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In: Economics

How would you relate inequality and poverty to the issues (labor unions, immigration, and discrimination)? PLEASE...

How would you relate inequality and poverty to the issues (labor unions, immigration, and discrimination)?

PLEASE HELP

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Expert Solution

Labor Union: A labor union is an organization of workers who aim is to bargain with employers over wages and working conditions. The existence of labor union can sometimes be controversial. People who are in favor of labor union say that they act as defender for laborers against the actions of profit-seeking firms to reduce wages and benefits. Critics of labor union believe that by grabbing too much of benefits in the short-run they are driving firms into bankruptcy or by blocking the new technologies and production methods that may bring economic growth in long-run. So in the long-run the firm may not be able to provide a high wage to workers or they may be jobless as financial condition of the firm may not allow to retain all the workers, this will lead the workers to the situation of poverty.


Discrimination: Discrimination in workplace means when workers with same skill levels receive different pay or have different job opportunities because of their race or gender. Discrimination exists when black workers are paid less than white workers or female workers are paid less than their male counterparts. There is inequality between male and female workers, inequality in holding same job position with same skills and inequality due to skin color. Due to discrimination the black people are earning less which is not sufficient to raise his family and may face poverty after some period of time.

Immigration: Immigration affect wages, income levels and population of the country. Due to large number of immigrants, population of the country increases and decreases the number of jobs. As the number of jobs are less than the number of immigrants, this will bring lower wages to workers. Most of the immigrants are low-skilled workers who tend reduce wages for domestic low skilled workers. Immigrants reduce the revenue of the country as they have no properties they do not pay taxes, which are the main sources of state and local tax revenue. So immigration raises the problem of inequality and poverty in the country.

  

  


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