Monday, June 15, 2009

Total economic collapse caused by unions

This article describes the demolition of American urban areas where unionized employers once had businesses as the population leaves in search of employment.

"The government [is] looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area.

Flint, sixty miles north of Detroit, was the original home of General Motors. The car giant once employed 79,000 local people but that figure has shrunk to around 8,000.

Unemployment is now approaching 20 per cent and the total population has almost halved to 110,000.

The exodus – particularly of young people – coupled with the consequent collapse in property prices, has left street after street in sections of the city almost entirely abandoned."

This collapse is the result of the false promise that unions can raise the standard of living of the average worker. Instead they have raised costs to their employers to the point that most unionized companies have had to shed workers or shut down entirely. Flint Michigan is the poster child for the damage caused by unions.

Who has benefited from their drive for higher wages? Against the rapidly dwindling number of union workers still employed are the millions who've lost their jobs or who never got jobs in the first place at companies infected with the union virus, as well as the other workers who lost jobs when local economies collapsed.

An ever shrinking percentage of the private workforce is unionized as these private employers close plants, lay off workers, and shift jobs overseas. The Obama proposal to allow unions to intimidate workers by getting rid of secret balloting would only accelerate the loss of manufacturing jobs in America.

If unions ever were a good idea, they certainly aren't any more, unless you want to see more unionized areas return to farmland. The process of de-urbanization taking place in Flint is going on in former union strongholds around the country.

"Most are former industrial cities in the "rust belt" of America's Mid-West and North East. They include Detroit, Philadelphia, Pittsburgh, Baltimore and Memphis.

In Detroit, shattered by the woes of the US car industry, there are already plans to split it into a collection of small urban centres separated from each other by countryside."

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