Obama's Next Gauntlet: Reviving the Middle Class
It ain't easy. No use jokin'. Everything's broken."
-Bob Dylan
We can't go back to the old economy. That economy -- marked by booms and busts, Gilded Age inequality, declining wages, growing household debts, and unsustainable trade deficits -- didn't work very well for most Americans. President Obama is faced with the difficult task of creating the structure for the new economy even as he works to lift us out of the collapse of the old.
That's why his stunning budget calls for health care reform, ending our addiction to oil and investing in education as both a way out of the mess and a down payment on the future. His pace is as unrelenting as the crisis. Next up: reviving America's middle class, insuring that once growth returns, its blessings are widely shared. And the centerpiece of that is the Employee Free Choice Act (EFCA).
EFCA helps revive the right of workers to organize in this country. Over the last decades, that basic right has been shredded, as companies waged open warfare on union organizing, and administrations often failed to enforce the laws protecting that right. The tactics were bare knuckle: fire the organizers; hold closed door meetings to threaten the workers. And if workers did vote for a union, one-third of employers simply refused to negotiate a contract with them.
The campaigns have been brutally successful. Today, over a majority of workers say that they would join a union if given a choice, but only about 7.5% of the private workforce is organized.
EFCA gives workers the right to choose a union, either in a closed election or with a majority signing pledge cards. It forces employers to negotiate in good faith, requiring arbitration if no agreement is reached. It stiffens penalties on employers for violating workers' rights.
But EFCA isn't just about worker rights. It's about whether we can return to an economy with a broad middle class. When unions represented 30% of the private economy, they won family wages, health care, pensions, paid vacations -- the basics of middle class existence. Rising union wages and benefits helped lift the wages of non-union workers as well. America has never done much redistribution through taxes. We built a middle class because workers were able to win a decent share of the profits and productivity that they helped to generate. Unions were central to that.
Naturally, as the unions have lost ground, so has America's middle class. Over the eight years of the Bush recovery, we witnessed the extreme: an economy in which profits were up, CEO salaries soared, productivity was up, but workers lost ground. As a recent EPI statement notes, the median working household lost $2000 in annual income over that period. That reality contributed directly to the inequality, speculation, and household indebtedness that provided the kindling for the economic conflagration we now experience.
That's why Obama was an early sponsor of EFCA as a Senator. Earlier this month, he noted that he saw unions as part of the solution, not part of the problem.
"We need to level the playing field for workers and the unions that represent their interests, because we know that you cannot have a strong middle class without a strong labor movement. .."The American economy is not and has never been a zero-sum game. "When workers are prospering, they buy products that make businesses prosper. "We can be competitive and lean and mean and still create a situation where workers are thriving in this country.'
In her first appearance as Labor Secretary, Hilda Solis, the daughter of union workers, journeyed to Miami on Monday to speak at a union rally on the eve of the AFL-CIO Executive Council meetings and to listen to workers telling their stories. Hector Capoda, an AT&T worker and member of the Communications Workers of America, told how he'd been part of organizing a union with majority sign-up. His father, he said, had never had a union, never earned more than $13 an hour and didn't have health care. But as he grew older and weaker, the family could survive because his brother, "a policeman and union," his sister, "a nurse and union," and he had the resources to keep the family together. Clearly moved, Solis confirmed that the president's support for EFCA, and pledged to enforce the law, announcing that "there is a new sheriff in town."
EFCA will be introduced into the House in the next couple weeks, where passage is guaranteed. The real donnybrook will be in the Senate where it has strong majority support but must overcome efforts by a conservative minority to block the vote with a filibuster. The Chamber of Commerce and various business lobbies have threatened to spend $200 million or more to stop EFCA, which Home Depot's founder, Bernie Marcus, charges will lead to "the demise of civilization." Unions are gearing up a major grassroots effort to pass the bill.
But this isn't just a union fight. As the president suggests, this is a central fight for an economy that works. If workers are paid decently, families needn't take on massive debts to educate their children or afford their home. Social Security remains secure if workers once more capture a fair share of the profits they produce. CEOs and speculators have a more difficult time cooking the books if they must negotiate with strong unions. To build an economy that works, strong unions aren't the only answer, but they are central part of the answer.
