Wednesday, February 20, 2008
Democrats and Unions
Liberal commentators frequently cite declining union memberships as a contributing factor, even driving factor, in stagnating wages (i tend to think it is the rapid increase of per-capita health care costs and skills based technological changes, but anyways). Thus, if we could just return the country to that golden period immediately following WWII and ramp up union membership we would see median wages skyrocket again. The premise of a union's ability to bargain for better wages is that it can tax the return to capital. As capital has become increasingly mobile it simply doesn't have that same leverage it once did.