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Interestingly, here in Canada union membership has only waned slightly over the years and the current unionization rate is almost equal to the USA's peak. Yet,

Interestingly, here in Canada union membership has only waned slightly over the years and the current unionization rate is almost equal to the USA's peak. Yet, we have all the same problems with wage stagnation for the majority of the population and a small group at the top reaping all the rewards of higher productivity.

TheAdamAndChe 10y ago
That is interesting, I did not know that. What do you think is driving the change in Canada? Globalization? Or something else?
- randomdata 10y ago
  Protectionism. When the law grants a monopoly, small groups gain a huge advantage over everyone else. Ironically, unions play their own part in that. Here in Canada we like to pick on teachers because, thanks to a strong union, they can make almost $100,000 for 8 months of work. Which is fine, and good for them, but the problem is that they are able to achieve that high income only because they actively prevent other people from doing the job. Someone who is stuck in a low-paying job has no avenue to compete against them, leaving that person stuck in a low-paying job while the teacher can start amassing wealth with the high income their job provides. This is how inequality happens. Of course, not the same degree that you find with what is quite possibly the most insidious form of protectionism: Intellectual property. It's no coincidence that people like Bill Gates, who built a business on copyright law, are among the richest in the world. As soon as someone tries to offer the "Doors" operating system to fulfill the huge demand for such a product, they will get the pants sued off them. You can try to offer something sort of the same, but not really, but that doesn't put much pressure on the market for obvious reasons. It would be kind of like if diary and poultry (Diary and poultry products have their own protectionist system in Canada, so I use that example as more than just a hypothetical) products were controlled by a certain group. You can grow celery to try and compete against them, but that's not really going to stop people from buying dairy and poultry if that's what the market wants. Celery is not cheese. As such, those who control the market profit greatly. A family friend is in the chicken business and he's been willing to share his wealth, and let's just say that I think a lot of startups would be pivoting to that business if there was a viable way in. The problem is, of course, that the protectionism doesn't allow a viable way in for everyone else.

TheAdamAndChe 10y ago

That is interesting, I did not know that. What do you think is driving the change in Canada? Globalization? Or something else?

randomdata 10y ago
Protectionism. When the law grants a monopoly, small groups gain a huge advantage over everyone else. Ironically, unions play their own part in that. Here in Canada we like to pick on teachers because, thanks to a strong union, they can make almost $100,000 for 8 months of work. Which is fine, and good for them, but the problem is that they are able to achieve that high income only because they actively prevent other people from doing the job. Someone who is stuck in a low-paying job has no avenue to compete against them, leaving that person stuck in a low-paying job while the teacher can start amassing wealth with the high income their job provides. This is how inequality happens. Of course, not the same degree that you find with what is quite possibly the most insidious form of protectionism: Intellectual property. It's no coincidence that people like Bill Gates, who built a business on copyright law, are among the richest in the world. As soon as someone tries to offer the "Doors" operating system to fulfill the huge demand for such a product, they will get the pants sued off them. You can try to offer something sort of the same, but not really, but that doesn't put much pressure on the market for obvious reasons. It would be kind of like if diary and poultry (Diary and poultry products have their own protectionist system in Canada, so I use that example as more than just a hypothetical) products were controlled by a certain group. You can grow celery to try and compete against them, but that's not really going to stop people from buying dairy and poultry if that's what the market wants. Celery is not cheese. As such, those who control the market profit greatly. A family friend is in the chicken business and he's been willing to share his wealth, and let's just say that I think a lot of startups would be pivoting to that business if there was a viable way in. The problem is, of course, that the protectionism doesn't allow a viable way in for everyone else.