Robber Barony Is Back

http://topincomes.g-mond.parisschoolofeconomics.eu/#Graphic:
select:
United States
1917-2009
Average Incomes
bottom 90% average income - including capital gains

Shows the submerged 90% of us earn the same (per family) in real terms as we did in the late 1960s. Yet the typical family now has more wage earners, working more hours.

Same site, select
Top Income Shares
top .01% - including capital gains

Shows the hunting animals eating the entire carcass except during 1942-1981, when we had effective antitrust law, labor law, and progressive taxation.

In only these forty years was the average family income of the top .01% "only" 165 times the average family income.  Before 1942 and after 1981, the rich took a much larger share.  In 2010 it was 462 times the average and increasing.  (If only the top .01% earned anything, their share would be 10,000 times the average.   That the one family in 10,000 now takes nearly 5% of all the income, is appalling.)

The rich get their income not for what they do, but for what they own.  They claim to be "job creators."  In truth, the only job creator is a customer, who buys something.  We have to get money back in the hands of those who spend it--the nonrich.  When the only people with money to spend have all the stuff they can use, the economy collapses.  These booms and busts happened regularly up through the Great Depression.  It was political action that transformed the working class into the middle class, avoiding the booms and busts.  Deregulation, detaxing the rich, eroding worker rights, free trade, since 1981 are bringing back the bad old days of many serfs, one lord.  Only political action can reverse the trend.  We have to restore antitrust laws, restore workers' rights, establish fair trade not free trade, tax the rich.

Norway has a much fairer balance of power between employees and employers, partly due to nationwide collective bargaining.  U.S. labor laws have been eroded since they were enacted in 1935, by anti-labor court decisions and anti-labor legislation.  Now, management can ignore labor agreements and labor law without serious consequences.

Urgent Call to Action: Save First-Class Mail

The management of the US Postal Service has proposed a drastic and irreversible reduction in first-class mail delivery standards. Currently 41.5 percent of first-class mail is delivered in one day, 26.6 percent in two days, and 31.6 percent in three days. The proposal would eliminate one-day delivery altogether. Two-day deliveries would increase to 50.6 percent and three-day to 49.1 percent. The proposed increase in delivery time would be devastating to the many individuals, small businesses, and entrepreneurs who rely on first-class mail.

The proposal, the stated goal of which is to “bring operating costs in line with revenues,” would enable the USPS to eliminate 60 percent of the USPS’s processing-and-distribution plants, purportedly to cut costs. But the presumed savings are actually quite small (only $3 billion, or 4 percent of the USPS’s annual budget). All the mail would still have to be delivered. It would just have to be hauled farther to be processed, thus increasing fuel costs and the commensurate harm to the environment.

The possibility of raising revenues by increasing prices and expanding services is never mentioned. Bowing to pressure from the Direct Marketing Association, the postal service recently withdrew a request for an “exigent rate increase.” The USPS charges direct mailers less than what it costs to deliver their advertising mail, so in essence the direct mailers are stealing from the USPS with each piece of mail they send. Regarding the withdrawal of the proposed rate increase, Postmaster General Patrick Donahoe exclaimed that the direct mailing industry is “way too fragile” to survive a price increase. Clearly, the health of that industry is more important to him than the health of the USPS.

In its projection of the effects of the proposed change in service standards, the USPS does not even mention the American people. It lists only the possible effects on “commercial mailers.” Noncommercial mailers—citizens, entrepreneurs, small businesses, and rural communities—are not given even the slightest consideration.

Because the reduction in service standards would enable the USPS to dismantle its extraordinary processing-and-distribution network, a return to the current service standards would be impossible, thus permanently undermining the USPS’s ability to serve the American people, further reducing mail volume and postal revenues, and further imperiling the US Postal Service itself. The vast majority of the American people won’t fully realize the effects of the proposed reduction in service until it’s too late.

The notice in the Federal Register invites comments from the public between now and October 21, 2011. Letters may be sent to Manager, Industry Engagement and Outreach, United States Postal Service, 475 L’Enfant Plaza, SW – Room 4617, Washington, DC 20260, or e-mailed to industryfeedback@usps.com.

