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lanstintoday at 12:04 AM1 replyview on HN

Are you saying that auto labor unions can't go into other places and organize the people there for higher salaries and less wretched conditions? Or that organizing doesn't increase the power of the hard working people? Economic facts are partially determined by human factors such as the supply curve for labor and information flow amongst sellers or buyers for various goods.


Replies

xyzzyztoday at 4:02 PM

Yes, and by shifting the labor supply curve you can make the laborers worse off, because it will often shift the supply curve of the product they’re making. If labor unions make you pay your workers more, you might need to raise the prices, which will make you less competitive, and reduce your sales, which can result in layoffs, or in preventing new workers from gaining employment.