Labor

Child Labor

Child workers, good or bad? The Road From Serfdom
May 21, 2003
by Radley Balko
"In the early 1990s, the United States Congress considered the "Child Labor Deterrence Act," which would have taken punitive action against companies benefiting from child labor. The Act never passed, but the public debate it triggered put enormous pressure on a number of multinational corporations with assets in the U.S. One German garment maker laid off 50,000 child workers in Bangladesh. The British charity organization Oxfam later conducted a study that found that thousands of those laid-off children later became prostitutes, turned to crime, or starved to death."

In Defense of Child Labor
by Llewellyn H. Rockwell, Jr.
"When youth factory work was restricted by an unholy combination of upper-class bleeding hearts and socialists, it was the kids who suffered. Since they had to live, and since they would do anything to avoid the social workers, the youngsters were forced to look for usually lower-paying and more dangerous work in the countryside."

Legal Child Abuse
by Wendy McElroy
"In Third World countries, parents often cannot provide the basics of life for their children, who must trade their labor for sustenance. The greatest act of benevolence is to recognize their right to contract and to work in the same manner as adult rights are respected. Anything that interferes with the self-sufficiency necessary for their survival is child abuse."

Paid and Unpaid Labor
July 30, 2009
by Art Carden
"Legislation has outlawed "child labor" in the United States in various manifestations for decades, yet child labor persists for several reasons and through many different channels."

Protest! (For No Good Reason)
by Walter Block
"Why did Western Europe allow child labor during medieval days? It is easy to understand, even for those now in the process of attaining a college education. Societies that allow these practices are simply too poor to afford to prohibit them. To deny children the right to work in fifteenth-century England or in twenty-first-century Chad is to consign them to death. Not very 'progressive.'"

The Trouble With Child Labor Laws
February 11, 2008
by Jeffrey A. Tucker
"In the end, the most compelling case for getting rid of child-labor laws comes down to one central issue: the freedom to make a choice. Those who think young teens should do nothing but languish in classrooms in the day and play Wii at night will be no worse off. But those who see that remunerative work is great experience for everyone will cheer to see this antique regulation toppled. Maybe then the kids of America can put their computer skills to use doing more than playing World of Warcraft."

Illegal Aliens

Illegal Aliens
by Hans F. Sennholz
"Nothing but the right can ever be expedient. In the cause of individual freedom, we must defend the rights of all people, including illegal aliens. But if the political rights of American citizenship entail the denial of the human right to work diligently for one’s economic existence, and if we are forced to choose between the two, we must opt for the latter. The right to sustain one’s life through personal effort and industry is a basic human right that precedes and exceeds all political rights. It is an inalienable right of all people, including illegal aliens."

Sweatshops: Look for the INS Label
July 1, 2000
by Wendy McElroy
"Papers proving a worker’s eligibility for employment became mandatory in the United States under the Immigration Reform Control Act (IRCA) of 1986. IRCA requires employers to complete an I-9 Form for “new hires” in order to record the documents that establish the worker’s employment eligibility. Immediately, undocumented workers became vulnerable to abuse. For example, if an undocumented employee protests a breach of contract, he (or members of his family) can be reported to the INS."

Labor Markets

Globalization and Labor Markets
by Prof. Jan Narveson
"In this essay, I'll start by sketching the Standard Case, as we might call it, for free trade. We will then turn to labor issues in particular, and especially to the claim that there is some kind of serious injustice involved in globalization."

The Labor Market
by Ludwig von Mises
"What makes the worker a free man is precisely the fact that the employer, under the pressure of the market's price structure, considers labor a commodity, an instrument of earning profits. The employee is in the eyes of the employer merely a man who for a consideration in money helps him to make money. The employer pays for services rendered and the employee performs in order to earn wages. There is in this relation between employer and employee no question of favor or disfavor. The hired man does not owe the employer gratitude; he owes him a definite quantity of work of a definite kind and quality."

Labor Standards or Liberty?
September 28, 2009
by Art Carden and Joshua Hall
"International labor standards are going to make things worse, rather than better, for the world's poor. If you want to help poor people, restricting their options and opportunities is not the answer."

