Earlier quoted context omitted.
> Competitive markets produce societally best outcomes Define "societally best outcomes". By using the word "societally", you are saying it's not he best outcome for the business, nor is it the best outcome for the employees, nor the best outcome for the customers, but the best outcome for the society at large. Your MTA example shows that a union is great for workers. Please explain. Considering unions are used succe…
MTA is great for MTA employees. The remaining 10 million or so New Yorkers pay the cost. You can't assess these things in isolation. If the Foxconn factory unionized, you can bet iPhones would cost hundreds of dollars more. Who bears that cost? Consumers of iPhone/society at large (when extrapolating to other businesses)
I'd be willing to bet that they don't. iPhone prices are set at the highest price that Apple determines people are willing to pay, not by the cost to produce it; even the costs that do exist are mostly materials, not labor costs. Labor costs are close to 1% of the sticker price [1]. This is the same as the argument that erroneously claims that if you paid fast food workers well it would lead to $10 big macs, when other countries with much higher wages have comparable prices to ours.
[1] https://www.investopedia.com/news/what-it-costs-apple-make-i...