The right of free association, which is pleaded on behalf of collective price-fixing by trade unions, means nothing unless there is an equal right of non-association. It is contrary to the Rule of Law that any private association of citizens should be permitted to exercise, let alone to be endowed with the positive power to exercise, coercion over those who do not choose to belong to it. This power of coercion derives primarily from the legal privileges which trade unions, and trade unions uniquely, have enjoyed for the last sixty years, privileges which enable them to behave in ways that for any other associations would be unlawful and would result in damages for those who suffered injury at their hands... [N]o one has succeeded in showing that today these coercive powers are other than superfluous at best and at worst harmful, and that...the state of the law on which those privileges rest is ripe for urgent reform. The law of picketing, intimidation, contracting-out, immunity from process is not at this day defensible, either in itself or in its economic consequences. When combination to fix the price of labour enjoys no privileges which are denied to combinations for the purpose of fixing other prices, then the right of free association will be a reality and not a phrase, and one of the most serious obstacles will have been removed which impede at present the use of this nation's abilities and resources for the benefit of all her people.
British politician (1912–1998)
John Enoch Powell (16 June 1912 – 8 February 1998) was a British politician, classical scholar, author, linguist, soldier, philologist, and poet. He served as a Conservative Member of Parliament (1950–1974), then Ulster Unionist Party (UUP) MP (1974–1987), and was Minister of Health (1960–1963).
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Alternative Names:
J. Enoch Powell
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John Enoch Powell
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I sometimes hear the suggestion made, even in the Conservative Party, that one would wish to see the official, responsible trade union leaders encouraged and strengthened, given the power to make binding contracts on behalf of their members, and placed under liability to penalties if their members break them. This would be the diametrically wrong direction in which to move. It would entrench and give legal sanctions to collective price-fixing itself, which is the essential economic evil. But there are more objections than on economic grounds alone; there are also grave political objections. If unions are to contract to deliver a stipulated quantity, and presumably quality, of labour at a stipulated price, then they would need to be endowed with disciplinary powers over their members, in order to secure the performance of the contract: the members would have to be subject, besides the general law, to a kind of private law or code. A trade union would cease to be in any sense a voluntary association; for only union members, and that, members of a specific trade union, would in practice be employable. This is the union shop and the closed shop—which the Tory Party has always repudiated—with a vengeance. The idea would carry us far down the road to the fascist, corporate state, where the economic life and decisions of the individual are regulated by corporations of employers and unions.
[T]o the extent that collective bargaining does succeed in distorting costs, it must rank among the obstacles to improvement in the standard of living of the British worker; and the more effective it is, the greater the obstacle. The British industrial worker today works longer hours for less real wages than his counterpart in West Germany, and that will soon be true, if it is not already, of his counterparts in a number of other European countries. This is not because the British trade unions are not strong enough, any more than it is because the monopolies and restrictive practices among buyers and sellers of goods and services are not tight enough. It is because industrial effort is being more efficiently used elsewhere than here. This is what gives the immediacy and urgency to this whole question of the trade unions. The people of this country cannot afford to allow themselves the luxury of practices and habits, however encrusted with sentiment and benevolent superstition, which place obstacles in the way of more efficient use of our resources.
The effect of any combination to fix the price of labour in a particular employment by restraining those who would be prepared to pay more or accept less—that is what collective bargaining means if it means anything at all—is the same as the effect of any other restrictive practice: it makes everybody worse off in the end.
So let us make this our resolve: we will not be tempted, or frightened, or cajoled into turning aside from our plain duty and common-sense necessity: so to control and limit and guide our public expenditure that it no longer entails upon this country the recurrent menace of inflationary crises or the more insidious but in the long run dangerous atrophy of an increasingly state-dominated economy.
