February 22, 2011

Unions and Oligopolies

Labor unions are a prime example of what happens when one entity gets so large and powerful that it takes over markets that are necessary to provide goods and services to our citizens. In this case, the service is labor.

This blog is dedicated to exposing the collapse of free markets in this country. This applies to not only corporations, but also labor unions. Oddly, this collapse is led by the "conservative" segment of our society demanding less regulation and more capitalism. What has happened over the last several decades is the push for less regulation has resulted in industries being taken over by a band of a few companies and unions coming together and controlling markets.

This results from government not enforcing our anti-trust laws that are suppose to protect us from power and control of markets and the destruction of free markets.

I am in favor of labor having the right to negotiate with their employers for fair wages, benefits and good working conditions. I am in favor of labor having the right to expect fair treatment by their employers.
Lord Acton, the British historian, said in 1887; "Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."
Unions, just like many corporations have gained too much power. What is in their personal interest is not always in the best interest of freedom and the public. This consolidation of power began in the late 1960's, early 1970's, in the auto industry when it was transformed from a free market to an industry that was controlled by three giant corporations and one union. As this transformation was occurring the auto company's and auto union's self-interest became separated from what the consumer wanted and/or needed. Competition between the companies broke down and this gave an opening for foreign competition to enter our markets and the beginning of the end of the American auto industry as we knew it.

Our government must protect workers, but it also must protect its citizens from the abuse of too much power. Our politicians are not protecting us because they have been bought off by big oligopolies; both corporations and unions.

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