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

[TOOO]

Well... it's a nice pipe dream, if only so many unions weren't so rife with organized crime. There's so much money in the unions, and from my personal experience, very little of it gets to the workers. Unions are more likely to side with management than with workers.

As for union workers making more, how much of that is lost in union dues? The union I had didn't do much for us, we didn't get any health care that I know of, and they wouldn't lift a finger to help us get rid of a terrible manager that eventually drove the store out of business.

Yes, yes, I know - unions are all we have to protect us, but it seems to me that the unions we have could be doing a better job.

[Jason357]

When did the American Dream become about owning "stuff", greed, and keeping up with the Joneses? I don't see anything about that in the Bill of Rights, US Constitution or Declaration of Independence...that owning a bunch of "stuff" to be taxed is better than freedom from oppressive government.

Somehow, Life, Liberty and Pursuit of Happiness became Life, Liberty, and Property. That's not to say that ownership isn't a key component of individual freedom, but it doesn't replace it. I always thought America was about a hell of a lot more than shiny objects and how many Cabbage Patch dolls someone can stuff into a spare room.

[Purple Girl]

I'm the wife of a union carpenter. It butters our bread, but also causes us great concern. We see our benefits dwindling and work "slow'. Funny thing is the the guys who 'run' the union- don't feel any of this pinch. No ones working- but their still bringing in their 80-100,000 a year- no work, no pinch to them.
Unions have steered down the same course as the other institutions we have created to help the common man- fat & lazy.
In addition they protect indidviual workers who are nothing but window dressing or worse criminals. I worked as the soccial worker in LTC. I absolutely agree that caregivering staff deserve better wages & bennies. but we also must assure these workers are adequately educated and screened, before allowed to join the union. And that any member who's action hurts the reputation of the Union (fellow workers) is immediately terminated. The CNA union often protected abusive, neglectful and criminally motivated indiviuals. they protected these workers like the Catholic Church has protected it's pedophiles-just play the shell game with them in the system.
I've even heard statements like- 'he doesn't know hard work he's in the union'
So get rid of the useless fat in the unions and I'm all for it. Basically a good scraping off of layers of greed and indifference will help all our institutions originaly design to help the masses (gov't, religion, mass media)If the Unions actually preformed their duty right- we wouldn't be discussing any of this. Once you bring up the common man by providing him/her with the basic necessities of life- muost people are willing to be open minded about everything else. when people are in survival mode- everythings a competition.

[Robert59]

Getting read of deadwood is a problem in a lot of businesses. I've seen the same thing in the military and among civil servants. They might get a mediocre efficiency report, but I have yet to see anyone fired for being lazy.

The mindset you describe is also pervasive in management. If you want to see people who believe they are entitled hang around upper management a few days. Their attitude will shock you. They don't see it as wrong they make so much money, do so little work, have so much time off, have better benefits because they've earned it. What they forget is they quit hustling 10 to 20 years earlier.

[WoodyCPM]

Mr. Stern,
We keep waiting for some action from you but all we get are words. Pretty words and rousing prop for sure, but just words. But no action. I work in a large, multinational retail copying/pa­ckaging/sh­ipping organization. We keep waiting to hear from you about what we need to do to get a union. I live and work in the South. Nearly everyone I work with is in favor of unionizing our company and our industry and yet we don't hear from you or your organization. I've read many of your posts on HuffingtonPost and I don't disagree with any of your fine words, but it's just words. What action is being taken? Where are the organizers? Where is the worker support? We're bleeding to death down here in the trenches. When is actual help coming?

[guajiro]

Woody, hats off to your motivation. First step is for you to get in contact with the SEIU. Mr. Stern does not have Extra-sensory Perception and unless you contact his Union he has no way of knowing you want to join. Try their web site:
http://www.seiu.org/

Most people think unions are like parents or policemen , there to protect you. It isn't the case. It's a collection of Federal laws employers must respect, and a collection of laws that allow you your fair say in workplace conditions and hearings. Above all, they are the laws which YOU must use to protect yourself. Incredibly, many union employees will refuse to fill out a grievance complaint. They bitch and whine every day, all day, about their condition to other employees, stewards, they bitch about how the union won't stand up for them, but they refuse to fill out a grievance form. From your post it sounds to me like you're already well on the way to forming a union. Don't forget to run for office.

[WoodyCPM]

Thank you for this. I'm looking into it.

[racetoinfinity]

Right-on, Andy!

[SadieYates]

I guess LABOR DAY is when we have to work harder to make ends meet because alot of the good jobs have been outsourced. or we have to work harder because our husbands were killed in Iraq. or we work harder because our limbs were blown off in Iraq. or we work harder so the rich can have those big tax breaks.or we work harder to send outr kids to decent colleges. this is the new Americvan dream. work your ass off, have less and be ashamed of the illegal blodbath your leaders created.

[scooperss]

THAT describes this labor day like no other.

