1. Labor and Government Regulation Warm Up: Quick Write 1.Are labor unions overall good/bad? 2.Is minimum wage worth keeping?

3. Labor Unions Objectives – Higher pay for workers – Improve working conditions – Increase demand for workers/decrease supply

4. The Demand for Union Labor If demand for a good goes down, so does demand for the labor that produces that good (visa versa)

5. Supply of Union Labor The lower the supply, the higher your wage Some people criticize labor unions for controlling supply of labor – Closed shops: only hire union members Taft-Hartley Act (1947) – Closed shops illegal – Gave states the right to pass right-to-work laws – Prohibit employers from establishing union membership as a condition of employment

6. Right to Work Laws 22 states Mostly south, mid-west Not NY

7. Views on Unions Traditional view – obstacle to establishing reasonable work standards and thus make companies less competitive Newer view – valuable collective voice and as a result have a higher rate of productivity

8. Brief History of Unions Knights of Labor American Federation of Labor Sherman Anti-Trust Act Norris-LaGuardia and Wagner Acts The Congress of Industrial Organizations Taft-Hartley Act Landrum-Griffin Act

9. Government Regulation Governments regulate – Price ceilings/floors : min wage – Natural monopolies – Businesses: air quality – Labor markets: hiring practices, and safety Occupational Safety and Health Administration (OSHA) Consumer Product Safety Commission (CPSC) Environmental Protection Agency (EPA)

10. Argument Against Regulation is too costly for taxpayers Increases costs on businesses

11. Argument For Even though costs are high, benefits are higher Highway fatalities would be 40% higher Childproof lids resulted in 90% fewer deaths caused by accidental swallowing of poison/pills Restrictions on asbestos save between 630 and 2500 persons from dying of cancer each year