by rdf
Mon Mar 6th, 2006 at 09:03:13 AM EST
I've written a new essay on the correlation of US earnings and the degree of union membership in the workforce. For various formatting reasons it doesn't lend itself to posting in a blog so I'll provide a link and a short summary below.
My premise is that various economic models have been put forward since the days of Adam Smith to "explain" the conditions of the working class. The ones I'm most concerned with currently being Marx and Henry George.
For those not familiar, Henry George wrote an extremely popular book in 1879 blaming the poor state of the working man on landlords. His solution was to replace all taxes with a tax on land. Marx, of course, blamed all the problems on capitalists. My essential point is that things got better for the working class in the industrialized countries in the 20th Century in spite of the fact that neither man's policies were adopted. My explanation is that it was due to the rise of organized labor as a counter balancing force.
The drop in labor's power over the past half century (at least in the US) has led to a stagnation or decline in their standard of living. If you are interested in this topic, please at least glance at the essay to see the graphs I've included.
It would be most instructive to see corresponding graphs for the situation in various EU countries to see whether my hypothesis makes sense.
The essay:
Does Unionization Matter?