave arrangements, crazy bosses and lazy employees all dealt with privately under this scheme mostly sensibly.

Mark Thompson said...

ED - no doubt the political incentives make my preferred way of strengthening unions beyond unlikely. I do think it's a shame, though, because it misses out on a way of using free market ideology to explicitly and unequivocally help blue collar workers.
Still, given the inevitability of some form of legislation that is going to strengthen unions, it saddens me that Republicans aren't going to be willing to offer up a compromise that is consistent with free market ideology,helps union workers, and avoids the forced implementation of card-check balloting (which I firmly believed to be antithetical to a free society). Assuming that is how things play out, it will largely prove Freddie's argument that the conservative infrastructure seems more fixated on union-bashing than with concern for what is morally right - even though there are plenty of other conservatives outside the realm of the talk-show crowd who only oppose unions insofar as they rely on government assistance to build their strength.

Maineiac said...

Very interesting post, I had never though of it this way. The comments are interesting as well. I don't agree with some of the comments but this:


the incredible structural/regulatory advantages that labor has, but virtue of the NLRA and the like, over management. These advantages are not "natural"; they have been artificially created by the coercive and intrusive government. Investors form corporations and their assets are protected by the power of the state. Is that "natural"?
One of the overlooked reasons managers dislike unionized worker is because it severely limits their ability to treat workers arbitrarily. Some supervisors enjoy the power of an non-unionized workplace in ways that have nothing to do with productivity or work rules.

Anonymous said...

The main problem that has occured with unions and the government is that they appeared to now be linked at the hip. With the coercive powers of unions with elected democrat government officials, it almost appears as the wil of the union is the will of the government. While I feel unions are a necessary evil to safe guard the rights of workers, they have become far too powerful. With the recent explosion of lobbyists it appears that they are a very power faction influencing our government. Perhaps this stands as a bulwark to those who would persuade government legislate away worker rights, but the shoe is currently on the other foot. As it stands, unions are pushing for legislation that would vastly increase their power and influence. Unions have proven to be a necessary evil, but their power and influence has become too great.

Elizabeth Ericson said...

The US and all the people that think they earn a living are in for a rude awakening when they lose their free trade jobbeys. Wait till they have to go to a bazillion job interviews and resumes and faxes only to find out they are finished and unsuitable past the age of 30! Alcohol beverage companies are a buy. Even the most self deluded republican will wake up and smell the coffee.