The campaign on EFCA will be fierce. Gaining 60 votes won't be easy. The business community will go all out, claiming that strong unions will ruin America, trample workers' freedoms, drive jobs abroad. But we've tried an economy with weak unions -- and that didn't work out so well.
Obama is right to tee this up early even as he struggles to get the economy moving, to get the financial system reorganized, to move on health care and new energy. This is a fight that citizens across the country should join. It will be a critical building block of the new economy that we must construct from the ashes of the old.
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Ensuring workers' right to organize is wonderful, problem is with a 'world economy' the labor costs are dramatically cheaper in places like Mexico that are not subject to our unions and our minimum wages. Trying to shore up the earnings capacities of factory workers after all the fatories have shut down and gone South of the border doesn't sound particularly productive, but it will be a news story and will be an easy sell for the consumer public.
Don't forget in the Education Reform Movement, the primary rallying cry is deunionize and rid the world of the older teacher who has a salary 3 times the younger and more modernly educated and who will be more successful because of their new and politically correct educational backgrounds.
But, then again don't forget the many numbers of teachers actively recruited from foreign states who had no educational background except for a desire to make money and a second and desirable language.
Unionize some places but get rid of the unions where we don't want them!
ROOMS TO GO AKA JUNK TO GO
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at huge discounts Furniture from ASIA
I've been listening to the liberal media today and they all seem to think President Obama should have fixed the economy in the 46 days he has been in office. Republicans are suggesting that just because Obama took office, the economy should turn around. Outrageous. This economy has been going down hill for the middle class since Reagan took office. We had a reprieve during the Clinton administration and GW took us over the cliff. The poor have known from the beginning of this wealth distribution to the top that "trickle down" economics was a hoax. The middle class didn't learn that until the Bush administration when 6 years of Republican rule and 8 years of Bush conservative policies made them poorer than they were when he took office. It took us 8 years to get here, yet the media thinks this mess can be cleaned up overnight or in 46 days. OMG.
Obamas war on Free Enterprise is causing this country to go into a deep depression. Free Enterprise accounts for 80% of jobs for Americans. Where are these folks going to get a job is the Free Enterprise system just says to hell with taxes and regulations. we will take our money overseas to invest??? Does anyone in the Obama administration understand t his simple fact??
The scary thing is that the Obama administration might undedrstand this simple fact very well. They may not WANT a recovery as you and I would envision it. They may want us to wake up from this nightmare into the utopia they plan to create for us.
So many powerful money interests to fight reform. Business does not want unions- they want CHEAP LABOR. The GOP only wants huge tax breaks for CORPORATE AMERICA & FAT CATS.
Bus / Cheney gave huge breaks to Co's that shipped jobs over seas. Bush & CO has ' bleeped' the country every which way ! I'm giving Obama a chance to do right by the people !
Oh yes, those companies are going to come rushing back to pay Mr. Obama's hefty taxes...dream on.
Right now they don't have to pay ANY taxes because they aren't making any money! Many in fact are losing their shirts. There is no one to buy their products because people are out of work. You ninnies haven't figured out that if the middle class ain't workin', the upper crust doesn't make any money.
You are right, workers wages have remained stagnant. while Obama supports unions , he needs other policy in place to help the middle class. I have been in the restaurant repair business for 32 years, over that period of time i have seen cooks wages fall. back in the late 1980's it was not unusual to see a line cook that made 13.00 per hour in a dennys. Illigals came in and took there jobs, guess what, now they dont make but 10.00 per hour now. We have to stop the flood of cheap labor from crossing our borders.The same thing in the construction business happened. I dont wish these folks ill will., they are a hard working group of people. Advantage was taken by larger companys such as Tyson and other meat packers driving wages down. I dont know what if anything he will do about that. I dont see him closing off the illegal suppy of labor.The other thing that will hurt middle class and business is his carbon tax thats in the new budget bill. he says it will raise 650 billion in new taxes. He admits this tax will be passed on to consumers in higher electric bills and heating oil bills. there are about 130 million wage earners in the United States , that comes out to about 5000 dollars in taxes for each wage earner. it will also raise the cost of goods.and services.
You are absolutely right:
The carbon taxes that we will all pay in our utility bills, as well as the increased cost of goods and services is a way of taxing everyone, while out of the other side of his mouth he gives a little rebate so he can say he cut taxes.
The poor sheep don't get it! There are still people posting here who are fine with his plan because they think it won't affect them Only the "rich".
