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	<title>Minor Thoughts &#187; The Fallacy of Unionization</title>
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	<description>In this present crisis, government is not the solution to our problem; government is the problem.</description>
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		<title>The Fallacy of Unionization</title>
		<link>http://www.minorthoughts.com/feeder/?FeederAction=clicked&amp;feed=Comments+on+Articles+%28RSS2%29&amp;seed=http%3A%2F%2Fminorthoughts.com%2Feconomics%2Fthe-fallacy-of-unionization%2F%23comment-&amp;seed_title=The+Fallacy+of+Unionization</link>
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		<pubDate>Sun, 07 Dec 2008 15:19:28 +0000</pubDate>
		<dc:creator>Joe Martin</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[unions]]></category>

		<guid isPermaLink="false">http://minorthoughts.com/?p=809</guid>
		<description><![CDATA[<p>SEUI chief Andy Stern:</p>

<blockquote>
  <p>When you have higher wages, people aren&#8217;t poor, they get to eat, they get to live a better life and have a social safety net.</p>
</blockquote>

<p>That&#8217;s the fallacy of unionization right there. People who have a job are better off. But what about people who don&#8217;t have a job? They&#8217;re not better off. They don&#8217;t have higher wages &#8212; they have no wages.</p>

<p>It&#8217;s precisely those higher wages that keep them out of a job. An employer that can employee someone at $7.25 an hour might not be to employee them at $8.25 an hour. For a full-time employee, a difference of $1 an hour is a difference of $2,040 dollars a year. For small businesses that can be the difference between profitability and non-profitability.</p>

<p>Andy Stern says that Western Europe is a good model for America to follow. I wonder if he&#8217;s thinking of Germany&#8217;s 7.1% unemployment, Spain and Belgium&#8217;s 8.1% unemployment, or France&#8217;s 8.7% unemployment. While life is great for employed, unionized workers in those countries, it&#8217;s terrible for the workers without a job.</p>

<p>Who are you most concerned about?</p>
]]></description>
			<content:encoded><![CDATA[<p>SEUI chief Andy Stern:</p>

<blockquote>
  <p>When you have higher wages, people aren&#8217;t poor, they get to eat, they get to live a better life and have a social safety net.</p>
</blockquote>

<p>That&#8217;s the fallacy of unionization right there. People who have a job are better off. But what about people who don&#8217;t have a job? They&#8217;re not better off. They don&#8217;t have higher wages &#8212; they have no wages.</p>

<p>It&#8217;s precisely those higher wages that keep them out of a job. An employer that can employee someone at $7.25 an hour might not be to employee them at $8.25 an hour. For a full-time employee, a difference of $1 an hour is a difference of $2,040 dollars a year. For small businesses that can be the difference between profitability and non-profitability.</p>

<p>Andy Stern says that Western Europe is a good model for America to follow. I wonder if he&#8217;s thinking of Germany&#8217;s 7.1% unemployment, Spain and Belgium&#8217;s 8.1% unemployment, or France&#8217;s 8.7% unemployment. While life is great for employed, unionized workers in those countries, it&#8217;s terrible for the workers without a job.</p>

<p>Who are you most concerned about?</p>
<p></p>]]></content:encoded>
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