When the economy is great, workers benefit as wages increase dramatically, with or without unions. If companies don't pay enough, then they will not prosper. On the other hand, when the economy takes a downturn, unions tend to keep businesses from being competitive. This is not to say unions have no good purpose. The reason they came about was due to the fact that business took advantage of their labor for so long. The problem now is that the unions have gone too far, hurting not only the businesses they work for but also themselves directly.
Obviously, some unions are much stronger than others. I think we need to ask ourselves what makes an auto worker worth $45.00 per hour (wages and benefits included), while the butcher at your local union grocery store is only worth $22.50 per hour. Adding to that, we should ask ourselves another question; could those jobs (autoworkers) that are paid $45.00 per hour be filled by people making $30.00 per hour? Would people stand in line for those same jobs at $30.00 per hour?
People constantly complain that we have lost all of our manufacturing jobs. Well, we have priced ourselves out of the market. It is that simple. I'm not against employees making a fair living wage. However, it needs to be competitive on a global basis, within reason.
The claim that American workers have priced themselves out of the market is nothing but pathetic jargonism that ignores the fact that even at their zenith in the 1950Â’s unions never had more than 35% penetration in the workforce. If one is to accept your argument one has to believe that 1/3 of the workers ( less than 10% of todayÂ’s workforce) priced the entire workforce out of the market! The very notion is laughable.
The reason that manufacturing jobs have fled the nation is that we have had a government that has encouraged and even financed the practice. Many billions of our tax dollars have paid for the construction of plants for American corporations overseas that have caused the loss of hundreds of thousands of jobs in the U.S.
The U.S. Economy has moved from Farming to Manufactoring to Service. We are in the era of globalization. Our products must compete on the world stage. We no longer sell products made at home only to people who live here. People that live here want to stretch there wages as far as possible.
An example of mfg jobs going to another country is will airplane mfg. Boeing wants to sell airplanes to Chinese airline. For them to get the deal, Boeing has to have a certain % of parts come from Chinese mfg.
We aren't manufacturing anything. That's the problem. No superpower has ever maintained their position in the world by outsourcing everything. This is exactly what happened to England.
This is a great op ed I hope you read.
ThomHartmann.com - McKinley or Roosevelt? This Election is as Much About the Past as the Future
From the Gilded Age to the Great Depression to today, the economic agenda of conservatives has been easily summarized in two words: "cheap labor."
None of this could have been possible without generous corporate "reforms" to bankruptcy laws pushed through Congress in the last few years by conservatives, and the lifetime appointment of conservative judges to seats on federal courts by conservative administrations. Judge Howard, for example, was appointed during the reign of George H.W. Bush, and his decisions continue to destroy union jobs and reduce labor costs for mining companies under the reign of George W. Bush.
Following the Wagner Act's implementation, and RooseveltÂ’s raising of the top marginal income tax rate on multi-millionaires to 90 percent, however, the first true American middle class came into being.
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 nationÂ’s 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.