What follows is a thought process that I have been meaning to share for a few years, but I was never able to rouse the courage to (metaphorically speaking) put it down on paper. It consists of a philosophical analysis of social attitudes toward two institutions in America: Business and Labor. Specifically, I mean the justification of free-market capitalism and organized labor unions. It seems to me that, anecdotally, very few people have no strong feelings about these two usually adversarial forces. People tend to either rail against the greed and oppression of "Corporations" or else sneer contemptuously at the laziness and inefficiency of "Unions". I intend to argue that the two are more closely related than we think, and perhaps inseparable.
First, for the sake of disclosure, I will state my perception of each institution, not as an argument but in order to increase the transparency of my thinking and hopefully aid in exposing any fallacies or errors in my argument. I think that Business is largely honest about its motives (profit, profit, and profit) and doesn't pretend to serve any altruistic causes. I think that Labor usually seeks to provide the best possible wages and conditions for workers, but certainly creates some corruption and occasionally makes mistakes, and some unions are likely just as greedy as the Businesses that they lambast. That being said, I tend to be somewhat more sympathetic toward Labor than toward Business. My two reasons for this are as follows:
1. History. Workers have historically been the victims of some ghastly oppressions. I never learned about the Coal Wars in school despite a voracious appetite for history, so I think a majority of Americans may be largely ignorant of this important piece of our history. If this applies to you, I strongly suggest that you stop reading this and immediately familiarize yourself with the topic.
2. Consequences of "overreaching". Simply put, if we err on the side of labor, we may damage or destroy a local industry, injure the economy, and put out of work the very workers which we had been trying to help. This seems to be a relatively self-evident and easily corrected problem. If we err on the side of protecting business and stripping workers of rights, we may entrench and institutionalize a system of oppression which will, at least, violate the dignity of the working class and at worst may result in a violent backlash against the monied class. I don't wish to see blood in the streets.
Now, my basic theory here is that the "philosophy" used to justify and explain the virtues of capitalism serves also to justify and explain the organization of labor. I feel the need to make this case because labor organization is so frequently (and in my opinion, ignorantly) accused of being communist or Marxist. So here it goes:
(Again for Full Disclosure, I took this next section pretty much directly from Karl Marx)
Historical Primer: Before the industrial age the guild system reigned supreme. Craftsmen learned specialized skills via the apprenticeship >> journeyman >> master program, and trade secrets were carefully guarded. The result was a class of craftsmen that were well paid and well respected for their abilities. Of course there was still an enormous agrarian "peasant" class, but they are not the focus here. With the onset of industrialization, skilled craftsmen became obsolete and were replaced by unskilled machine operators and laborers. Because of the replaceability of these laborers, wages were low, hours were long, and conditions were awful and hazardous workplaces were the norm. For the first time, the capitalists were paying labor by the hour. In a very literal sense workers were dehumanized and their labor was commoditized. Ever since, the cost of labor has been viewed by business as just another input into the cost of providing a good or service, alongside raw materials and administrative overhead.
Now to bring it all together. Capitalism is lauded as a kind of natural selection for business. The market is supposed to tolerate a certain ideal price for each good and service based on supply and demand. Noncompetitive prices are eliminated and efficiency is constantly refined in an effort to provide a good or service at the lowest price available. Profit is not evaluated on a moral basis, that is, as long as your firm's goods/services are the cheapest around, you may ethically pocket the difference of that price and your input costs, regardless of the size of that difference. Therefore labor costs, as an input, are systematically driven down in order to either increase profit or decrease the market price. Fair summation? I think so. Let's move on to the labor side of the coin.
I want you to think of the laborer as his or her own firm for the purposes of this comparison. His input costs are basically his cost for lodging, groceries, clothing, and the other necessities of life that enable him to sell his labor to the highest bidder. After all, this labor is the good/service offered on the market by this person, same as a farmer selling produce or a surgeon selling medical intervention. This laborer will sell her labor to the organization willing to provide the best price, although in our society the equation is complicated by things like benefits and social regard. So an organization of laborers cooperating in order to maximize their wages is identical in principal to the business seeking to maximize profit.
These labor unions will also be subject to market pressures; unions demanding noncompetitive wages will be eliminated. Obviously this result is contrary to the laborers' interest, and so by the magic of capitalism, an ideal balance between market price, labor wages, and business profit should occur. My final thought here is that Labor and Business should strive for a cooperative (as opposed to adversarial) relationship in order to reduce the number of strikes, stoppages, etc. Also, if you are a fat cat businessman/woman and are frustrated by what you see as the corruption present in the union leadership (as distinct from the laborer-members), then perhaps a good course of action would be to champion education of the working class, as a conscientious and astute laborer is more likely to recognize and decry the wastefulness of her organization, all the while cultivating a pride and appreciation for her employer.
See, that wasn't terribly Marxist, was it? ; )