Labor Policy

A Free Market in Workplace Regulations
by Ninos Malek
"In a true fre-market, employers would have the right to determine employee qualifications, whether it be physical appearance, religion, gender, intelligence, or, yes, lifestyle choices."

The Gambling-Stakes Paradigm for Loans and Labor Contracts
by Roy Halliday
Slavery contracts of all kinds, including voluntary slavery contracts, should not be enforced in libertarian courts. Instead, libertarians should adopt the gambling-stakes paradigm as the basis for labor contracts, loans, and other contracts about future events.

Labour Day: What Are We Celebrating?
by Jason Clemens and Patrick Basham
"Human labour, imagination, and the right institutions, have given us a previously unimaginable prosperity and standard of living."

Labor Relations
by Dr. Mary Ruwart
The good doctor answers the question, "Would a free market produce the bad conditions commonly associated with the Industrial Revolution, such as low wages and monopolies?"

Liberty and Labor
October 1998
By Llewellyn H. Rockwell, Jr.
"What would happen if we scrapped the entire apparatus of federal labor law and allowed relations between workers and bosses to be governed solely on the basis of contract, like any other market transaction?"

Liberty for Labour
by George Howell
"The multiplication of laws is perilous; each new Act, almost of necessity, creates the need for further. legislation; it propagates itself, until newer circumstances arise to render it obsolete or useless. We have too much law, and too little justice. Additional law will scarcely tend to augment equity, in the true sense of the term. Therefore, instead of increasing the bulk of statute law, or extending it in newer directions, of bringing it to bear upon labour, in the manner proposed by its recent advocates, the object rather should be to curtail it, to simplify it; to codify that which is useful and approved; to repeal what is bad and mischievous, and to give a fuller freedom to the faculties of man in all that is noble and good."

Politicians’ Abuse of the Working Class
August 30, 2000
by Paul Craig Roberts
"Most hunters and gun owners are people in the working class. Thanks to public education, their children no longer respect them. Abortion and "sex education" have brought them the shame of promiscuous daughters. Feminism has made it possible for their wives to walk out on them at will and dispossess them in the process. Racial minorities favored by Democrats have gained preferments at their expense. The payroll tax and income tax prevent them from saving and leave them dependent on the very government that undermines them."

Why Not Deregulate Labor?
by John A. Davenport
A favorable review of Deregulating Labor Relations by Manuel Johnson, James T. Bennett, and Dan Heldman.

Robots

Robot Protectionism
by Ernest G. Ross
"In essence, then, the fear that robots are anti-employment is an extremely short-range, irrational fear, a descent into Ludditism. Robots are a part of a man’s technological nature and his future. One cannot rationally object to their entrance into the marketplace without simultaneously demanding that man deny the kind of being that he is."

Workers and Robots
by Hans F. Sennholz
"We may at times despair about our political institutions that are feasting on and squandering our economic substance. Governments may be laboring diligently to maintain the status quo by erecting obnoxious barriers to change at every turn. And politicians who are aware that children have no votes may want to burden them with our debts. But the computer revolution, this incredible achievement of American inventors and entrepreneurs, is nourishing an imperturbable faith in a brighter tomorrow."

Sweatshops

Don’t Get into a Lather over Sweatshops
August 2, 2005
by Benjamin Powell and David Skarbek
"By purchasing more products made in sweatshops, we create more demand for them and increase the number of factories in these poor economies. That gives the workers more employers to choose from, raises productivity and wages, and eventually improves working conditions. This is the same process of economic development the US went through, and it is ultimately the way third-world workers will raise their standard of living and quality of life."

Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?
September 27, 2004
by Benjamin Powell and David Skarbek
"In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers."

Sweatshops: Look for the INS Label
July 1, 2000
by Wendy McElroy
"When New York Governor George Pataki signed path-breaking anti-sweatshop legislation in 1996, he stated, “In no small measure, this bill is going to be signed this afternoon because Kathie Lee Gifford and Frank Gifford made this a personal crusade.” The legislation holds liable manufacturers and retailers who knowingly purchase, ship, or deliver goods produced by sweatshops. Such legislation will do nothing more than drive labor practices further underground where abuse can flourish unseen."

