Labor Day Thoughts

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.

Abraham Lincoln, First Annual Message, December 3, 1861

To many Americans, Labor Day is an end-of-summer long weekend and an opportunity to have a picnic or barbecue, weather permitting. But it’s also a time to reflect on how the labor movement has improved our lives. You know, the folks who gave us the weekend. In conjunction with FDR’s New Deal, the labor movement helped to build the middle class.

During the Great Prosperity (the three decades after World War II), labor provided a counterbalance to capital, which broadened prosperity. But over the last four decades, labor has lost much of its power and wages for working-class Americans have been stagnant. Fifty years ago, a third of American workers belonged to a union and many employers offered comparable benefits to avoid unions. Today, about one in ten American workers belong to a union and most of these are in the public sector.

According to a recent Gallup poll, 68% of Americans are in favor of unions, the highest since 1965. Unfortunately, not every worker who wants to join a union has the opportunity, thanks to anti-union campaigns by employers and an increasing number of “right to work (for less)” states.

In a recent survey from Pew Research, 55% of U.S. adults say labor unions have a positive effect on the way things are going in the country. Fortunately, there is a generational breakdown where more millennials and zoomers can see the positive effect of unions on our society. And the Biden administration is the most pro-labor administration in decades. But in spite of this, the PRO Act is still a heavy lift because of Republican obstruction in the Senate.

In America, we devote one day each year to honor labor. On the other 364 days, capital is given preferential treatment. But lately there has been an uptick in union activity, which gives me hope for a better America.

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