The Wall Street Journal reports that the International Brotherhood of Teamsters has thus far refrained from giving its official support to one or the other of the two main parties and presidential candidates in the forthcoming election (“Some Teamsters Rebel After Boss Praises Trump,” August 24). A Teamsters’ spokeswoman declared:
Our endorsement must be earned.
The meaning of this sentence is clear: the organization will officially support the candidate or party that promises to give it the most in terms of coercive legal privileges or hard cash for its members. The Brotherhood sells its support in exchange for privileges, and the government sells the privileges in exchange for support. It’s political exchange between greedy bullies.
What theory of the state can justify that? The cynical view is to think, “Our turn to get privileges will come!” The angelic view of the state consists instead of thinking, “Oh my God, that’s bad, they should (like I do) selflessly pursue the common good.” A basket of other justifications contains many strands claiming that the rules under which we live or have decided to live allow for some limited political exchange; some (James Buchanan, for example) are more defendable than others (say, Jean-Jacques Rousseau).
A different, anti-state, approach has been proposed by economist and political philosopher Anthony de Jasay. The Teamsters’ bargaining is seen as a manifestation of the “adversary state” or discriminatory state, which takes sides in favor of some citizens and against others. Among those who live under the discriminatory state, the winners are those who most efficiently bargain to sell their support to the state.
In a sense, the Teamsters’ officialdom believes in a dictatorship of the proletariat with a human face, that is, in which the proletariat votes. But this is only a first approximation. In fact, many of its members (cops and airline pilots, for example) are no proletarians at all; the others are not paupers. As its logo shows, the union was more proletarian (assuming for a moment that this term has any meaning on a free market) when its original members in 1903 were drivers of horse-drawn wagons. Their hierography presents them as early defenders of “social justice.” According to historian David Witwer, the Teamsters’ union did admit and recruit Blacks as full members but was not uncontaminated by the racism of the trade unions and of the white workers who often resented the competition of the Blacks (see his “Race Relations in the Early Teamsters Union,” Labor History 43-4 [2002]).
Perhaps I should emphasize that in a standard (classical) liberal or libertarian perspective, there is no reason to oppose collective bargaining, provided that every member of the “collective” (the members of the union) is a voluntary member and that the other side, with whom it is negotiating, is not forced by law to “negotiate.” As a matter of terminology, and in parallel to the substantive “collectivism,” I suggest that “collective” should refer to groups that impose their will on recalcitrant members; in that sense, free trade unions might be involved in group bargaining, not collective bargaining. Trade unions would be as useful as any voluntary association, perhaps even more useful in certain circumstances, provided it remains voluntary and does not wield coercive privileges. In general, the way to know that an institution is useful in the economic sense of “efficient” is that it survives with no legal privilege.
READER COMMENTS
Craig
Sep 1 2024 at 2:02pm
I wonder who the Teamsters would support as between a cop giving a speeding ticket to a UPS driver?
Robert EV
Sep 1 2024 at 8:02pm
Their support doesn’t come into it. If it did I assume they’d be fine with the fine, but would want the employer to pay it, or otherwise use it as bargaining leverage on workloads.
Who would the teamsters support if one UPS driver made a complaint about another? They’d support both against management, but otherwise it’s between the drivers themselves.
Warren Platts
Sep 1 2024 at 3:09pm
Trump was not particularly friendly to unions during his first term, as this otherwise mostly positive Jacobin article on Trump points out…
Why Do So Many Workers Love Trump? (jacobin.com)
steve
Sep 1 2024 at 4:25pm
It seems to me that unions are doing the same thing corporations and even small businesses do, at least at the local and state level. Yet, it certainly seems that unions get vilified for this as much or more than businesses. Not sure why.
Just a reminder about the history of the formation of unions. Many of them were started in response to awful treatment by business owners. Those owners were shielded from what was anything from unethical to frankly illegal behavior because they used their wealth to effectively own local law enforcement and the legal establishment.
