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James P. Hoffa

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Good Jobs

Posted: 09/05/11 12:35 AM ET

Labor unions raise workers' wages, give them a voice on the job and protect them from financial and medical insecurity. They help turn a job into a good job. Good jobs create more jobs. Well-paid, secure workers spend money in their communities. They support local businesses, which can then grow and hire more workers.

This Labor Day is an especially good time to remind people of these well-established facts about unions. In the past year, corporate-backed politicians have mounted the most vicious anti-union attacks in memory. Government workers in Wisconsin and Ohio were stripped of their collective bargaining rights. Right-to-work laws to destroy unions are being pushed in New Hampshire, Michigan and Indiana.

The ultimate goal of these extremist politicians is to further concentrate wealth and power in the hands of a few. After all, it's those wealthy few who pay for their political campaigns, court them when they're in office and hire them when they retire from public life. And so giveaways and tax breaks for corporations are being underwritten by cuts to essential services like public education and health care in Michigan, Florida, Ohio and Wisconsin. Already, those states' economies are suffering, with unemployment on the rise.

The same destructive dynamic is at work in Washington, where wildly irresponsible lawmakers threatened to force the U.S. government into default in order to cut spending. Rep. John Mica was willing to partially shut down the Federal Aviation Administration in order to roll back a rule reform that gave airline and railroad workers a fairer process for choosing to join a union. Mica's recklessness resulted in furloughs for 4,000 FAA employees and layoffs for 70,000 construction and transportation workers.

Good government jobs do exactly what good union jobs do -- they stimulate the economy. It is nonsense to suggest that they don't. The current willingness to sacrifice government jobs at the state and federal level is, I'm afraid, a failure to learn from the lessons of the past.

President Herbert Hoover's austerity budget strangled our economy during the early days of the Great Depression. It was Franklin D. Roosevelt's massive stimulus that got the economy growing again. Roosevelt made enormous investments in people and infrastructure through programs like the Works Progress Administration.

From 1933 to 1937, the economy grew at the fastest pace in history. But in 1937, an anti-union Ohio Republican, Sen. Bob Taft, led conservatives in persuading Roosevelt to rein in spending.

The result: a fall in Gross Domestic Product. Fortunately, Roosevelt quickly realized his error and changed course. He increased spending, and the economy started growing again.

That government stimulus creates jobs and revitalizes economic growth is accepted as fact by businesspeople, financiers and even Martin Feldstein, Ronald Reagan's chief economist. Feldstein was among the first to call for stimulus spending after the financial crisis of 2008. Recently, Feldstein said Congress should limit tax breaks for corporations and wealthy individuals in order to raise revenue.

There's no doubt now that the initial $787 billion stimulus was too small. At the time, the Teamsters Union and others argued for a larger stimulus. President Obama's former top economic advisor, Larry Summers, is now admitting that the stimulus was too small to pull the economy out of its doldrums.

Another reason the stimulus didn't do as much as we'd hoped was that the economy was in much worse shape than we originally thought. Recently revised economic figures show that our Gross Domestic Product shrank by a staggering 7.8 percent in the six months following the global financial crisis in 2008.

Once the stimulus money began to flow in the middle of 2009, the U.S. economy began to grow again. Three million jobs were created. But this year stimulus dollars dried up for state and local governments, budgets were cut and jobs were lost. The loss of those government jobs clearly acted as a drag on the economy. For the past year, the private sector added 1.8 million jobs, while cities and towns cut 340,000 jobs.

I don't think anyone is happy with our economy right now. There are those who say the solution is to cut government spending and weaken unions. They couldn't be more wrong.

 

