Principles of Economics: Microeconomics - Do Unions Raise Wages?

Do unions raise wages for workers as a whole? If not, can unions raise the wages of some workers? The answer is, well, it depends. Unions have the ability to restrict the supply of labor to a job, which can increase wages for some workers. However, unions can also lower wages. For example, work stoppages and strikes supported by unions can slow down economic growth, lowering real wages. To illustrate this, we take a look at what happened to Great Britain’s economy during the 1970’s union strikes. It’s important to note that unions are not just about wages — they can be helpful in protecting workers from arbitrary abuses and maintaining positive workplace relationships. Finally, we ask — are there differences between professional associations and unions? How are they similar? Watch to learn more about how unions affect the economy. Microeconomics Course: http://bit.ly/20VablY Next video: http://bit.ly/1TG8byR Help us caption & translate this video! http://amara.org/v/GZRf/