Question

1. Why have workers felt it necessary to form unions? What are some of the possible objectives of unions? What effects have unions had?
2. Identify and discuss the Liberal argument for why unions are necessary. What do Conservative and Radicals feel about unions? With which do you agree and why?
3. How have businesses tried to discourage unions?
4. What is the Wagner Act? What importance does it have for unions and management?
5. What factors influence the interest rate? What is the relationship between the interest rate and the amount of investment that will be done?

Answer 1

1) Workers felt it necessary to form unions to be able to establish collective bargaining between workers and firms to determine wages and work conditions.

2) The main purpose of unions is to give workers the power to negotiate for more favorable working conditions and other benefits through collective bargaining.

3) Unions raise the wages of their members at the cost of lower profits and fewer jobs, that lower profits cause businesses to invest less, and that unions have a smaller effect in competitive markets.