Catallaxy

Frederick von Hayek

It’s a funny looking word.  You might think it has something to do with cattle.  But cattle has 2 t’s and only 1 l.  No, this is an economic expression.  Cheryl’s favorite economist, Frederick von Hayek, worked with this word.  Hayek was not too happy with Economy.  That word didn’t quite appeal to him.  The Greek derivation stretches back to oikonomia.  Now that doesn’t appeal to me; too much like oink oink, what they use to describe the sounds of pigs. 

Catallaxy – the science of exchange; how a free market system arrives at prices and values; how people arrange for employment – one person works, the employer pays for the labor.  Exchange labor for pay.  Jobs.  You would think JOBS was a 4-letter word in this economy.  College graduates guaduate and they have no jobs.  People are unemployed.  Experienced people are unemployed.  People lose their jobs because businesses shut down – there’s no business.  People lose their jobs because companies relocate.  People lose their jobs because technology replaces their work.

Both the employer and the job holder in a Hayek free market economy are striving for the same goal: success of the business enterprise.  If the boss succeeds, the job holder succeeds.  Today’s unions look to cause conflict between the boss and the worker: the union says because the worker has the job, he is ENTITLED to the benefits.  The union is not looking for productivity on the job; the pace of production should be to the lowest on the productivity scale so that everyone is equal.  That’s something like reverse thinking; don’t look to be more productive, look to be less productive.  Don’t show up the weakest worker.  It’s as though you need to be INCOMPETENT to set the standard, which used to be called the Standard of Excellence.

The union does not want improvement in technology because that would eliminate the number of union member workers.  The reason for having a large number of workers is so that the union collects more union dues from more union members.  Don’t shrink the number of workers.  Look at China.  Massive unemployment if technology took over the jobs.  What do you do with all those people?

The union does not want the boss to succeed; the profit should go to the union worker so that the union dues can be INCREASED.  The union doesn’t care what happens to the company; those who belong to the union COLLECT, whether they are working or retired.  Look at GM.

Catallaxy – science of exchange.  The worker and the boss have to have the same goals.  The business has to succeed.  The boss gets what is called profit, and the worker gets salary and bonus.  Those who strive to have the business succeed, those who excel, get MORE.  Didn’t John Lewis, back when labor unions really did help the worker; didn’t John Lewis answer when asked, “What do you want?” – didn’t John Lewis say “We want MORE.”

Yes, there was a time when unions represented the union worker.  Back then the union member and bosses wanted the business to succeed.  The bosses saw profits go up and the union members saw their pay and benefits go up.  That’s when unions were really labor unions.  That’s when there was growth and economic expansion.

Catallaxy – the science of exchange.  The boss hires the worker.  The worker does a good job.  The boss exchanges money for work performed.  Business improves.  The boss has more profit; the worker has more pay.

Cheryl’s favorite economist: Frederick von Hayek.

Worth studying.

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