Policy analysis about Economics Research Paper Example | Topics and Well Written Essays - 750 words

Policy analysis about Economics - Research Paper ExampleDue to the disparities of income amid the high skilled and hapless skilled labors, the union advocates for rise in the minimum wages among the pathetic skilled workers. These help to decrease the gap between the high income earners to the low income earners. Through this, they ensure straightforward distribution of income in the society that ensures demand is relatively high hence economic growth (Duerrenberger, 2009).The unions unremarkably lobby for strict immigration rules which limits labor supply within the United States economy especially the low skilled workers from abroad. Hence any labor supply from over-sees are highly qualified which is necessary for the customary economy as it would ensure quality products that increase revenue to the country. Through these, they ensure higher incomes to the in stock(predicate) labor (Duerrenberger, 2009). High wages results in increase consumption that raises demand hence hig her productiveness preeminent to economic growth.Unions have also supported the restriction of imported goods and services through the deceit of tariffs and quotas that discourages imports while promoting exports leading to increasing in demand of the domestic products. High demand results in increased productivity which raises the labor demand of the country (Duerrenberger, 2009).As a result, more units of output are produced, raising the gross revenue revenue that increases income to the GDP of the nation hence high economic growth.However labor unions have variant impacts on the economic operations of the country. They constantly bargains for increase in the minimum wage rate without an analogous rise in the production capacity. Increasing wages by firms results into high operational cost in terms of salaries.This would otherwise reduce the productivity reducing output leading to decreased sales. As a result, the firms and business will incur loss and may be forced to lay off workers leading to high unemployment rate. High rates of unemployment affect