A labor union is a group of employees or workers of a specific business or industry or trade that work to maintain a better working conditions, salary, etc. Price inflation is the increase of prices of goods or services over time.

It is commonly believed by many people that labor unions do cause price inflation, however, they cause it not by increasing the current salaries of workers, but by reducing the current salaries of workers. How is this possible? Well, they push their employers to raise the prices of their products. This means that the employees get paid more. Remember when I said a labor union of a specific industry work to maintain a better salary? Some times they do this by pushing the employers to raise the prices of the products, so that people will pay more for the product. This way, the employees get paid more for their work. This may work out for the labor unions, but the buyers of the product now have to pay more for the product. In fact, the buyers may even think that this product is not worth the extra money, and buy something else from a different industry or company. Enough people do this, and labor unions are stuck with even less money than they began with.

Labor unions want more money for their work, so they push their employers to raise the price of the product. Buyers then see the raised price of the product, and decide this product is not worth the extra money, and buy something else. Now, the workers who formed the labor union are now stuck with even less money than they had at the beginning.