Unionism and Economic Recovery

Economists Richard Posner and Gary Becker discuss on their joint blog why and how unions might be retarding job growth. 

Becker’s conclusion:

The real threat to a robust recovery on the labor side has come from employer and entrepreneurial fears that once the economic environment improves, a Democratic Congress and administration will pass pro-union and other pro-worker legislation that will raise the cost of doing business and cut profits. In this way the obvious pro-union-pro-worker bias of the present government has contributed to a slower recovery, especially in labor markets. This helps explain

 

Posner’s conclusion:

The Obama Administration’s pro-union policies will in all likelihood worsen our current economic situation.

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