Third World Work in the Apparel Industry: No Sweat?
June 7, 2005
by Benjamin Powell and David Skarbek
"economists point out that alternatives to working in a sweatshop are often much worse; oftentimes scavenging through trash, prostitution, crime, or even starvation are the other choices workers face."

Why the World Needs More Sweatshops
by Dr. Michael Walker
"Sweatshops bring investment, which is the key that will unlock the chains of poverty in which billions of the world's poor are ensnarled."

Unemployment

The Cure for Unemployment
by Roland W. Holmes
"The cure for unemployment is free competition for jobs. To the extent that this simple fact is recognized in our society, to that extent will our effort to stem the growth of governmental intervention receive an essential boost."

A Primer on Jobs and the Jobless
by Walter Block
"But as a society, we can insure that everyone who wants to work has a chance to do so by repealing minimum wage laws, comparable worth rules, working condition laws, compulsory union membership, employment protection, employment taxes, payroll taxes, government unemployment insurance, welfare, regulations, licensing, anti-peddling laws, child-labor laws, and government money creation. The path to jobs that matter is the free market."

Unemployment
by Ludwig von Mises
"Unemployment in the unhampered market is always voluntary."

Unemployment by Legal Decree
by Bettina Bien
"Modern politicians, who try to legislate high wages, should realize that such laws help cause unemployment among the workers “covered.” It is a basic economic truth that goods or services priced higher than the market warrants must inevitably remain unemployed."

Unions

Auberon Herbert on Labor and Unions
by Gary Galles
"Auberon Herbert made the clear and compelling case for liberty rather than labor unions as the source of the greater economic output that leads to correspondingly higher real incomes for workers. He also showed how the restrictions and other distortions imposed by labor unions have harmed the vast majority of workers."

Bastiat and Unionism
by Charles W. Baird
"Although unionism was a new phenomenon in the first half of the nineteenth century, Bastiat saw that it was nothing special. It could and should be subject to the few simple rules of classical liberalism. That it wasn’t made generations of workers worse off than they otherwise would have been."

Can Labor Unions Restrict Wages in a Free Market?
by Murray N. Rothbard
"Whereas wage rates on the nonunion labor market will always tend toward equilibrium in a smooth and harmonious manner, its replacement by collective bargaining leaves the negotiators with little or no rudder, with little guidance on what the proper wage rates would be."

Is There a Right to Unionize?
by Walter Block
"My opposition is not merely to violence, but, rather, to "violence, or the threat of violence." My position is that, often, no actual violence is needed, if the threat is serious enough, which, I contend, always obtains under unionism, at least as practiced in the U.S. and Canada."

Labor Relations, Unions and Collective Bargaining: A Political Economic Analysis
by Walter Block

Labor's Day Is Over...
September 6, 2009
by Daniel Griswold
"Labor leaders blame the decline on union-busting corporations, years of hostile Republican rule in Washington, and a flood of imports from low-wage countries such as China, but the main reason behind the decline of private sector labor unions in recent decades is the anti-competitive nature of unions themselves. Like a virus, labor unions have been slowly sapping the lifeblood of the very industries and companies that employ their members."

Labor Unions
by Ludwig von Mises
"If unions were really bargaining agencies, their collective bargaining could not raise the height of wages above the point of the unhampered market. As long as there are still unemployed workers available, there is no reason for an employer to raise his offer. Real collective bargaining would not differ from individual bargaining."

On Freedom of Association
July 2002
Charles W. Baird
"The NLRA violates individual workers’ freedom of association in two ways: forced representation and forced payment of agency fees. First, under the principle of exclusive (monopoly) representation, when a union has been approved as bargaining agent by a majority of workers on a job, that union also becomes the bargaining agent for those workers who voted against the union, as well as for those workers who didn’t vote. Individual members are even forbidden to represent themselves. Other freedoms guaranteed by the First Amendment, such as freedom of religion and freedom of speech, are not subject to majority rule. Neither should freedom of association be subject to majority rule."

