ABSTRACT
Professor Hayek has consistently held the view that labor unions have become an increasingly serious threat to price stability and full employment and that they tend seriously to endanger the working of the individualistic price economy. He has criticized Keynes for assuming that workers and their unions are subject to strong money illusion and he has pointed out that union leaders as well as the rank and file are becoming more and more price conscious and concerned with real income rather than nominal wage rates. He also has analyzed the dangers inherent in this development of collective bargaining. 1
