In today’s world, labor unions have become popular in all sectors of the economy. The unionization process begins when a selected group of representatives obtains the authorization permits for a particular group of employees. This allows it to play the role of an intermediary between management and the workforce (Budd & Richard, 2013). Although I have never subscribed membership to any labor union, I understand their role in facilitating collective bargaining for the members. The demands may range from better working conditions, better pay, and so on. Even though unions are the major forces behind the enactment of labor laws that protect the interests of workers, many issues have cropped up due to their existence. In my view, there is a need to cross-examine these laws with reference to the possible impacts on the economy, society, businesses, or even to the workers themselves. This analysis will provide a rationale on which the government should base its policy formulation specifically on the labor relations. Considering the readings and class experiences that I have had so far, many economists evidently seem to concur on the effects of labor unions to the economy. Economically, unionization encourages the raising of wages above the competitive levels. As a result, firms in a particular industry incur high production costs. Businesses react by lowering the output level which eventually reduces the gross domestic product of a country (Watcher & Cynthia, 2012). The existence of many unions in the public sector often exposes the government to the risk of high wage bill. To get the revenue required to cover the huge wage bill, the government may resort to levying high taxes on the income of the people and on the essential commodities. When this happens, the cost of living becomes so much that may be unbearable to the citizens. The situation worsens when unionized companies pass the extra cost of labor as higher prices to the consumer. Either in the private or public sector, unionization makes a country less competitive in the global market. When a country uses less financial resources in producing a certain good or service, it gains a competitive advantage over its global competitors. This can lead to rapid expansion of the industry thereby increasing the economic growth rate. For instance, Michelin is the world’s leading producer of tires. It has one of its mega plants in the USA and the other in China. However, the cost of labor in the U.S.A is so high compared to China. As a result, China gets more revenue due to its massive production while America manages to generate less revenue because of the restricted production. In fear of the possible effects of the unions, many companies are forced to pay their employees higher wages without considering of the prevailing economic conditions. In addition, the productivity of a worker declines with time after joining a union. This can be attributed to the development of a work reluctance attitude in most unionized employees. This is so because the workers are assured protection by the union. Normally, the union contracts bar management from replacing the less efficient workers. For example, in the education sector, incompetent professors and teachers are always kept on the job for a long time thus minimizing the chan