Lesson 30 Assignment – Evaluate this statement: “All workers have benefited from the existence of labor unions.”

When we think of Unions, we think of something positive that will benefit the working conditions, increase wages and set standards that will prove positive for working peoples. This is what I also used to think before delving a little deeper into the subject matter. The crucial point is that unions insist on a minimum wage rate higher than what would be achieved for the given labor factor without the union. By doing so, they necessarily cut the number of men whom the employee can hire. Add to this the fact that a lot of times these unions ask for benefits such as paid vacations, full healthcare coverage, etc. They claim to be fighting for the little people, yet don’t think about the harm they’ll be doing to those who have no jobs or want to get a job in a certain industry but can’t because they’re not hiring as much as they would be if it weren’t for the unions. Sure, if you look up how much a weekly income of a union worker is, you’ll find that it can range from $700-$900, but this is possible by cutting the number of people they’d be hiring. The reality is, unions don’t care about anyone but themselves, and always has been.

Better working conditions, the reduction of hours worked per week, and the decimation of child labor is all thanks to the free market. As capital investment caused the marginal productivity of labor to increase over time, less labor was required to produce the same levels of output. As competition became more intense, many employers competed for the best employees by offering both better pay and shorter hours.  Young people originally left the farms to work in harsh factory conditions because it was a matter of survival for them and their families.  But as workers became better paid—thanks to capital investment and subsequent productivity improvements—more and more people could afford to keep their children at home and in school. Union involvement started only after it was already starting to decline, and if you a little research yourself, wages were getting higher without having to cut jobs before unions even got involved.