10 Ways Unions Hurt the Economy
3. They Cause Taxes to Rise
Monopolies on labor limit jobs. More unemployment means more people on government assistance. More government assistance means more taxpayer money is needed to provide for those people. If that wasn’t enough, public sector unions use their political weight and monopoly on public sector jobs to force governments to give them lavish salaries and pensions. States like Illinois have faced major financial crises spurred by overly generous pensions promised to a vast public sector workforce. Unions exist to leverage employers. A public sector employee’s boss is the taxpayer. So when they want higher pensions, the taxpayer foots the bill. They are guaranteed a raise every year, regardless if they personally deserve it or not, and they then retire with an unfunded pension plan.
