Labor Unions Cause Price Inflation?

“Do Labor Unions Cause Price Inflation?” – Dr. North

Yes, in my opinion, I do believe government labor unions do in fact cause price inflation. A labor union is an organization of workers dedicated to protecting their interest and improving wages, hours and working conditions. Unions represent many professions.

Unions demanding higher wages with less working hours will only cause a company to raise prices on their product/services. The business will then need to cover the costs that the labor unions have levied upon them. This can drive prices up for the consumer. The government should not get involved at all, but sadly it forces businesses to submit to the people, demanding things that the business can not undertake. The business may even collapse.

So, in closing I want to be clear that there are other reasons for price inflation, but for the purpose of my paper I focused on labor unions.

What Tariffs Actually Do

“Does a tariff on imports also reduce exports?” – Dr. North

Tariffs are taxes that the government instituted to be paid on imports to “protect” us from foreign competition. They restrain us from purchasing imported goods/services that we want. It makes goods/services more expensive for the consumer.

tariffs

Pro-tect-tion-ism

noun

The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.¬†

Protectionism is a misnomer. The only people protected by tariffs, quotas and trade restrictions are those engaged in uneconomic and wasteful activity. Free trade is the only philosophy compatible with international peace and prosperity. – Walter Block

Tariffs will definitely reduce exports. People in foreign countries paying these tariffs will not have as much money to buy our exported goods. In turn you will not have as much money to buy their goods. When this happens no one is getting what they want but the government.

It is also important to note here that tariffs will cause a decrease in competition thereby causing a decrease in quality of product. When there are less people to sell to it only makes sense that product standards will go down because companies feel less threatened. When the product is less available and we do not have many options we will pay a higher price for a poorly made item.

Government Money – Government Decides

“Is a tax-supported school different in principle from a tax-supported church?”

Whenever an entity is tax-supported that means it is receiving tax dollars that people have paid to the government, thereby relinquishing control of itself. If the entity is the school that means their curriculum has to follow guidelines that they may or may not agree with. So, if the the government tells a school to teach the Theory of Evolution as fact the school must do so. The teachers and parents do not have any say in what is taught. Their rights are lost and they have to oblige.

Now lets take a look at a church that accepts tax money. Whether we are talking about a priest, rabbi, or a pastor if they are receiving money from the same resource (government) they might have to all preach the same thing.

Basically, surrendering your core principles and beliefs by accepting tax-funded dollars has the same fundamental consequences. Whether you are a pastor or a teacher your choices are controlled and regulated. My answer to the question assigned by Mr. North is a resounding no.

government-money

“The hand that controls the supper dish rules the world!”Charles M Schulz