Showing posts with label Michigan. Show all posts
Showing posts with label Michigan. Show all posts

Tuesday, September 3, 2013

The real decline and possible REBIRTH of Detroit



Joyce's article about the real Detroit, its "4 economies," and the hopeful developments there is worth reading in full.  




But I want to highlight the racial, or rather, racist elephant in the room that Joyce, a native Detroiter, points out while the MSM ignores it.  This might sound like the urban area near you:

And yes, race does have everything to do with it.  There are three counties that make up the political economy of Southeast Michigan.  Wayne County encompasses Detroit but also includes large suburbs such as Dearborn,  Livonia (the most segregated city of more than 200,000 residents in the entire country) and most of the affluent Grosse Pointes.  Oakland County immediately north of Detroit is the 4th most affluent county of its size in the United States.  Nearby Macomb County is predominately working class and the “birthplace” of “Reagan Democrats”.  

Much of the Detroit punditry one reads or hears conveniently ignores race altogether, concentrating instead on the decline of the domestic auto industry or macro economic trends.  Usually when race is included on a list of “causes for Detroit’s decline,”  it is described with weasel words such as “racial tensions” or “the racial divide.”  Nonsense. What it was and what it remains,  is white racism pure and simple.  Bloviators love to talk about the “unsustainable legacy” costs of pensions for city workers.  They never talk about the “legacy” costs of racism. 

By 1980,  African Americans out numbered whites within the city limits of Detroit.  Yes,  capital started leaving Detroit in the 1940’s. But the population disinvestment is just as important.  Make no mistake about it.  The extreme segregation that has long characterized Southeast Michigan was anything but accidental. 

For decades,  it was the policy of the Federal Housing Administration to deny loans to African Americans trying to buy houses in the suburbs.  To this day,  if you buy a suburban house that hasn’t changed hands in a long time,  the deed may well contain a “restrictive covenant” that explicitly prohibits the sale of the house to Negroes. 

That’s not all.  Twenty-three out of twenty-three attempts to create a tri-county transportation authority to improve region-wide public transit went down to defeat in the white controlled state legislature.  So,  not only was it impossible for African Americans to buy homes near where the jobs were moving,  it was difficult to get to suburban jobs that came along with suburban growth.

And just to add insult to injury,  the financial institutions that wouldn’t lend money to African Americans to move out of the city wouldn’t lend it for home improvement in the city either. But they would charge more,  far more,  for home and car insurance.  For those too young to remember,  that practice was called redlining.  It’s still prevalent today. 

One dramatic example of the cost of racism born by Detroit is this:  Detroit has an income tax on those who work within the city limits.  The two-tier tax is lower for those who work in the city but live in the suburbs.  In enacting the tax,  the state legislature required employers based in the city to collect the tax via payroll deduction as they do with federal and other taxes.  Suburban based employers are not required by the law to collect the tax. Most of them don’t.  The revenue lost to Detroit per year is estimated to be as much as $142 million.   

Zooming out our historical lens even further,  we see the unbroken pattern of white supremacy even more clearly.  The counterrevolution to the civil war was the Jim Crow system.  The counterrevolution to the end of Jim Crow is mass incarceration and other components of the institutionalized racism that perpetuate and in some ways intensify white privilege today.  Detroit’s history as the national leader in residential segregation and all that flows from it definitely underpins today’s Detroit crisis and that of Flint, Pontiac,  Benton Harbor and Muskegon as well. 

While observers sometimes notice that a majority of predominately African American cities in Michigan are under some form of emergency management.  The question they don’t ask is,  why are there predominately African American cities in the first place? 

The beauty of this “willful ignorance” for many whites is that as the quality of life declined in Detroit,  the decline itself became the moral justification for whites for the inequality itself.  It’s an old story.  Slave society did the very same thing.  Slaves were routinely portrayed as lazy and shiftless.  To put the meme in contemporary terms,  the slaves were demonized as the takers and the slave owners were the makers. 



By Frank Joyce
September 2, 2013 | Alternet

Monday, August 12, 2013

Kuttner: It's not just Detroit

We bailed out the auto industry in 2008 and it was a roaring success, saving at least 1 million jobs.  We bailed out New York City in 1975 and it was well worth it. We shouldn't let Detroit go under either.

BTW, while Michigan Governor Rick Snyder is ready to let Detroit go down the tubes and cancel its pension commitments, he can somehow find at least $285 million to buy the Detroit Red Wings a new arena.  Snyder calls it a "catalyst project," and "something that is important to all of us."  As if paying city workers and rebuilding crumbling city infrastructure is not important to all Detroiters?  