Steve
Pierre Lemieux
Sep 1 2024 at 5:07pm
Steve: Unions are not “doing the same thing corporations and even small businesses do.” No private business can coerce other parties to “negotiate” with it or to force investors to be members (“shareholders”). As for your second paragraph, it makes us wonder if what the state was doing then (not enforcing laws if somebody was using “illegal behavior”) qualifies them now to give unions special privileges. Among the latter is their own government bureaucracy (the National Labor Relations Board) to boss around private businesses. Moreover, remember that the state prohibited unions before making them compulsory (vis-à-vis their forced counterparts and often among workers too).
Warren Platts
Sep 1 2024 at 5:31pm
Not quite true. Businesses are constantly suing each other and other parties, using the full physical force of the state if necessary, precisely in order to coerce them to “negotiate.”
Pierre Lemieux
Sep 1 2024 at 9:19pm
Warren: I don’t think your argument works. Either one of two things. If you accept that courts are part of the essential functions of the state, it implies that people can use them and that the state will enforce their rulings. If you don’t accept that courts are part of the functions of the state, then you will argue or hope that private judicial institutions will develop with some ways to enforce their rulings. (All anarcho-capitalists have made this argument. De Jasay’s arguments can be found in Against Politics, especially chapter 8.)
Where you are, or would be, right is that the profusion of laws and regulations (and profusion is a weak word) have multiplied the motives for private suits. The fault is on the statist system not on people who use the institutions that exist.
Robert EV
Sep 1 2024 at 10:27pm
Using, and even misusing, the threat of an NDA or non-compete to ‘encourage’ a competitor to rescind an employment agreement with an ex-employee would exist even in your an-cap system. Though to a lesser extent in a “loser pays” judicial system. But those have other negative effects.
Even if the non-compete is unenforceable, or doesn’t cover the situation at hand, people have lost out on jobs because of such lawsuit threats.
This is a power that can basically only be exercised by corporations, not by employees, though employees do have grounds to counter-sue when the lawsuit threat has no legal basis.
Pierre Lemieux
Sep 2 2024 at 2:18pm
Robert: Barring regulation, individuals are not plants: they can move or otherwise decline an offer or make a counteroffer. If individuals were plants, agreements, say, not to resell old stuff at prices that are “competitive” with new models could be used. Agreements to hire any laborer (your babysitter, for example) at a monopsonic price would be prevalent. If consumers (or business customers) were plants, a major barrier to market entry, producers would sell everything at a monopolistic price. Freedom of contract is what the words mean; it implies the freedom of non-contracting and contracting with somebody else.
Or, one might say, the “power” (read “liberty”) to refuse a job offer is a (bad) power because it can only be used by the employee.
At any rate, refusing a non-compete diktat from the state (“in your system,” to paraphrase you; my apologies) is much more costly (including probabilistically on black markets). Think of somebody who wants to work below the minimum wage instead of not working at all.
Robert EV
Sep 5 2024 at 3:33pm
I had just such a job as a volunteer bagger at a base exchange once. Tips only. I averaged about $3 an hour back when the federal minimum wage was almost twice that.
Self employed people, presumably including people who bid out for spec work, don’t have a minimum wage guarantee. Presumably it’s not worth the hassle for larger businesses to reorganize their structures to allow this. But this is one of many things that the modern business model has made difficult. Which is my very basic objection to an-cap: I cannot see it working well in any economic system more centralized than what existed in the early 1800s USA.
Job offers get rescinded by the employer. Sometimes after the presumptive employee has uprooted their lives to move to the job.
No, but we are not of equal power in all transactions. This is why we live in an economic system that is a compromise between various ‘ideal’ (in the platonic forms sense) scenarios, and why any idealistic alternative isn’t going to live up to its ideals in the real lives of real people.
Robert EV
Sep 5 2024 at 3:38pm
And oh yes, employers have the ability to refuse a counter-offer, and do this all of the time.
