1. Unions function as labor cartels, restricting the number of workers in a company or industry to drive up the remaining workers’ wages just as OPEC attempts to cut the supply of oil to raise its price.
2. 2Unions benefit their members but hurt consumers generally, and especially workers who are denied job opportunities.
3. 3Unions decrease the number of jobs available in the economy. The vast majority of manufacturing jobs lost over the past three decades have been among union members; nonunion manufacturing employment has risen.
4. 4On balance, unionizing raises wages between 0 percent and 10 percent, but at a steep economic cost. Unions have the same effect on business investment as does a 33 percentage point corporate income tax increase.
5. 5Congress should remember that union cartels retard economic growth and delay recovery when considering legislation, such as EFCA, that would force workers to join unions.