Two unrellated stories of economic villainy to raise your blood pressure. First, is the robbery of self-employed entrepreneurs to feed the U.A.W. (H.T. Carpe Diem).
At the behest and lobbying of the U.A.W. and a public sector union, the State of Michigan created an agency to serve as de facto “employer” for self-employed daycare workers, for the sole purpose of having someone to unionize against. Now Michigan’s independent day-care providers pay $3.7 million in annual dues so that they can have… what exactly? Collective bargaining with the State, which became their employer so they could unionize, so that they could collectively bargain with the State, which became their employer so they could unionize, so they could…
This is pure economic villainy, and in a state with 26% unemployment. The Mackinac Center, a free market think-tank, deserves applause for bringing a lawsuit against Michigan for this egregious bullying.
In other egregeious bullying news is the second economic villain of the week, care of Felix Salmon. This is the U.K. for trying to force Iceland to pay the U.K. for the bailouts it gave it’s own citizens who lost money they had deposited in Icelandic banks. This seems to me like a terrible precedent, since it effectively gives U.K. citizens deposit insurance wherever in the world they decide to bank, as long as enough of them do it. Hey, I hear the interest rate on savings accounts is great in Haiti, maybe U.K. citizens should start opening accounts there. Worse than that though, it is pure economic villainy.