Unions Proposed as Solution to America's Rising Cost of Living
Rebuilding union power could significantly raise wages, reduce inequality, and expand healthcare access, according to an Economic Policy Institute report.
Unions are presented as a vital solution to address America's escalating cost of living, with a new report from the Economic Policy Institute (EPI) suggesting that tripling union membership could lead to substantial economic benefits for workers.
The EPI report indicates that a significant increase in unionization could result in a 14.5% raise for the median worker, equating to over $7,700 annually, or the equivalent of 7.5 extra weeks of pay over a 35-year career. Furthermore, unions are highlighted as potent tools for combating racial pay discrimination, with the potential to narrow the racial wage gap by more than a third.
The positive effects of increased union density are not expected to be limited to union members. The report estimates that tripling union membership would redistribute $1.2 trillion of wealth annually to working people, reversing a third of the rise in inequality observed since 1979. Additionally, it could provide health insurance to an additional 6.8 million Americans, underscoring the "union difference" which includes higher wages, better benefits, retirement security, paid time off, and improved workplace dignity.
Historically, union membership in the United States reached over 30% in the 1950s, a period marked by significant wage growth and a shrinking of racial wage gaps. This era followed New Deal policies that bolstered workers' rights.
However, the report details how anti-union efforts, including legal challenges, "right-to-work" state laws, and corporate spending exceeding $1.5 billion annually on union avoidance, have undermined worker power. The Trump administration is also noted for weakening worker protections and hindering the National Labor Relations Board's ability to protect workers' rights.
Despite these challenges, there are signs of renewed worker organizing. Nearly half a million workers unionized in 2025 alone, bringing the total number of workers in unions to a 16-year high. Public sector employees saw increased unionization rates, reaching 36.4%, and the number of private sector workers covered by union contracts grew by nearly a quarter million across various industries. Union representation among federal workers also increased to 31.1%, even amidst administrative actions affecting over a million federal employees.
To further leverage this momentum, advocates point to legislative solutions. The proposed Protecting the Right to Organize (PRO) Act, which has passed the House with bipartisan support, aims to restore eroded worker protections and penalize companies that violate labor laws. The Public Service Freedom to Negotiate Act is also mentioned as a bill that would guarantee collective bargaining rights for all public-sector workers.
Beyond these reforms, proposals such as requiring collective bargaining at companies with high CEO-to-worker pay ratios or guaranteeing cost-of-living raises for newly unionized workers are being considered. These efforts are framed as crucial steps toward building an economy that better serves working people by strengthening their rights to organize and bargain collectively.