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

[daddysboy]

'The American Dream' is not "at risk"; it is a myth; supported by those incredibly wealthy people you mentioned and perpetuated by the eternal delusion of millions of poor suckers that will never see a serious economic change for themselves or their children. Wealth takes talent, luck, connections and least of all hard work; economic security takes consideration, respect and a moral aptitude from that same group of talented, lucky, connected, semi hard-working people.

[BillGriffithJrCFP]

There will always be arguments for and against labor unions but Labor Day is a time to reflect on the contributions all workers have made to our country whether they belong to a labor union or not. The American worker has contributed much to the success of our nation and the companies they work for. All workers should have an opportunity to share in the economic achievements of the companies they helped to create. The most successful organizations recognize that their companies may benefit more over the long run when workers are satisfied with their jobs and when workers have an opportunity to share in the achievements of the firm.

But now more than ever, all Americans must confront the challenges of a changing economy, especially with regard to health care and retirement security. Ultimately, each individual person is responsible for their own retirement security whether they belong to a union or not. Social Security and pension benefits are not likely to provide the income required for many people to maintain their standard of living during retirement. Personal savings through retirement or investment accounts will represent a more important source of future income. Thus, individuals will ultimately have to save more to meet their retirement income goals.

[JPHogan]

Where did this American Dream start after all? Did it start with peoples seeking freedom to worship, freedom from oppressive governments/monarchies, and, freedom from foreign taxation and market controls? Is it just that we have forgotten it wasn't about living in a material world, with foreign competition and wages effecting and balancing pricing in a desired free and fair market system? Didn't it start with people happy for a one room house for multiple generations just to have the freedoms mentioned above, and the freedom to succeed with their own initiatives and efforts?

[michal54]

My Dear Mr.Hogan, Do you have ANY idea how difficult it is for some one living in a one room house in 2007 to succeed 'with their own efforts'? Corporate greed keeps the little guy down on his knees. Only by banding together can we have any hope to 'succeed'. Get real.

If the middle class is the backbone of American Society, then the union movement is the muscle. Without unionization we are little more than a bunch of bones.

[OldKnute]

Yes to all!

AND, Freedoms to entertain others in company and involve oneself in free enterprise.

The problem of a Adam Smith Free and open capitalistic society, is that unlike Adam Smith, many of his present day subscribers are NOT moral men, as was Adam Smith. Smith’s, very human and understandable oversight/over-estimations of mans better natures was his own undoing and others seem to ignore this tragic irony when studying him.

Bottom line,,, IS the bottom line.

Labor is the ONLY fundamental variable there is.

Materials? (Fixed)
Energy? (Relatively fixed)
Productivity? (More fixed than most would think)
Site overhead? (Fixed and predictable)
Transportation? (Fixed but increasing gradually)
Price point? (Relatively fixed by marked comparisons)
Benefit packages. (On the rise and going higher)

The BIG unknown varoiable and endless target for cost reductions?

LABOR!

How to squeeze?

Part-time temporaries.
Regular BOGUS reductions in force. (Most will have a job if there ever is a hire-back)
Papering and fraudulent firing older workers. (Glass ceilings)
Hiring less skilled workers than needed. (The good ones will pick up the slack)
Promoting the MOST incompetent. (Demoralizing and forces voluntary turn over)
Rotating shifts under the guise of fairness. (Eliminates most moonlighting 2nd job and insures a dependent worker)

The BIG picture?

Force out the little independents with HUGE Mega-chains and Big Box retailers and Corporate specialty outlets.

The benefit to BIG Government?

Everyone’s taxes are taken out,,, BEFORE,,, they even see their paycheck, No Tax Sneakers! NO Tax fudgies! Everyone is LOCKED into the system.

Just my opinion.

My suggested remedy?

Find something of your passions, read, study, stay up late, learn everything about the field you can, save up lots of money and START YOUR OWN BUSINESS!

I don’t care if it is sewing the most beautiful Barbie Doll clothes in the whole world.

START A BUSINESS!

All the best

Knute

[TimeToThink]

Some interesting points to ponder:

Some unions have shown corruption so they should disappear and the leaders hauled to court. Most big corporations undulge in organized corruption but shouldn't be touched except to very occasionally pay token fines seen as 'a cost of doing business', and their officers are mostly protected against personal harm.

Labor costs cause inflation, obscene profits and unbelieveable executive compensation are a 'just and reasonable reward' with no effect on prices.

The American auto industry lost out because they paid workers too much. Poor engineering and collusion with the oil companies etc. etc. had nothing to do with the inferiority of the Amercian product and the rush to Japan's.

$20/hr. is a high wage where apartments and food alone can cost $1000/month easily. $20,000/hr. or more for executives and stock holders is simply what they are worth.