This is the economic Bizarro world that conservative politicians live in, where sports socialism and bank payoffs are just dandy, yet they can't find the money to pay (already reduced) pensions as prescribed in the state's constitution.   


By Robert Kuttner
August 11, 2013 | Huffington Post

Do you think the damage from the pending bankruptcy of the city of Detroit will be limited to Detroit? Think again.

Detroit is partly the victim of economic trends far beyond its control, the downsizing and outsourcing of the auto industry and the collapse of the sub-prime bubble, to name just two. And yes, the city has suffered from corrupt and inept local government. But leaving Detroit to a bankruptcy process that favors investment bankers over local pensioners will neither provide a fair outcome nor contain the damage.

In the past two weeks, other Michigan cities and counties, including Saginaw and Battle Creek, have had to postpone bond issues, as the damage from the Detroit bankruptcy spills over. Michigan Governor Rick Snyder, who hoped to whack both public employees and the heavily Democratic city of Detroit by promoting bankruptcy, could end up shooting himself and his state in the foot.

Those who hope to use the pain of cities to undermine public employee pensions are playing with fire. One of the striking government failures of the era since the collapse of 2008 is that the federal government has done so little to help municipalities whose revenues were doubly hit by the subprime collapse and the recession itself. In the absence of aid, we can expect a prolonged era of dwindling services and scapegoated public workers and retirees.

It is a travesty that the federal government and the Michigan state government are not sending Detroit a lifeline. Other cities and states stand to lose both public services and pension benefits as this trend spreads. Chicago, which just suffered three levels of bond-downgrading, looks to be next.

Some background: In 1975, New York City very nearly went bankrupt. It faced a financial crisis and was unable to roll over maturing bonds. When Mayor Abe Beame appealed to Washington for help, President Ford initially refused, prompting the famous headline in the New York Daily News, "Ford to City: Drop Dead."

But that was a different era and in the end, Ford did approve $2.3 billion in federal loans. The New York State government, through a hastily legislated Municipal Assistance Corporation, agreed to refinance the city's debt, subjecting it to a rigorous supervision process. The Big Apple avoided bankruptcy, its economy recovered -- and New York is now home to the wildly profitable financial industry that is destroying Detroit in order to protect bankers.

In contrast to President Ford and New York's then Democratic governor Hugh Carey, Michigan's Republican governor Rick Snyder was happy to collude with Wall Street by embracing a bankruptcy proceeding rigged in favor of investment banks. And President Obama, who successfully sponsored a recapitalizing of the auto industry, is staying far away from Detroit this time.

These policies are short-sighted as well as cruel. If you think about it, many of Detroit's citizens are getting screwed both as debtors and as creditors. With the city having lost tax revenues in the housing collapse and property values at rock bottom, most homeowners with mortgages -- debtors -- can't qualify for refinancing. But many of the same people are also creditors, the city owes them pensions.

In principle, a bankruptcy proceeding is a system for fairly allocating claims when a debtor can't service all of its debts. The Michigan state constitution guarantees that Detroit pensioners will be paid what they are owed. Even Michigan's Republican attorney general, Bill Schuette,agrees that the constitutional protection is binding.

But the most recent changes (2005) in the federal bankruptcy law, lobbied for by Wall Street, put bankers in line ahead of pensioners. As attorney, author and debt expert Ellen Brown explains, this special-interest provision gives credit default swaps held by banks priority over other forms of debt. So banks that speculated in Detroit's debt stand to get paid ahead of ordinary bondholders and pensioners.

As Brown writes:

Derivative claims are considered "secured" because the players must post collateral to play. They get not just priority but "super-priority" in bankruptcy, meaning they go first before all others, a deal pushed through by Wall Street in the Bankruptcy Reform Act of 2005. Meanwhile, the municipal workers, whose pensions are theoretically protected under the Michigan Constitution, are classified as "unsecured" claimants who will get the scraps after the secured creditors put in their claims. The banking casino, it seems, trumps even the state constitution. The banks win and the workers lose once again.

The average pension owed to Detroit municipal workers, incidentally, is just $1,900 a month, and only 4 percent of Detroit's general revenues go to pensions. According to AFSCME President Lee Saunders, Detroit's non-uniformed public workers have already had pensions cut by 40 percent.

