What If All Of Us Were Union Members?
First, watch this short video “Do Unions Raise Wages?”
…
Most economists agree the demand for labor is relatively elastic, meaning an almost horizontal labor demand curve.
Per Figure 1, with full unionization of an industry employment would substantially decrease in the industry, from D to C.
For the remaining unionized workers wages would go up to 1.1.
Total employment and wages paid in the industry would both decrease because of elastic demand for labor.
The industry's total wages paid before unionization is the large area 0-A-E-D.
The economy's total wages paid after unionization is the small area 0-B-F-C.
Prices in the overall economy would only go up to somewhere between 1.0 and 1.1, so the unionized workers come out ahead.
...
It’s better from the viewpoint of unionists that not all of us become union members.
If we all were union members our wages would be 1.1.
We'd all be employed but the overall price level of products we buy would be 1.2.
The difference is due to economic inefficiencies, union management salaries, and the amount of union members’ dues union management contributes to union-supporting politicians.
...
The less unionization in an economy:
· the faster the economy grows
· the more profits and wealth are created
· the more businesses expand and new businesses start
· the faster employment increases
· the lower price inflation is
· the higher net wage levels are
…
Overall, unionists and everyone are better off without unionization,.
Supporting unionism is supporting the coercion of monopolist special interest groups.
Fundamentally, unionists and all of us want better jobs, lower prices, and higher net wages, not unions.
… …
What If All Of Us Were Union Members?
First, watch this short video “Do Unions Raise Wages?”
…
Most economists agree the demand for labor is relatively elastic, meaning an almost horizontal labor demand curve.
Per Figure 1, with full unionization of an industry employment would substantially decrease in the industry, from D to C.
For the remaining unionized workers wages would go up to 1.1.
Total employment and wages paid in the industry would both decrease because of elastic demand for labor.
The industry's total wages paid before unionization is the large area 0-A-E-D.
The economy's total wages paid after unionization is the small area 0-B-F-C.
Prices in the overall economy would only go up to somewhere between 1.0 and 1.1, so the unionized workers come out ahead.
...
It’s better from the viewpoint of unionists that not all of us become union members.
If we all were union members our wages would be 1.1.
We'd all be employed but the overall price level of products we buy would be 1.2.
The difference is due to economic inefficiencies, union management salaries, and the amount of union members’ dues union management contributes to union-supporting politicians.
...
The less unionization in an economy:
· the faster the economy grows
· the more profits and wealth are created
· the more businesses expand and new businesses start
· the faster employment increases
· the lower price inflation is
· the higher net wage levels are
…
Overall, unionists and everyone are better off without unionization,.
Supporting unionism is supporting the coercion of monopolist special interest groups.
Fundamentally, unionists and all of us want better jobs, lower prices, and higher net wages, not unions.
… …
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