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11:02 AM on 09/07/2011
Without UNIONS, there will be NO MIDDLE CLASS.
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HUFFPOST SUPER USER
GOP Incorporated
GROUPON: The GOP's answer to Medicare
12:36 PM on 09/06/2011
Since 1967, the middle class stake in America has declined at the same rate as union membership.
Thank you for the work you do, Mr. Hoffa.
11:58 AM on 09/06/2011
We have thousands of armed men shooting at "enemies" who supposedly threaten America's strength and security. But then, some feel that it is beyond reasonableness when (Hoffa) uses language that could represent a physical threat against politicians and corporations who have misused their vast influence and resources to obliterate America's everyman from enjoying a middle class lifestyle.
The ballot box may not be able to resolve this. The deck is stacked.
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HUFFPOST SUPER USER
Gurinder Dhillon
Republicans thrive on false equivalencies.
10:03 AM on 09/06/2011
America, as it is today was carefully contrived and designed in the 1970's to be a nation in which 95% of the population is in debt to the top 2% of earners, and everything that happened in the 70's was put in place to cripple the then flourishing middle class. Wages were rising, benefit packages were being used, and the American union worker was thriving, but something was wrong, the people who worked on the top floors of the buildings decided that the union workers who worked on the bottom floor were too happy. So Richard Nixon's Goldman Sachs laden cabinet decided to allow the U.S Chamber of Commerce to increase its power exponentially and allow them to green light the wholesale export and dismantlement of the American manufacturing sector, ship the jobs to China where Nixon had just completed a trip for "diplomacy" under the guise of them being a communist nation and the Cold War raging and all that, but really he went there to lay the groundwork for a workforce that an American workforce couldn't compete with in terms of compensation. Once that step was completed the banks went public and all got stock tickers, and hundreds of thousands of share holders invested, thus staking their claim on Wall Street and spreading their tentacles even further. Next came the outsourcing, and skyrocketing unemployment, and then there came the chosen one, the harbinger of all things evil and corporate, Ronald Reagan, and the rest is history.
10:37 AM on 09/06/2011
Good work, Gurinder Dhillon --- check out the Powell Memorandum, which gave birth to Scaife/Koch/etc. funded spawn like AEI and Cato: http://reclaimdemocracy.org/corporate_accountability/powell_memo_lewis.html
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HUFFPOST SUPER USER
Gurinder Dhillon
Republicans thrive on false equivalencies.
10:50 AM on 09/06/2011
Good link
F&F
09:29 AM on 09/06/2011
Not gonna happen. No more spending lefties. Different time, totally different problem to draw that analogy.
Nope
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HUFFPOST SUPER USER
GOP Incorporated
GROUPON: The GOP's answer to Medicare
12:33 PM on 09/06/2011
No tax & credit spend con says what?
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HUFFPOST PUNDIT
den1953
The best politicians are for free!
09:28 AM on 09/06/2011
Until someone pushes for civil rights and workers rights in countries like India and China this country won't enjoy any job growth, Corporate America would rather abuse those nations for profit as long as their governments allow them to! Why ruin a good thing Corporate America can pollute those countries,pay less wages for production, and has no concern with health care, it is a honey hole for greed............
09:22 AM on 09/06/2011
A couple of things I have noticed about the anti-labor, anti-government crowd:

First, invariably, they themselves have never worked in a factory or for a government thus don't know WTF they are talking about.

Second, they think they are better than people who do work in a factory or for a government and it is much more important to them that this lower "caste" suffers than it is that they themselves prosper.
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HUFFPOST SUPER USER
Stephanie Gilley
Move humanity forward.
09:56 AM on 09/06/2011
That's profound David...and so true.
12:43 PM on 09/06/2011
Where to start after such a foolish statement? I have worked in factories for the majority of my life and so I guess your first statement is about as correct as your second statement. I do not support unions or a bigger government, which does not mean I think I am better than anyone else. I believe both are wasteful with the monies they receive and are more interested in power than anything else.
08:58 AM on 09/07/2011
Well, you might start with what I stated....a personal observation that is not an opinion, not true in every case, etc.

I agree that unions and government are wasteful. Can we agree that they are also corrupt and stupid? But the enemy is not unions, government, socialism or capitalism. The enemy is corruption, greed, and ignorance.

Do you want no unions and a tiny government? We've been there, done that, and boy, does it ever NOT work.
08:23 AM on 09/06/2011
There have been more than a few former Reagan officials that have criticized both republicans and democrats for being too conservative and too stuck on supply side ideology proving just how far to the right our politics have gone in recent years.
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HUFFPOST SUPER USER
Enock Zamora
KARMA
07:40 AM on 09/06/2011
A Union is a working relationship between labor & management and is framed as a 'marriage.' To say that either of these should not be a Union belong to the Rush Limp-Bowels movement. Like a marriage, it is made in Heaven that is why we harp! But that don't mean a Union is bad but just makes for a level playing field. Period paragraph.
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Helzapoppin
Don't Piss Down My Back And Tell Me It's Raining.
07:39 AM on 09/06/2011
Sadly, the right wing has become so extreme, today they would call Reagan a socialist.
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thereisonlyoneparty
more amazing than you
07:06 AM on 09/06/2011
Labor unions raise workers' wages, give them a voice on the job and protect them from financial and medical insecurity. They help turn a job into a good job. Good jobs create more jobs. Well-paid, secure workers spend money in their communities. They support local businesses, which can then grow and hire more workers.
That is a flawed view of economics and the value of unions.

Union labor is not more valuable.   It is claimed to be more valuable.   The price floor on union labor can only exist due to exploitation in the market.  Someone has to pay for it.  Money does not come from nowhere
The ultimate goal of these extremist politicians is to further concentrate wealth and power in the hands of a few.
 Unions do the same thing.  The goal is the benefit of a limited number of people.  Most workers--and most people--are not members of a union.  The benefits of a union do not help them at all.   Union wages?  Not for them.   Union hires?   Sorry.  This guy exploits the union members for his own benefit.

And unions have not been very good when it comes to adapting to change.   Manufacturing has been hindered by union contracts.

Unions are becoming obsolete.   They are unneeded to deal with problems with company policy or treatment of workers.   The value for members is solely wage negotiation and claims of higher labor value.   Does that really help the economy?   Probably not.
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Helzapoppin
Don't Piss Down My Back And Tell Me It's Raining.
07:44 AM on 09/06/2011
It's not the job of a Union to carry all workers, although most actually do. The CWA contract with major telecoms, for example, protects both union members and non-members. So your argument is a bit faulty. And in my personal experience they are very much needed to deal with problems in company policy and worker treatment, because a great deal of management abuse continues. But if you want union goals spread evenly among all workers, that's fine with me. Let's make union level pay and benefits Federal law.
SeriesSeven
Libs Love Unproven Counterfactuals
12:34 PM on 09/06/2011
Can you provide a concrete example of "management abuse"? And I don't mean people just not getting the wages and benefits that they deserve. But something in the last 20 years or so that was actual abuse of legally hired employees?
09:10 AM on 09/06/2011
That's a pretty lame argument, to say that unions don't help everyone because not everyone is a union worker. Unions do help non-union members in cases where union benefits extend to non-union members.

