Tuesday, September 29, 2009

Quote - Henry Hazlitt

"The belief that labor unions can substantially raise real wages over the long run and for the whole working population is one of the great delusions of the present age. This delusion is mainly the result of failure to recognize that wages are basically determined by labor productivity. It is for this reason, for example, that wages in the United States were incomparably higher than wages in England and Germany all during the decades when the "labor movement" in the latter two countries was far more advanced."
Henry Hazlitt, the first paragraph Chapter XX: Do Unions Really Raise Wages, in Economics In One Lesson

11 comments:

Douglas Porter said...

Again, this person is guilty of emphasizing one part of the economy to advance his anti-high-wage ideology. TRUE. Production increases do drive up wages, BUT only in context of the power of unions, which make sure wages do no fall.

Hazlitt was a retard.

Josh said...

Lol, Hazlitt does anything but emphasize one part of the economy to advance his arguments (which are very much high employment, high productivity, and pro-high purchasing power for the average person).

How is this quote false?

Hazlitt argues that unions have a role of ensuring workers demand the market value for their work and improving working conditions. What he says though, is that Unions typically force wages above market level, driving down productivity, taking wealth from other areas in the economy, creating more unemployment and pushing down wages and the purchasing power of workers who do not benefit from the wage increase.

Douglas Porter said...

"The belief that labor unions can substantially raise real wages over the long run and for the whole working population is one of the great delusions of the present age.

Learn to read.

"Hazlitt argues that unions have a role of ensuring workers demand the market value for their work and improving working conditions. What he says though, is that Unions typically force wages above market level, driving down productivity, taking wealth from other areas in the economy, creating more unemployment and pushing down wages and the purchasing power of workers who do not benefit from the wage increase."

I am only responding to quotations, thanks.

Josh said...

"Learn to read."

What did I miss?

Douglas Porter said...

"The belief that labor unions can substantially raise real wages over the long run and for the whole working population is one of the great delusions of the present age."

Learn to read.

Josh said...

So how is this quote false?

Douglas Porter said...

You said:

"Lol, Hazlitt does anything but emphasize one part of the economy to advance his arguments (which are very much high employment, high productivity, and pro-high purchasing power for the average person).

which conflicts with

"The belief that labor unions can substantially raise real wages over the long run and for the whole working population is one of the great delusions of the present age."

Josh said...

Its the opening of one chapter. The book hits a lot of different parts of the economy

Josh said...

So ya, he focuses on labor unions to advance his arguments in regard to labor unions...duh.

Josh said...

You should read the book, even though you'll probably disagree with his general thesis, it's an interesting read.

Douglas Porter said...

"Its the opening of one chapter. The book hits a lot of different parts of the economy"

Provide the quote where Hazdumb backtracks to say that unions are important.