What does that mean for the long-term strength of unions?
GALBRAITH: If you are a union in El Paso, of which there are not very many, you’re handicapped severely if the plant jumps across the river to Jaurez and not less so if it goes to Taiwan or Korea or some subsidiary there. The long run effect is evident: it weakens the union position here and in developed high-wage countries and, of course, has some effect on wages in the countries where you are drawing people out of very low-wage agriculture into low-wage but still higher-wage industry. MM: Even though they are often subjected to a very severe government control to prevent them from forming unions? GALBRAITH: Unions are not all that vulnerable. The extraordinary thing is that under most circumstances where unions are needed they come into existence. MM: How do you define a circumstance where a union is needed? GALBRAITH: Where there is a clear exploitation of the workers and privileged revenues are obtained for management and owners. MM: Why have unions not come into being in many Thir
