Restoring the Promise of the American Dream

The promise of America is that if you work hard, you will be rewarded. You will be able to provide for your family, own a decent home, afford quality health care, and enjoy a secure retirement. It is that promise that built a thriving middle class. It is the American Dream, and it has inspired generations of women and men who helped make this country great.

Today we are living through a period of profound economic change. We have new ways of communicating, new methods of production, new means of generating wealth, new global competition. And while many of the ways we used to do business have changed, the American Dream has not.

Today, in 2007, that dream is at risk. We stand at a moment of unprecedented economic opportunity, but that opportunity is not being extended to all. Tens of millions of Americans are working harder than ever just to stay afloat. The latest Census Bureau report shows that wages are dropping and more people lack health insurance.

On the other hand, a handful of incredibly wealthy people are prospering beyond all comprehension. Private equity CEOs are making on average more than $650 million -- or more than 22,000 times what the average American worker brings in. Put another way, it takes the average American worker one full year to make what a wealthy buyout CEO makes in only ten minutes.

The buyout industry and the big banks are cutting the heart out of the American economy. Global buyout corporation the Carlyle Group is taking over one of the nation's largest nursing home chains, ManorCare. As part of the deal, ManorCare's CEO Paul Ormond will personally profit up to $186 million dollars, money that could have gone to hire more nursing home aides to care for our loved ones. Even worse, ManorCare will pay no corporate taxes while it is owned by Carlyle. The lost federal, state and local tax revenues over the next five years? More than $600 million. There's a credit crunch on, and massive lenders like Bank of America are using their size and market dominance to run up fees and credit card rates, deny loans to working families and minority communities, and lay off workers.

This Labor Day, a greater percentage of the economy is going to profits than to wages, and a majority of parents believe their children will be worse off economically. Tens of millions of people in the U.S. are working harder than ever before, but they're still falling behind.

We are at a crucial moment, a moment that makes us ask what kind of country we want to be.

The answer to that question must include more workers uniting in unions -- the labor movement. Unions have always been the best anti-poverty, best pro-health care, best pro-family program around. Unions have done more to help working people experience economic success than any other program.

This week, a new report by the Center for Economic and Policy Research and Inclusion showed that workers in the lowest-paying jobs make about 16 percent more when they are members of a union, and they are 25 percent more likely to have health insurance or a pension plan.

Now, more than ever, as new technologies and new ways of thinking about efficiency have reduced workers to a line item on a balance sheet, unions are not only relevant -- we are indispensable.

As the economic landscape has shifted, the labor movement has needed to adapt to these new realities. I am proud to report that the 1.9 million workers united in SEIU stand at the forefront of the evolving labor movement. In recent years we have pioneered new models of organizing, like uniting workers in nontraditional employment situations. Since 1999, 400,000 home care workers have changed state laws throughout the country to give them the freedom to unite in a union.

We have established new relationships with employers who are willing to reward work, while continuing to hold accountable those who are not. We are acting on new ways to secure health care and retirement security that reflect rather than deny the new economic reality.

The bottom line is this: the American economy is not a zero-sum game. There is no good moral or economic reason why all workers cannot or should not share in the success and prosperity they helped create. We need to restore the promise of the American Dream. And that means choosing what kind of country we want to be.

-Andy Stern, President, Service Employees International Union

Also from SEIU this Labor Day, check out Cincinnati janitor Craig Jones' "Just Work" blog about turning minimum wages into livable wages.

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About SEIU: The 1.9 million-member SEIU is the fastest-growing union in North America. SEIU members are winning better wages, health care, and more secure jobs for our communities, while uniting their strength with their counterparts around the world to help ensure that workers, not just corporations and CEOs, benefit from today's global economy.

Comments

[redding888]

John Edwards is the candidate for working people. As the granddaughter of a coal miner and daughter of a cafeteria worker, I know what it SHOULD mean to "reward work, not wealth".

Someone else put it better. "I'm 61, and in my lifetime I don't recall any candidate for President who articulated a belief not just that unions are good but that they are necessary for what ails society," said John Wilhelm, a leader of the textile and hotel workers' union, UNITE HERE, recently.

[maddog5150]

Acutally, if unions work in Europe they will, once again, work here in the U.S. Problem is, as mentioned earlier, they are too fractious. Unions need to come together as a force once again. There is strength in numbers. You are right in the other areas. We all need to get out and vote. More than that, we need to forget our narrow views of life and not vote for someone because they represent "family values" or believe in placing the ten commandments (caps intentionally omitted) in public places, etc. We need to stop thinking about single issues and consider everything that needs to come about to reverse the direction this country has been taking the last twenty or more years.

