A new report from the Economic Policy Institute (EPI) says that the decline of US private sector labor unions has resulted in lower pay for almost everybody. A summary of the report is below.
“Pay for private-sector workers has barely budged over the past three and a half decades. In fact, for men in the private sector who lack a college degree and do not belong to a labor union, real wages today are substantially lower than they were in the late 1970s.” The same holds true for women.
The report went on, “In the debates over the causes of wage stagnation, the decline in union power has not received nearly as much attention as globalization, technological change, and the slowdown in Americans’ educational attainment. Unions, especially in industries and regions where they are strong, help boost the wages of all workers by establishing pay and benefit standards that many nonunion firms adopt. But this union boost to nonunion pay has weakened as the share of private-sector workers in a union has fallen from 1 in 3 in the 1950s to about 1 in 20 today.”
There are some things missing from report. One of them is that the war on US labor unions brought about massive increases in profits for corporations, and much of this was redistributed to politicians in the form of perks (like high paying jobs after leaving office) and campaign contributions.
Eviscerating US labor unions via globalization and government legislation also redistributed much of the political power of the unions to corporations. The Republican Party today, for example, is completely owned by US corporations such as Walmart, Apple, Microsoft, JP Morgan/Chase, Goldman Sachs, a variety of hedge funds and Exxon Mobile. Labor unions have taken a back seat in the Democratic Party, and by a wide margin, to such corporate giants as Costco, Apple, Microsoft, JP Morgan/Chase, Goldman Sachs, and a variety of hedge funds. Notice any similarities between the twin political parties?
Globalization has never been inevitable as corporate, news and political leaders claim. Instead, it is an intentional political and economic power play to break US labor unions, bust foreign labor unions, push wages and benefits down, which boosts corporate bottom lines, which increases corporate share prices, all of which redistributes income and wealth from the 99 to the 1 percent.
In other words, globalization is not something that has been God ordained. This policy has been ordained by the rich and powerful. It is not and never has been inevitable except as an instrument wielded by the rich to wage economic war against the 99 percent of the world.
The primary purpose of globalization is to increase income and wealth inequality.
Check out the link below for EPI’s report.