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Obama's Next Gauntlet: Reviving the Middle Class

by: Robert Borosage  |  The Campaign For America's Future

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Alaskan members of the ALF-CIO rally for the Employee Free Choice Act (EFCA) outside the Anchorage office of Senator Lisa Murkowski. (Photo: AFL-CIO Alaska)

    "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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Comments

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Reaganomics was not intended

Reaganomics was not intended to benefit the country as a whole, only President Reagan's patrons, as was done to a lesser but equally damaging degree by Clinton with NAFTA, and to an overwhelming and devastating extent by Bush-Cheney and their allies of both parties in Congress. The rising tide raising all boats analogy never held water but that did not matter so long as a gullible majority of the working classes believed it to be true and naturally the upper classes found comfortable to believe was true to avoid any possible sense of guilt as they raped the economy and the taxpayers and the American worker.

We need a chain of stores

We need a chain of stores that sell only made in America products, and a way for products to be encouraged to get into the stores. This is not protectionism, but an attempt at leveling the playing field, so we who wish to buy made in America products can do so, even if it means paying more. I call the stores OMIA stores, they can be specialty or department stores, and could grow to have all the departments of a K-Mart or could specialize in garden furniture, or whatever. I suggest that the USPS provide free shipping to manufacturers of consumer goods, to the stores or to the customer, and that we expand the USPS. Also, subsidize startup of the stores for a limited time, while the systems get up and running. This would revitalize manufacturing in this country, and revive the middle class.

Part of this dialogue might

Part of this dialogue might be what I've seen in the last 30 years in the motion picture and TV production business. This is a business using almost exclusively Union and Guild labor. We have IATSE, Teamsters, DGA, SAG, WGA. And you know what? We've build a profitable, thriving, growing industry. We have highly skilled labor, keep up with technology, the works. Our Unions have lost a lot of ground due to the Reagan "reign of terror" but we've held on to a great deal also. And the jobs enable people to take care of their families. I like to point this out when people complain that Unions are the enemy of profits. Not so!

Great, except there's two

Great, except there's two little problems with this piece. First, "...insuring that once growth returns..." A hell of an assumption, especially given RB's opening, "We can't go back to the old economy," which was based on the fantasy of perpetual growth. Second, the reason why unions can't enlarge their rolls is because their base - hard labor - is gone for good and today's average worker changes jobs every three years. Why would said workers want 'protection' for a few grand in union dues/year if it isn't a career/long term position?

When I was a kid, the doctor

When I was a kid, the doctor came to the house and gave me a shot; following which, usually before he left or by check in the mail during the following week, my parents paid him. Could somebody do a step-by-step of how this changed into now? I am thinking that probably over 50% of "heath care cost" is a result of the middlecorps, the insurance companies. Could people just have insurance for long-term or catastrophic illnesses and just pay the doctors again? If not, why not? Because people no longer make enough money? Or because they are out benefitting the "economy" by spending all their extra money on MP-3s instead of having a savings account to cover a "heart listen, an ear look, and a shot" for the sinus infection? Or both? This economy that is so based on "spending" rather than on "saving," as it was when I was younger, puzzles me; and I'd like to know some TRUTH about how and why it changed so much in 30 - 40 years. As for the BIG banks, they are swindlers pure and simple. They've been swindling us for 30 - 40 years, maybe much more, and now they are extorting us with threats of all the horrid things that will happen if we don't give them money. And all the while, I suspect that the horrid things are going to happen to us anyway.

Unions are established in

Unions are established in domestic sectors and that's why we have persistent pension, budget, and health care deficits. Competitive manufacturing or production is the problem! When we operate in a global marketplace where cheap labor is more than abundant then there is no way that manufacturing unions can compete with a huge global labor pool. The only thing that works is NEW TECHNOLOGY JOBS to propel the entire globe forward. Better educated people invent better and more productive products and earn higher wages. There are more than enough,absolutely,necessary infrastructure projects in the USA that could employ millions of people. Energy and water infrastructure projects on a grand scale are public works projects, financed by debt free money from the Federal Reserve. Debt free money works as long as it is used only for PRODUCTIVE INVESTMENTS. All other spending, welfare, and entitlement must be financed out of the multiplier effect!!! It does not help to give people free handouts like unemployment benefits or welfare, people need to be employed to create national wealth and GRAND SCALE INFRASTRUCTURE PROJECTS do just that!!!

Why have I not heard anyone

Why have I not heard anyone say anything about how well this crisis compares to the downfall of the Soviet union? A govenment that is based on a religion cannot last forever. We think of ourselves as Capitalists, just as the USSR worshipped Communism. That is a very narrow vision. We need to stop and think. We are not Christian or GOP or DEM at the expense of everything else. We are EARTHLINGS foremost, and had better start acting like HUMAN BEINGS, who care about our planet and each other.

We should really be looking

We should really be looking to our Latin neighbors for advice. Look at how well health care is provided in Cuba despite the US embargo and US subsidies of the US sugar cane families in Florida. Look at how well Venezuela is doing under Chavez with a cut in unemployment and in poverty of 50% in the past 5 years, and solid economic growth in all sectors, not due to oil profits as western corporate media would have us believe. Health care is also markedly better for the average citizen of Venezuela than it is for the average citizen of the USA. Time to rethink the Milton Friedman mythology and use the common sense that prevailed for a short time under FDR in the 1930/s and now under Chavez during the past decade. The person most deserving of comparison at this point in time to FDR is President Chavez. As for President Obama, the jury is still out, contrary to a certain drug addled radio entertainer, but the President would do well to consider the transformation of the Venezuelan economy during the past 10 years. Like Argentina it shows how well a country can do when it ignores the WTO, IMF, and World Bank cabals.

I generally support EFCA and

I generally support EFCA and unions. If I were asked to join a union, I probably would, even though I work in high-tech and so I believe I make more than most union members (I could be wrong, let's just say "I make 'enough'".) But I also remember Jimmy Hoffa. He had to make deals with the "dark side" to get benefits for his members. And then he sold his members out. I want an honest union, not just any union.

Let them filibuster! Let

Let them filibuster! Let the anti-labor forces explain why the EFCA is bad, using facts, not lies. None of this nonsense about how it allegedly takes away the secret ballot, which it doesn't, but let's lay bare the anti worker stance of the conservatives for all to see. Most people will disagree with them and presto! EFCA as law.