Cite JOURNAL ARTICLE
Soziale Beherrschung des technischen Fortschritts durch tarifliche Investitionslenkung?
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 107 (1987), Iss. 3 : pp. 431–440
Union contracts, which protect employees' assets from devaluation resulting from technological innovation, are a part of a rent seeking society. The consequences are an attenuation of employers' property rights as well as a restriction of competition in the labor and commodities markets. The subsequent cost increases are, effectively, taxes on technological progress and lead to a rise of prices and decrease of earning power. Cartelization supports the existing structures and prevents implimentation of laborsaving technology. In the long run, venture capital will seek alternative investment opportunities and the ability of the industry to compete in international markets will be diminished. The attempt to exert "social control" over technological progress will be realized through a loss of earnings and growth.