Following the Wagner Act's implementation, and Roosevelts raising of the top marginal income tax rate on multi-millionaires to 90 percent, however, the first true American middle class came into being. By 1947, over a third (roughly 35%) of America's workers were unionized, and for every union job there was a non-union job in the private sector with nearly identical pay and benefits, because unions had set the floor for labor costs and employers had to compete for workers. This meant that about 70% of American workers were able to raise a family, put children through school, pay for health care, and plan a good retirement, all on a single wage earner's salary. During this era, CEOs earned, on average, around 30 to 35 times what their lowest paid employees did, and senior management salary ratio caps averaging 20:1 were put into place in civil service, the military, and most colleges.
But in 1947 the cheap-labor conservatives fought back. In the elections of 1946, Democrats lost control of both the U.S. House and the Senate, allowing Republican legislators to push through the Taft-Hartley bill, which essentially allowed individual states to opt out of portions of the Wagner act. It was an early domestic version of the "free trade" disaster we're seeing now with NAFTA and GATT/WTO - a race to the cheap labor bottom - that started to take root in the American south right after passage of Taft-Hartley. Although President Harry Truman vetoed the Taft-Hartley assault on labor, Republicans in the House and Senate overrode his veto and it became law.
From then until the end of the Jimmy Carter presidency, unionization - and, thus, average worker wages in the United States - only gradually declined. When Ronald Reagan came into office, a quarter of the American workforce was unionized, meaning half of Americans could raise a middle-class family on a single salary.
But then Reagan declared war on the middle class, starting with the air traffic controller's union (PATCO) during his first year in office. The conservative assault on labor has been unrelenting since then: Today only about 8 percent of the private-sector American workforce is unionized, and at the same time Education Secretary Rod Paige described the teachers' union as a "terrorist organization," George W. Bush announced plans to lay off over 700,000 unionized government employees and replace them with non-union "contractors."
While gutting the American middle class, conservatives also launched a well-funded propaganda campaign - using right-wing "think tanks" and talk radio - to convince workers that their growing economic woes were the fault of minorities ("affirmative action") and the poor ("welfare queens"). At the same time, they began stacking federal benches with conservative judges, and passing thousands of federal, state, and local laws, ordinances, and regulations that further weakened the powers of organized labor and their ability to unionize.
It's just fine, they said, for capital to organize in the form of a corporation. It's great when corporations organize into trade associations, chambers of commerce, industry groups, and lobbying consortiums. But to have workers organize to level the playing field? Inconceivable.
The result has been an explosion in CEO and executive pay, a rush of wealth to the conservative elite (the top 10 percent of Americans now own 71 percent of the nations wealth), and this year's cut in taxes to a maximum 15 percent for those who "earn their living" by sitting around the pool waiting for their dividend checks to arrive.
In 1999, Washington Post writer Dan Balz profiled Karl Rove, pointing to Roves affection for the Gilded Ages most aggressive advocate for the strike-breakers and Robber Barons, and declarer of the Spanish-American war, President William McKinley (1896-1901). Writes Balz: A successful party, Rove says of the GOP under McKinley, had to take its fundamental principles and style them in such a way that they seemed to have relevance to the new economy, the new nature of the country and the new electorate.
So too, today. Will it be Roves McKinleyian Bush, with a new economy of terrified minimum-wage workers, an entrenched private-jet conservative elite, and wars in faraway places? Or might John F. Kerry, who often quotes Franklin D. Roosevelt and is a friend of labor, return America to its postwar era of a growing middle class, peace, and prosperity?
"The economy is booming," millionaire TV commentators tell us from their billion-dollar corporate studio empires. "The economy is creating more and more wealth," say rich conservatives. And for them, it's true, as money continues to flow from the working class up to the conservative elite and billion-dollar corporate tax cuts head legislative agendas.
Americans have a clear choice in this election year, from national to local elections. But unless average Americans wake up to the scam that's been foisted on them by the likes of Reagan, Limbaugh, and the Bush family, the American middle class will continue to evaporate just as fast as the now-stripped pensions of West Virginia coal miners.
ThomHartmann.com - McKinley or Roosevelt? This Election is as Much About the Past as the Future