Labor Day might have passed, but problems related to labor deserve sustained attention.
Unions might help small groups of workers maximize better pay, conditions, and benefits. But they reduce economic growth and raise the embedded rate of inflation.
Consider, for example, how members of the Teamsters union recently extracted monopoly power compensation increases from UPS Inc. A typical UPS worker who is a member of the Teamsters will soon be makingSimilarly, members of the West Coast longshoremen’s union just ratified a new contract providing for a 30% pay increase over four years.
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