--- title: "Meaning & Key Takeaway of: Once government undertakes to determine…" description: "\"“Once government undertakes to determine the whole wage structure and is thereby forced to control employment and production, there will be a far great..." image: "https://sms4smile.com/quotes/i/58c/friedrich-a-hayek-29346_bureaucracy_once-government-undertakes-to-determine_1787250.jpg" --- # Once government undertakes to determine the whole wage… ![“Once government undertakes to determine the whole wage structure and is thereby forced to control employment and production, there will be a far greater destruction of the present powers of the unions than their submission to the rule of equal law would involve. Under such a system the unions will…” quote by Friedrich A. Hayek](https://sms4smile.com/quotes/i/58c/friedrich-a-hayek-29346_bureaucracy_once-government-undertakes-to-determine_1787250.jpg) [Download](https://sms4smile.com/quotes/i/58c/friedrich-a-hayek-29346_bureaucracy_once-government-undertakes-to-determine_1787250.jpg) [Open image](https://sms4smile.com/quotes/i/58c/friedrich-a-hayek-29346_bureaucracy_once-government-undertakes-to-determine_1787250.jpg) > ““Once government undertakes to determine the whole wage structure and is thereby forced to control employment and production, there will be a far greater destruction of the present powers of the unions than their submission to the rule of equal law would involve. Under such a system the unions will have only the choice between becoming the willing instrument of governmental policy an being incorporated into the machinery of government, on the one hand, and being totally abolished, on the other. The former alternative is more likely to be chosen, since it would enable the existing union bureaucracy to retain their position and some of their personal power. But to the workers it would mean complete subjection to the control by a corporative state. The situation in most countries leaves us no choice but to await some such outcome or to retrace our steps. The present position of the unions cannot last, for they can function only in a market economy which they are doing their best to destroy.”” [Friedrich A. Hayek](https://sms4smile.com/quotes/author/friedrich-a-hayek/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Hayek warns that central wage control forces unions into government tools, eroding their independence and leading to a corporative state. **In simple terms:** Government wage control harms union freedom and creates a corporative state. Key Takeaway Beware central wage control. Themes politics economics labor government freedom Mood cautious critical Type political economic When to use this quote - policy debates - labor negotiations - economic reforms - union strategy - government legislation Key Concepts central planning union autonomy corporatism Questions to Reflect On - How would unions preserve autonomy under wage control? - What alternatives protect workers without corporatism? 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The former alternative is more likely to be chosen, since it would enable the existing union bureaucracy to retain their position and some of their personal power. But to the workers it would mean complete subjection to the control by a corporative state. The situation in most countries leaves us no choice but to await some such outcome or to retrace our steps. The present position of the unions cannot last, for they can function only in a market economy which they are doing their best to destroy.”", "creator": { "@type": "Person", "name": "Friedrich A. 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