As we saw in the Wisconsin assault on collective bargaining for public employees and most recently in the San Francisco area BART strike, all public workers are losing public sympathy because wages, pension and health benefits have declined even faster in the private sector, leaving regular people to conclude that government employees have it too good. In fact, a study by pension expert Alicia Munnell finds that average state and local employee pensions are well below level needed to maintain living standards in retirement. Wall Street must be chortling, as ordinary workers blame civil servants rather than bankers.

But the assault on public workers and pensioners will continue to spread until citizens generally start appreciating that the culprit is not "over paid" public employees but a banker-dominated system that undermines decent living standards for public and private workers alike.

Friday, December 14, 2012

Ames: Sordid, bloody history of 'right to work'

I'm posting this in full because Mark Ames gives us a great history lesson. Most Americans are ignorant of their own history. They take for granted and don't know things like where the 8-hour workday and a ban on child labor came from. These things came from Progressives and Democrats. 

Likewise, we don't know how many innocent workers and their wives and children were murdered for trying to organize. Those company-sponsored massacres of innocent people with machine guns and tear gas in the first three decades of the 20th century don't make it into our elementary school textbooks.  

So git yerselves edumacated and think twice before you nod your head absently in support of innocuous-sounding, anti-American poison like "right-to-work" laws. We owe a debt of gratitude to our grandparents and great-grandparents who fought and died to protect unions and build the large, stable U.S. middle class that was the envy of the world through the 1970s. We owe it to them not to throw away their hard-fought gains that gave us the good life we enjoyed.


By Mark Ames
December 12, 2012 | NSFW CORP

"From now on, white women and white men will be forced into organizations with black African apes whom they will have to call ‘brother’ or lose their jobs."
— Vance Muse, founder of the "right to work" anti-labor campaign

The Michigan GOP apparently blindsided everyone with the union-busting "right to work" laws they just rammed through the state. Certainly my labor friends were caught off-guard tactically by the Republicans’ speed and choice of battleground.

For most of the county, though, the confusion has to do with what "right to work laws" are and why they’re so bad. You can see it written on the faces of the morning cable news hosts on CNN and even MSNBC — trying to pretend like they know what "right-to-work" laws actually mean, flummoxed by the brazen Orwellian neologism of the phrase and sweating over the possibility that they might have to explain it. Lucky for them, and for most of the media establishment (and for the Koch brothers), few people even know what questions to ask about "right to work laws." All they know — kinda — is that they’re bad for unions, and that those unions seem to know exactly how bad things are about to get.

Today, in most of America, unions have it bad. And part of the reason it’s bad is because we no longer know how to organize. Imagine trying to organize workers in your call center or warehouse, or your software gaming firm or your human rights NGO, as they’re doing at Amnesty International. The pressures against you — from worker cynicism and colleagues’ fear of losing their jobs, to personal relations with your boss and superiors, the bills you have to pay, and simple questions like "how do I organize" and "how do I know I won’t be screwed" — not to mention the inevitable appearance of company snitches, provocateurs, and just run-of-the-mill assholes and idiots... I’m not even talking here about your company’s ability to fire you, demote you, abolish your department, slash your pay, pretty much whatever the Hell they want ever since Reagan busted the air traffic controller’s union... This is the lot of American labor organizers in 2012 , except for in a few remaining pockets of America where union power and memory is still strong and tightly woven into the local cultural DNA.

Michigan is one of those places, which is why crushing labor power there would be as inspiring to the rightwing oligarchs who just got creamed at the polls as, say, the rise of the Tea Party was in early 2009.

So yesterday, as Michigan Republicans pushed the bill into law, labor groups converged on the capital in Lansing. According to the BBC, "police in riot gear used tear gas to control tensions among a crowd [outside the Michigan statehouse] of more than 10,000 protesters." For a lot of (once)-middle-class Americans, it’s hard to reconcile that level of anger with something as dull-sounding as "right to work laws."

"Austerity measures" are easier to fear: "austerity" is meant to sound scary and sadomasochistic. But "right to work" sounds dreary and almost redundant, like "right to pay bills."

That’s until you start to understand the history of the "right to work" movement, the racist human hagfish who brought "right to work" into our lexicon and made it happen, and the far-right fascist oligarchs who made it worth their while. Once you meet a few of these cretins — specifically, Vance Muse, the Karl Rove-meets-David Duke brains behind the whole "Right-to-Work" movement whom I’ll introduce you to a little later in this piece — you’ll understand why those thousands who converged on Lansing were acting like their state legislators just invited Count Dracula into everyone’s homes.

