Labor Unions Ruin Small Businesses

The boss needs you, you don’t need him, is a slogan commonly heard throughout labor unions since the early 20th century. Disguised as advocates for workers rights, the vast majority of unions have become money laundering schemes that are ruining businesses as well as our political system. now before you assume I’m some monopolistic tyrant who wants all men, women, and children to work in coal mines for 16 hours a day, I used to work in a unionized grocery store, along with my brother and some of my best friends. My mother is a public school teacher and my father is a unionized engineer. I can honestly say that they aren’t nearly worth the dues we are required to pay. I’m going to highlight the process of how Unions get their money, what they use it on, and how it effects our economy and your money.

In the vast majority of cases, union membership is a requirement to being employed in certain companies. That means that in order for a company, one must pay $120 (or whatever the monthly dues are) out of their pockets to their union in exchange for the services that they provide. What does a union do? When they aren’t opposing a labor contract that cuts union pay or benefits by even the slightest margin, they are donating to Democratic political campaigns. According to Andy Stern, the head of the Service Employees International Union, we [SEIU] spent a fortune to elect Barack Obama – $60.7 million to be exact – and we’re proud of it. we saw this problem last month as Wisconsin Governor Scott Walker tried to cut the state budget. Immediately upon hearing that collective bargaining rights on benefits were to be removed, the fourteen state senate Democrats fled across the state border to Illinois. Here’s where the story gets interesting. Public-employee unions and individual government workers contributed at least $344,000, to the campaigns of those 14 members, or about 1 in 5 of their campaign dollars. we can see where this is going: Unions bend over backwards to get their politicians elected, and in return the Democrats raise the minimum wage, increase unions’ legal rights, and even come out to rally for support during union protests.

Not only is this bad politics, it’s bad for our labor market. take the teachers unions for example. in most states, as soon as a public sector teacher is employed for three years, they receive tenure, and can’t be fired or laid off unless in the case of massive budget cuts or a sexual scandal. this seniority based system of hiring and firing is the most inefficient system imaginable, and your kids are left with the older teachers who haven’t retired only because they can slack their way to more money. That’s not to slam all teachers; there are many teachers who deserve every dollar they earn, and more. However, because the system eliminates the requirement to work hard, inspire kids, and challenge them to be their best, a lot of teachers can assign some tedious book to read or a section out of a textbook made for people three grades lower before retreating to their computers to check their Facebook, wait out the rest of the day, and collect their paychecks at the end of the week.

I haven’t even began to explain the financial burdens of labor unions, which are especially dissatisfying when it’s a public worker union. When state employees collective bargain for a wage increase, that’s that much less money that the government can spend on other more important programs, so they either have to cut in important places, like laying off workers (like Scott Walker was forced to) or raise taxes. Fewer workers means fewer teachers to teach your kids, and fewer policemen and firemen to keep our cities safe. Higher taxes means more money coming straight out of your paycheck or small business income statement.

What would happen if unions were to be banned altogether, with the current working conditions they have worked for signed into law? These new laws would eliminate the good reasons for unions completely. since we are in a period of inflation, what we’d see is an overall decrease in the real wage (the average wage adjusted for inflation) but an increase in employment. Seeing that workers as a population are decreasing unemployment but decreasing in average purchasing power, companies who specialize in middle-higher quality goods and services would be forced to lower their prices in order to keep attracting customers. since the wages haven’t gone up due to lack of labor unions, the companies will retain their regular amount of profit, because with a drop in price comes an increase in demand and increased sales. the average taxpayer will also benefit from the lower prices in the form of increased purchasing power.

Say what you will about the greatness of unions, but as long as they remain in power the country will continue to fall. Unions cause unemployment to rise and cripple businesses year round. in my opinion, they are no longer necessary.

Labor Unions Ruin Small Businesses


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