Cafe41-Also, the unions are a large lobbying group that causes companies to fail because of the increased demands of union workers without any additional productivity.
General Motors estimate that it has to pay out $5 billion dollars in pensions for employees that have since retired.
This creates a severe disadvantages for GM because other competing companies do not have unions and therefore do not share this problem.
This is what Shultz and Darn refers to as Advocacy government. These higher union wages have also forced companies to lay off workers in order to compete with the increasing demands of the unions.
This also creates higher prices for the American consumer.