2 ms·
Globalization is much of the reason. When unions were strong (c. 1950-1980), they were essentially a monopoly on certain types of workers that were vital to pr
by csense 14y ago
Globalization is much of the reason.
When unions were strong (c. 1950-1980), they were essentially a monopoly on certain types of workers that were vital to production in many industries.
This monopoly allowed the workers to extract a larger proportion of the value of this industrial production through higher wages.
With the US focus on free trade (c. 1975-present), the unions no longer had a monopoly on labor, since companies could now find labor in other countries. Labor could no longer enforce their favorable monopoly pricing. (They tried, and had some success in the US, but often the "victory" caused companies or factories that paid good wages to their workers to be uncompetitive with overseas companies or factories that did not, and forced to close.)
The bottom line is that I'm very much afraid that globalization and a rising middle class are mutually exclusive, and will continue to be so for several decades.