Question

How has the decline of labor unions led to the growth of income inequality in the Unisted States? How has this directly affected the middle class as well as less skilled or educated workers?

Answer 1

Decline in labor union participation has led to the voice of so many disadvantaged people going unheard as they can't bargain for a better remuneration. Manufacturing sector has traditionally been where unions used to be formed, this sector is declining and not much participation occurs because the labour force is also moving towards hospitality and healthcare jobs. This has led to much less participation and bargaining power for employees as unionized workers get more pay than the people with same skills who lack collective power.

The middle class and less skilled workers don't get a major say in the bargaining power as they lack voice and unions strength in negotiating. This is the reason why governments are ensuring minimum wages so that employees get basic remuneration and job inequality reduces in the working class.