Explain how someone who believes in neoliberal economic policy

Rade An

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2 years ago

Explain how someone who believes in neoliberal economic policy

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?

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AmyP911

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2 years ago

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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