Labor unions can lower wages for everyone through costly work stoppages.

Question

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Labor unions can raise wages for their members, but costly work stoppages can also harm the overall economy and lead to lower wages for both union and non-union workers. Employers may respond to the threat of work stoppages by offering lower wages to avoid the potential financial hit of a strike or lockout. Additionally, work stoppages can disrupt production and ultimately lead to lower profits, which can result in employers cutting costs by reducing wages for all workers.

Labor Unions Can Lower Wages for Everyone Through Costly Work