Wednesday, May 04, 2005

Unions in Iraq

Kevin Drum thinks we should support unions in Iraq because unions were effective in fighting socialism in the 80's and Iraqi unions were anti-Saddam. Not quite.

Unions are most effective when employment is a monopoly. Unions were successful fighting socialism because under socialism, Government is the monopoly employer. Unions were anti-Saddam because his government was a socialistic monopoly employer for most jobs.

That is why the most effective unions here are public and athletes. The Government and Sports Leagues are the only monopoly employers around. Private sector unions are diminishing because we have free market competitive employment. Now that Saddam is gone, creating a free labor market in Iraq is preferable to supporting unions in Iraq.


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