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Robert Reich

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This Labor Day We Need Protest Marches Rather Than Parades

Posted: 08/25/11 02:31 PM ET

Labor Day is traditionally a time for picnics and parades. But this year is no picnic for American workers, and a protest march would be more appropriate than a parade.

Not only are 25 million unemployed or underemployed, but American companies continue to cut wages and benefits. The median wage is still dropping, adjusted for inflation. High unemployment has given employers extra bargaining leverage to wring out wage concessions.

All told, it's been the worst decade for American workers in a century. According to Commerce Department data, private-sector wage gains over the last decade have even lagged behind wage gains during the decade of the Great Depression (4 percent over the last ten years, adjusted for inflation, versus 5 percent from 1929 to 1939).

Big American corporations are making more money, and creating more jobs, outside the United States than in it. If corporations are people, as the Supreme Court's twisted logic now insists, most of the big ones headquartered here are rapidly losing their American identity.

CEO pay, meanwhile, has soared. The median value of salaries, bonuses and long-term incentive awards for CEOs at 350 big American companies surged 11 percent last year to $9.3 million (according to a study of proxy statements conducted for The Wall Street Journal by the management consultancy Hay Group.). Bonuses have surged 19.7 percent.

This doesn't even include all those stock options rewarded to CEOs at rock-bottom prices in 2008 and 2009. Stock prices have ballooned since then, the current downdraft notwithstanding. In March, 2009, for example, Ford CEO Alan Mulally received a grant of options and restricted shares worth an estimated $16 million at the time. But Ford is now showing large profits -- in part because the UAW agreed to allow Ford to give its new hires roughly half the wages of older Ford workers -- and its share prices have responded. Mulally's 2009 grant is now worth over $200 million.

The ratio of corporate profits to wages is now higher than at any time since just before the Great Depression.

Meanwhile, the American economy has all but stopped growing -- in large part because consumers (whose spending is 70 percent of GDP) are also workers whose jobs and wages are under assault.

Perhaps there would still be something to celebrate on Labor Day if government was coming to the rescue. But Washington is paralyzed, the president seems unwilling or unable to take on labor-bashing Republicans, and several Republican governors are mounting direct assaults on organized labor (see Indiana, Ohio, Maine, and Wisconsin, for example).

So let's bag the picnics and parades this Labor Day. American workers should march in protest. They're getting the worst deal they've had since before Labor Day was invented -- and the economy is suffering as a result.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 
 
 

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HUFFPOST SUPER USER
Bobzmcishl
02:11 PM on 09/04/2011
The massive protests of the 1930's secured many of the worker benefits that we take for granted today, including pensions, vacations, overtime, minimum wage, 40 hour workweek, worker safety, health care and sick leave. These were benefits that were not handed out lightly by the big industrial corporations of that era. Now guess what; corporations are getting their revenge on the workers by clawing back many of these benefits. The fear of losing your job is as great as it has ever been since the Great Depression. As we get ready to celebrate Labor Day, the Republican party establishment is promoting candidates who would just as soon turn the U.S. into a massive right to work nation with no union safeguards. Yet I doubt we will be marching in the streets like the Greatest Generation did. Back then they knew only too well who the enemy was. Today, we have a 24/7 obfuscation machine called Fox News, CNBC, Fox Business News, and Rush Limbaugh who worship at the alter of big business and tell us that it is greedy public sector workers who are the problem, and not the hedge fund traders on Wall Street who ran the giant casinos in this decade of wealth destruction of the middle class. The Republican elites have convinced us that to protest our sorry state is to promugate "class warfare". There will be marches tomorrow and hopefully, they will begin to get the attention of the rest of America.
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HUFFPOST SUPER USER
mudshark12
Now who are you jiving with that cosmik debris?
08:13 PM on 08/28/2011
This present situation depresses me and I don't see any way out. We worked our asses off and tried to participate in the American Dream but we've all been marginalized and pushed aside by the mega-rich 1% whose only interest seems to be our enslavement. Our government (R's & D's) has been a smoke and mirrors act that's about ready to take a dump on us. There may be a few well meaning people in government who've tried to the right thing, but they will be pushed aside like us.

If we protest peacefully then we'll be ignored. If we riot then we'll be beaten, shot, clubbed and either wind up in jail or in a box underground. If we run for political office we'll be outspent by corporations who'll want us out of politics.

If anyone can see a way out of this let me know because I've got this bad feeling that 99% of Amerika is about to get the shaft in the very near future. Like I said, the future looks dismal and it depresses me.

This IS the gloomiest thing I have ever posted but I can't help it and call 'em the way I see 'em.
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HUFFPOST COMMUNITY MODERATOR
judibluiz
There is no planet B
05:10 PM on 08/27/2011
A big protest is planned for September 17 on Wall Street - Bring Tents.
HUFFPOST SUPER USER
JeffShaffer
01:54 PM on 08/27/2011
There are some pretty smart people in this blog. Let me ask a question. After the housing, no, real estate bubble, What was the next bubble that began to grow?