I am highly suspect of any of todays crop of politicians, including Gephard and Edwards. I suspect they would forget their campaign promises as soon as they took the oath. What is really needed is a grassroots campaign to get a third party in office, not just the WH but the congress as well.

Nothing will be done about campaign finance or the lobbyists, or PACs or any of the other things bringing this country down until there is a complete regime change and both parties are out of office. They have become so entrenched in their quest for money and power that they care not if they betray the American people. It's all part of doing politics.

[dora rice]

I dissagree. Unions are not the answer in 2007. There were in 1930. Some unions are corrupt. Most unions don't have very educated knowledgable people to bargain with highly educated CEO's and employers. The only way in my opinion for the working man to survive is to vote for people who care about the working man. That includes first of all to vote, and second of all to vote against lobbiests and campaign funds supporters. Gephard and Edward are the men who care about the worker and the middle class, yet we don't vote for them. Unions are out. They work in Europe but not here in the US.

[JusticiaParaTodos]

This labor day (9/3/07), I cannot help but think about how generations of American workers have no clue as to what Labor Day is or how it began. What is worse is that today's labor leaders are not that far behind these workers.

The U.S. labor movement was created through organizing, struggle, civil disobedience and sometimes people died for the cause. Today's six figure income labor leaders would not have survived the 1930's. They depend entirely too much on lawyers and weak laws, government regulatory agencies and cozing up to the boss.

Andy, I believe that labor is the solution to the mess in this once great nation. However the labor movement must begin researching and studying it's origins, it's culture and it's purpose in life. Today's unions are not what they were when this nation went through the Great Depression and President Hoover! That my friend is why only 12% of American workers belong to unions! Think about it.

[realitytrumpsbull]

The American Scream got sold down the river some time ago. Be sure to reference something called the American Enterprise Institute there, in your studies...

Poor people are easier to manipulate. Poor people usually don't have access to enough information to determine What's Really Going On, check your C-SPAN and listen to how many times some of these guys n gals use the word 'american' in their addresses. Duh, no, we're watching italian C-SPAN. 'American'. just a word, but badly overused and abused. And as far as the 'dream' part? How about you wake up, get some breakfast, start dealing with your own personal responsibilities, take care of your own, and let these carpetbaggers 'wither on the vine' for a change?

The public gets deliberately and systematically lied to, told a thousand sunshine stories, and then permitted to 'vote' on how much they'll be taxed for all of this crap.

'The government' wants lots of poor people, else the country would be administrated much differently. Now, take your soup ticket, and go...

[blackwell98]

I was most intersted in Andy's statement that while ManorCare was owned by the Carlyle Group it would pay no corporate taxes? How does this work?

Can I get on this no tax thing?
Seriously, the Bushie's would be so happy if the USA was a banana republic or a captive labor farm like China.

[gems]

We have to look out for the working class. Without the working class, business are useless. We are the ones that keep the economy alive, and not a few rich individuals. People are finding themselves struggling and the american dream is vanishing. Families are working two jobs or tons of overtime to be able to bring extra income, and not even healthcare benefits are appealing anymore. Who will be a true leader in our government and turn things around? I'm waiting.
Gemma

[Jason357]

Mr. Stern:
I wanted to add that I appreciate your post, even if I may not agree with much of it. I think unions have a place. Abusive employers love Virginia because unions are kept out. I had a boss who tried to force me to work on my day off, by sending me faxes about an unsatisfied client. I'd answer the phone to hear fax tones.

I tried to explain that he was calling my home on my day off with work business and I didn't approve. He insisted on sending the fax. I ended up contacting the client and resolving the issue, on my day off, and charging my employer one hour which was quite fair.

He responded by harassing me and trying to get me fired. He combed over ever inch of my paperwork and followed me around and couldn't come up with anything. That wouldn't have happened if I had a union rep. There are many other examples I could give of what happens in Virginia in the absence of unions. I hope VA is a target of the unions.

