Political Economy Commons^™

Union Myopia And The Taxation Of Capital, Dwight Lee, Robert L. Sexton, Philip E. Graves

PHILIP E GRAVES

After an extensive discussion of the nature of the interactions among unions, corporations, and government, we find that government in granting privileges to workers organized into unions implicitly taxes capital formation. The result has been to lessen the attention business decisions pay to the future, to substitute excessive wages for appropriate capital investment, and to reduce the competitive vitality of major U.S. industries.