Most Americans think of Labor Day as part of a long weekend and the unofficial end of summer. It was originally meant, though, to recognize the contributions of labor unions. I recommend a third alternative: use Labor Day to honor laborers.
To honor laborers, you would have to respect their right to make choices for themselves. But because so many people, especially people in government, don’t respect that right, laborers face two main obstacles: (1) government regulation that gives labor unions monopoly power over their labor, and (2) other government regulations that restrict the kinds of deals that laborers can make with those who buy their services. Honoring labor would mean getting rid of those two obstacles.
These are the opening two paragraphs of my 2016 Labor Day article, “Honor Laborers,” Econlib, September 5, 2016.
I recommend the whole thing. I think it still stands up well.
With one exception: government barriers to labor mobility. I read Ilya Somin’s article at Reason today, “Help Workers by Breaking Down Barriers to Labor Mobility,” Reason, September 2, 2024. In my piece, I totally missed the importance of getting rid of, or at least drastically reducing, government barriers to labor mobility.
There are two main barriers. The first are barriers to laborers moving to new jobs within the United States, both in the form of licensing restrictions and in the form of zoning restrictions that make the cost of housing prohibitive. The second are barriers to laborers wanting to come here from other countries. Ilya handles the issues well and I recommend his article.
I have long espoused the fundamental dignity inherent in productive human labor. People using their God-given talents to provide for their families is essential to a successful society. As is typically true, government is the greatest barrier to employment. The article cites important considerations, to which I would like to add welfare and excessive unemployment compensation. Larry Summers detailed this in the Concise Encyclopedia of Economics perhaps 20 years ago - until he changed his tune to join the Obama administration. Many states provide welfare benefits far in excess of lower-wage jobs, strongly encouraging indolence and other social pathologies.
Where we differ is the nature of immigration, particularly legal versus illegal. My wife and younger son are legal immigrants, as are a brother-in-law, sister-in-law, son-in-law, and many close friends. Illegal immigration is an entirely different matter which provides precious little benefit to the USA. Any discussion that does not address these as separate issues is, ipso facto, flawed. Under the Biden administration, some 8-10 million illegals have entered our country, 2.5 - 3% of the population. There has been no increase in persons employed over at least the past year, indicating essentially no one is working. What we have are massive additional costs, likely approaching $150 billion, with no apparent contribution to the country.
Legal, yes; illegal, no.
Labor is human capital. It's sad so many gov impediments restrict this incredible resource.