In terms of understanding what just happened, it would help if we were back in the 1940s and 50s, when most liberals and establishment media used — and understood — the antonym, "union security" — a descriptive phrase for the New Deal labor laws which finally gave union organizers a fighting chance, and saw the percentage of unionized workers in the US soar from single digits in the early 1930s to around 35% of the workforce by the mid-late 1940s.

The "right-to-work" movement to destroy labor unions began almost as soon as FDR passed the Wagner Act in the mid-1930s, which gave labor organizers "union security" as the old euphemism went and should still go. Again, you have to understand the historical context: Until the Wagner Act passed, when it came to workers’ rights, America in the 1930s was about half a century or more behind the rest of the West — child labor wasn’t even outlawed here until 1938.

But nothing compared to the endless massacres and murders of American labor organizers, massacres that are all but censored from the official history of this country. Maybe you’ve heard something about the Ludlow Massacre of the families of mine workers at Rockefeller’s mines in Colorado in 1913 — but you probably don’t know many of the details, like how Rockefeller’s private armed goons patrolled the miners’ miserable tent cities in an armored car with a mounted machine gun, spraying the tents and terrorizing the strikers, who demanded such radical concessions as "enforcement of Colorado’s laws," the eight hour work week, and pay for time spent working. Or how the terrorized women and children in the embattled tent city dug a giant makeshift bunker pit beneath one of the larger tents to hide out from the bullets — only to have Colorado National Guardsmen douse the tents with kerosene and light them on fire while the miners’ families were sleeping, then shoot some of those who ran out, killing over a dozen children, scores of workers and their wives, and ending with the arrests of hundreds of miners.

In the end, anywhere from several dozen to 200 were left dead. We don’t know exactly — and there hasn’t been much effort on the part of our culture to find out. This "we don’t know the death toll" marks just about all of the many killings and massacres of labor organizers and strikers in the pre-New Deal era.

The same goes with the West Virginia mine wars: whether the massacre of tent city workers in 1913 by coal miner thugs firing from armored trains passing through the tent cities, or the Battle of Blair Mountain in 1921, when the company raised the largest private standing army in the US, and attacked strikers with gas shells fired from artillery and dropped from bombers. President Harding followed that up by sending in federal troops and the US Air Force led by Brig. General Billy Mitchell, and when it was over, the miners’ unionization drive was dead. Along with well over 100 workers and family members — again, the exact number is "in dispute" as they say.

The "Red Scare" of 1919-20 was aimed at breaking labor unions, and specifically at equating union security — the "closed shop" where unionized companies and factories could require all workers to pay dues to the unions since they all benefited from union contracts — with Bolshevism. In contrast stood the "open shop"—where union membership was merely a "choice" strongly discouraged by employers — with "Americanism." In fact that’s what they called "right to work" back then: the "American Plan."

The Palmer Raids of those years (where J. Edgar Hoover first distinguished himself) resulted in tens of thousands of Americans illegally rounded up, beaten, tortured, imprisoned without any due process, and deported by the thousands, citizens included. Big business coordinated their PR offensive with the Palmer Raids by labeling anti-union open shop laws "American Plan."

After the 1929 crash, that euphemism became associated in people’s minds with the brutal pre-New Deal culture. So corporate America went back to their PR flaks to brand "open shop" with a new, less toxic-sounding euphemism. The phrase they came up with was "right to work," as if they were actually empowering workers with "individual liberty" by going after their unions.

History shows us what’s at stake here, and how far big business was willing to go to keep "right to work" or "American Plan" the national standard. Big business in America regarded the rest of the population and its labor pool much the same way colonial powers viewed the local Natives — as inherently hostile, alien savages whose purpose was to enrich their masters, and who must not be given even the slightest concessions, such as child labor laws, lest it put ideas in their heads about "rights"...

It was in this atmosphere that the ACLU really began as a defender of labor rights, when the ACLU equated civil liberties and Constitutional liberties with union organizing rights. Contrast that with today’s ACLU, which supports Citizens United and corporate "free speech" in exchange for massive donations from tobacco firms and the Koch brothers, while focusing on high-profile culture war cases at the expense of labor.

By 1930, labor unions were practically dead, considered a relic of the past by the media and academic elites. The Great Depression changed all that, in part because unlike today, back then Americans had no food stamps, no unemployment insurance, no state pensions, and of course, no child labor laws and no labor protections to speak of — all the things labor unions are responsible for giving us today.

