From the Preface to the New American Edition – by Ludwig von Mises
ECONOMICS TEACHES that there is but one method available to raise wage rates for all those eager to earn wages, viz., to increase the per-head quota of capital invested and thereby the marginal productivity of labor. At the wage rate established on a free labor market all those who are eager to hire workers can hire as many as they want and all those who want to earn wages can find a job. On a free labor market there prevails a tendency to make unemployment disappear. Not to interfere with the operation of the labor market is the only effective full-employment policy. If either by government decree or by union pressure and compulsion wage rates are raised above the potential market rate, unemployment of a part of the potential labor force becomes a lasting phenomenon. It is impossible for the unions to raise wage rates for all those eager to earn wages and to find jobs. If they win for some groups of workers higher compensation than what they would have collected on an unhampered market, they victimize other groups.
In week two, several of the students seemed to struggle with the concepts posited by Adam Smith and how they related with current day labor. One of the difficulties with Smith (in addition to the arcane language) is that he operated under a discredited theory of value, i.e., the labor theory of value [forgive the Wikipedia reference, it is for a simple definition and is well referenced]. In the late 19th Century three economists, Leon Walras, Carl Menger, and William Stanley Jevons, independently identified the subjective theory of value [ditto] … that the value of a thing is in the perception of the buyer and the seller.
As suggested by Smith, productivity gains are the basis for increased wages. In Collective Bargaining, Hutt quotes Professor Cannan “”Modern doctrine teaches plainly enough that combinations of earners can only raise earnings if they can raise the value or quantity of the product . . .”20 “ Hutt adds that this “clearly cuts out any theory of collective bargaining, for that is concerned with the distribution and not the size or value of the product.” What Hutt is saying is that collective bargaining cannot raise the level of wages in the market without a concomitant rise in the productivity. A supply and demand curve for labor expresses this as well:
ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.