What If All Of Us Were Union
Members?
…
First, watch this short video
“Do Unions Raise Wages?”
https://www.youtube.com/watch?v=S3EUrI63SnA
…
Per
Figure 1
If
we all were union members our wages would be 10% higher, point B compared to
point A.
But
overall price level of products we buy would be 20% higher.
The
10% difference due to economic inefficiencies, union management salaries, and the
amount of union members’ dues union management contribute to union-supporting
politicians.
It’s
better from the viewpoint of unionists that not all of us become union members
This
is because non-unionists who are paid lower free market value equilibrium wage
A have to pay for the unionists’ artificially high wage B through higher prices
or taxes
…
Most
economists agree the demand for labor is relatively inelastic, meaning an
almost horizontal labor demand curve.
With
full unionization employment would substantially decrease, from D to C.
Total
wages paid to all wage earners would go down.
Economy’s
total wages paid before full unionization is the large area 0-A-E-D.
Economy’s
total wages paid after full unionization is the small area 0-B-F-C.
So,
from the viewpoint of general society it’s best if none of us are union members.
Prices
are kept low at 1.0.
The
economy grows rapidly due to economic efficiencies.
Wages
are driven higher at a faster rate than prices.
…
When
the economy grows rapidly
·
more profits and wealth are created
·
businesses expand and new businesses start
· demand
for labor increases, employment increases
· wages
are bid up to higher levels
…
Overall,
unionists and everyone are better off without unionization, now and especially
in the future.
Supporting
unionism is both a narrow and short-run focus.
Fundamentally,
unionists and all of us want better jobs, higher wages, and low prices not
unions.
unions empower and enrich politicians and union bosses not workers and society in general
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