Labor Unions

Part I of Essay
Since the foundation of the American Federation of Labor(AFL) in 1886, most unions in the United States have displayed a pragmatic out look, largely compatible with that of business. The general purpose of unions has been to protect and advance the well being of workers, w ....

Part II of Essay
.... be inelastic, so that there is little, if any, decline in sales in response to price increases. Second, labor costs should be a small portion of the total costs of production, so that a rather large increase in wages would generate only a small increase in the price of the product. Third, the supply of factors that can be used as substitutes for union labor, such as nonunion labor or labor-saving machinery, should be inelastic, so that their price rises substantially as more units are employed. Fourth, the ability of these factors to s ....