When Pro-Business Is Pro-Labor – John C. Goodman

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John C. Goodman

Have you ever wondered why there is a Department of Labor? Why isn’t the Department of Commerce enough to represent the interests of everyone in the business world? If something is good for commerce, that usually means businesses are growing and hiring and paying higher wages. Isn’t that also good for workers?

The idea that management and labor are invariably at odds is a Marxist idea. Which is to say, it’s outside mainstream economics. Similarly, the idea that government intervention can help labor in its struggle against management is also contradicted by what mainstream economists know. Labor market regulations that help some workers, often do so at the expense of other workers. More often than not, intervention makes all workers worse off.

Source: When Pro-Business Is Pro-Labor – John C. Goodman