On Labor Unions
by Percy L. Greaves, Jr.
"In a free society, labor unions, like other organizations, would be voluntary groups trying to advance the interests of their members. They would abide by the laws and seek no special privileges or immunities. Unions that offered employers the most competent and reliable workers, who were willing to work for competitive free market wage rates, would grow and prosper. Labor unions that offered incompetent workers, insisted on featherbedding, or other unnecessary or costly conditions and demanded higher wage rates than competent non-union members would willingly accept would soon fade away. Certainly, in a free society no group should or would resort to violence, coercion or special privileges to obtain what it seeks."

The Philosophy of Strikes
by William Graham Sumner
"If a man is dissatisfied with his position, let him strive to better it in one way or another by such chances as he can find or make, and let him inculcate in his children good habits and sound notions, so that they may live wisely and not expose themselves to hardship by error or folly; but every experiment only makes it more clear that for men to band together in order to carry on an industrial war, instead of being a remedy for disappointment in the ratio of satisfaction to effort, is only a way of courting new calamity."

Public Sector Unions
by Walter Block
"If the state is so wonderful as all that, why the need for a public sector union, all of whose members have the benevolent government as their boss?"

Strikes and the Industrial Organization
by William Graham Sumner
"There is no rule whatever for determining the share which any one ought to get out of the distribution of products through the industrial organization, except that he should get all that the market will give him in return for what he has put into it."

The True Line of Deliverance
by Auberon Herbert
"The workman has simply to care about the increase of the product, leaving the market to arrange the proportions that come to him. They will be increasingly in his favour. It is indeed to the workman more than to any other person that free-trade is of vital importance. The man who wants to be protected is the second-rate employer, with backward methods, who feels that he is being squeezed out by the better methods. One can only be very sorry for his position, which is often a hard one; but to protect him is to sacrifice general prosperity."

Unionism II
by Walter Block
"When the rapist orders the victim to carry out his commands, this is illegitimate hierarchy. When the conductor orders the cellist to do so, this is an aspect of legitimate hierarchy. I oppose unions not because they are hierarchical, but because the scabs have never agreed to carry out their orders."

Unions and Violence
by Morgan O. Reynolds
"We cannot declare that this is a free society until everyone is free to accept the best available offer for his or her labor, best in that person’s own opinion, free from threat, regardless of how much these decisions supposedly harm the higher-income-people represented by union officials. The benefits of unionism do not outweigh the costs of union violence. There are no benefits from unionism for the great mass of working people, only costs. Unions are not public servants that offset the excesses of capitalism, but sectional interest groups with coercive privileges."

Workers and Unions -- How About Freedom of Contract?
by George C. Leef
"If we restored the market process to labor relations, workers would be able to contract for just the representation services they wanted with organizations competing for their favor. That would be the most pro-labor piece of legislation imaginable. It would probably lead to an abrupt reversal of those declining union fortunes. It would usher in a new era of cooperation and prosperity. And most importantly, it would restore to American workers a long-lost freedom -- the freedom to make their own choices."

The Yellow Dog Contract: Bring It Back!
by Walter Block
"The Yellow Dog Contract is an honorable contract. It states that one of the conditions of employment is that the worker agrees not to join a union. It is no different, in principle, from the requirement that if you come visit someone in his house at his invitation, you must wear a funny hat, or agree not to associate with anyone he specifies, say, an enemy of his. In each case, that of the firm, and the private home, the one making this "demand" is exercising his rights of free association."

Wages

Can Labor Unions Restrict Wages in a Free Market?
by Murray N. Rothbard
"Whereas wage rates on the nonunion labor market will always tend toward equilibrium in a smooth and harmonious manner, its replacement by collective bargaining leaves the negotiators with little or no rudder, with little guidance on what the proper wage rates would be."

EXTRA! CEOs Earn More Than Us
Winter 1999
by Wendy Shalit
"Instead of squashing CEO earnings so that they're closer to the level of ordinary workers, why not declare that everybody be paid CEO-level salaries? Why not make the minimum wage $1,000 per hour, so that everybody can be a millionaire? Oops, now there are no more jobs around. All the minimum wage does is tell us that it's illegal to employ anyone whose services are worth less than the minimum wage. Raise it, and you simply increase the number of workers whom companies are forbidden to hire."