Workers spend too much on toys and then cry about wages. Management deserves those country estates, 2nd and 3rd homes, and a lavish life style.

Unions are 'unAmerican', but alliegence to a global economy at the costs to the citizens of their own country is 'partriotic' and 'good ol' American Capitalism'.

The corporate oligarchy is smart. They let their lobbying and PR Departments do the work they once gave to thugs with government collusion.

[taylorndncar]

it has taken two decades to expose the fallacy of a degreed education, a system of pushing higher education for higher salary. the system is failing because "higher education" equals management, and management is not union-oriented.

this nation is top-heavy and without a trickle-down system, the knees are buckling under the weight. profit is the name of the game and the name of free enterprise; it is what makes this country innovative and strong. yet, it is our downfall, if we can't "trickle-down" the profits.

but, the business of management is not to share profits. here is where the problem lies: instead of sharing profits, businesses out-source their services and production, while eroding the power of unions, even to the point of elimination.

president reagan broke the power of the unions, when he fired the union of flight controllers, and we are still suffering from that "busting".

we are replacing quality for "the bottom line"; which means, when there is a train-wreck and people die,...the corporation collects "the meat and the victims collect the scraps...!!!"

[msn04061960]

I don't really agree your statement that unions are the best pro-family program around. I believe if you look at the political pundits that the unions support more times than not that person is a socialist. Socialism has never and never will be pro-family. The only thing unions are good for is getting wages raised if only for a little while, until the company cries poverty while still over paying the ceo's, v.p.'s, and other management personel.

[michal54]

From Wikipedia, the free encyclopedia: Socialism refers to a broad array of doctrines or political movements that envisage a socio-economic system in which property and the distribution of wealth are subject to control by the community[1] for the purposes of increasing social and economic equality and cooperation [for all]. This control may be either direct—exercised through popular collectives such as workers' councils—or indirect—exercised on behalf of the people by the state. As an economic system, socialism is often characterized by state or community ownership of the means of production.

In its ideal sense, socialism helps many. Again, it is the corruption of the system by greedy people that gives it its bad reputation. Corporate America would have you believe that government regulation of business is bad because it is close to ‘socialism’. The term is tainted because it is associated (with good cause) to Communism and the old USSR, our cold war enemy, but in its purest form this is not necessarily the case. We need SOME governing of business by the 'government of the people'. Privatization will do nothing but feed the greed of the corporations and allow them to make profits at the expense of all of us (e.g. Bush’s attempt to alter social security).

Unions in America support ‘pundits’ who will work for the good of all people, not a few at the top of the heap. Unions traditionally have been pro-family since the early 19th century. How can working 12 to 16 hours a day, seven days a week help a family? In the 1950’s unions were an integral part of the American Way and working families benefited socially, economically and in their overall lifestyle.

If you are referring to ‘pro-family’ as supporting the Christian point of view, I would like to remind you of Jesus’ teaching to help your neighbor, the poor, the down trodden – in a word, I think He meant ‘the little guy’. That’s what unions do. If the union movement is anything, it is pro-family.

[Stano]

Andy Stern is right on. We have been moving in the wrong firection for years. In 1980, wage earners and investers each earned close to 50% of the total earnings in the USA - and each paid about the same percentage of earnings in income tax. Now, wage earners earn less than 45% of the total earnings - and pay about 80% of the total income tax collected. This means that thosse who earn the very leaast are supporting the government that props up the other 1-2%. There is something radically wrong with that.

Moreover, at the same time, the system has been hijacked by the investors who have made it all but impossible for workers to organize into unions. Only the SEIU is succeeding, thanks to an incredible effort by Stern and the fact that those who are joining the SEIU have nothing to lose. They have been left out for so long that there is only one hope for them, and that is through organizing into the union. Most of the rest of the work force has been looking through the fog of outsourcing and has lost its nerve. Their day will come, soon, I hope.

[dandjus]

50% of the citizens of this country pay no income tax. Dissembling is not argument.

[Thegraybaldeagle]

Most of us old "fogies" have benefited from the effort by unions to bargain with corporations and reach agreements that have raised our lifestyle considerably through the years. The problem is that our competitors today didn't have the opportunity to do that and as a consequence, we have raised our standards so high that we cannot compete with our trading partners. There appears to be two choices. Convince the rest of the countries in the world to raise their standards to our level or take ours down to theirs. More and more it appears we are moving toward theirs. That is, better paying jobs are disappearing and service jobs have been on the rise for the past 25+ years.

It can be argued that millions paid to CEOs rather than to the working class would level the field. But, would it? The bottom line is that we have raised our living standards so high that we can't compete with those countries that pay extremely low wages and no significant fringe benefits.

