Monday, November 28, 2005
Why unions are doomed
Michael Barone has a pretty good piece in the WSJ this a.m. He doesn't come right out and criticize the unions for digging their own graves, given their obvious decline, but does explain the economic side. No doubt the core issue is:
Why GM and the UAW's postwar economic vision failed.
The attempt to protect workers from all risk has turned out to be very risky indeed, since in a dynamic economy large corporations are subject to competition from firms with lower costs. In the auto industry the result is significant pain for those who relied on the Big Three and the UAW; but the result is also a vastly faster growing economy and many more opportunities than provided by the European welfare states.