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Unions should be big enough to bargain with the business that hires them, but never big enough to bargain with the whole industry, state or country. That would allow them to hold the country hostage — too much power.
With size limited to the business that hires them, they might bargain for big, excessive wages, which then would put their business at a disadvantage and require a compromise before they drive their business bankrupt and lose all their jobs. Competition between companies keeps wages and prices in balance.
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