Why did labor unions first really grow strong in the bastion of freedom and democracy…the USA?
Productivity had reached a point where the concessions made by private businesses were no longer prohibitively expensive. Additionally, the standard of living had risen to a point where long work days and child labor were no longer necessary to provide life’s basic necessities. While unions are given “credit” for the changes that happened during the late 19th and early 20th century, the economic reality does not back up that assertion. The fact of the matter is that unions are incapable of raising wages of any kind in the long run. Once increased unemployment, inflation, and sub-optimal productivity are taken into account, the economy is poorer than before the union came into existence.