12% of the workforce is unionized. Federal, state and local govts are bankrupt. What would happen if the other 88% of the workforce were to demand union pay raises, better benefits, higher pensions? More jobs would go to China faster until the US defaults on loans and democracy ceases to exist. The end.
Higher wages support more affluent lifestyles. Unions typically bring their members the wages that can afford them certain luxuries. The effects of these high wages have a trickle down effect across a wide section of the economy. A higher paid union worker can afford a new car instead of a used one, they can replace household items when needed instead of trying to make do or get by without one. They can take their families on vacations once a year, maybe they’ll eat out once or twice a month instead of once or twice a year.
All of these activities cost money and when money is spent others can remain employed. So if a worker buys a five year old used car it does absolutely nothing for the auto industry (they made their money years earlier), it probably doesn’t do much for the dealership either considering more money can be made on new cars.
Shipping jobs overseas has absolutely no benefit for the consumer. Did a $15 shirt made in America cost significantly less after Chinese laborers making $.35 an hour made the shirt instead of a union worker in North Carolina? I don’t think it did, the only thing that increased was the profit margin on the shirt.
Most of the money union workers make gets put back into the economy in one way or another. They aren’t raking in money by the truckload off of dividends. They hope they have enough to help pay for college or any repairs to the house or to have a few nicer things to enjoy.
A lot of people I know would willingly pay a few bucks more for something American made rather than imported. They would rather know they are supporting American workers rather than somebody overseas. If these jobs came back to these towns then you’d see all the shuttered diners re-opening, maybe some new shops in all the abandoned storefronts, maybe homes that needed new siding would have it replace or sidewalks repaired.
Sure one worker can’t stimulate the economy much, but in a town a 1,000 workers could do a lot and across states and regions and the country as a whole the effect would be tremendous.
Lowering wages of employees won’t make a difference, if anything it makes people tighten their belt more and go into austerity mode. Higher wages helps the economy more than stripping people of benefits and wages does. It’s just Econ 101.
ChadS