Friday, January 8, 2016

Low union density = secular stagnation (and a host of other ills)

What is the core economic difference between Germany and it’s’ economic dynamism — and — the US and our (secular?) stagnation?

Union density. Anybody offer a more important — or even any another — core difference?

Leaving other macro angles aside -- wouldn’t abandoning the vast majority of economic actors in a theoretical economy trapped in unopposed monopsony (one buyer: the employer --  unopposed by one seller: a collective bargaining unit) be expected to result in economic stagnation? Couple the inevitable demand log jam at the top (actors who cannot spend it as fast as they make it) — with — debilitated personal lives (tens of millions) at the bottom (sub-par education, health, job networks, etc., etc. — paired with much economic drag on everybody else trying to partially remedy the symptoms) and what else could be expected of our imaginary economy.

The universal union busting that leaves our (the US’s) working majority in an inescapable monopsony black hole happens to be ipso facto against the laws — both state and federal. So when are Americans simply going to attach felony penalties instead of no penalties to breaking what should be our most important economic empowering and politically enabling laws on our books?

What other form of market muscling is left completely unsanctioned? What other form of market muscling is not treated as a felony? Every form of market muscling except the most important one.

Almost forgot to mention -- for those not in the know (I didn't used to be) -- federal labor law preemption means individual states cannot subtract but they may add. In Maryland for just one instance Democrats have a 33-17 edge in the State Senate and a 91-50 edge in the House. WA, OR, CA, IL, NY, anybody listening?

1 comment:

Denis Drew said...

If conservatives in Europe are missing in action, not making the connection between austerity and _their_ economic doldrums -- are progressives here just as missing, not making the at-the-core connection between disappearing union density and _our_ never ending Great Recession?