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Unformatted text preview: whole. Lets consider both sides of the debate. Critics of unions argue that unions are merely a type of cartel. When unions raise wages above the level that would prevail in competitive markets, they reduce the quantity of labor demanded, cause some workers to be unemployed, and re-duce the wages in the rest of the economy. The resulting allocation of labor is, crit-ics argue, both inefficient and inequitable. It is inefficient because high union wages reduce employment in unionized firms below the efficient, competitive level. It is inequitable because some workers benefit at the expense of other workers. Gentlemen, nothing stands in the way of a final accord except that management wants profit maximization and the union wants more moola....
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- Spring '10