08-09-2018, 01:59 PM
(08-09-2018, 01:10 PM)Belsnickel Wrote: I struggle with people that do the reverse, which is really what I have been getting at in my posts. It is the free market in both situations, or it is how the free market should work in principal. However, this is a market failure. Market failures are where government intervention is required.
To me the union itself, by its existence, creates a market failure. Collectively bargaining pay and such that is indiscriminate of the workers actual performance (think pay increase based on years) artificially manipulates the supply and demand model. You demand "high performing employees" however you are provided with a supply of workers who's performance does not actually dictate their value. In this case you don't allow the market to set the value of these employees but rather a collective bargaining agreement has forced you into paying this specific labor force a set rate.
I will never support the idea of paying a large group of people a set pay schedule with no relation to their performance. That is one of the reasons I actually have such an issue with unions. Teacher unions are a good eacmple, there are really good teachers and there are really bad teachers if they both work the same amount of years and have the same level of education you are stuck paying them the same. I feel like good teachers do deserve to be paid more, but it's hard to justify when you know the bad ones will get paid the exact same.
