Leonhardt on Unions
He could have written:
Since 1980, as union membership has dropped sharply, the share of economic output going to corporate profits has more than doubled.
Since 1980, as union membership has dropped sharply, the natural rate of unemployment has dropped sharply as well.I have no doubt that making it easier for workers to form cartels would raise wages--at least for those workers in the cartels. But demand curves slope downward. When unions push wages above the equilibrium of supply and demand, the side effects are not entirely benign.