Labor Unions And Its Effect On Income Inequality - 912 Words

LABOR UNIONS With many laws enacted to tarnish their effectiveness in the appearance of a better functioning economy, labor unions appear to have an unmistakable effect on income inequality. Western and Rosenfeld explain the power of the labor union and how important of a role it holds for its workers. Western and Rosenfeld analyzes the contributions that unions made and the consequences of their decline coupled with the rise in unfair wage distribution. Kristal supports that the lack of bargaining ability hinders the effectiveness that unions used to have and this event is the result of computer technology damaging the laborers ability to appear useful and necessary in the eyes of the capitalists. Union Influence While government policies are a part of Volscho and Kelly’s research, they recognize that other factors affect income inequality. Strong labor unions are capable of reducing income inequality that is brought on by the decisions made in the market. The stronger a union is, the more bargaining power they possess so that they are able to fight for better pay and a more equal distribution of income. Western and Rosenfeld agree with this statement as their research pertains more on labor unions and their relationship with income inequality. During the 1970’s, labor unions were at their strongest, with as many as one in three people working in a union. From the 1980’s to currently, not only has labor union membership decreased to single digits, but wage inequality hasShow MoreRelatedMovements for Social Change in an Integrated Global Economy Essay examples902 Words   |  4 PagesIncome inequality between the rich and the poor continues to be a significant concern in the United States, prompting national headlines and serious political debate regarding governmental policy. Historically, economies based on capitalism tend to have a pro-business stance, implementing pro-business policies to spur economic growth (Zinn, 2010). The typical role of the labor union has been to help improve economic equality between workers and the companies that employ them; however, unions haveRead MoreNon Regular Workers : A Growing Reliance On Irregular Workers1381 Words   |  6 PagesThere has been a growing reliance on irregular workers who differ in the contractual relationship with regular employers. After the 1997 financial crisis in Korea, the economy experienced an increase in inequality among workers and contributed to a two-tier labor market. Regular workers employed in the public sector or large firms have traditionally been seen to be provided lifetime employments, protection against dismissals, severance pays and given access to a wide range of socia l insurance programsRead MoreThe Role Of Unions And Their Importance Has Changed Over The Years1527 Words   |  7 PagesThe role of unions and their importance has changed over the years. A mixture of poor wages, high unemployment, non-existent benefits and insignificant professional stability amongst the more youthful era makes a ready demographic for restoration. The younger era is the slightest unionized section of our general public today by a long shot. Unions are important in today’s society because checks and balances are necessary entities in business and government, so if CEOs are just focusing on themselvesRead MoreEssay about Marxs Theory of Alienation1087 Words   |  5 Pagestakes place because the worker can only express this basic social aspect of individuality through a production system that is not communally, but privately owned (Marx, 2007). When applying Marx’s theory of alienation to the current issue of income inequality in the global world one can see how it is possible that capitalism has led to the issues at hand. Although not a new phenomenon, globalization is on the rise, and with that, the concentration of authority among few multinationals. By the earlyRead MoreInternational Trade And Gender Wage Inequality1426 Words   |  6 Pagesand Gender Wage Inequality Motivation for the Research: In recent years, globalization and international trade has become a significant issue for countries. Consumers tend to use more goods and services and due to the lack of resources, the need to trade with other countries seems to be inevitable. Assuming that globalization would occur, labor factors become noteworthy. Although growth in international trade provide more job opportunities for people, there are still inequality in wage between maleRead MoreUrban Migration During The Industrialization1708 Words   |  7 Pagesbeginning of industrialization. In both England and China, one of the factors for urban migration was the job opportunities that were being created in the urban factories that kept sprouting up from to high demand. Due to the stability and higher income in factories, rural residents found it more promising to seek employment in the urban areas instead of working in a farm or at home. They also believed that there would be more opportuniti es for their own development in the cities. IndustrializationRead MoreNeoliberalism : A New Economic System1169 Words   |  5 Pageseconomic competition and innovation, but it causes unemployment in U.S as a result of cheaper labor overseas. Therefore, Neoliberal policies of the last four decades impacted U.S labor, finance, immigration, inequality, democracy, and race positively and negatively because there are gains and losses associated with neoliberal ideologies such as free trade and reduced government regulation. Labor was affected negatively because NAFTA gave U.S corporations incentives to build factories inRead MoreThe Labor Of Organized Labor During The 21st Century907 Words   |  4 Pages According to The Future of Organized Labor in the U.S. an important debate has commenced within the ranks of organized labor regarding the future of the movement. The economic and political changes that have taken place in the United States nationally, over the last thirty years as well as globally, have been a result of hostile environments for labor unions more so for workers in general not just women workers. For organized labor in the USA, the path away from oblivion must begin with theRead MoreInequality : Inequality And Poverty1729 Words   |  7 Pages Inequality and poverty exist in our society because wealth and opportunity are inherited. If we all entered the world with an equal amount of resources, some would still rise above others but everyone would get the same chance to succeed in life. Since greed is one of the norms of our society, and wealth is passed from generation to generation, there will always be inequality and poverty. The system of wealth and inequality is actually pretty simple. It all boils down to a few things what youRead MoreThe Inequality Of The United States1495 Words   |  6 PagesUnited States is currently experiencing increased income inequality and a large gap between rich and poor that continues to grow. After the Wall Street meltdown in 2008 and the recession that followed, economic recovery has been extremely slow and the inequality of America’s income distribution seems to be intensifying. Since the recession, the top one percent of earners in the US has experienced notably higher percen tages of income growth, while the incomes of the middle class have become frozen with