Adapted from the book A Country That Works: Getting America Back on Track
by Andy Stern
(Free Press, 2006)
See also: Freedom to Organize
America is a gift. For generation
after generation,
from every corner of
the Earth, people have
come to America's shores
expecting to work hard, hoping that
their work would be valued and
rewarded. And more significantly,
Americans have expected that their
children would be better off economically
than their parents.
The American Dream has helped
create an economy and a middle
class that have been the envy of the
world. And remarkably, despite a
Civil War, two World Wars, innumerable
natural disasters, recessions
and depressions, the emergence of
an industrial economy, massive
changes in technology, and the leadership
of 43 very different presidents,
the American Dream has
been preserved. That has been the
greatness of America.
But profound changes and new
forces are now threatening the
American Dream. We no longer live
in our parents' or grandparents'
economy.
Joseph Schumpeter, an influential
Austrian-born Harvard economist
in the mid-20th century,
described the essential element of
capitalism as the process of "creative
destruction." From time to time,
creative destruction revolutionizes
the economic structure from within.
An innovation comes along that
changes the economic system and in
the process destroys the old ways of
doing things.
We live in such a time, and it is
not just employees bouncing around
among employers. Companies are
undergoing a whirlwind of reconfiguration.
They are created, merged,
taken private, made global, joint
ventured, spun off, and forced out
of business or out of the country in
increasingly short time intervals.
After the Great Depression,
American society agreed on an
unwritten social contract that "a rising
tide," as President Kennedy said,
"lifts all the boats" -- and he wasn't
talking just about luxury liners.
Economic growth, increased productivity,
and rising profits translated
into improved living standards
for most Americans. We prospered
together. When the market wasn't
working effectively, two primary
forces intervened to help the market
distribute gains relatively equally:
the government and labor unions.
The federal government adjusted
the economy to produce greater
fairness, raising the floor for the
poor, not the ceiling for the
wealthy. By setting progressive tax
policy, raising the minimum wage,
and creating the Earned Income Tax Credit, government helped to more
evenly allocate the proceeds of the
economy.
Unfortunately, government, as
we have learned, can also promote
unequal distribution: The policies
of the Bush administration that
have phased out the estate tax, provided
dividend and capital gain tax
relief, and added corporate loopholes
have lowered individual tax
rates disproportionately for the
wealthy. That has accelerated the
widening of the income gap. In fact,
from 2003 to 2005, the only group
to see its wages grow faster than
inflation has been the wealthiest 5
percent of Americans.
The trickle-down theory has been
thoroughly discredited as our economy
has poured so much money
into the wealthiest 1 percent without
any real income growth for most
workers. According to a report by
the Federal Reserve Bank, 10 percent
of Americans owned nearly 70
percent of the nation's wealth in
2004. The largest block of that
wealth -- 34 percent -- was owned by
only 1 percent of the population.
What's more, that top 1 percent saw
its share of the nation's wealth climb
significantly from 1989 to 2004,
while the bottom half saw its share
diminish in the same period.
But now the world is changing,
fast. The economy has changed,
business has changed, and yet union
leaders have mostly stayed the same.
As a result, the labor movement is
paying the price -- as are American
workers. Since the founding of the
AFL-CIO in 1955, union membership
has declined from one out of
three workers to one out of eight
and, in the private sector, to only
one out of 12.
Today, American workers need
help. But it is not only unions that
are clinging to the past. Politicians,
trapped in the 20th century, are
unable to break away from the ties
that bind them and enact meaningful
reforms. They fail to understand that Americans do not wake up pondering
whether they are in a red or a
blue state.
They wake up wondering how
they are going to roust their kids out
of bed, get them downstairs, feed
them, and get them off to school,
and still get themselves to work on
time. Laden with ever-increasing
debt, they worry about whether they
are going to earn enough money to
pay their bills. They are concerned
about what will happen to their savings
if they contract a devastating
illness. They wonder how they are
going to care for their parents who
are, thankfully, living longer, but are
also needing more time and attention.
Like many of our politicians, business
leaders cannot find the courage to
call for much-needed changes in our
health care and retirement systems --
changes that are also necessary for business
to remain competitive in a global
economy. They hope to escape the full
weight of these problems, in part by
morphing their companies from distinctly
American corporations into
multinationals for which the United
States is just another market, or by
shifting responsibility and cost to their
employees.