They have surprises coming!
I believe that Obama WILL work on this problem with the illegals. He's only been in office for 46 days and he's working as hard as he can. The Republicans don't want him to succeed. They say they aren't voting for his policies because they are the wrong policies. Infact, Republicans are scared to death his policies WILL work and they will be wandering in the wilderness for the next 20 years. Don't forget it was the same policies that they want to employ that got us in the mess in the first place.
Robert, I agree. We must stop the ' robber barons' of the 21 st Century. The GOP.
It's imperative that Obama ignore their rantings & smears. The GOP agenda is : Getting power and control back- any way they can.
The the liberal media is doing all they can to push the fear tactics of the right.
I'm a strong supporter of unions, but I do remember that union wages contributed to very high inflation during the 80's. We can't blame the absence of unions for the current state of our economy. And we can't say that our current state would have been eased if unions had been stronger. The unions would have been among the first to invest in those same speculative investments that brought about the collapse of some banks. Making it easier for people to join unions is certainly commendable, but perhaps we should wait for the economy to rebound before we start worrying about union membership. There are more important things to take care of right now.
But the middle class would have been making more money and able to purchase from the rich corporations. When the jobs of the middle class are gone there is no one to buy from the wealthy.
Unions are just way to into politics, money, and control for me. Looking out for the worker is one thing but lining the pockets of politicians leads me to not trust them. And what good has unions done for students. I can see how union teachers have been taken care of. But if unions haven't hurt students, then they sure as hell haven't helped them. The UAW has taken every good care of their workers. But if you look at how much money they got from the car companies and how much the workers got. WOW! They must have better benefits then the queen of England.
Their is a problem and it is not union or union worker. It's greed. It's happening with union leaders, wall street, CEO's, average Americans, and politicians. The need to receive is out weighing the ability to give.
UNION OF PEOPLE SEEKING EMPLOYMENT
Borosage - Turf wars are the wrong fight at the wrong time -- this will not help revitalize the economy , will not create new jobs, and will not build a healthy middle class. Unions in their current form are just as extinct as many of the industries they supplied. So which is the priority - EFCA or UPSE?
Right now in this economic crisis which is more important - the right to form a union or creating new paying jobs? Ask someone looking for work that question. Should people to have the right to form a union? Absolutely, but now is not the time to wage this battle. Anyting that takes political capital and effort away from fixing the economy by creating jobs is misdirection and a terrible mistake of focus and effort.
The only union with growing numbers is going to be the Union of People Seeking Employment! The only way to avoid UPSE is to modify the tax code to focus on creating jobs. Want to create 5 million jobs and get $1 Trillion into the economy with a budget neutral plan that does not requre $1.00 of direct government funding? Then, build a new economy, don't try to reconstruct a failed one.
Truly want to build a strong, expanding, and virbrant middle class? Then, Go to:
http://www.theprosperitymandate.org
I agree with TPMorg. Unions can be a force for good but can also be as corrupt and dysfunctional as the corporations they are negotiating with. I also think that it's time to fight a different battle that truly supports the middle class and helps the economy. The plan he mentioned, the Prosperity Mandate, looks to me to be a completely "out of the box" but viable program for revitalizing the middle class (and ultimately everyone) by creating jobs doing good work such as building green energy infrastructure. There is plenty of cash just sitting around not doing anything particularly useful. Why not put it to good use and make it also attractive for investors by some simple changes to the tax code. Brilliant! http://theprosperitymandate.org
I agree with TPMorg. Unions can be a force for good but can also be as corrupt and dysfunctional as the corporations they are negotiating with. I also think that it's time to fight a different battle that truly supports the middle class and helps the economy. The plan he mentioned, the Prosperity Mandate, looks to me to be a completely "out of the box" but viable program for revitalizing the middle class (and ultimately everyone) by creating jobs doing good work such as building green energy infrastructure. There is plenty of cash just sitting around not doing anything particularly useful. Why not put it to good use and make it also attractive for investors by some simple changes to the tax code. Brilliant!
I fully agree with u Mr. TPMorg, The plan you mentioned, the Prosperity Mandate,
looks to me to be a completely "out of the box" but viable program for revitalizing the middle
class (and ultimately everyone) by creating jobs doing good work such as building green energy infrastructure. There is plenty of cash just sitting around not doing anything particularly useful.