Public and private expenditure are not the same in their financial and economic effects. There is a very important difference between your expenditure and mine and the Government's expenditure. If you and I intend to spend but find we have not enough money, we have no choice but to think better of it. Not so the Government; if they are short, they can either make you and me pay more in taxation, or else they can actually create additional money... For politicians to increase public expenditure is easy and sweet; to refrain from increasing it, let alone to reduce it, is hard and uncomfortable. Thus it is that government intentions to spend get carried through, irrespective of whether this results in money being created faster than goods and services—irrespective, in other words, of the inflation which ensues. That is why Lord Cromer was perfectly right in saying that a high level of public expenditure causes inflation.
The explosion in productive energy which capitalism unleashed in the nineteenth century was accompanied by social evils and hardships which have since been outgrown and abolished. It has been possible to do so by means of that very increase in production itself, just as future social improvement will depend on the rate of our future economic advance. What tragic folly it would be if modern Britain were to cast away the subtlest and most efficient system mankind has yet devised for setting effort and resources to their best economic use, and were to go right back to the clumsy methods and crude fallacies which our forefathers thought they had left behind for ever.
The present-day Socialist would be perfectly at home in the France of Louis XIV, where officials decided what industries should be created and located in what parts of France and her colonies, minutely regulated the imports and exports, subsidised and controlled prices, and managed the economy even down to prescribing the patterns which were to be woven in the state-owned tapestry works of Aubusson. There is the spiritual home of the Socialist planner. If Louis XIV could read Signposts for the Sixties, with its promise of the powers of government used to enforce a national plan of investment and production...it would win his full approval and support. There are no doubt some points of dissimilarity between Mr. Harold Wilson and Louis XIV; but in their economic policies they are twin souls. And the psychology and attitude of mind behind their common policy is not at all unlike. "The state?" said Louis, "Why, that is myself!" Was it not a Socialist minister who within living memory proclaimed, "We are the masters now"?
The idea of the State-controlled economy is not modern at all. It is very old; and not only very old, but refuted and superseded long ago. It is quite true that the great principles of capitalism and free enterprise were expounded and explored around the beginning of the nineteenth century. Newton discovered gravitation in the seventeenth century. Copernicus proved in the sixteenth century that the earth revolves round the sun. But these truths are not thereby "out-of-date". They are not refuted by the lapse of time. The errors which they replaced are errors still. It is the Socialists and the economic planners who are the Ptolemaics and the flat-earthers of the modern world. They have not moved on beyond capitalism: they have moved back before it. In order to find the parallels to their faith in state regulation and control of the economy you have to go back behind Adam Smith and his contemporaries to the elaborate management of trade in the guilds and boroughs of the Middle Ages or to the French bureaucrats of the seventeenth and eighteenth centuries.
Before more months or years are spent by Ministers, by economic staffs, by industrialists and by trade unionists, in a pursuit which is as foredoomed to futility as filling a sieve or making a rope of sand, it is time to call a halt, and to declare in round and unmistakeable terms that an incomes policy, in any relevant or useful sense, does not and cannot exist—except perhaps in a communist dictatorship.
In conditions of free enterprise and competition, one does not have to contrive modernisation or introduce it by government decree. It happens, and keeps on happening, of its own accord. A firm or an industry or an attitude which is no longer modern simply does not survive; it goes under and is replaced by others which are modern. Our motor industry, our chemical industry, yes, our steel industry, do not have to be told to modernise themselves. They keep on doing it because they have to, in order to export and meet the challenge of a fiercely competitive and rapidly changing world. If Britain wants to be modern, there is no substitute for the system of competitive free enterprise by which the Tory Party stands.
Now, there is one set of market forces, supremely important to Britain, which lie outside the reach of even a Socialist government. These are world market forces. Whatever government we have in this country, the rest of the world will only buy from us what it cannot get elsewhere cheaper and better. If our prices are high or our goods not the right ones, it will be no use saying: “Oh, but we have decided not to be ruled by market forces beyond our control.” The rest of the world would laugh in our faces. And what sheer nonsense and utter hypocrisy it is for a country dependent on selling a fifth of its product abroad to pretend not to “be ruled by market forces”!