A century ago, less than 10 percent of American workers were unionized. America's wealthiest 10 percent was earning 40 percent of all national income, a figure that widened to nearly 50 percent in the 1920s. But in 1935, the New Deal era granted workers basic collective bargaining rights. Union membership grew to more than 35 percent of the workforce while the upper 10 percent's share of salaried income fell to less than 35 percent. The result after World War II was a 30-year period of unparalleled prosperity in the United States.
The last 30 years has seen a reversal. Wages stagnated and earned income imbalance returned to near 50 percent. Government figures show the median full-time salary in 1980 was $46,889, when adjusted for inflation. In 2010, it was $47,715. During that same period, income for the top 1 percent of earning households grew 275 percent.
Meanwhile, private sector union membership fell from 27 percent to below 7 percent, roughly where it was in 1928. Every scholar I spoke with blames dwindling union membership for a shrinking middle class.
"For generations, unions were the core institution advocating for more equitable wage distribution," University of Washington sociology professor Jake Rosenfeld says.
Studies repeatedly show that in fields where union rates were high, nonunion members enjoyed better wages and benefits. Treating workers well helped management avert the threat of union organizing. In a way, unions created their own form of trickle-down economics.
Read more here:
We need unions – so why are they fading? - California Forum - The Sacramento Bee