From the Ford Motors massacre in Michigan in 1932, which left four workers killed and up to 50 wounded — through the Chicago Memorial Day Massacre of striking Republic Steel workers in 1937, in which company thugs and cops killed 10 peaceful marchers nearly all of whom were shot in the back, and wounded 60 more, billyclubbing the wounded as they crouched in the dirt — America was a savage and violent place to work if you weren’t rich.

Hearings were held in the Senate, and the LaFollette Committee Report discovered that corporations not only operated armies of spies in the tens of thousands, but that "Republic Steel Corporation [responsible for the 1937 massacre] has a uniformed police force of nearly 400 men whom it was equipped not only with revolvers, rifles, and shotguns, but also with more tear and sickening gas and gas equipment than has been purchased...by any law-enforcement body, local, State or Federal in the country.  It has loosed its guards, thus armed, to shoot down citizens on the streets and highways," the Senate report observed.

That was the arsenal controlled by just a single steel company.

FDR leveled the workplace playing field some with the Wagner Act, for the first time making union security (closed shop) a reality. Labor union power and membership soared, as did wages and benefits; America suddenly had Social Security and unemployment insurance, child labor laws, a minimum wage, five day/40 hour work week, and within a few years, a powerful middle class.

To big business plutocrats, the New Deal labor laws represented a sort of political Holocaust that they never forgot or forgave. They lost their full spectrum political dominance over their workers and over the political and judicial direction of the country, and all that essentially because FDR brought to an end America’s "open shop" culture and empowered unions with "closed shop" union security.

But business vowed that one day it would have its revenge. And that revenge would be "right to work" laws.

A report I found dating back to 1962 by Group Research, Inc — one of those left-liberal outfits back in the days before the left was defunded — dated big business’ first use of this new "right to work" to 1935, when the Automobile Manufacturers’ Association lobbied against FDR’s pro-labor Wagner Act, telling the New York Times, "men have an inalienable right to work, free from coercion..."

That’s an interesting coincidence, because Mitt Romney’s dad, George Romney, owed his success to the Automobile Manufacturers’ Association, which hired him as a top lobbyist in 1939. It was from that job that Romney eventually took over his own Michigan automobile firm, AMC, took over Michigan as governor (where he oversaw the bloodiest inner city riots of 1967), told America he’d been brainwashed in Vietnam, denounced supporters of the Equal Rights Amendment as "moral perverts" and homosexuals, and yes, gifted the world with his vulture capitalist son, Willard M. Romney, or "Mitt The Impaled" as we call him here at the NSFWCORP headquarters.

But I digress. And there’s a reason I digress. Because I’ve been putting off introducing you to Vance Muse, the real brains behind the "right to work" movement that’s still plaguing Americans to this day.

Vance Muse was a racist political operative and lobbyist from the state of Texas — the native habitat for all America’s vermin —as Satanically vile as "Turd Blossom" Rove, a racist smear-peddler like Andrew Breitbart, only without Breitbart’s degenerate heart and fondness for blow.

Here is a description of Vance Muse, creator of the "right to work" movement, from a book by an old celebrated journalist, Stetson Kennedy, the reporter who famously went undercover inside the KKK and wrote a tell-all in the 40’s:

"The man Muse is quite a character. He is six foot four, wears a ten-gallon hat, but generally reserves his cowboy boots for trips Nawth. Now over fifty [this is published in 1946—M.A.], Muse has been professionally engaged in reactionary enterprises for more than a quarter of a century."

Among Vance Muse’s "reactionary enterprises": He lobbied against women’s suffrage, against the child-labor amendment, against the 8-hour workday, and in 1936, Muse engineered the first split in the South’s Democratic Party by peeling off the segregationists and racists from the New Deal party, a political maneuver that eventually led to Strom Thurmond, George Wallace, and at last a Republican right-wing takeover of the South, and with it, the collapse of the old New Deal coalition. Which worked out fine for Vance Muse, since he was a covert Republican himself, serving "for years" as the Republican Party state treasurer in Texas.

