The analysis of Professor Larry Summers:
Another cause of long-term unemployment is unionization. High union wages that exceed the competitive market rate are likely to cause job losses in the unionized sector of the economy. Also, those who lose high-wage union jobs are often reluctant to accept alternative low-wage employment. Between 1970 and 1985, for example, a state with a 20 percent unionization rate, approximately the average for the fifty states and the District of Columbia, experienced an unemployment rate that was 1.2 percentage points higher than that of a hypothetical state that had no unions.
The policies of President Barack Obama:
On the economy, President Barack Obama signaled once again the ground is shifting -- this time with regard to unions.
With his signature on three executive orders, President Barack Obama expanded workers rights and reversed Bush administration orders that were seen as anti-union.
Then, the president said something that hasn't been heard in the Oval Office for a long time. "I do not view the labor movement as part of the problem, to me it's part of the solution," said President Obama.
Wow this is going to interesting. We have learnt the beauty of free market. Labor market is a market, buyers and sellers paradise. I have me you wanna buy me? Here is me, have me as your what-ever-be! You pay !@##$%%%^&&**() how that sound? Than you say how about )(*&^%$#@! I say Nob body you paid me !@#$%^&*())(*&^%$#@! End of story you pay me buck I am your what-ever-be! Cool deal done I am yours I am belongs to you now! You are my registry owner hereafter! Have nice time she is your nasty tempered 50/50=devil/cherub, you are too late! With union both of them have NO market power. Why would anyone to control over their market power. Yes everything political,
Korea for example, see the Korean union was very militant still do which I understand why- some of Korean people marginalized, they contribution was immense of the chaebol dominance Korean economic growth but they believed that they had not fair share of the pie. During the 1990s Asian economic melted down Korean had to financial market and labor market reform so that Korea can compete rest of the world. During the reform Korean Gov had to deal with trade unions and asked them cooperation which they did and had to, Korean Gov made a law; prevent of employment sackings but also company survival comes first, which make sense.