The government bubble. In bad times, you do not throw good money after bad. Over time, corporations and people have proven that statement. The idea that you would borrow the good money is a joke.

I have a friend who retired from his government position at 85% of his salary. He loves Labor Day. He is keeping his head down and not going to parades or proests. Hell, what does he have to protest?

One last thing for our Mr. Reich. Sir, when you are on This Week and you are giving the company line of the day, do you really think that we are moved by your statements? Do you really think that we are that stupid? Sir, please, just once, try and be honest. Try and admit that all that is wrong is not the fault of the other guy. By being even handed and taking responsibility you will get respect. You can do a better job than you are. Don't dupe yourself into thinking that you are doing the right thing. You are too smart for that thinking.
03:52 PM on 08/27/2011
1. The "government bubble" - what exactly is that? Do you mean excessive government spending? Too many people employed by the government?
2. How nice for your friend and his pension. What's your point?
3. Who's "company line" is he giving? ", "Try and admit that all that is wrong is not the fault of the other guy" - What does this mean?

You mentioned there are some pretty smart people on this blog. How 'bout becoming one.
This user has chosen to opt out of the Badges program
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sophie M
ANTI WAR./animal rescue
06:39 PM on 08/26/2011
i hate to be a defeatest,
but i am.
it would not do any good.. u might feel better.
it is a delusiion to think that people have the power........
they don't .
not any more .
03:53 PM on 08/27/2011
perhaps you need to be tortured in Syria to become less defeatist...
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Tom Horne
Enroh Mot
06:27 PM on 08/27/2011
Or in Gitmo
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HUFFPOST SUPER USER
ugly american
"I drank what?"- Last words of Socrates
12:11 AM on 08/28/2011
George Carlin described that as being an "Entropy Fan".
HUFFPOST SUPER USER
ozmas mirror
Sadly, accidental rudeness occurs alarmingly often
04:02 PM on 08/26/2011
I'm in. Where do I sign up?
07:51 PM on 08/26/2011
Nowhere. The statement is rhetorical only. Robert Reich is a leading member in good standing with the Democratic party. Like Kucinich, his function is to provide cover for and and maintain illusions in the Democratic party.
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Tom Horne
Enroh Mot
02:10 AM on 08/27/2011
" Is this the United States Congress or the boardroom of Goldman Sachs " Dennis Kucinich...did your favorite politician stand up in Congress and say anything similar when they were bailing out the financial swindlers?
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
06:57 PM on 08/28/2011
The difference is Kucinich votes true to his views. There are no illusions there.
03:46 PM on 08/26/2011
Yes! Wake America, leave your computers and hit the streets to demonstrate against corporate America!
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Aerin Gael
Eternal vigilance is the price of liberty.
03:39 PM on 08/26/2011
There is a related article on businessweek, "The Slow Disappearance of the American Working Man".
www(dot)businessweek(dot)com
03:30 PM on 08/26/2011
"..The president seems unwilling or unable to take on labor-bashing Republicans.."

Mr. Reich, with all due respect, the Republicans are not in charge. Obama and the Democrats have held executive branch for nearly three years now with concurrent control of both houses of Congress for two. Today, the Democratic party still holds the Senate. I think it is about time to stop blaming Republicans and admit that these are Obama Administration and Democratic party policies. They own these policies.

As such, will you withhold an endorsement for Obama and the Democrats in 2012 and perhaps even challenge Obama? Or, in your opinion, should the public go with the former candidate of hope and change again?

I say, 'Fool me once..
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Si1ver1ock
the bread of wickedness, the wine of violence
04:49 PM on 08/26/2011
The Republicans have sabatoged the economy at every step. Exporting American jobs to China is a betrayal of the American workforce. You don't have to take my word for it read Patrick Buchanan's book"The Great Betrayal."

"Political pundit and two-time Republican presidential candidate Pat Buchanan is best known for his sharp-edged cultural conservatism. The Great Betrayal, however, is an economic manifesto that promotes what Buchanan calls "economic nationalism." Buchanan believes that free trade serves the interests of Wall Street, not Main Street. Transnational corporations rake in huge profits, but ordinary Americans see few benefits. Instead, they suffer from free trade's bad consequences: flat wages for workers, increased drug trafficking, and environmental deterioration. Markets should serve people, says Buchanan, not the other way around. "The economy is not the country; the country comes first," he writes."

