Two (Quixotic) Methods Labor Unions Use to Raise Wages

Source: Foundation for Economic Education
by Walter Block

“[C]an organized labor raise wages? Sure, for a while. The automobile unions did so. But look at the havoc in which they enmeshed Detroit, and the harm they perpetrated upon themselves. Manufacturing companies in this industry fled, resettling in Alabama and elsewhere in the anti-union south to get away from them. It is one of the hoariest of economic findings that wages tend to reflect productivity. If the two deviate, market forces automatically occur which bring them back into close association.” (11/17/22)