When a union (private or public) negotiates a higher wage, where does the new money come from?

This is actually a scientific question in the area of Economics. The best answer comes from John Maynard Keynes and his economic theories. For instance, in 1970 GM employed ~600,000 workers and manufactured ~2,000,000 cars/year. In 2010 Gm employed ~180,000 workers and made ~1,800,000 cars/year. This is roughly 3 cars per worker in 1970 and 10 cars per worker in 2010. As more cars are produced per worker, workers are paid more. If more money is not printed up and put into the system, then there will be the same dollars chasing more and more cars, or houses or what-have-you. This will cause deflation.

It has been determined that the the economy seems to hum along at its highest efficiency with a smidgeon of inflation, (not deflation). This is at least in part because consumers won't buy things if they think that if they wait then the price will be cheaper next month.

So the bottom line answer to your question, to be honest, is that the treasury prints up the extra money and spends it, keeping the overall money supply approximately stable to allow for a smidgeon of inflation, and to avoid deflation. Tim Geithner just did something like this recently by "monetarizing" $600 Billion in treasury bonds.

Sorry for the complicated answer but someone needs to say it.

Unions interior the typical public sector furnish attorneys in case the worker is sued for doing their activity (i.e., dad and mom of a scholar sue a instructor for a impolite remark). on a similar time as the instructor may be pulling in 60k, being sued remains an absolute nightmare for somebody making purely adequate to cover expenses for a kin. deepest sector workers usually have not got jobs that go away them so susceptible.

Thomas D and the Hammer nailed it. Which is why we can get that cheap crap from China and we don't make anything affordable here anymore.

Okay, well, we do make some affordable stuff here. I support Gold Bond, for example. And Little Debbie. Coca Cola. But I would sure love to get textiles back. And clothes. And shoes. And cars.

From the general population

Taxpayers in the case of public and the consumer of that company's product in the case of private.

Uhm trees?

Yeah I think it's trees!

Or maybe the same place their regular wages came from.

That's right, taxpayer dollars pay the salaries of firemen and cops. Get used to it, that's how society works.

Consumers and taxpayers.

from the salaries of the employees that aren't going to be hired at the new wage.

The employer