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.

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.

Competition = Better Goods

“Would you pay 20% more to shop at a store that sells only American-made goods?”

To answer this question it would depend on what I am looking to buy, the quality of the good and who has the best price. I am going to buy what is best for me as the customer. Whoever can produce the best good for me will get my money. I am not going to limit myself from only buying in America if I can get what I want elsewhere.

I think we need to get rid of tariffs. I have read that countries with low tariffs are more prosperous than countries that have high tariffs. In the same article it stated that people who embrace free trade have higher incomes than the countries whose people do not. Tariffs also bring down the quality in products because it eliminates competition. Competition is good. When businesses compete with one another they are competing over who can make the best goods for the customers. Lazy workers like tariffs.

“We shouldn’t be putting tariffs on anything. That hurts working men and women in the U.S. What we should be doing is making our manufacturing more competitive.” – Rick Santorun

So going back to the original question I will buy what is best for myself. Having more choices available by means of free trade would be the best scenario.

 

 

Time vs. Money

When do I prefer first come, first served over high bid wins?  There are so many variables here. In the free market it should be up to the seller and the customer to figure out how they want to make a deal.

I think first come, first served would be preferred by me when standing in lines at department stores, grocery stores, gas stations, etc. Also, if I am going to an event, park, or concert and I can buy my ticket online ahead of time that would allow me to bypass the ticket sale line that day then I would certainly do this.

High bid wins has a place though. Online auction sites like eBay and auto auctions are some good examples. Now, also to be considered here are fast lane passes which are offered by some parks like Carowinds in Charlotte, North Carolina. These passes cost more money which allows you to get on the ride much quicker. This means I get to enjoy more rides in the amount of time I spend at the park. Sometimes in life your time is worth more than your money.

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.

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

The Importance of a Budget

Making a budget, along with the will of staying on that budget, is the only way to reduce impulse shopping. Having a strong will is important because when we are out shopping and see things we like it is our natural impulse to want to buy it. If we know what our spending limit is it will control those impulses. Even small purchases will add up very quickly and can seem like you are not spending much when actually you have spent too much. Spending too much will cause you to be broke until your next influx of money.

Being broke means no money to invest in your future and accomplish what you are striving for in life. If you are always broke you are willing to settle. Living by a budget means saving for the unpredictable things that happen in life as well as necessities like buying a car. Of course this also means you must pay for insurance and gas which is another important reason for not overspending. Having your independence may also open opportunities that may be further from your house that you normally would have declined because you were relying on a ride.

Budgeting means having to sacrifice in the present time and giving up some things. It will teach you to have self-discipline which will benefit you in the future. It will also teach you to look for things you enjoy doing and making choices based on what you can afford. Making a list before you go shopping is important. If you can begin the habit of sticking to that list, you’ll eliminate a lot of impulse buying. For other purchases, make it a habit to plan them, shop around for a better price or maybe even get it for free somewhere. Doing these things will help you make better purchases and cut down on those pesky impulses. When you show up to a store where you plan on buying something, it is a good idea to have the amount of money you want to spend and nothing more.

You could start a splurging savings fund. It might even be fun watching this account grow knowing you can spend it anywhere you want and this amount is not being taken away from your budget. It also really makes you feel good knowing you are in control. Impulse buying will quickly spiral you in the wrong direction and probably not make you very happy. Developing these habits will take time but it will be extremely rewarding in the long run.