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Title: Explain how someone who believes in neoliberal economic policy Post by: Rade An on Mar 21, 2022 explain how someone who believes in neoliberal economic policy could argue that unions (or a minimum wage, or welfare) could create unemployment when the demand for labour decreases?
Title: Re: Explain how someone who believes in neoliberal economic policy Post by: AmyP911 on Mar 21, 2022 Unions usually advocate for better pay from its employer. If a union manages to increase the minimum wage, businesses that experience seasonal fluctuations will be forced to lay-off their employees, and only keep a select few. When business picks back up again, they will rehire. In this case, the gains in which the union accomplished earlier have backfired, since the business owners couldn't afford to keep more people in their payroll.
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