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Got Inequality? Need Unions

Lots about inequality in the news in recent days, especially with the release of Tim Noah’s book on the topic, “The Great Divergence.”

Yet one key reason often left out in analyses of the nation’s rising inequality is the decline of union density.  Correcting that omission, the Economic Policy Institute (EPI) hammers home the point that up into the 1970s, labor unions both sustained prosperity, and ensured it was shared. And critically,

union bargaining power has been shown to moderate the compensation of executives at unionized firms.

Points out that Noah concludes: “If liberals really want to reverse income inequality, they should think seriously about rejoining labor’s side,” EPI President Larry Mishel asserts:

I would add that such a revival is necessary to rebuild the middle class and to preserve our democracy.

Read more here.

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