A lot of the discussion of unions and their success at lifting workers from poverty to the middle class misses the essential point. Many of those successes were in industries, such as steel and auto manufacturing at a time when those activities in this country were prosperous and could swallow the legitimate increases plus the excesses that are inevitable in the union process. That prosperity and much of those industries is now gone. Unionization of teachers has lifted their pay levels from historic, embarassingly low levels but has exacerbated problems of performance of poor teachers and has contributed to the current situation in which American public education is no model to emulate. Unionization of the Walmarts, et al may reduce instances of employer abuse, but the success of the Walmart business model will not accommodate broad changes to labor costs, so there is a goose/golden egg thing going on there, too. Unionization brings benefits and problems. Magic bullet, it ain't
How many Corporate CEO's do you know that don't have a contract?
Sorry, Borosage, but the old economy is not "in ashes." The old economy said that if you lived within your means, didn't spend more than you earned, saved a little, got a little education and increased your value to your employer from time to time, then you would succeed. This is exactly the same as it is in the "new" economy. The problem is that everyone thinks that they somehow "deserve" what everyone else has. So with this entitlement-mentality, they either resort to crime, like many at management level have done (but certainly not all), or they overextend themselves with stupid, idiotic credit-card-debt, auto-loans, student-loans and other various forms of debt.
Stop borrowing money and only spend what you have earned! Do this and your personal economy will not be in "crisis." This whole "crisis" is a self-fulfilling lie, perpetrated on the majority of people who don't understand simple math. If a person can't run their own financial house, why should they be placed in charge of the country's? You have elected a government that has, in less than 60 days, spent/borrowed over 1.5 TRILLION dollars!! It's laughable that you all can point your finger at the evil corporate CEO's for their shenanigans, but can't see that your own recently elected government is raping & pillaging you financially every day!
Unions won't save you. Common sense at the individual level is the only thing that will.
The economy IS in ashes for the very reasons you just articulated; we built our economy on consumption. Economic stability depends on conspicuous consumption-- we need consumption to not only continue, but to accelerate. We must buy more more more. I personally don't own a cell phone, or a car, or a closet full of designer clothes, and I don't have one credit card. I'm also one of the happiest people I know. What would happen if everyone decided live this way? How many industries would go bankrupt in a month?
You're absolutely right, people should live within their means and not go so crazy after things that they destory themselves. That's why we need a new economy--one that isn't built on an unsustainable drive to grow and consume at all costs.
Folks should live within their means and many have. Those that have not will suffer.
But this GOVT financial crisis we now have began with REagan's policies of deregulation of banks, Wall St and so much more. SO that made it possible for fat cat bankers and Wall St to do as they pleased, and they did. Bush kept the 'party 'going- adding huge tax cuts to huge CO's even big oil ! REagan passed the biggest tax cut in our lfietime to the top 2-3 % GET THIS- he lowered the top tax rate FROM 80 % DOWN TO 30 %. There's your
' redistribution of wealth ! Then W decided to give them ANOTHER HUGE CUT - this while fighting 2 wars ! No one with 1/2 a BRAIN DOES THAT. Now the GOP is ' worried ' about spending ! Big Phonies. Obama has been forced to spend this money to try and save us from a depression. the GOP made. .lets give him that chance.
It would be great if everyone could use "common sense" and only "spend what they have earned"; however, for many this just isn't possible.
Many of our citizens today don't earn enough to access housing, child care, healthy food and medical care. This isn't a problem for just our "poor", numerous "middle class" individuals are now being crushed by the high costs of "basics".
Imagine your family earns $50K/year. The "affordable" apartment you rent costs $15,000/year (two-bedroom - you have two kids and cannot rent a "smaller" unit). The cheapest child care center for your children runs you about $26,000/yr. No kidding! This is the "most affordable" center in the area. This leaves you about $9K for all other expenses. You haven't paid taxes, medical costs, food, utilities, auto expenses, and on and on... Before you question whether this young family should have "had children if they couldn't afford them", what if I tell you that prior to a "job loss" this family made nearly six figures. That spouse had to "settle" for a retail position that pays significantly less. Now, they are struggling to get by on $50K.
This is happening all across our country. We can change details, but many cannot make it on their current wage...and they have been unable to access higher paying positions.
Please - before you preach "personal responsibility" - learn about the challenges that today's citizens (and families) are facing!