[deminmo]

Where I live its finding a livable wage one higher that $8.00 an hour!

[InsaneDisabled]

Stop calling it the American Dream. It's the American Myth. The American Legend. The American Unachievable, Unrealistic, Illusory Goal.

Unionization may be the workers' best bet, but for a lot of the current workforce, it won't be enough or soon enough. Due to Americans' unwillingness to pay taxes -- apparently we'd rather pay into corporate profits -- we've got the worst social services in the industrialized world. We rely on private savings for retirement as the corporations profit from those savings while giving us a pittance in interest. So those now in the workforce above a certain age won't have enough for a comfortable retirement no matter what a union achieves for them.

And the disabled -- like me -- will get no help from unions. Oh, you might help us peripherally if the unions work for universal health care, but we're out of the workforce.

We're part of the uncounted human cost of corporate profits. And you could join us at any time.

Or not. You could be like those poor miners in Utah.

[Jangelique]

Thank you for brining up the tax issue. Americans don't want to pay them. All the hot air about paying your own way being "THE AMERICAN WAY" and it's a crock! They want good schools, good roads, police, fire, EMS, a military, mention a tax and they start squealing like a stuck pig! That, I think, will be universal healthcares biggest road block. The average American who is against it is too stupid to realize that while his taxes may go up, he WON'T be paying premiums like he is now. If he needs hospitalization, there'll be no deductables or co-pays and if he DOES get sick, he won't be forced into banktrupcy by medical bills!

[Jericho]

Funny indeed. But no, I can't agree with the first sentence. The real promise of America has almost always been that the greediest people will get the best lives because they are the best and hardest working people, which is sad to say the least. Greed should not be seen as the motor of our 'economic' system. There's a thousand better reasons to make or do something (Try these: to fight boredom aka for buzy-ness, to learn something, to express your passions, to help others, to feel of use to anyone other than yourself,...) The American dream is the problem and people who 'think' greed is what makes the dream come alive are really the ones asleep.

[Honest George]

Happy Labor Day,
I loved this article and being 77 years old next month I am proud to say I have believed in and have been a Union memberfor most of my working life. Teamsters and Letter Carriers

[bassface49]

We need to get back to the policies that made the middle class strong and vibrant in the middle of last century.
Eisenhower's progressive income tax system would be a good start.
Corporates taxed for outsourcing rather than getting tax-breaks is another.
Also, repealing anti-labor laws and reversing the ruling giving corporations the same rights as citizens is a must.
This stuff has been the rightwing agenda for 50 years!
The CEO's that rape this Country and 'We the People' are traitors to the American Dream and should be held accountable but first the Democratic leadership HAS to distinguish itself as the party of the Middle Class!
Unions lost their relevance because labor, in general, mostly riding union's coat tails, got strong as well, but the labor movement also got scattered.
Updated versions of unions are needed again and the focus of 'We the People' has to get back to protecting the American worker.

[godlessclif]

A Value added tax like Europe uses would be even better. It is very hard to cheat the Value added tax for the rich.

Propaganda is the problem with passing a VAT tax, because the Republican will lie and call it a sales tax, and even try to make it into a sales tax with crippling amendments.

The rich learned how to avoid Ike's fair income tax by using loopholes. By 1980s the income tax was a joke and Reagan repealed it.

If a no loophole version of the Eisenhower fair income tax could be passed I am for it.

We are in Kwave winter. even good economic policy won't save us. Hoover built Hoover dam in the last Kwave winter.
Herbert Clark Hoover built a big dam 1931-1938
George Walker Bush don't give a damn 2001-2008

[daddysboy]

and can we get a cure for all cancer with that?

[godlessclif]

Sigh, they are putting out the big lie on Ethanol again. I see no opposition.

You know the Gas companies said electricity could not work for street lights and convinced everyone in England with an argument with clever math. That is why no engineer in England did what Edison did
even though Faraday invented the generator in England.

It was the same energy in and out argument they use to attack ethanol.

Electricity loses energy in the wires so only a part of the energy can go to the streetlight.
Gas goes through a pipe so none is lost and 100% of the energy goes to the streetlight.

Everyone going to switch back to gas lights now to save energy? Edison saw the flaw in the argument, do you? The energy in energy out ratio EIREO is crap.

[researcher]

As a former member of a union I must say that unions have no one to blame but themselves.

What I witnessed was under the table agreements and much more and very little representation of the workers.

The American dream is over get over it.

People that come from third world countries still can find a better life then they had but capitalism is a self-destructing economic system on its own accord.

Like communism unchecked capitalism had to fail it favors the few at the expense of the many.

Stated another way it creates have and have nots and will soon eliminate the middle class.

God knows the middle class deserves this as they have lined up to vote for the repubs that are hell bent on destroying their wages and working conditions to max corporate profits and ceo’s bonuses.

