10 Ways Unions Hurt the Economy
8. They Deter Investment and Growth
As with any tax, an increase in production cost leads to less investment. More overhead means less room for returns, so investors avoid businesses and sectors with too much in favor of those with less. Less investment means less expansion, less new businesses, and an overall the rate of growth is slowed. Yet again, this creates less jobs and higher costs to consumers on goods and services. An economy that attracts investment and seeks growth and expansion will have more jobs and will be able to provide better wages and benefits with those jobs—achieving the desired ends of union supporters without the harmful labor monopoly.
