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A labor union is an organization that looks to increase the wages and improve the working conditions of the members.

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What are Unions and how do they work? - Behind the News

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The traditional view holds that labor unions are an obstacle to establishing reasonable work standards and thus make companies that employ union labor less competitive.

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The newer view says that the labor union is a valuable collective voice for its members. This helps the company more because their evidence in some industries indicates that union firms have a higher rate of productivity than nonunion firms.

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If the demand for a good decreases, then the demand for labor that produces the good decreases as well. As a labor union, you would want the demand on the product you are producing to increase, thus leading to unions to advertise their product so people would buy union-produced goods.

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Government Regulation Ideas and Examples 

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Government Regulation Ideas and Examples 

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The idea behind government regulation is to help on issues such as hiring practices and safety regulations. It also helps on anti- monopoly, where one business would have control over the market place and to let other business in the same market place to grow. Some examples of the regulations would involve The Occupational Safety  and Health Administration(OSHA). Another would be Consumer Product Safety commission(CPSC) This regulation is in place to keep the product safe to buyers.

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Union members not only tries to increase the demand for their labor, they also decrease the labor supply. Unions would support closed shops, organizations that only hired union members. The Taft-Hartley Act made the closed shops illegal and allowed the states to pass right-to-work laws, which prohibits making employees join a union to work. Many unions would go on strike, a work stoppage by employees to put pressures on employers, to get want they would want or negotiate what they want.

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Unions earned 10-15 percent higher than nonunion labor. Every $100 earned by nonunion labor, union labor earns between $110 and $115. Unions would go on strike and increase the wages but the businesses would fire some of the union workers because of the higher wages paid.

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Nonunion workers earn 10-15 percent less than union workers. As the union workers are fired from businesses because of the increase in wage, union workers would join nonunion workers which would lower the wage rates as there is an increase in labor supply.

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The costs for putting on regulation is high but we also get a lot of benefits for this regulation, some examples would be the Food Act in 1907, Child Labor Act of 1916 that protects children from being exploded and also creates more jobs for adults that would be filled by children.

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This regulations helps in putting regulations that helps improve a business product, for example: fuel economy standards on cars that would help in better gas miles and less populations on burning oil.