Milton Friedman downplayed trade unions’ real effect on wages

Evidence

On unions, another well-known divergence can be seen between Milton Friedman and the other contributors to McCord Wright’s book. Friedman argued that the impact of trade unions on wage structure was not generally as important as expected in then-orthodox economics (McCord Wright 1951, 202–259). — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1013

Categorization

• XREF: Connects to the chapter’s running theme of internal divergences among the Mont Pèlerin network, especially Friedman’s distinct positions. — connects to: Early neoliberals saw large unions as monopoly threats distorting wages — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 968; Unionization decreases income inequality by disciplining employer power — Nikole Hannah-Jones et al., The 1619 Project: A New American Origin…, 583; Chicago economists led opposition to the New Deal and Keynesian doctrine — Angus Burgin, The Great Persuasion: Reinventing Free…, 88

Broader Connections

• Early neoliberals saw large unions as monopoly threats distorting wages #corroborates (0.82) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 968
• Unionization decreases income inequality by disciplining employer power #contradicts (0.75) — Nikole Hannah-Jones et al., The 1619 Project, 583
• Chicago economists led opposition to the New Deal and Keynesian doctrine #expands (0.72) — Angus Burgin, The Great Persuasion, 88