While Germany and France and others industrialized countries work 35 hr weeks Americans are working 60 hr weeks with fewer benefits.

A military offense budget of over 500 billion and world wide imperialism with economists that advocate huge debt and trade imbalance has bankrupted this country.

Oh and add too this two wars on borrowed money and an American belief that huge corporate profits allow a trickle down to the middle class. Americans that believe this qualify as dumb and dumber.

Reagan started the demise of the middle class by promoting unchecked capitalism. Who would have thought a second rate actor would be the person to put the finishing touches on unchecked capitalism.

The neo cons actually believe that Jesus was a capitalist. Capitalism goes against every spiritual law that I know of. It is karma time in America for all of our atrocities against humanity and our unchecked materialistic greed here and abroad.

I wish you the best with your union but Americans have been brainwashed very effectively to the max against unions. Americans are still looking for a commie under their beds and anything that sounds like socialism they panic and run to their bomb shelters.

[researcher]

Any country that has 50 million of its own without health care is a country of me’s not we’s and will not support worker cooperation. Jesus actually promoted corporations making huge profits off the sick and needy. Not. Capitalism and Christianity go together like oil and water.

[racetoinfinity]

Sad to say, but very astute comment!

[godlessclif]

I don't beleive in cost push inflation. David Riccardo looked at this problem. I do not reguard labor as a cost. Making labor a cost gives a false
idea that led to Riccardo's Iron law of wages. Wages if treated as a cost will, like all other costs be driven as low as possible, that is to the subsistence level of the worker.

Ownership and labor should negotiate to divide the profit. Everything else is a cost and should be minimized.

Why, you might ask? Increased wages cannot be passed on in a fair market. In a fair market prices are not set by costs. Prices are set by supply and demand. Thus ownership can pass on costs without reducing demand and lowering profit.

If you can't get the price above the cost everybody goes home.

So the fair thing is to set the price to maximize profit. Then divide the profit by bargaining between labor and ownership.

Why not pass on labor? Because you can't!!

If you can pass on costs you are a f#@&ing monopoly and government should take action
to break you up.

What happens in the free, but unfair market is
management establishes monopolies of both jobs and product. They then pay too little for jobs and charge to much for products. That causes inflation. This is Reagan land where you screw both your workers and your customers.

Experience has shown that any management that thinks it is O.K. to screw workers and customers, will also screw the owners and stockholders. ENRON is an example.

[StephenJK]

Well, F*@&ing said, my friend. Well said, indeed.

[worldtraveller]

So if ownership and labor should negotiate to divide the profit what basis would that be on. If someone comes up with an idea and then takes an enormous risks and collatorizes his house to finance it, and then it becomes wildly successful he isn't entitled to benefit almost entirely for his idea and risk?

[OldKnute]

The American Dream was,,, NEVER,,,, about working for someone else!

As far as Unions, name me one Union executive that ever lost a paycheck? As far as indispensable, yes, I will agree, the first and last bastion against total class domination. But, do Union kids get into Harvard, Yale or Princeton? Not that often and they have to be walking geniuses, if they do.

Where does Wall Street fill its nepotistic nest?

You guessed it, from the BIG THREE!

Get it America, you are fighting to get onto a sinking ship!

Suggestions? Humm?,,,,,­,??,,,,,,?­???

Oh, I know!

Get into FOOD!

Not selling it, packing it or shipping it!

Get into GROWING IT!

Good food, healthy food! Learn about Greenhouses. Learn about seeds and low-tech hydroponics. An average greenhouse system can produce an income for a family and 2 helpers of about $25,000 per acre. The most efficient, High-Tech corn or wheat operation is about only good for $350 to $400 per acre.

Do the math.

This is done,, off the ground,,, Bench level,,, so rocky or poor soil or on a slope is no problem.

Join a framers co-op, farmers market, or organic growers association.

About 5 acres you should do fine. Junk land is perfect!

Even if times get REAL BAD, you will still EAT!

Good Luck!

All the best

Knute

PS

Get some chickens and goats for the kids to raise too. Goats milk is very good for you! AND, the goats are like built-in weed control for around and between the greenhouses.

[FOXYLADY]

AAAAHHHHH, GREAT POST!~!

[scooperss]

Absolutely. And if I might add, buy second hand when you can.
You CAN help other people who have something they don't need, but need money, and you get it cheaper.

[yellowdogSC]

Jimmy Hoffa lost LOTS of paychecks.

[Spookcatcher]

Huffpost you have been banning my posts. I keep a record for myself, and for the public record.

[daddysboy]

Maybe the internet really is the bread and circus while the republic falls.

[yellowdogSC]

Spook,

We all do.

HuffPo has the right to do as they wish.

The public could not care less.

We all keep records so we know what's be accepted, and so we don't have to re-type in the future. It just makes sense.

You're not that special. If you were, they wouldn’t have accepted your message just above.

Thank you.