The significant gap between CEO and worker pay is a direct result of globalization. When companies can easily outsource labor, domestic workers lose their negotiating power, or "fear of loss." This allows capital owners and executives to capture a larger share of the value created, widening the income disparity.

A key paradox of the 1970s was that union leaders, while aware that the wage free-for-all was pushing the economy towards an abyss, were trapped. They had to competitively demand ever-larger pay deals for their members to maintain their own positions, even against their better judgment.

Gubernatorial candidate Matt Mahan argues that the core issue in Sacramento isn't powerful lobbies like public sector unions, but politicians who lack the will to push back for the public good. The system rewards catering to organized interests over delivering results for constituents.

A pragmatic view of politicians is to see them as rational actors pursuing their own self-interest. They will advocate for their constituents only when it aligns with their goals, such as getting re-elected. When that alignment ends, so does their support.

Historically, BC's New Democratic Party (NDP) was rooted in blue-collar resource industries. The rise of a post-industrial economy has transformed its base into public sector unions (e.g., teachers) and social justice constituencies, driving its increasingly progressive policy agenda.

Ideological loyalty is an illusion in politics. Once in power, parties will quickly abandon the very groups that propelled them there if it is politically expedient. Examples include the UK's Labour Party turning on unions and Democrats ignoring BLM after the 2020 election. Power, not principle, is the goal.

California's proposed wealth tax faces opposition from the state's political machine not on principle, but because one union (SEIU-UHW) sponsored it alone without sharing the proceeds with other powerful unions. This infighting provides a temporary reprieve, but a future multi-union-backed bill is likely.

The government gave unions unprecedented power in exchange for wage restraint. However, the policy failed because union leaders, under pressure from members and competing with each other for better deals, couldn't uphold their end, fueling hyperinflation.

On public works projects in NYC, union wages are aligned with city and state prevailing wage laws. This means both union and non-union contractors must pay similar rates for public projects, countering the common narrative that high costs are primarily due to a 'union premium.'