In hopes of gathering more signatures, we have created a petition at Change.org calling for retention of the current first-class service standards. We have less than two weeks to gather as many signatures as possible. Please sign the petition and write your own letter, and ask others to do the same. Once USPS management’s proposal is accepted, there will be no turning back.

USPS: Vultures Roosting in the Eagle's Nest

The vultures on the verge of destroying the US Postal Service are not merely circling. They've landed in the nest, ready to plunder and privatize, having fully captured USPS management and oversight. It's clear to many that the the Post Office has enemies in Congress, to wit Rep. Darrell Issa (R-CA), among others. But it's also apparent that there are those in management and oversight who are just as determined to destroy the Post Office, who are in the service not of the American people but of those who consider the USPS their competition and who are eager to devour the advantages it currently maintains.

The postmaster general plans to make drastic cuts that will do away with first-class service, give the pickings to FedEx and the like, and continue propping up bulk mailers (who currently pay less than what it costs the USPS to process and deliver their junk mail). Those cuts will devastate small towns and inner cities, reduce the USPS to a third-class bulk mailer, and replace its middle-class workforce with a workforce of the working poor. All this for what?

Abdicating 6-day delivery to private postal services would, by Government Accountability Office estimates, save costs of only 4 percent of the USPS budget. USPS management has admitted that it wiped one small-town post office off the map because it "'cost' the USPS $1,500 a year more than it made in sales of stamps and money orders." Never mind the mandate that the USPS serve all Americans. Never mind that the USPS is not meant to make a profit but rather to be a self-sustaining service to the American people. Never mind that closing a post office because it is not "profitable" is against the law.

The devastating cuts proposed by the postmaster general—the projected savings of which are absurdly small—will serve only to weaken the USPS, not strengthen it, not put it on firm financial footing. All of the aspects of USPS service that are on the chopping block—6-day delivery, half the distribution network, half the retail network, half the workforce—represent USPS's greatest assets. So why proceed when the financial savings are so small and the resulting loss so devastating? The only conceivable answer is that the intent is not to save money or alleviate the USPS's financial difficulties, but to serve the interests of the vultures ready to devour this national treasure.

The planned devastation of the USPS is based not on need but on greed. The claim of financial emergency is a pretext to break the USPS up and feed the choice bits to the private mailing industry.

The postmaster general says he expects to close 16,000 post offices in six years—that's half of the nation's post offices! And he plans to close or consolidate as many as 313 of the 487 processing plants by 2013—destroying first-class service while estimating the destruction would "save" costs equal to only 4 percent of USPS's budget. When this happens—and USPS management is proceeding fast, in violation of federal law—there will be no more 44-cent postage. Only FedEx rates. There will be no more service to rural, remote, and distressed areas. Newspaper and magazine delivery will be eliminated.

The Internet could be the biggest source of new business imaginable. Customers could e-mail documents to the USPS, which would then print and deliver them from the destination post office. This would be a hugely popular service: next-day delivery anywhere in the country, of anything you can send to a printer. Fast, cheap, and hard copy. All it would require is leadership interested in providing a service to the public.

But what we have now is leadership more interested in providing profit to private moneyed interests than in serving the American people. That is the end result of setting up a public service to function "more like a business," as was done in changing the U.S. Post Office Department to the US Postal Service in 1970-71.