That first attempt at splitting the Democratic party by peeling away the Southern segregationist-fascists took place in 1936, when Georgia’s brutal white supremacist governor, Eugene Talmadge, organized a "grassroots" convention with Vance Muse’s help. To stir up anti-FDR and anti-New Deal hate in the South, Vance Muse used photographs he acquired showing First Lady Eleanor Roosevelt being escorted by two African-American professors at Howard University. Muse used that photo to stir up the white supremacists in Georgia, he leaked it to as many newspapers as he could, and he even brandished it around a Senate hearing he was called before in 1936. Those hearings revealed that the anti-FDR "convention" that Vance Muse put on, through his "Southern Committee to Uphold the Constitution"— which featured guests of honor like Gerald L K Smith, America’s leading anti-Semite and godfather to the modern American Nazi movement — was financed not only by Confederate sponsors like Texan Will Clayton, owner of the world’s largest cotton broker, but also reactionary northeast Republican money: the DuPont brothers, J. Howard Pew of Sun Oil, Alfred Sloan of General Motors... That unholy alliance of Northeastern and Confederate plutocrat money financed the first serious attempt at splitting the Southern Democrats off by exploiting white supremacism, all in order to break labor power and return to the world before the New Deal — and to the open shop.

Incidentally, Vance Muse’s northern donors — DuPont, Pew, Sloan — were the same core investors in (and board directors of) the first modern libertarian think-tanks of the 40s and 50s, including the Foundation for Economic Education. DuPont, Pew and Sloan funds also seeded the American careers of Ludwig von Mises, Friedrich von Hayek, Milton Friedman and Murray Rothbard, among others. In other words, Vance Muse’s funders built the first layer of the libertarian nomenklatura that Charles Koch later took control of — no surprise, since Koch outfits are credited with making the Michigan "right to work" law possible.

...Getting back to Vance Muse: In 1936, he incorporated in Texas another union-busting outfit called the "Christian American Association" which was closely associated with the Texas Ku Klux Klan as well as the American Legion, a far-right veterans’ group used to bust up unions and terrorize minorities and suspected Communists. It was this same Christian American Association which launched the "right to work" anti-union campaign using that very same euphemism.

Dartmouth professor Marc Dixon, writing in the Journal of Policy History, summed it up like this:

The modern Right-to-Work movement and political mobilization championing this slogan...was spearheaded by the Christian American Association out of Houston in the early 1940s.

Initially, Vance Muse set the association up to create a sort of fundamentalist Christian KKK outfit to undermine FDR’s 1936 election. In 1941, he saw an editorial in the Dallas Morning News calling for Texas to pass an open shop amendment called "Right-To Work" to its state constitution.

Dixon writes:

"After traveling to Dallas and consulting with the editor, Muse was encouraged to use and promote the idea of Right-to-Work. This became their [Christian American’s] primary cause and they campaigned extensively for Right-to-Work legislation throughout the country, and especially in Texas."

Vance Muse’s fellow traveler in Texas union-busting fascism was a local big business outfit called the "Fight for Free Enterprise" and together, the two of groups passed laws outlawing picketing by striking workers and making it easy for anyone to accuse picketing workers of inciting violence, open shop "Right-to-Work" laws, and they even pushed for a Nazi-like law that would force union organizers to wear "identifying head gear (red for the CIO and gray for the AFL)."

Even as millions of Americans were fighting fascism overseas, Vance Muse in his ten-gallon hat bragged to his Confederate plutocrats about the passage of Texas’ anti-picketing bill, saying it would "keep the color line drawn in our social affairs."  In 1944, he told the Houston Post that so-called "Eleanor Clubs," named in honor of the First Lady, were a "RED RADICAL scheme to organize negro maids, cooks and nurses in order to have a Communist informer in every Southern home."

Muse’s sister and partner in Christian American, Ida Darden, agreed with her brother, telling the Antioch Review she worried that the Eleanor Clubs...

...stood for "$15 a week salary for all nigger house help, Sundays off, no washing, and no cleaning upstairs." As an afterthought, she added,"My nigger maid wouldn’t dare sit down in the same room with me unless she sat on the floor at my feet!"

Allowing herself to go still further, the little lady went on to say, "Christian Americans can’t afford to be anti-Semitic, but we know where we stand on the Jews, all right. It doesn’t pay us to work with Winrod, Smith, Coughlin, and those others up North; they’re too outspoken and would get us into trouble...You’d be surprised how many important corporations support our work."
- Southern Exposure, Stetson Kennedy

Indeed. That, again, from the sister and partner in the outfit that created the modern Right-To-Work movement which, decades later, just steamrolled over Michigan.

