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Because unions protect the worker from being abused. The power balance is heavily in favour of management who can fire workers on a whim. Also, the market isn'
by omouse 15y ago
Because unions protect the worker from being abused. The power balance is heavily in favour of management who can fire workers on a whim.
Also, the market isn't efficient. If you look at any large corporation, the amount of bureaucracy is crippling sometimes (of course some unions turn into bureaucracies which also hurts).
- smokeyj 15y agoIf the large corporation is such a bureaucracy, a start-up somewhere will come eat their lunch. The theory of natural market monopolies is a historical fallacy. Only with the government's assistance does a monopoly exist (such as a union, central bank, regulatory rights, etc). http://mises.org/daily/5266/The-Myth-of-Natural-Monopoly http://mises.org/daily/5266/The-Myth-of-Natural-Monopoly
- omouse 15y agoThe problem is that the startup will be acquired and thus absorbed into the bureaucracy or it will grow into that giant bureaucracy someday ;p But yeah, I see what you're saying.
- dhume 15y agoAs the userbase here tends towards software-based startups, people often forget that there are many markets where becoming a seller requires very large initial capital.
- smokeyj 15y agoIf the competition is as slow and profitable as you say, I promise investors will want a piece of that action -- and the entrepreneur will make it happen. There's no reason a deal can't be structured.. unless, it's illegal of course :)