Read it ana weep.
07:37 PM on 08/26/2011
The Democrats and Obama already have a policy of economic nationalism aplenty, encouraging all other countries to do the same. This is leading to conflict and eventual war. Buchanon's problem is the current economic nationalist policy is not nationalist enough for him.
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Aerin Gael
Eternal vigilance is the price of liberty.
05:12 PM on 08/26/2011
The Republicans control the House which is the legislative body.
The Republicans control the House which is the legislative body.
The Republicans control the House which is the legislative body.
07:37 PM on 08/26/2011
Saying it three times makes the statement three times dumber.
HUFFPOST SUPER USER
JeffShaffer
01:30 PM on 08/27/2011
Isn't that what Dorthy said in the Wizzard of OZ....
02:22 PM on 08/26/2011
Tell me when and where and I'll show up!
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HUFFPOST SUPER USER
muck-raker
give me liberty or give me death
06:17 PM on 08/26/2011
we need your participation on Oct 6

today it is my opinion that both parties would like to silence critical thinking.....well that is not going to happen on this site, ha ha...
http://october2011.org/standwiththemajority
08:33 PM on 08/26/2011
I'm checking this out.
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Chopin
Multiply the truth. Speak truth through power.
07:01 PM on 08/27/2011
Thanks for this link. I'll read through the whole article. But perhaps you could summarize it in one paragraph? Have you heard any feedback news about any prominent progressive leaders supporting or endorsing this movement and pledge?
07:53 PM on 08/26/2011
Don't hold your breath.
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02:14 PM on 08/26/2011
Marching in protest assumes that our leaders will take note and address our concerns.

But our so-called 'representative' democracy has been bought and sold by corporate interests.

Protest marches will, therefore, be ignored at best and attacked by police at worst.

Consumer boycot would be more effective. An easy way to start is simply refrain from buying Christmas presents this year. Give to the needy instead.
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HUFFPOST SUPER USER
muck-raker
give me liberty or give me death
06:22 PM on 08/26/2011
Paul. excellent post. also it is in my opinion that the working man thinks that our legislators are to big, connected and powerful. another words "There is no talking to them"...

Well we will have the representation of one of the World best writers on this subject...Chris Hedges. I am sure that this will be covered by the news. I am sure he will do well in presenting his case to the people..But it will be then up to us to carry the ball. We will not win this battle just standing around and complaining to all those that will listen..
HUFFPOST SUPER USER
larrystalcup
07:40 PM on 08/26/2011
you're right about our leaders . . .they will give whatever we say or do lip service at best, maybe?

again i say, until we exercise our only power we have left, our vote, and vote each and every one out after one or two terms (no more professional politicians), getting envolved and nominating candidates that actually do not want the job but will put the nation's and people's interst in the forefront, nothing will change!
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Si1ver1ock
the bread of wickedness, the wine of violence
02:11 PM on 08/26/2011
The Republican base does not want it to get better. For them, it can't get any better.

See Here-->http://www.youtube.com/watch?v=mn4daYJzyls
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HUFFPOST SUPER USER
MrMainstreet
political thought from outside the beltway
02:01 PM on 08/26/2011
When will we as Americans come to the understanding that the greatest power we have as citizens is our ability to say no. If you want to stand up for labor and bring jobs back to America then we need to organize national boycotts against companies that have shipped jobs overseas to take advantage of slave labor in nations that offer no protections for their people in the workplace. Using Apple as an example we could boycott it for 90 days and cost them billions of dollars. Thirty days after the start of the Apple boycott we could choose two more companies from a predetermined list of say six or so companies to boycott. We continue choosing companies every thirty days and eventually these companies will come to the understanding that the American people without the help of government can effect change.
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Si1ver1ock
the bread of wickedness, the wine of violence
01:34 PM on 08/26/2011
Unions are unAmerican. But businesses that send jobs to China are ok?
01:17 PM on 08/26/2011
Save your job and business buy made in the USA . Every job taken out of America is one less costumer for your , farm, store , and job . Labor day should be buy American day Buyers are 70% of the economy there is were the power of the people is , so use it . Free trade is not working we buy their junk and they are buying our country .
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HUFFPOST SUPER USER
muck-raker
give me liberty or give me death
06:33 PM on 08/26/2011
addendum to your excellent post

MAKE EVERYDAY BUY AMERICAN

Free Trade or Globalization only works for ONE WORLD ORDER......and you know who they are
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Chopin
Multiply the truth. Speak truth through power.
07:41 PM on 08/27/2011
In today's economy, it'll be very difficult to implement "Buy American" movement in practice, if it hasn't been thoroughly studied and planned. You look at the labels of goods in any store, or open up the hood in any manufactured products with component parts, there're next to zero components or products clearly identified as "Made in USA" or "manufactured in USA". This is no exaggeration.

I believe the people will have to think this through very carefully and deliberately, taking into consideration economics, geopolitics, and human psychology. Corporate dominance in people's lives is an established fact. To reverse it will require very thoughtful analyses and relentless dedicated organization on behalf of the people. No halfcocked measures would have hope of succeeding in the long run.