Plus I get “job offers” from contractors in my mailbox all of the time. Or have contacted contractors for bids. I have certainly rejected many of those job offers (bids), as I’m sure you have as well.
Robert EV
Sep 1 2024 at 8:08pm
NLRB decisions can be appealed. Try doing that with mandatory arbitration – a power that businesses were granted that effectively nullifies the 7th amendment with respect to covered lawsuits.
Robert EV
Sep 1 2024 at 10:33pm
A union is to an employee what a lawyer is to a client. Lawyers can indeed “coerce” others into negotiating with them. And the corporation would never have had a problem with the union had it not been for the preexisting business relationship that they had with their employees. Once a preexisting contractual (even just implied contractual) relationship exists, you’ve already lost a lot of your power to withdraw from the relationship without costs.
It’s easy for a business to avoid having to negotiate with a union. This easy way is to address employee complaints and grievances as expeditiously, fairly, and openly as possible. If the business wants to go the extra mile then it can go part, or all of the way, to becoming an employee owned business.
steve
Sep 2 2024 at 10:20am
Pierre- If you honestly believe that private entities cannot be forced to negotiate when unwilling to do so then I suspect you have never had much of a career in the private sector. I find it odd that you are willing to defend courts but when pointed out to you how that actually works n practice you want to go back to blaming the state.
Anyway, this went off in a different direction than I thought. In you piece you note that unions are seeking the bet deals from political parties. Businesses also do this all of the time. Businesses, lobby, donate money, hire the kids of politicians, etc. I am sure you dont approve of the rent seeking by businesses but pragmatically, given that businesses have much more money and political influence what options would unions realistically have other than using the same methods that business uses?
Steve
Jose Pablo
Sep 2 2024 at 1:28pm
Businesses also do this all of the time. Businesses lobby, donate money, hire the kids of politicians, etc….
Businesses don’t do anything. They don’t even pay taxes. Individuals do “this”. All the time. In the case of businesses, individuals acting as shareholders’ agents. Which brings in all the vast richness and colors of the agent-principal dynamics.
The only thing we know is that they are trusted (although they think “entitled” most of the time) with the use of other people’s money to do “all” this. And that they will use it to pursue their own agenda (maybe, God forbid, even acting in shareholders’ best interest but sure acting in his/her best interest)
Your argument might be still right. Just pointing out that the “organic misconception” is everywhere. Even when we talk about “businesses”. Businesses don’t go to Washington. Individuals do.
Mactoul
Sep 2 2024 at 12:24am
Reality is always wanting compared with utopian imaginings which is precisely what anarchism is, irrespective of the fine wordings it is put under.
Jose Pablo
Sep 2 2024 at 10:01am
Every idea truly worthy is “utopian” … until it is not.
There was a time when not having slaves was utopian, when not being ruled by a despot was utopian when having the right to open a bank account if you were a woman was utopian …
“Utopian” is the adjective we use for all the ideas that already make sense but we are still too “ape” to adopt.
Walter Boggs
Sep 2 2024 at 1:40pm
But I object when people say that there can be no progress until every item on their list has been resolved. For example, “We can’t discuss free markets because there aren’t any”.
Jose Pablo
Sep 2 2024 at 1:57pm
“Progress” is a complicated concept. It implies knowing in which direction “we” should go (“we” in this case because we are discussing how to manage collective affairs).
It is clear to me that the “goal” should be placing the individual more at the center of the “political” decisions, and away from forcing him/her to obey rules he/she doesn’t agree with but have been imposed on him/her (either by a majority or by an individual despot (from the obeying individual dignity point of view, there is no such a big different).
This “goal” is something resembling “anarchy”. And Mactoul can be right, the 80% apes (being generous) that we still are, may not be ready for that. But we do have a historical trend in this direction. And you are sure right, we should support any step in this direction, no matter how small.
After all the Romans have already done pretty good things for us …
Pierre Lemieux
Sep 3 2024 at 9:32am
Walter: Indeed, everything (except infinity and perhaps zero) is a matter of degree.
