Ask a “progressive” what governmental policies are “pro-worker” and you will no doubt hear about raising the minimum wage, strengthening unions, and so forth.
If, on the other hand, you were to ask Liya Palagashvili, a GMU-trained economist, you would get a very different answer. In this post, she explains that a “pro-worker” agenda calls not for more government interference in the labor market, but much less. She writes, “Through case studies around the world, economists have long documented how more-restrictive labor regulations, especially regarding job security, lead to less labor mobility, fewer job opportunities and higher unemployment rates.”
One thing that’s pro-worker is a labor market where lots of jobs are being created. We get that when entrepreneurship is most lively. So we ought to relax or eliminate the scads of taxes and regulations that have been driving down the rate of business startups for decades.
What about unions? Give them more power? No — give workers more freedom to choose representation if they desire it. She writes, “The most important avenue is to reform the National Labor Relations Act (NLRA) of 1935 to promote a more diverse union landscape in which workers can choose the one that best serves them. Currently, the NLRA prohibits any formal cooperation between workers and the employer that is outside of the government-granted monopoly union, thereby banning other mechanisms to enhance a worker’s voice.”
I’d prefer to repeal the NLRA and get the federal government out of labor relations entirely, since that is no business of the feds under the Constitution. But if the best we can do is reform, we should eliminate the section of the law that gives unions exclusive representation power over all workers.
I like Palagashvili’s conclusion:
America does indeed need a new labor movement—but we need one that generates a thriving labor market with an abundance of work opportunities, while at the same time offering reasonable safety-net measures that do not impede the beneficial aspects of our labor markets and the future economy. Our path forward should rebuild resilience in our labor markets to technological, cultural, or global adaptations and one that benefits all types of workers, businesses, and the broader economy.
Hat tip: Don Boudreaux