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The economic forces of globalization are a major contributor to this evolution, as is the shift towards an internet based information society. The traditional blue collar labor business model is being replaced with robotics, technology, outsourcing, and globalization.

Big labor is big business, but still stuck in the last century! Unions have failed to accept that the nature of work has changed. Business as usual, usually means that you are out of business. Market forces are forcing economic changes, and unless labor adapts quickly, it will become irrelevant in the global market. Virtually every product and most services can be performed offshore in low wage countries, or outsourced to lower wage states, using eager low-wage non-union workers.

The internet and technology, has created the global hour workday. When it is night in the western hemisphere, it is day in the eastern hemisphere and workers can perform back office functions in the east, ready for the workers in the west the next business day.

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Telephone communications is seamlessly transferring calls to worldwide call centers, where cheerful representatives, will answer your concerns in the language you have chosen. American companies can make candles in China, and sell them in Chicago, cheaper than making candles in Chicago and selling them in Chicago. These same companies can make candles in China and sell them in China, and internationally, even cheaper and for a greater profit, than selling the same candles in Chicago.

To an extent, labor unions are to blame. They have priced labor above economic returns. This oversight is a significant contributor to the decline of the organized labor business model.

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The Failure of our Unions and the Left

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Economic literature: papers , articles , software , chapters , books. Distance decay for supply and demand potentials. Abstract This paper introduces a model framework which identifies the economic activity of each local economy location and observes the time distance between each pair of locations. Time distance for interaction inside local economies is taken as reference. Two models of location patterns are formulated on the basis of principles adhering to new economic geography NEG.

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The second model takes the location of business-service supply as given and describes how other firms select locations with a favorable supply potential, depicting the access to business-service supply. When estimating the two models we develop an approach where the distance-decay time sensitivity parameters are determined endogenously as an integral part of estimating location choice parameters.

The exercise can be appreciated as a test of NEG principles.