Open to Debate

Do Unions Work For The Economy?


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Unions may be on the verge of a resurgence. After decades of decline, workers are organizing at well-known companies, like Starbucks, Amazon, and Google, at a pace not seen since the 1930s. Decades of stagnant wages, recent labor shortages, and the most vocally pro-union President in recent memory have all stoked key wins for American labor, including successful strikes at John Deere and Kellogg. In fact, recent polling shows public support for labor unions has climbed to 71%, its highest level since 1965. During the old industrial days, unions had broad influence over the American economy. But their power waned. In 1983, one in 5 employees belonged to a union. Last year, that number had dwindled to one in 10, with most of the declines occurring in the private sector. Some say good riddance. They argue that unions actually hurt workers and the economy under the guise of supporting both. Union dues sap salaries, they say, and can actually increase unemployment. They also make the economy more rigid to change, raise consumer prices, and ultimately render unionized companies less competitive. Advocates, however, argue that in light of yawning income inequality, organized labor is desperately needed. Unions increase workers’ pay and benefits, they say, and can also settle disputes more equitably, improve wages, and encourage a more robust middle class. Of course, not all unions are created equal. And the difference between private and public-sector unions needs to be explored. Yet as public support for organized labor has grown as more workers push to join unions, an overarching question looms large: Do Unions Work For The Economy? 

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