Under capitalism, all unions are voluntary as opposed to coercive/involuntary and operate under the right to free-association and the freedom to contract.

Involuntary Unions

Unions are associations between two or more individuals based on a common principle, i.e., marriage, i.e., labor union, i.e., republican government.

Under capitalism, all unions, like all relationships, are voluntary as opposed to coercive/involuntary and operate under the right to free-association and the freedom to contract.

For example, a marriage where the couple loves each other vs. a “shot-gun” arranged marriage where one or both of the individuals do not wish to get married. Or, a voluntary labor union where members are to free to join or leave vs. a closed union shop where the government grants the labor union powers to draft workers and/or forcibly exclude them from working as “scabs.” Or, the representative government of a free society vs. the totalitarianism of a socialist dictatorship.

Capitalism is not against marriage, labor unions, or government as long as such unions are voluntary (uncoerced) — that is, no initiation of physical force is involved.

Price of Labor

The general price of labor under capitalism is not set by any particular businessman, but by the free-market.

It is competition between businesses for labor that pushes wages up; it is competition between laborers that pushes wages down.

(To reduce this competition between laborers unions use the power of government to create closed “union shops” which physically prevent non-union members from competing with them, by banning non-union members from working in the unionized field).

Minimum Wage Laws

Minimum wage laws create unemployment.

If passing minimum wage laws are the secret to raising wages, then why doesn’t the government make everybody rich by setting the wage to a million dollars?

Would this solve poverty in third world countries, or would this make everyone — who produces less than the million-dollar minimum wage — unemployable?

The truth is that those who do not produce enough to merit the minimum wage will become unemployed by such laws, and those who do produce more than the minimum wage do not need such laws.

Under capitalism, if a laborer — say Michael Jordan — is not paid enough for what he produces, then someone else will hire him and pay him more. It is competition for labor — that produces — that pushes wages up.

Price of Labor 2

No. Under capitalism, one’s wages depend on how much one can produce. That is why Michael Jordan — or a doctor — gets paid millions of dollars more than the minimum wage. It depends on how well and how much they produce. The reason why factory laborers receive more wages in America is that they are rendered more productive by productive use of capital.


Throughout history, marriage has had many different meanings, but under capitalism, a civil marriage is a voluntary, secular, legal contract between two individual adults, which establishes specific legal rights and obligations between the partners (spouses) recognizing the couple as a single unit before the law.

The right for individuals to civilly marry, regardless of sex, race, ancestry or religion is protected under capitalism.

  • For example, some religious institutions may not recognize a homosexual marriage within their church. Or, a private wedding photography may refuse to photograph their wedding. However, the partners in a homosexual marriage will receive the same treatment before the law as those in heterosexual marriages.
  • For example, a racist organization can verbally oppose such marriages as “corrupting society,” or the mother and father may only want their daughter to marry someone of the same race.
  • For example, some religious institutions are free to not provide private benefits to the interfaith couple if they chose to do so (i.e., recognition of the marriage within a church), but it is recognized by the government and the law.

This marriage may not be recognized by some private institutions, but it is recognized by the government and the law.