The United States Postal Service is a national treasure that needs to be saved from the formidable forces arrayed against it. And those forces are not only in Congress, but in the USPS itself. Those who seek to save the USPS will not succeed unless they recognize the threat within, and they must do so very quickly or it will be too late.

~~~

John Nichols writes good Save the Post Office columns in The Nation and The Capital Times. And there's always a lot of good information at Save the Post Office, which Steve Hutkins puts together.

Where's the Corruption?

Troll comment seen on Facebook: "With union corruption, it's hard to see how anyone could be proud." I've heard this "baby-bathwater" sentiment before.

Unions are like any other human institution—prone to human failings. But that weakness doesn't mean we should abandon or vilify them. It means we should strengthen them and address whatever corruption we might find. It also does not mean that we shouldn't be proud of the many, many good things that unions have done for working people—the 8-hour workday, the weekend, worker's compensation, safer working conditions, child labor laws, pensions and health care benefits, to name only a few. There's a lot in labor history to honor and celebrate and be proud of.

At one time, labor unions in the United States had more power than they do today, hence their vulnerability to corruption. You know, "Abuse of power comes as no surprise" and "absolute power corrupts absolutely." But now, labor unions can hardly be singled out for corruption and abuse of power. To abuse power, you have to have some. The real point of labor unions is to give power to the powerless, to aggregate against inordinate corporate power.

Nowadays, the search for corruption is an easy one. Anyone paying attention knows that U.S. politicians are far more responsive to corporate lobbyists and monied interests than they are to their constituents. Corporations are writing laws designed to undermine not only workers' rights but those of the poor and the disenfranchised. And politicians are giving their corporate supporters a leg up on the backs of the poor.

In short, my dear troll, if you're concerned about corruption, follow the power. And given that labor unions have very little of that these days, they should be the least of your worries.

Labor Day Road Trip!

Perhaps you've been following the hullabaloo surrounding the Wausau Labor Day parade. First, the heroic Marathon County Labor Council disinvited local Republican politicians because of their anti-labor activities. Sensible enough. Would you force your kid to play nice with the schoolyard bullies? Apparently Mayor Tipple would. Tipple told the labor council that if the Republicans weren't allowed to march in the parade, then the council would have to reimburse the city for its expenses (insurance, police protection, etc.).

Now the labor council president, Randy Radtke, has announced that the Republican politicians will be un-disinvited. The Wausau Daily Herald reports that Radtke sent the following statement in an e-mail:

We didn't start this fight in Wisconsin, but were responding to anti-worker positions and policies supported by local Republican politicians, including those who have complained about not being invited. With the track records that Pam Galloway, Sean Duffy, Scott Walker, and Jerry Petrowski have all put together this year, they should be ashamed to even show their faces at a Labor Day parade. [emphasis added]

But show their faces they will—maybe. If they have the nerve. If you're not sure you will recognize those faces if they do turn up, click on the links in this paragraph to refresh your memory. Apparently, Republican U.S. Rep. Sean Duffy (you remember him—he's the guy who complained about his measly $174,000 annual salary and the horrors of having to drive a used minivan) has said he will attend a Labor Day celebration in Merrill, Wis. But maybe State Senator Pam Galloway and State Assembly Rep. Jerry Petrowski will show up. You never know.

Have you ever been to Wausau? It sits just across the Wisconsin River from Rib Mountain, and it's just two and a half hours from Madison, straight up Rt. 51. The parade is on Monday, September 5 at 4 pm. The parade route starts on North Third Ave. at West Wausau Ave. and continues south on Third Ave. to Stewart Ave. (see map below). Whaddaya say come Labor Day we head on up there and show some union pride? I understand that some Wausau workers would be honored if workers from around Wisconsin would join them. And from all the hullabaloo, I'd say they could use some Labor Day solidarity. I'm not encouraging mayhem, mind you. Just some good, sensible, hard-working Wisconsinites who know when to cheer and when not to.

Update: According to the Wausau Daily Herald, Galloway and Duffy will be at the Wausau Labor Day parade. Galloway says she hopes the event "will be about families watching a parade [read: never mind what Labor Day is really about]—not politics," even though the politicians will now be allowed to do their politicking. According to the Herald, "Galloway said she is a little concerned that the conflict will 'poison the well' of the typically feel-good event." Who's poisoning whose well do you think?

Duffy says he'll be there with his kids: "I'm thrilled the organizers of this event [were bullied into setting] aside political differences. . . . The unfortunate truth is Wisconsin's political environment has become so toxic these days [Surprising, isn't it, how people get a little pissy when you take their rights away.] that even parades [meant to celebrate the people we have screwed] are seen as a chance to take political swipes at each other."

