alt Hacker NewsUnions are basically useless in a healthy market economy because then companies have to compete for customers and employees instead of having a monopoly, which causes them to have thin margins and therefore leave nothing on the table for collective bargaining to extract that wasn't already being extracted through competitive pressure.
Meanwhile unions in a consolidated market have the perverse incentive to sustain the monopoly because then the union is extracting a portion of the monopoly rents the corporation is squeezing out of consumers at the expense of the 99% of workers who don't work for that specific company. Which is why consolidated markets need not unions but antitrust enforcement.
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Unions are about building worker rights and protections into the business expenses. When they are industry wide, it prevents any company from gaining an advantage by exploiting their workers.
A strong market economy is orthogonal to the treatment of workers. For example, the economy of the early US was both very competitive and had slavery. Same for islands like Jamaica.
The ideal is government regulation ensuring worker rights. Barring that, unions fill the role. Unions exist to fill a void created by a low regulation market. They are the libertarian solution.
> Meanwhile unions in a consolidated market have the perverse incentive to sustain the monopoly because then the union is extracting a portion of the monopoly rents the corporation is squeezing out of consumers at the expense of the 99% of workers who don't work for that specific company.
This still sounds like an improvement over the American consolidated market status quo, where the companies and shareholders retain more of the monopoly rents.
Antitrust enforcement would be great, but absent an 1880s-1910s level push, isn't going to happen.
So why not improve things in the meantime?