Paul Krugman writes on the need for the Employee Free Choice Act in this month’s issue of Rolling Stone. Krugman has a lengthy letter about what Obama should do and this is one of his key items. Krugman is wrong about the timeline – the chances of passing Employee Free Choice this year is great and likely to happen this spring or summer.
“What caused the Great Compression? That’s a complicated story, but one important factor was the rise of organized labor: Union membership tripled between 1935 and 1945. Unions not only negotiated better wages for their own members, they also enhanced the bargaining power of workers throughout the economy. At the time, conservatives warned that wage gains would have disastrous economic effects — that the rise of unions would cripple employment and economic growth. But in fact, the Great Compression was followed by the great postwar boom, which doubled American living standards over the course of a generation.
“Unfortunately, the Great Compression was reversed starting in the 1970s, as American workers once again lost much of their bargaining power. This loss was partly due to changes in the world economy, as major U.S. manufacturing corporations started facing more international competition. But it also had a lot to do with politics, as first the Reagan administration, then the Bush administration, did all they could to undermine the ability of workers to organize.
“You can make a start on reversing that process. Clearly, you won’t be able to oversee a tripling of union membership anytime soon. But you can do a lot to enhance workers’ rights. One is to start laying the groundwork to pass the Employee Free Choice Act, which would make it much harder for employers to intimidate workers who want to join a union. I know it probably won’t happen in your first year, but if and when it does, the legislation will enable America to take a huge step toward recapturing the middle-class society we’ve lost.