Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Don’t Count Out the Labor Movement

Politics / US Politics Sep 02, 2012 - 11:05 AM GMT

By: Walter_Brasch

Politics

Almost every conservative political columnist, pundit, commentator, blogger, and bloviator has written about the decline and forthcoming death of the labor movement.

They happily point to Wisconsin, where Republican Gov. Scott Walker shortly after taking office in January 2011 took advantage of a Republican majority in the House and Senate to ram through legislation that stripped numerous collective bargaining rights for public employee unions. Among collective bargaining rights are those that assure decent working conditions and a fair grievance process to prevent arbitrary and discriminatory discipline.


The Republicans point to Ohio, where Republican Gov. John Kasich, with similar legislative support, signed legislation in March 2011 that restricted collective bargaining rights for public sector employees.

They point to state after state where Republican legislators, with the financial support of private industry, have brought forth self-serving bills to oppose collective bargaining.  

The conservative mantra is to pander to the middle-class pocketbook by creating a pseudo-populist appeal. The right-wing claims they are the ones who care about the people enough to cut government spending, which will lower all kinds of taxes. They altruistically scream that inflated payrolls and pensions caused economic problems, and the best way to help those who are struggling in a depressed economy is to lower those costs by curtailing the perceived power of unions. It sounds nice; it’s also rhetoric encased in lies.

Numerous economic studies have shown that the pay for public union employees is about the same as for private sector employees in similar jobs. And in some jobs, public sector workers earn less than non-unionized private sector workers, leading to professionals and technical specialists often switching jobs from government to private industry, usually at higher wages and benefits.

So what, exactly, is the problem? Tax cuts. Bill Clinton left office, having given the nation a strong economy. During the Go-Go years in the first part of the 21st century, under the Bush–Cheney administration, states and the federal government created tax cuts for individuals, and held out generous tax cuts, tax waivers, and subsidies to corporations. The Republican theory was that these tax cuts would eventually “trickle down” to the masses by stimulating the economy.

What happened is that instead of benefitting the masses, these forms of wealthfare and corporate welfare have done little to stimulate an economy that was heading down because the Republican executive and legislative branches, preaching less government, didn’t want government interference in financial institutions, the most politically conservative business. As a result of deregulation or, in many cases minimal regulation oversight, came the twin catastrophes of the Wall Street scandals and the housing mortgage crisis that spun the nation into the deepest recession since the Depression of the 1930s.

But you don’t hear the Republicans tell you they caused it, only that a run-away economy is because of those fictional high government salaries that need to be cut.

Joseph Slater, professor of law at the University of Toledo, says because of the 2008 crisis, states experienced massive budget shortfalls because growing unemployment decreased tax revenue. The problem in the states and the federal government, Slater told NEA Today, isn’t because of collective bargaining, “because some of the worst state budget problems are in the small handful of states that prohibit public sector collective bargaining, states like Texas and North Carolina.” However, said Slater in an article for the American Constitution Society, “states with strong public sector collective bargaining laws . . . have smaller than average deficits.”

In response to conservative calls to curtail “pension abuse” in the public sector, Slater pointed out that “the vast majority of states don’t allow unions to bargain over public pension benefits,” and that some of the worst pension problems are in the so-called right-to-work states that have no public employee unions.

In contrast to the all-out assault upon the workers by Republicans, Govs. Dan Malloy of Connecticut and Jerry Brown of California, both Democrats, have been reducing budget deficits, sometimes with a heavy hand as they slash programs and the number of workers, in consultation with the unions and without curtailing union rights. Unionized workers in both private and public sectors have taken temporary pay cuts or agreed to taking vacation days without pay. Few corporate executives and no state legislators have willingly matched the sacrifices of the workers.

Now, as for those conservatives who are dancing on what they think are the graves of the working class labor movement. There are  a few stories they aren’t happily reporting.  

In Wisconsin, the recall election of Scott Walker did fail, as out-of-state individuals, PACs, and corporations contributed about two-thirds of his $30 million campaign to keeping him in office, as opposed to his opponent raising only about one-eighth of that amount. However, in subsequent elections, all three Democratic senators survived recall votes, and two of six Republican senators were recalled, leading to a change in Senate membership from 19–14 Republican to 17–16 Republican, but effectively blocking a “super majority” from ramrodding further anti-worker legislation into law.

In Ohio, voters overwhelmingly rejected, 62–38 percent, the new Ohio law that stripped collective bargaining rights of public employee unions. In defeat, Gov. Kasich, whose attacks upon collective bargaining were a central part of his campaign, said “It’s clear the people have spoken.”

Monday is Labor Day. It’s more than just picnics and a three-day weekend. It’s a time to honor the working class, and the unions that gave them the rights of collective bargaining. They may be struggling but they are far from dead.

[Walter Brasch’s latest book is Before the First Snow, a fact-based novel that looks at the nuclear industry during its critical building boom in the 1970s and 1980s.]

By Walter M Brasch PhD
http://www.walterbrasch.com

Copyright 2011 Walter M Brasch

Walter Brasch is a university journalism professor, syndicated columnist, and author of 17 books. His current books are America's Unpatriotic Acts , The Federal Response to Hurricane Katrina , and Sex and the Single Beer Can: Probing the Media and American Culture . All are available through amazon.com, bn.com, or other bookstores. You may contact Dr. Brasch at walterbrasch@gmail.com

Walter Brasch Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in