No indication yet whether Petrowski will be there.

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My Husband the Hero

My husband, Tom, was fired last week, not for any rational reason, but because management is on a campaign against the union, and Tom is/was a union steward. Two union stewards were fired from the plant last week, and another one is being systematically harassed (both before and after her stroke). Tom has thirty days off with pay, after which time, if the "concurring official" concurs (as he probably will), Tom will be "removed."

We're a little stunned, but we're going to be okay, at least that's what my cool-as-a-cucumber husband keeps telling me. I'm scared, a bit, sometimes, but mostly not panicking, although occasionally, in my weaker moments, my mind goes drifting off in that direction.

I told Tom today that I feel like a cartoon character, innocently strolling along in a lovely cartoon forest, blithely waving to all the fairies and furry forest creatures. Then, all of a sudden I look down—Ach! I am momentarily suspended in midair. I strolled right off a cliff! I look at my cartoon audience, my eyes wide with shock. Where did the ground go? <instant plummet earthward>

But no, really, there's every reason to be hopeful. Management doesn't have a case. Of course, the union (the American Postal Workers Union) is going to bat for Tom. But this is likely to take at least a few months to get resolved. For any time that Tom is off work, he may or may not get back pay. There are no guarantees.

I generally avoid getting personal in this blog, but in this case the personal is political, as it so often is. Tom and I have become a case in point. So I will do my best to present the case and make the point.

Tom and I are blessed with truly wonderful family and friends, who have kindly expressed their support and encouragement. A few have asked whether there is anything they could do. Why, yes, now that you mention it, there is one thing. Do it for us, and do it proudly.

Please support the Employee Free Choice Act.

First, educate yourself about the Employee Free Choice Act (EFCA). Find out what it is, what it isn't, who's for it and why, who's against it and why. Then write to your senators and representative and ask them to support and vote for EFCA. Ask them to make EFCA a priority because of all it will do to strengthen our economy and the middle class in particular. Sign the petition at I Am Progress, and then talk to your friends and family and ask them to do the same.

Unions are a threatened species in this country, and with the economy in such terrible shape, we need them now as much as ever. We have the Labor Movement to thank for so much in this country: the 40-hour workweek, the 8-hour workday, the middle class—to name just a few.

But big business is terrified of workers regaining their power and their solidarity and is determined to use any tactics available to prevent workers from forming unions. An entire industry has formed whose sole purpose is helping businesses prevent their employees from forming a union.

As a result, the power of labor has been systematically gutted, until even the best unions have only a shadow of the power they once had. That the middle class has shrunk as the power of unions has waned is no coincidence. Strong worker unions and protections lead to a stronger middle class, a more robust economy, and less disparity between the rich and the poor.

According to columnist Sharon Smith, Corporate America's anti-union crusaders have raised $200 million to combat the Employee Free Choice Act. "True to form, business leaders reacted with collective hysteria to the introduction of legislation in the House and Senate on March 10 that would make it just a bit easier for workers to unionize."

The Chamber [of Commerce], the National Association of Manufacturers and other anti-union corporate crusaders have raised $200 million to combat EFCA. And they have only just begun to fight, framing their defense of workers' "right" to a vote by secret ballot in a union election as if this were a struggle to preserve a sacred cornerstone of democracy--by preventing unions from simply asking workers to sign union cards if they would like to join the union."

In reality, EFCA would maintain the option of voting by secret ballot, but transfers the decision to workers instead of employers, where it currently resides.

Big business is pulling out all the stops in its campaign to paint itself as the wronged party in workers' efforts to form unions. They're trying to paint themselves as the "populist" choice. But remember, workers in this scenario are David and Big Business is Goliath.

Big Business, whose success is a direct result of workers' productivity, is free to exploit workers, unless those workers realize that it is in solidarity with each other that they have a voice. Labor is the original populist movement, composed—oddly enough—of regular people who have thrown their lot in with each other, banding together to make their voices heard.

Here's Rachel Maddow's take on EFCA:



Support Tom and me, and workers everywhere in the country, by contacting your senators and representatives and asking them to support and vote for the Employee Free Choice Act. Our greatest hope in restoring our economy and rebuilding a robust middle class is in strengthening workers and restoring worker solidarity.