[Ravenlea]

I don't know if unions are the answer, but something surely needs to be done. The Bush people keep saying that the economy is good but that just isn't true for the majority of people. It's good for the rich and the very rich and the rest of the world is struggling just to survive. Everything in this country at present is skewed to the very rich. I'm blessed to have SSD, and my expenses are low enough that I'm getting by, but I pay 8% of my annual stipend for Medicare part B while someone getting $250,000/year pays less than one tenth of a percent of his/her annual income and only about $800 more a year than someone like me.

It doesn't serve the nation to keep the bulk of it's citizens in poverty. It's expensive. The whole mythology of tax breaks is costing this nation. First off, it's a lie. We pay for those tax breaks either at the state and local level or in unrepaired roads and bridges and a host of other failed government responsibilities.

It doesn't serve the nation to give small greedy corporations power to ravage the rest of us, which is what we do when we don't vote and let insurance companies insure that medical care is inflatedly expensive and out of reach for most people. Or when oil companies set our political agendas.

We're giving these greedy people power by either rolling our eyes and saying "what can we do" or by not voting. And by not thinking and letting ourselves be programmed by slick sound bites and fear mongerers.

I'm scared for this nation. We are at risk of losing ourselves and our greatness. I don't know if unions are the answer but we had better start questioning the status quo before it's too late. We need to start voting - and making sure the voting booths and polls are safe and tamper-proof. If we don't, we can expect more administrations like the present one and that would be bad not just for this nation but for the world.

[Piltdown Man]

The GOP has spent the last 40 years doing everything it could to dismantle US unions. And because companies are, by and large, run by Republicans, they have had complicit CEOs who helped them every step of the way. Corporatists see the world in very simple terms; more profit is good. Anything which has any possibility of adversely effecting that profit is bad. Hence, unions are bad.

Do they care about their employees? Simple answer there, too; no, they don't. There is a reason the phrase "human resources" was invented. It reduces people to assets and treats them like line items on a budget sheet. It dehumanizes them. And when you are no longer seen as human, there is no need to pay you a living wage or treat you honorably.

Did unions make mistakes along the way? Oh yea. They too lost sight of their members. They fought for minor rule changes that only fed the sense that they were unwavering absolutists and that they were "outmoded." But most of that narrative was fueled by the anti-union forces, who had the money, manpower and access to the media which allowed them to constantly bang the drum.

I have long insisted that we'd see a resurgence of unions, because the robber barons are back in charge and the common man is sensing a need to push back.

The challenge, however, is to get people who have never had any access or personal connection to a union to see one as a logical alternative. Even young people in the formerly heavily unionized rust belt North East of the UN are now two generations separated from family members who worked for unions. To them, it's like hearing about the Civil War. To succeed, unions need to find a way to make themselves as relevant as the iPod!

Piltdown Man

[SmokeyC4]

not a problem,I will let my viewers know

[SmokeyC4]

As much as I down the Democrates I also down the Republicans.
Ive sent more people to this site and you treat me like crap and keep refusing my posts and dont say its because I do my News and Views on Liveleak dot com because you let people put all kinds of site addresses.

I tell it the way it is and it looks like you dont respect my opinions even though ive fought harder than anyone to get this president impeached.

theres always people that wont let others hear the truth for there own political reasons.

[nyboomer]

So long as America looks to prosper by exploiting cheap labor elsewhere, the nation will deteriorate and will eventually become a third world nation.

Only by bring up the rest of the world, by becoming generous can America move forward.

Those CEOs who think the contributions of all of their employees were negligible, should try making the big bucks all alone.

We need to create an emvoirnment that benefits all rather than a few. At this point 99% of the workforce is engaged in seeing to it that some over privileged people are kept content. That is a dangerous situation which will devolve into serfs vs. royalty of wealth.

[littleblackcat]

We need to find a president who has the strength to say (and carry out) that he/she is calling out all companies that take their businesses overseas, by freezing their assets and bank accounts and handing them a huge tax bill and then slaps tariffs on all of their business deals. I doubt any of them have the balls to do this.

[dandjus]

What system created all the jobs union members cherish? What system created the greatest country in the history of civilization? Need a hint? It is capitalism. Let's appreciate it. Unions don't create jobs. In some industries, in some places, they have destroyed jobs by failing to see where the future was going. The Westinghouse/Sunstrand plant in Lima Ohio was an example. How long was the Teamster's Union corrupt? Why didn't the members corect this? Teacher's unions stand in the way of progress--recieving increased wages without a corresponding increase in productivity. It is an unsustainable model for these towns to support. And whoever said, that people resent paying taxes is just silly. What I resent is being overtaxed to support failed systems--think of the Big Dig here in Boston. This is a time in history when cooperation between labor and management is required to save jobs. We build more cars that ever here in the US. The difference--The UAW doesn't get "its" share anymore. The workers are treated well.

