‘Unleash capitalism and the lot of all workers will be improved’
Re: Canada’s Shrinking Union Footprint, editorial, July 15. This editorial perpetuates the myth that unions are responsible for improving the lot of the middle class and driving up wages. Those who study economics and follow the teachings of renowned economist Milton Friedman know that unions were not primarily responsible for increased wages and better working conditions. Rather, capitalism and the increased demand for workers caused by economic growth led to higher wages and better conditions.
Unions typically drive up wages for a select few by restricting job opportunities. Governments also restrict opportunity through misguided minimum wage laws. Unskilled and uneducated citizens find the doors to employ- ment closed on them because the minimum wage is set at a rate higher than their skills would dictate, and thus they don’t get hired. Employers who would take a chance on an unskilled worker if the price was right, end up not hiring that worker because of the minimum wage. The success story of starting in the mail room and becoming the CEO will never happen because higher minimum wages have eliminated those jobs.
Allow businesses to flourish by unleashing capitalism and, as demonstrated time and time again, the lot of all workers will be improved. Unfortunately, the truth is lost in the usual drivel about income inequality.
Jonathan Smith, Richmond Hill, Ont.