At last i can honestly say WE THE PEOPLE and truely beleive it to be true!
Dear hdc77949, and other anti-union types. I am a retired teacher. During my working life, I belonged to UTLA, so the idea that only the uneducated and ignorant belong to unions is false.
As a union member, I should set the record straight in other areas as well.UTLA is not merely concerend with teachers' salaries either -UTLA sponsors teachers' seminars. They support workers' rights and universal health care. They also combat wasteful spending.
In addition, when we get our history straight, we'll understand that Ronald Reagan did NOT cause the fall of the Evil Empire. It was labor unions. I have visited Poznan and Budapest where the first worker rebellions against Communism took place. I also went to Gdansk, and visited the former Lenin Ship yards, where Solidarity was born. There I struck up a conversation with an old man. Communicating in a mixture of bootleg Polish and German, he pointed out where he and his fellow workers stood, facing the Red Army. His voice trembled as he told me that in that confrontation many of his fellow workers were killed. Workers like this old man risked their lives to get independent labor unions, and Ronald Reagan had no right to take credit for what working class people fought and died for - Independent democratically-elected unions paving the way for democratically elected governments.
We need to understand that labor unions are a way to restore the Middle Class but a way establish democracy through out the world.
Figures... teachers.. the ultimate leeches. Shame on you teachers! Paid by our tax dollars and forming a UNION? How dare you... shame on you forever! When the state has no money and people are losing their jobs...you live on their sucked blood! Unions are socialist and are not the cause of the Soviet unions demise. Such a small view from a small person, as usual, A teachers view! Do you even KNOW what led up to the confrontation?? Ronald Reagan's economic SQUEEZE on Russia! YES! This is the difference between wisdom and foolishness.
What happened to the UAW?
I suggest perhaps reading some history before you insult and attack...learning a bit more about your strongly held point of view might help your argument. I would much rather my child be taught by an articulate, thoughtful teacher than be exposed to narrow minded, rigid platitudes. If it means parting with taxes in order to educate our kids so they will think; read; explore and be curious about their world (beyond their own borders) AND most importantly respect alternate points of view without insulting - than it seems like a small price to pay.
Borat says, "The free market is a perfect system of Justice--NOT. I can understand why socialism would destroy ambition. If I can have only one billion dollars, I say the heck with it.
Like you, I can see that unions are disruptive and at times seem to be a drag on certain sectors of the economy. Life would be so much better without the frictions that are caused by union - management dealings.
However in a capitalist system where profits are sought after by investors (nothing wrong with that) sometimes the desire to produce more profits results in abuse. Each company is striving for a larger market share, and management will use every way to produce more with less so as to increase profits.
That being said unions did not come into being because of people's desire to be disruptive - they were formed due to the incredible and incessant abuse of workers by management. If the owners of companies were conscious of the needs of their workers and if they treated them with respect - unions would have never existed.
Unions are responsible for fair wages, five day work weeks, fair treatment of workers, prohibition of child labor, paid vacations, health care (back when it was available). Unfortunately human nature is not prone to goodness - especially after thirty plus years of Reganomics and “greed is good” politics. As you understand the history behind the labor movement you will understand why unions are a necessary component of American life.
Wow, for a mother, you seem pretty down on teachers. Home-school your kids, did you? And as for them being "leeches", do you have any idea the salary that an average teacher takes home? Nothing to write home about. I suggest you look elsewhere for your economic demons, but of course, you won't. I find that most conservatives are rabidly anti-education, which is how our corporate overlords seek to keep/create a permanent underclass of undereducated, uninformed, and incurious wage-slaves. It worked well, as is easily demonstrated by your post.
Eloquently said, thank-you.
I am a pilot an I am not in a union. I know may union members and they have the training to save lives. The problem is the LEADERSHIP is corrupt, bloated, inefficient and the list goes on. Sure many are Ex-union but they all are politicians and rats.
Then why don't you lead. Then there would be honorable leadership.
Talking about Middle Class who belongs to the Middle Class. In the old times, small business owners, store owmers and peofessional belonged to the Middle Class. Today we define Middle Class by income, i.e. any body withincome between $30, 000 and $250, 000 belongs to the Middle Class. And what happens if there is inflation and wages and prices go artificially up?
We should go back to identifying the classes as Working Class, Middle Class(small business owner, store owner and professionals) and Capitalists.
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