Corporate America Wins an Important Victory But the War is Coming

The return of a democrat to White House has proven to be a blessing for labor unions so far. In fact, Barack Obama announced that he considers unions not a problem but part of a solution.Also,President Obama issued an excutive order that permits federal agencies to require union labor for work on federal contracts. This is good news for union workers, bad news for non-union workers, and bad news for taxpayers, who will pay more for what the government buys on their behalf. In my judgment, it is bad news from a macroeconomic perspective since one of the causes of long-term unemployment is unionization. To appease unions, democrats introduced a bill called "card check" or more precisely Employee Free Choice Act. What this bill actually does is it enables a simple majority of workers to sign up for a union and so as to avoid the subsequent holding of a secret-ballot election. Keeping the violent history of labor unions in mind, it's hard to defend that this is equivalent to free choice. Rational individuals have argued that this is anything but free. The Unions will use their coercive power to get simple majority. Against this background what chance does business has to protect its turf. For now this bill has been blocked in senate due to a republican filibuster.But for how long.

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