A March 10, 1945 article in the Sunday Morning Star in Delaware reported on Vance Muse’s outfit, as its first "Right-To-Work" successes started to get national attention:

"Union groups throughout the country are asking [for] an investigation of the Christian American Association which has been pushing anti-labor bills in many state legislators. Anti-Semitic and anti-Catholic literature has also been attributed to the Christian Americans."

In fact, their anti-Catholic literature was so strident that they were all but chased out of Louisiana.

But in Texas it worked: That year, 1945, Vance Muse’s Christian American Association successfully lobbied for Texas’ "Right-To-Work" law thanks to a brilliant smear campaign run by Muse himself: He arranged for a woman called Ruth Koenig, who claimed to be the head of an alleged Texas Communist Party, to testify before the Texas legislature on the Right-to-Work law. Naturally the Communist testified against the law – and thanks to that testimony Muse’s Christian American Association was able to label any Texas lawmaker opposed to Right-to-Work as a Communist. Flyers were printed up warning state residents about "Communists in the Legislature," listing their names, linking them to Koenig with the header: "Where She Leads Us, We Will Follow."

Until that day, Texas was on its way to becoming a strong union state, according to Dartmouth’s Prof. Dixon, outpacing other states in the South thanks largely to successful organizing by the CIO.  After passage of the Right-to-Work law...well, look at Texas today. It’s libertarian Hell, Koch Industries paradise, home to Ron Paul and Rick Perry. Just how they like it.

The transition to our time has been seamless. Charles Koch’s father, Fred Koch, made his name in right-wing politics as one of the leaders of the Kansas Right-to-Work movement. The fight in Kansas was more bitter and protracted than in Texas — Kansas had a strong tradition of populism and farmer socialism — but in 1958, they succeeded and the law passed. That same year, Fred Koch co-founded the crypto-fascist John Birch Society with eleven other industrialists, the most powerful grassroots libertarian outfit of the postwar era until his son Charles raised libertarianism to an entirely new level.

Among other things, the John Birch Society taught that President Eisenhower was a conscious active Communist agent taking orders from Moscow; that the Civil Rights movement was a Communist conspiracy and Martin Luther King took direct orders from Moscow; and that the world was controlled by a group of conspiratorial insiders known as the Illuminati; and that America is "a republic, not a democracy."

Politically, its goal was the same as Vance Muse’s: reversing "the whole new-deal march toward state socialism" and expunging "the disease of collectivism," in the words of Bircher leader Robert Welch. In other words: union-busting, stripping government benefits and eliminating taxes on the rich. (To understand why Fred Koch and the Bircher libertarians hated Ike so much, imagine today a Republican like Eisenhower who raised the top marginal tax rate to 91%, who poured massive government investments into building roads and schools, who publicly declared his support for Social Security and denounced any Republican who opposed it — you get the point.)

The founder of the National Right To Work Committee in the mid-1950s, Reed Larson, came from Fred and Charles Koch’s base in Wichita, Kansas — headquarters of Koch Industries. Fred Koch teamed up with Reed Larson to pass Kansas’ Right-to-Work law, and Reed Larson’s "National Right to Work Committee" intertwined itself with Fred Koch’s John Birch Society.

And that sordid history of Right-to-Work, that seamless historical thread running straight out of Vance Muse’s putrid little brain right through all of the shock and misery on display in Lansing, Michigan today — that’s what’s the matter with Kansas. Dorothy’s wrong, folks: we’re all stuck in Kansas, and no one’s safe, no matter which state you live in.

Thursday, December 13, 2012

How Chinese and U.S. labor are alike

And as fellow WaPo columnist E.J. Dionne pointed out: 

... the way Gov. Rick Snyder (R) and the Republican Michigan Legislature rushed right-to-work through a lame-duck session was insidious. The anti-union crowd waited until after the election to pass it. Snyder had avoided taking a stand on right-to-work until just last week, when he miraculously discovered that it would be a first-rate economic development measure. The law was included as part of an appropriations bill to make it much harder for voters to challenge it in a referendum.

As we all know, U.S. wages have been stagnant in real terms since the 1970s. And this freeze in workers' wages corresponds suspiciously to the decline in power of labor unions. Meanwhile, U.S. workers' productivity has gone up considerably, along with stock prices and corporate profits, which hit an all-time high under President Obama. This is the very definition of redistribution of wealth, folks -- from the pockets of workers to managers and shareholders.


By Harold Myerson
December 11, 2012 | Washington Post

China has a problem: rising inequality. The gap between profits and wages is soaring. Although elements of the government have sought to boost workers’ incomes, they have been thwarted by major companies and banks “that don’t want to give more profit to the country and let the government distribute it,” Qi Jingmei, a research fellow for a government think tank, told the Wall Street Journal.