Jose Pablo
Sep 3 2024 at 5:48pm
Infinity is also a matter of degree.
The number of points in a line and the number of points in a plane are both infinite. But there is a “degree” of difference between both infinities. There are, in fact, infinite degrees of infinite (Cantor introduced the concept but it is much more fun when Borges plays with it).
Pierre Lemieux
Sep 4 2024 at 10:15am
Jose: That’s a good point!
Mactoul
Sep 3 2024 at 2:18am
The converse does not follow. Utopian does not mean worthy, The track record of utopia is not impressive, e.g. communism, the ne plus ultra of utopia.
Jose Pablo
Sep 3 2024 at 12:48pm
Yes. Very much so.
So assigning the “utopian” adjective doesn’t mean anything and doesn’t help in having any meaningful intellectual argument.
What can I say? It wasn’t me the first one invoking such an empty useless concept.
Jose Pablo
Sep 2 2024 at 10:47am
There is nothing wrong, in principle, with the Teamsters selling their votes in exchange for political favors or, even better, for money.
If “ruling the collective” means basically, at an individual level, accepting impositions I dislike in exchange for imposing on others rules that I like, this kind of bargaining has to play a significant role. “Buying” votes (with promises) is an initial way of doing that while choosing representatives, and logrolling the way to go during the legislative process once representatives have been elected.
Introducing money in this bargaining process can only make it more efficient. The final objective, that is the whole legislative package plus money exchanges being Pareto efficient, for most (if not all) the voters (Teamsters included), would be greatly facilitated by money openly changing hands. Pretty much like if you want to change your oranges for apples.
But we have known all this since 1962
Jose Pablo
Sep 2 2024 at 1:42pm
But we have known all this since 1962 …
… we are just goody-goody holy Joes incapable of accepting all this and openly including it in our political process. Despite all the potential benefits. For instance, making it evident that what we call politics (and majoritarian rule), is all about robbing Peter to give to Paul.
We, somehow, prefer this buying and selling of political favors to be made on the side, as whispered “suggestions”, made among the shadows of a too-human political process that is ruled by the worst (see Trump as an example), but that we prefer to think of as designed by angels that only want to serve people (or even better the sacrosanctum “country”) and help us to get all our angelical desires in exchange for our worthless vote.
Pierre Lemieux
Sep 2 2024 at 3:19pm
Jose: I am not sure all our readers will realize that what happened in 1962 was the publication of James Buchanan and Gordon Tullock’s seminal The Calculus of Consent (for the readers, this is a link to my easy-to-read Econlib review of this technical book, which is itself available free on Econlib). Let me just emphasize the caveats that Buchanan and Tullock would likely add to your double post above.
Since, the basic rules of social life must be decided by somebody, they claimed, the only acceptable solution is that they be determined by a social contract conceptually unanimous, that is, where each individual has a veto. With general rules, the social contract determines what all individuals consider “public goods.” Democratic politics is the less dangerous way to organize the production or financing of these public goods. But the social contract rules also limit the scope of politics so that democratic majorities cannot redistribute in their favor (thereby harming others). This implies limits on political horse-trading, so that neither the rich nor the poor, neither the Blues or the Reds, can exploit the other group, at least consistently.
In other words, except at the “constitutional stage,” where unanimity must prevail, unlimited political exchange and horse-trading must be limited by rational individuals.
As I explained, Anthony de Jasay raises fundamental challenges to this construction (see especially his Against Politics). I am not far from believing that the main advantage of learning economics is to understand this debate.
Mactoul
Sep 3 2024 at 2:22am
Seems to go against the spirit and letter of spontaneous order. Not to mention the whole idea of biological evolution (which by the way, the economists are apparently uncomfortable with).
Pierre Lemieux
Sep 3 2024 at 9:22am
Mactoul: Your first sentence: that is why Buchanan argues that it should be decided by each individual–because the alternative is that a dictator (including a dictatorial majority or minority) decides.
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