If I have learned anything in my
years as a labor leader, it is that you
can't drive into the future by looking
in the rear-view mirror. You
either change and make history or
stick to the status quo and become
history. America is in desperate
need of a bold, future-oriented
vision, a thoughtful plan for a
country that works. We need new
ideas and a collaborative, nonpartisan
approach.
There are solutions all around us;
we just need the courage to accept
that change accompanies the
answers.
The global economy presents
enormous challenges, but America
has a vast reservoir of knowledge
and the talents to conquer those
challenges. Will the leadership come
from immigrants marching on the
streets for the American Dream, or
from bloggers and DJs fueling a
youth movement, or from a new
political party? Or will an existing
party wake up to the truth and
speak its convictions? Will the 2008
presidential candidates offer a new
vision for America's future, or will
traditional adversaries from business,
labor, and government have
the guts to come together to stake
out a new course for America?
My purpose now, as president of
the Service Employees International
Union, is to help galvanize the
forces for change. We have to do it,
and we have to do it now.
Unions, particularly industrial
unions, were created in reaction to
the rough-and-tumble class-struggle
world of the early part of the last
century. Unions helped create the
American middle class. They bargained
for employer-based health
care and defined-benefit pensions
and fought for the interests of all
Americans. They helped create
much of America's safety net. Not a
bad run.
Henry Ford, a leading industrialist
of his era, understood the correlation
between the economic
achievements of employees and
employers. Ford's basic equation for
America to flourish was, "One's own
employees ought to be one's own
best customers." He continued,
"Paying high wages is behind the
prosperity of this country."
Anyone who might long wistfully
for a return to the New Deal policies
of 1935 should consider that
America today is as far from the
time of FDR as the New Deal was
from Abe Lincoln and the Civil War.
America is at a profound crossroads.
Our nation and citizens have to
make difficult economic choices
with serious long-term consequences.
These decisions matter. We
can ignore it. We can be the "blind
men" trying to suppress it. We can
fight it, and no doubt, sooner or
later, get run over by it. Or, we can
embrace change and help shape it.
The world needs global unions.
Workers across the globe are frustrated
with their inadequate emerging relationships
with new multinational
corporate employers.
Individual workers certainly
don't have the power to bargain
effectively for themselves
one worksite at a time.
National unions by their very
nature are not built to have the
strength to successfully address
their members' issues when
they operate in only one country
of a global employer.
Global unions would have the
reach and strength to get the
job done for workers everywhere.
SEIU is ramping up to
operate on a global stage; we
are learning the pitfalls and
exploring the opportunities.
We think about the new
avenues opened up by global
campaigns. For example, unions with
high-wage members and strong financial
assets can pay strike benefits to
low-wage workers in countries with
less-endowed unions who walk off
their jobs with a common multinational
employer. The opportunities are
endless: Imagine simultaneous protests
on service contractors' global clients or
outsourcing strikes to countries where
strikes are legal and will not provoke
government retaliation.
Employers now have a worldwide
hiring hall, and global campaigns
now have worldwide points of leverage.
Global unions are in their
infant stages, but several factors are
helping them to mature more quickly
than anyone would have imagined:
the growing consolidation of corporations
and the budding solidarity
among unions within sectors, in
part accelerated by employers resisting
union relationships.
What Americans wish for is not
that complicated and, luckily, the
answers surround us. What is missing
is the passion and national political
will, the great winds of change,
to shape a new American plan for
our economy -- a way for America to
ride the unending
waves of change safely
to shore.
Americans should
pause and take the time
to appreciate the glory
and grandness of our future. Humanity
faces a quantum leap forward, and we
are engaged in building a remarkable
new civilization from the ground up.
No single generation has ever been
offered such possibilities; we should
seize them with passion and zest.
That is the panorama for
America's future. Yet, how far into
the distance can our country see? To
the next election or farther, to the
next generations? If the first six years
of this new century are any measure,
America is forsaking hard-working
Americans.
Leaders of all parties, occupations,
associations, and institutions
have so far failed to come together
to harness the energy of our times.
Yes, change is inevitable, but
progress is optional.