Yes, unions work to spread their influence, but it makes no sense to claim that unions are bad because not everyone is a union member. If you want union benefits, then join a union! It seems that the conservative attitude towards union labor is to tear down union members who enjoy the benefits of working for a union, rather than to work to gain those same benefits themselves. It's really a shame that partisanship has so rotted the brains of right-wing ideologues that they actually work to tear down their fellow working Americans, rather than to build their own lot in life up to match what their fellow Americans enjoy as a resulkt of participating in the collective bargaining process. It's truly pathetic. This shouldn't be a country where we actively work to deny our fellow citizens a better life, but your arguments endorse doing exactly that.
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thereisonlyoneparty
more amazing than you
01:45 PM on 09/06/2011
I am not claiming that unions are bad because not everyone is a member.   The point is that unions are groups looking to protect their own dues paying members.   They are seeking to increase profits for their own group.   They are doing the same thing that the business is doing.

My arguments come from something called economics.
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Reaganite60
Don't tread on me.
06:43 AM on 09/06/2011
The founders of the labor movement viewed unions as a vehicle to get workers more of the profits they help create. Government workers, however, don’t generate profits. They merely negotiate for more tax money. When government unions strike, they strike against taxpayers. F.D.R. considered this “unthinkab­­le and intolerabl­­e.”

Government collective bargaining means voters do not have the final say on public policy. Instead their elected representa­­tives must negotiate spending and policy decisions with unions. That is not exactly democratic – a fact that unions once recognized­­.

George Meany was not alone. Up through the 1950s, unions widely agreed that collective bargaining had no place in government­­. But starting with Wisconsin in 1959, states began to allow collective bargaining in government­­. The influx of dues and members quickly changed the union movement’s tune, and collective bargaining in government is now widespread­­. As a result unions can now insist on laws that serve their interests – at the expense of the common good.
03:53 AM on 09/06/2011
please tell me how goverment/unions jobs pay to much money. i don't get it! big business and corperations have a real hard time getting 20 dollars an hour out of their mouth. 20 dollars an hour isn't very much in this day and age. people should be making 80 dollars an hour at least. if we were paid 80 per hour then we just might could afford some of the good life. at 20 per hour you don't even make the ends meet. so for the people who say unions and goverment jobs pay to much, i say to you why don't you try leaving on 20 per hour and when you've have done that get back to me and let me know how you like it.
05:24 AM on 09/06/2011
$80/hr=$160,000/yr. Do you have any clue what you just said? Who's going to support that? No one in the private sector with the exception of Doctors, Lawyers, and Businessman makes that kind of money. The doctors and lawyers devoted several years of education to make that and business men work long and hard hours. If you wanted to get rich then you should not have gone to work for the government.
03:01 PM on 09/06/2011
sorry that you missed my point, so what that doctors, lawyers, n businessmen devoted years to education who cares. my point is why should everyday normal people have to struggle on 20 per hour when everything else cost so much, inflation and cost of living past through the 20 per hour years ago. can't you understand that? by the way i really don't care about being rich, but would rather get paid according to what it cost to not have to struggle with living and paying my bill every month.
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HUFFPOST SUPER USER
doubleaseven
Not Left, Center, or Right,
02:44 AM on 09/06/2011
Jimmy Hoffa has written a really thoughtful and powerful article about the jobs situation, safety net and other issues important to middle class working people and the vulnerable. He contrasts FDR's calling the Big Biz as "organized money" is as dangerous as "organized crime" with President's weak-kneed policies, surrendering public interest to favor big business and super wealthy.
05:32 AM on 09/06/2011
Get ready for some long lean years. If employers are doing lousy then so do you. And remember... private sector employers, not Unions, create jobs. At some point employers will seek the path of least resistance and move somewhere where employing people is not a constant battle. I would hope the rank and file understands there is a balance and when there is no balance there are no jobs.
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gregrob
I used to be concerned, but now I'm merely amused
08:49 AM on 09/06/2011
Demand creates jobs. I have never seen an employer create a job just for the hell of it. If you don't have demand, you don't have jobs. It's the worker who creates value which creates profit. Without jobs you will never have demand and that's why the Government is the employer of last resort. Big business will never "Prime the Pump", only the Government is in the position to do that.
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MikeCm
Occupy Reality
02:03 AM on 09/06/2011
It took 5 years of deep depression and civil unrest before New Deal legislation kicked in.

By that standard we still have some bottoming out to do before today's "conservative" coalition is simply overwhelmed.

It will also take some time to unpack the Supreme Court. A faster way to do this is expand the number of associate justices from 8 to 12.