Of course, if China permitted the establishment of unions, wages would rise. But for fundamentally political reasons — independent unions would undermine the Communist Party’s authority — unions are out of the question.

Meanwhile, the United States also has a problem of a rising gap between profits and wages. The stagnation of wages has become an accepted fact across the political spectrum; conservative columnists such as Michael Gerson and David Brooks have acknowledged that workers’ incomes seem to be stuck.

What conservatives haven’t acknowledged, and what even most liberal commentators fail to appreciate, is how central the collapse of collective bargaining is to American workers’ inability to win themselves a raise. Yes, globalizing and mechanizing jobs has cut into the livelihoods of millions of U.S. workers, but that is far from the whole story. Roughly 100 million of the nation’s 143 million employed workers have jobs that can’t be shipped abroad, that aren’t in competition with steel workers in Sao Paulo or iPod assemblers in Shenzhen. Sales clerks, waiters, librarians and carpenters all utilize technology in their jobs, but not to the point that they’ve become dispensable.

Yet while they can’t be dispensed with, neither can they bargain for a raise. Today fewer than 7 percent of private-sector workers are union members. That figure may shrink a little more with new “right to work” laws in Michigan — the propagandistic term for statutes that allow workers to benefit from union contracts without having to pay union dues.

Defenders of right-to-work laws argue that they improve a state’s economy by creating more jobs. But an exhaustive study by economist Lonnie K. Stevans of Hofstra University found that states that have enacted such laws reported no increase in business start-ups or rates of employment.Wages and personal income are lower in those states than in those without such laws, Stevans concluded, though proprietors’ incomes are higher. In short, right-to-work laws simply redistribute income from workers to owners.

Why, then, are such laws being enacted? The gap between U.S. capital income and labor income hasn’t been this great since before the New Deal; why widen it still more? The answer, in Lansing no less than in Beijing, is political. The Republicans who took control of the Michigan statehouse in 2010 understand that Democrats’ foot soldiers come disproportionately from labor. GOP efforts to reduce labor’s clout help Republicans politically far more than they help any Michigan-based businesses or local governments. (The legislation, which Gov. Rick Snyder (R) signed into law Tuesday evening, establishes right-to-work requirements for the public sector, too.)

Those who doubt that the intent of Michigan’s laws is more political than economic should consider the two kinds of unions exempted from its reach: police and firefighter unions. Their contracts are among the costliest that local governments confront: Police and firefighters generally (and rightly) retire earlier than do other public employees, with relatively generous pension benefits. But in Michigan, police and firefighter unions often endorse Republicans. Shrinking their treasuries and political power by subjecting them to right-to-work strictures would only damage Republicans’ electoral prospects (and may well play poorly to voters).

With Snyder’s signature, Michigan becomes the second state in the once-heavily unionized, industrial Midwest to adopt such a statute; hitherto, such laws had largely been confined to states in the South, the Plains and the Mountain West. The United Auto Workers (UAW) was once the colossus of Michigan politics, but the union’s membership has shrunk to 381,000 — roughly one-quarter of its size 35 years ago — a casualty of globalization and the legal and cultural obstacles the UAW has encountered to organizing new members.

Michigan Republicans have seen a chance to weaken the UAW and labor’s power at election time. Doing so further diminishes the number of workers who can bargain for a raise. It’s nice that conservatives are finally acknowledging that workers’ incomes are stagnating. But workers don’t get raises if they can’t bargain collectively, and all the hand-wringing about our rising rates of inequality will be so much empty rhetoric unless we insist — in Lansing and Beijing — on workers’ right to form powerful unions.

Monday, August 24, 2009

Forbes: Amazing stat on rising health costs

I found this statistic amazing:

"In a separate letter, Reps. John Dingell and Sander Levin, both Michigan Democrats, asked the chief executive of the state's Blue Cross affiliate to provide details about the company's recently approved premium hikes and its top executives' pay. According to the congressmen, employer-sponsored health insurance premiums in Michigan rose 78.2% from 2000-07; wages in the state rose by just 4.6%."

Inquiring minds want to know why!

Ire Over Insurance

By Brian Wingfield

August 23, 2009 | Forbes.com

URL: http://www.forbes.com/2009/08/23/health-care-reform-business-washington-insurance.html?partner=alerts