Question

I need a solution in conclusion form for the lobbyists and increasing the power of trade unions

Answer 1

Unions operate as labor cartels. A labor cartel limits the number of employees in a business or sector to push up the remaining salaries of employees, much as the Organisation of Petroleum Exporting Countries (OPEC) attempts to slash oil supplies in order to increase its price. Companies pass those higher salaries on to customers by higher costs, and they also make smaller profits as well.

Unions tax such investments efficiently by securing higher salaries for their workers, thus raising profits. Unionized businesses are responding to this tax by cutting investment. Less investment makes unionized companies less competitive. That, along with the fact that unions operate as labor cartels trying to limit employment prospects, creates job losses for unionized businesses. Economists often find that employers are increasing the number of workers in the economy. In the past three decades, the vast majority of manufacturing jobs lost have been among union members the non-union manufacturing employment has increased.

Unions argue they should increase wages for their leaders, but few Americans grasp the economic theory that describes how they do so. Unions are working-class gangs. Cartels operate by restricting the availability of what they sell so customers have to pay higher prices. OPEC, the most well-known cartel, is seeking to increase oil prices by slashing oil supply. As labor cartels, unions aim to monopolize the labor supplied to a business or company to compel employers to pay higher wages. They act like every other cartel in this way, and have the same impact on the economy. In the short term, cartels are helping their leaders and hurting the global economy.