In recent years, a fresh wave has swept across the Republican party, with a growing emphasis on establishing itself more firmly as the “pro-worker party“. This shift gained recognition when Donald Trump selected J.D. Vance to be his running mate and extended an invitation to the president of the Teamsters union to speak at the Republican convention.
While this shift in GOP priorities may be embraced by voters, and mirror some Democrat ideals, it’s important to remember that any agenda that bolsters American workers through unionization and employment protection policies will have its compromises. The key question is: how much can the GOP achieve without undermining America’s most distinguishing advantage: the dynamic nature of its labor market?
America has long been heralded as the land of opportunity, largely due to its thriving entrepreneurial environment and labor markets that create ample work opportunities. The American Dream narrative of J.D. Vance exemplifies how such an environment empowers the working class. It wasn’t union membership that protected his job and wages, but rather the gritty American way of hustling from one job to the next, transitioning between vastly different careers, and pursuing high-growth (and high-risk) opportunities.
Many Americans equate pro-worker policies – akin to those seen in Europe – with extensive job security, stronger unions, and structured increases in wages and promotion opportunities. While a European-style approach might boost job security and ensure steady wages for existing workers, it could also compromise opportunities for new and inexperienced workers, job mobility, and even job creation. Much of Europe, in fact, has decided to sideline labor-market dynamism.
Consider Italy, a country not particularly celebrated for its thriving labor market. Despite its many attractions, Italy has a high number of its educated youth seeking employment abroad. Less than a decade ago, Italy’s youth unemployment rate was at a shocking 45%. Today, it stands at 23%, still one of the highest in the developed world.
Italy’s situation isn’t an isolated case. Economists have long documented how more restrictive labor regulations that protect existing jobs lead to decreased labor mobility, fewer job opportunities, and higher unemployment rates.
That’s not to say that we shouldn’t have unions or safety-net policies for workers in America. But if conservatives are serious about pursuing a path of European-style pro-worker policies, they must be careful not to stifle our economy’s greatest strength.
Economists have proposed a variety of unique ideas to protect workers, ranging from the earned-income tax credit to pursuing some variation of a negative income tax policy. American unions could also be transformed by eliminating their government-granted exclusive-negotiator status so that multiple unions could represent workers for any given employer. Doing so would increase union membership and give workers a more diverse set of institutions and protections or benefits to seek in the workplace.
Donald Trump and J.D. Vance are correct in suggesting that conservatives should pursue a pro-worker agenda. However, this agenda must leverage what has traditionally made the U.S. labor market vibrant—entrepreneurial dynamism, not rigid European-style labor policy.
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