[AcitizenNJ]

Andy that would be a great plan to have more people band together and organize with unions and yes it's true for the most part workers, IF you are working you may not be doing it for less just with less. but one point was left untouched and that is the fear factor that has become a key element of the work place. that old saying to put it simply, "don't make waves" in the work place or as the grandparents of many here heard, "just be thankful you have a job" which meant regardless of the pay scale. the problem with unions today is not the working people within but the union itself. the unions need to organize with each other, they need to create a force that defends this dream you speak of. today the unions are divided, fractured into small pockets within heavy populated areas where they can maintain there power but outside these areas the union worker has little support against the corporate. and as for politicians in this fight for the American worker i see little hope from either democrats or republicans as they both have become extremely dependent to the folks that butter their toast.

[cyberfarer]

"We are at a crucial moment, a moment that makes us ask what kind of country we want to be."

That question has been answered. The choice made is one of obese people who traded neighbourhood and community for sprawl and Wal-Mart, economic security for cheap crap, and wholesome foods for sugary food-like chemicals.

I could go on but part of the trade included giving up human relationships and social interaction for living vicariously off single dimensional television characters.

[ScapeGoat]

I am reposting this because I could not find the original with some additional info:
The CEO's will never give up there $$$$$$$$$. So, the way to deal with it is to bring back the income tax on excessive salaries. Before Kennedy, anyone who made over about $3 million (in todays dollars) was taxed at 90% (you read it correctly ninety per cent). Kennedy changed it to 70%. Under saint ronald (and not Ronald Mc Donald). The 70% was removed and all income was taxed at the same rate (about 35%). If that tax were to be reenacted, I am sure you will see excess CEO pay drop. You will also have money to pay for the war, fix the infrastructure and provide health care for all Americans.

Just read an article by San Pizzigati about “The Compensation Gap Grows into a Chasm”. He sites a study called “Executive Excess 2007” from the Institute for Policy Studies and United for a Fair Economy. It is interesting to note that “the average big time american corporate CEO took home 364 times more pay than the average american worker. A generation ago, top CEOs took home only 40 times what average workers earned.” Why the big gap? Well, I figure that two things must be going on: 1) Executive pay is getting higher and 2) the average workers pay is getting lower. He also points out that executives have great medical and pension plans while the average worker is getting his medical benefits cut or removed entirely and the same can be said for pension.

I belong to a union and I believe that unions have helped the american worker and helped build middle class America. Without unions, the workers will get less and less and you will see the return of massive poverty. We need strong unions.

[jojobaker]

The unions made the American blue collar workers middle class.

Then the middle class became Republican­s.{Reagan Democrats).

Then the Republicans went after the unions. (see Ronald Reagan, Air Traffic Controllers etc.)

There goes the middle class.

[vippy]

Americans are the most brainwashed people.
Who told them they are Number One in everything and they actually believe it. Most who never been out of the country or some that have but prefer to close their eyes when overseas with this attitude like "I am better than you."
Yet, they paychecks and benefits and ergo, their way of life is much further advances than
that in the US. This is coming from someone who lived on both sides of the Atlantic. Now I see companies are firing people and hiring them back at a lower pay - thanks to the illegal
aliens.

[viflyer]

I don't think you can stop the path we are on. Maybe another depression? But this is a country fueled by greed. AND it runs from the top to the bottom. Remenber, the Domoino's pizza add where the guy is Soooo happy that the kid missed a mistake with the price of the pizzas. Thinks he got away with something.

The entire society is infected with greed. It's old and tired, but this is a place where you have respect if you have money, and it doesn't matter how you got it.

We now have a corporate Supreme court, and a Congress that is RUN by corporations. For the past thirty years we have indoctrinated the people to believe that their governmnebt is bad and corporate America/ private sector is GOOD.
AND under this guise, the corporations have tken control of the government with the help of the corporate news media. The Republicans have been the major enablers, but there is no doubt the Democrats will stop the creeping demise of the middle class in word only. Hearigs are now dog and pony shows producing NO legislative changes, but promises from corporations to mend their ways. FAT CHANCE.

I can only hope that when you and I end up in a "for profit" nursing home that we are " out of it" because no one wants to be living in a gulag

[Pneumaticus]

Privatization. That's the dirty little concept that is bankrupting the middle class. Privatizing and corporatizing federal functions feeds the oligarchy and inflates the cost of essential services such as health care and higher education, not to mention fuel, food, trains, planes, and infrastructure. The justification for this is "the profit motive," and it's supposed to be good for you, you know, like chicken soup. In reality, the rich get richer, those pork-fed captains of industry, and everyone else is in debt to them up to their eyeballs. If you are not in debt to any of them, let us know what rock you are living on -- or under.