[michal54]

Yes, Capitalism can create many jobs and a very rich society - and it has done this, but the problem with the waining power of the middle class has to do with a few corrupt people taking advantage of the productivity of many. American workers produce more in a given amount of time than all other workers in the world and only a few seem to be benefitting from this. The key word here is corrupt. Corrupt capitalist are bad even though the concept of Capitalism has merits.

[dandjus]

It is unfortunate that corrupt people seem to rise in all arenas. That's why most of us vote for the lesser of 2 evils. George Bush was ultimately beatable and deserved to lose, but the Dems nominated an empty suit. A guy who ran on his military record yet won't release those records. If they are pristine he would have made the Swift Boaters look silly. Instead they assumed the moral high ground. And Kerry had a chance to win anyway until he chose Edwards. Bush/Cheney is no bargain but neither was Clinton/Gore nor would Kerry/Edwards have been better. Wer need true leadership and it probably has to come from outside the 2 parties.
Certainly in the CEO group have been many corrupt and morally repugnant guys. The greed just floors me. Did Koslowski need $500,000,000? Wouldn't an honest $200,000,000 afford him the same lifestyle. Jail is the right place for him. I wrestle with CEO compensation, and compensation for athletes and Hollywood, but artificially limiting it is not the American Way. It will make it worse. Remember, this wide disparity in CEO income versus the rest of us is due to stock options which came into vogue when Congress limited the deductibility of executive compensation. THat was in an earlier era of class envy. That was at the time when congressional wisdom said that luxury items are bought by rich people and they need to be punished. We all know how that turnrd out, don't we? Unions have their own history of corruption. But my bigger problem with them today is in the civil service and especially the education unions. They are more interested in controlling the hours worked by teachers and what teachers can do. There is no productivity benefit to offset the salary increases they recieve. They do not take advantage of technology to increase class size so that their contractual salary increases are crushing the town's taxpayers. It is unsustainable.

[guajiro]

Yes, yes, dandjus, capitalism, wherein the means of production are all or mostly privately owned and operated for profit, had a hand in creating this great country. Poor people certainly didn't have the money to loan to start conquest wars. But you omit the contributions of the members of our work force who are members of our military. It is they who gave their lives acquiring territories for America and defending her against military threats, that allow these rich capitalists to put their capital to use in building plants, etc. to make themselves richer and in the process provide jobs to us. It is our work force, employed in the military, that invades countries to allow these capitalists to set up shop there where they can then impose their capitalist terms on conquered masses. After having acquired more capital for the capitalists, our laborers in temporary military status, return to citizen life where they seek fair compensation. Who, after all, do these capitalists turn to when there is terrorism, or others dangers to their capital? The laborer. You may not be aware, but the vast majority of countries use capitalism, including ours, mixed with some sort of socialist ideals (think public education).

[dandjus]

Where to start? The vast majority of countries--actually all of them have inferior economies to the US. If you are unhappy with your plight in the US you have freedom to do what you want. The "man" can't keep you down. Only you can keep you down. Workers are appreciated in the US. I worked for 35 years for a mid sized insurance company. Non union and a wonderful place to work from the entry level clerks to the executives. People were treated with a respect because the employees were in partnership with the management. Well over 50% did not have degrees. A union would have put an unnecessary wall between the employees and the company. If unions believe in their own process so much why not have the UAW buy Chrysler and make it a worker's paradise. Look out Toyota, Honda and Nissan. I'll bet they are quaking in their boots. The point is, it's a global economy and there needs to be cooperation between the employees and the company. That's where unionshould be focussing to save jobs. And teachers unions stand in the way of education. They resist efforts to improve productivity and thus are choking the town's finances in my area. It is not sustainable. Corporations are not ogres--but they need to return a profit to their shareholders, many of whom are union members or retired people through pensions. Corporations need their employees and truly do appreciate them. Union rhetoric notwithstanding. They call the personnel department human resources because of the respect management has for their employees. Unions provided a valuable service in the days child labor and unfair labor practices. That is true. But the focus must change now. And the SEIU should worry about legal workers not undocumented or falsely documented.

[worldtraveller]

Dandjus says it perfectly this system allows for other to start something if they see the opening for it. Bill Gates was practically pre-pubescent when he took on IBM and kicked their butts. He wasnt some capitalist pig subjegating the masses to his will. Steve Jobs has taken new ideas to the top, crashed, and done it again. No country provides the opportunity this one does.
And as for Lawyers only working 60 hour weeks it is only because they didnt get accepted by the firm they wanted to get into even more that would have made them work 90 hours.