The Forgotten Man on the Minimum Wage Issue
by Michael Hayes
"The minimum wage provides a classic instance of what William Graham Sumner called "the forgotten man" in his classic work, What Social Classes Owe to Each Other:
The type and formula of most schemes of philanthropy or humanitarianism is this: A and B put their heads together to decide what C shall be made to do for D. The radical vice of all these schemes, from a sociological point of view, is that C is not allowed a voice in the matter, and his position, character, and interests, as well as the ultimate effects on society through C’s interests, are entirely overlooked. I call C the forgotten man."

Ideology and the Minimum Wage
November 01, 2006
by Pete Geddes
"Laudable intentions, however, won’t alter one simple fact: minimum wage laws can set wages, but they cannot guarantee jobs. Those who ignore this are the genuine ideologues."

The Illusion of Living Wage Laws
October 15, 2009
by Bill Barnes
"Many residents of Athens have been trying to implement a living wage in the community for some time. These efforts are largely supported by the faculty, staff, and students at the University of Georgia, in Athens. Focusing on some of the least-skilled workers, I show why the living wage would not have any positive impact on the poor in Athens and why a higher mandated wage could further impoverish them."

Inhumanity of the Minimum Wage
April 1955
by Paul Poirot
"If a minimum wage is set high enough to have any effect, that effect must be a closing of the market to those persons least capable of earning a living. For the minimum wage denies such persons the right to offer their services for what they are worth."

The Justice of Pay Discrimination
by Michael Tennant
"If A and B each agreed to work at the wages they were being paid, then there is no injustice in paying A more than B for equal work."

The Madness of the Minimum Wage
June 21, 1996
by Robert Higgs
"Some have resorted to demagoguery by comparing the earnings of minimum-wage workers with those of corporate CEOs. But can we justify kicking a kid off the bottom rung of the job-experience ladder because corporate executives make millions? Do we really display compassion for the poor by outlawing the jobs some of them hold? Is it better for a person to hold a low-wage job or to live on welfare or drug-dealing?"

Maximum Confusion over Minimum Wages
October 28, 2009
by D.W. MacKenzie
"Common sense and a few basic concepts can guide most people through economic issues — provided that our thoughts overshadow our emotions."

Minimum Wage Hike Won't Solve Poverty
by Sylvia LeRoy
"Activists may claim that a "living wage" of $10 an hour is needed for Ontario workers to begin to escape poverty, but their analysis is faulty."

Minimum wage laws are immoral. Socialism finds home in Santa Fe
July 22, 2003
by Tibor Machan
"It is morally and should be legally wrong for anyone to intrude on people doing trade with each other. And that holds even when some are very well off and others aren't. Coercion isn't supposed to be the way to remedy economic inequality, hard work and prudent deals are."

Minimum Wage, Maximum Folly
by Walter Williams
"Unfortunately, some of Oprah's facts on minimum wages are wrong."

Minimum Wage, Maximum Folly
March 2007
by Walter E. Williams
"Mandated wages are one of the most effective means of pricing one’s competition out of the market, and historically, mandated wages have been one of the most effective tools in the arsenal of racists everywhere."

Minimum Wage—Maximum Nonsense
June 21, 2006
by Benjamin Powell
"Minimum wage laws hurt the low-skilled workers they are intended to help. Raising the minimum wage hurts these workers even more. No matter how many ways economists say it, politicians, even those supposedly sympathetic to free markets, are content to peddle this harmful policy again and again."

Minimum Wage, Maximum Stupidity
July 13, 2009
by Peter Schiff
"The only way to increase wages is to increase worker productivity. If wages could be raised simply by government mandate, we could set the minimum wage at $100 per hour and solve all problems. It should be clear that, at that level, most of the population would lose their jobs, and the remaining labor would be so expensive that prices for goods and services would skyrocket. That’s the exact burden the minimum wage places on our poor and low-skilled workers, and ultimately every American consumer.
Since our leaders cannot even grasp this simple economic concept, how can we expect them to deal with the more complicated problems that currently confront us?"

Minimum Wage Means Minimum Jobs
July 29, 2009
by John Stossel
"The media are never better at displaying their economic illiteracy than when they report on the minimum wage."

