The LuLac Edition #4,555, July 14th, 2021

WRITE ON WEDNESDAY

Our “Write On Wednesday” logo

This week the Times Shamrock Editorial board looks at the free market system and why it should always include Labor. Here’s what was written:

FREE MARKETS INCLUDE LABOR

Companies often include do-not-compete clauses in severance agreements with departing employees, and in some cases it makes sense.

The idea is to preclude departing employees, especially high-ranking executives with knowledge of a company’s strategy and the status of its projects, from imparting proprietary or other inside information to a competing enterprise.

But many companies also have used do-not-compete clauses as a means to lock lower-level workers into more routine jobs much farther down the ladder, limiting their opportunities and controlling wages by preventing job competition within particular industries.

According to the U.S. Department of Labor, nearly a third of companies routinely use do-not-compete clauses across their payrolls.

President Joe Biden signed an executive order Friday to tightly limit the use of do-not-compete clauses, thus enabling millions of workers to market their skills. That will create more competition for workers and put upward pressure on wages.

The National Association of Manufacturers objected, saying that the order threatens “to undo our progress by undermining free markets.”

Apparently, the organization believes that workers aren’t entitled to the benefits of a free market for their skills and experience.

The order also precludes the use of licensing requirements to limit worker participation in certain fields. About 30% of U.S. jobs require a state license, according to the Department of Labor.

Licensing is crucial in some fields, including medicine, the law, financial services and others, to protect the public by ensuring at least basic levels of education and competence among practitioners. But many times, license requirements are the result of intense lobbying by people who want to use licensing as a means to create government-sanctioned cartels to limit competition within their own fields.

Biden’s order limits the use of licensing for that purpose and requires state governments to recognize licenses issued by other states.The order eliminates needless restrictions, broadens opportunities for work and compensation and helps to ensure that labor markets are not unfairly restricted against the interests of workers.

According to the U.S. Department of Labor, nearly a third of companies routinely use do-not-compete clauses across their payrolls.

President Joe Biden signed an executive order Friday to tightly limit the use of do-not-compete clauses, thus enabling millions of workers to market their skills. That will create more competition for workers and put upward pressure on wages.

The National Association of Manufacturers objected, saying that the order threatens “to undo our progress by undermining free markets.”

Apparently, the organization believes that workers aren’t entitled to the benefits of a free market for their skills and experience.

The order also precludes the use of licensing requirements to limit worker participation in certain fields. About 30% of U.S. jobs require a state license, according to the Department of Labor.

Licensing is crucial in some fields, including medicine, the law, financial services and others, to protect the public by ensuring at least basic levels of education and competence among practitioners. But many times, license requirements are the result of intense lobbying by people who want to use licensing as a means to create government-sanctioned cartels to limit competition within their own fields.

Biden’s order limits the use of licensing for that purpose and requires state governments to recognize licenses issued by other states.The order eliminates needless restrictions, broadens opportunities for work and compensation and helps to ensure that labor markets are not unfairly restricted against the interests of workers.