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by cambalache 2517 days ago
Ah you mean,like Hollywood.
1 comments

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I'd argue it's only because the nature of film making - with many short-lived independent productions - doesn't give unionized work units the monopoly control they would have in large stable production facilities, like factories, and moreover, due to being cultural work, is very difficult to outsource.

For a time all major industrial sectors were dominated by unions. It resulted in America losing its manufacturing edge and seeing most manufacturing migrate to Asia. The entire passenger rail service also went bankrupt due to the demands of the Brotherhoods, which had a stranglehold on the industry. Today, besides a few notable exceptions like Hollywood and the screen actors guild, unions are only growing in the public sector, and that's because taxpayers are forced to subsidize their inefficiency.

As a general rule, industries lose their dynamism when they come under the domination of unions, which is exactly what standard economic theories on free markets and efficiency predict.

And yet Germany (among others) an industrial powerhouse full of innovation has a pretty strong union sector.
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Germany seems to have strong unions and a strong auto industry, but the German economy as a whole has suffered decades of wage stagnation. One outperforming industry alone doesn't negate the broader correlation between restrictive labor laws, and degraded economic performance.

Also, Germany has many advantages in manufacturing that are independent of its labor laws, like a strong work ethic and tradition of engineering, good trade schools, etc. So an argument can be made that it has a strong tendency to be a manufacturing power that is capable of counter-acting the harmful effects of bad policies.

One possible indication that unionization has had a harmful impact on German economic development is if you look at Germany's past compared to its present you see that it developed more rapidly relative to its contemporaries before embracing the social-democratic/unionized-workforce model.