Minimum Wages For Women Only
April 5, 2001
by Clifford F. Thies
"This paper reviews the experience of the first-in-the-nation Massachusetts minimum wage law, which applied to women only, in light of contemporary minimum wage theory, and using the heretofore underutilized annual survey of manufacturing then conducted by the state. Consistent with contemporary minimum wage theory, the law is found to have reduced employment of women, increased employment of men and of capital, and eliminated "slack time" for women workers. Examining changes in the distribution of wages in several industries subject to wage decrees from 1914 to 1922, in four, where the wage decrees clearly raised wages, the wage decrees were followed by substantial losses of jobs for women workers, ranging from six percent in the laundry industry, to 14 percent in the brush industry. Results varied in the other two."

Mother's 'Work' Doesn't Warrant Paycheck
May 9, 2006
by Wendy McElroy
"When you define the value of family meals in terms of cold cash, then you've lost the importance of what's really going on. When you convert acts of love into acts for profit, you've lost at life itself."

Outlawing Jobs
by Murray N. Rothbard
"In truth, there is only one way to regard a minimum wage law: it is compulsory unemployment, period. The law says: it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. Remember that the minimum wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result."

Power to Which People?
December 6, 2004
by Allen R. Sanderson
"In a free society shouldn’t one be allowed to offer his or her services to a labor market for under some specified minimum or living wage, including $0.00 per hour? There are real advantages in acquiring on-the-job training, work experience, and developing personal habits like punctuality, motivation, dependability and interpersonal relations."

The Price is Right
October 3, 2005
by Allen R. Sanderson
"People who are uneasy about relying on prices and market mechanisms—"This is too important an issue to be left to the marketplace."—fail to understand and appreciate the beneficial effects of prices and the full costs of relying on alternatives. In fact, the opposite case is generally more compelling—the more important something is (the environment, education, health, catching a criminal), the better to leverage the power of prices and self-enforcing incentives. The fault is generally not that we resort to price, but that the price is too low."

Repeal The Minimum Wage
October 16, 2009
by Art Carden
"It wastes resources and hurts the poor."

Should Profits Be Shared with Workers?
June 1, 1997
by Dwight R. Lee
"Unless workers are willing to take the losses that are inevitable in business activity, as well as the gains, the argument that fairness requires that workers share in the profits of their firms is an empty one. Many workers, and their representatives who call for sharing profits with workers, seem to believe that fairness means Heads I win, tails you lose. All workers are better off, and treated more fairly, when most profits are retained by firms to expand the production of goods and services that consumers are communicating with those profits that they want more of."

The Ugly Truth About the Minimum Wage Law
by Jim Cox
"If raising the minimum wage from, $4.25 to $5.15 is so good for low-income people, why stop there? Why refrain from an even greater generosity, an even more livable wage, and an even greater fight against poverty? Why not raise the minimum wage to $10 or even $100 an hour, so everyone can be well-off!"

Wage Gap Reflects Women’s Priorities
September 22, 2004
by Wendy McElroy
"The inequality of outcomes is not an indication of injustice, because justice resides in every individual receiving what he or she deserves. Employees who compete with equality of opportunity deserve whatever they can negotiate from an employer based on their merits and his needs. That’s justice."

Wages
by Ludwig von Mises
"Man deals with other people’s labor in the same way that he deals with all scarce material factors of production. He appraises it according to the principles he applies in the appraisal of all other goods. The height of wage rates is determined on the market in the same way in which the prices of all commodities are determined. In this sense we may say that labor is a commodity. The emotional associations which people, under the influence of Marxism, attach to this term do not matter. It suffices to observe incidentally that the employers deal with labor as they do with commodities because the conduct of the consumers forces them to proceed in this way."

Wages, Unemployment, and Inflation
May 1958
by Ludwig von Mises
"Businessmen are under the necessity of turning out what the consumers ask for and they must sell their wares at prices which the consumers can af­ford and are prepared to pay. A business operation is a manifest failure if the proceeds from the sales do not reimburse the busi­nessman for all he has expended in producing the article. Thus the consumers in buying at a definite price determine also the height of the wages that are paid to all those engaged in the industries."

Why Wages Rise
by F.A. Harper

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This page was last updated on November 5, 2009.