E basic issue in modern labor| management relations is no longer 1 whether or not there will be unionization and collective bargaining. That question was disposed of ten years ago with the inauguration of a government policy of encouragement of unionization and collective bargaining and the successful assaults by new, aggressive labor organizations on the traditional antiunion bastions in the mass-production industries. Prior to I933, union organization was confined to a limited number of industries, such as building construction, coal mining, printing, railroads, and the garment trades. Today unions are found in practically all branches of commerce and industry, and their membership includes not only unskilled and skilled wage-earners but, in many cases, whitecollar workers and technical and supervisory employees as well.' We now have a union movement which vitally affects, directly or indirectly, the thinking and actions of virtually all American workers and nearly all American employers. There is every reason to believe, moreover, that this union movement is here to stay as a lasting institution. The crucial question, therefore, is how widespread unionization and collective bargaining will affect the economy. Is the impact of the present union movement different from the impact of individual labor organizations when unions were the exception rather than the rule in American industry? To what extent must we change our traditional thinking about such things as wage rates, labor costs, competition, and other factors in the realm of labor economics in order to grasp the significance of the changes brought about by widespread unionization? My contention is that we must go far beyond our familiar concepts of