America’s greatest economic prosperity occurred during a period when labor, business, and government coexisted in a structure of countervailing power. Workers are largely powerless to influence wages, hours, and working conditions in their relationship to their employers, especially multi-nationals, unless they can organize collectively and bargain for improvements. That only occurs in a system where the government establishes laws and regulations that permit a balance between these competing interests. Government can intervene to support one side or the other. If either gets too much power the economy suffers. If labor is too powerful wages can drive an inflationary spiral that undermines prosperity. If corporations get too much power the preponderance of wealth generated by the economy goes to CEOs, upper echelon executives, and corporate profits while workers’ wages stagnate. The situation we have today.

Beginning with the Reagan era the government tilted decisively toward the interests of business with the Bush administration representing the high point (to date) of this trend. In fact, the last 30 years have witnessed a Republican war on the American worker. The advocates of a laissez-faire market actually got their wish with the blessing of the Fed and Congress when the Glass-Steagall Act was repealed and deregulation of private banking became the norm. Regulations remained in place for traditional banks, but hedge funds, investment banks, and brokerages undertook to create and package investment instruments that were outside the Fed’s mandate or the control of Congress. These new organizations and instruments were all highly profitable and operated behind a veil of secrecy through which no government agency could peer.

Unfortunately, as President Bush said, the laissez-faire market “got drunk” on its success and, as all laissez-faire markets have done historically, it crashed. The disastrous effects have been felt over the entire economy and continue to plague us. In times of prosperity, businesses seek to minimize government regulations and operate on a laissez-faire basis. As we see, when facing a collapse from their own excesses, they beg for rescue from the government.

It is time for the government to reestablish the balance that existed between labor and government in the post-WWII era. Even so convinced a capitalist as the Secretary of the Treasury has called for a far more intrusive set of regulations on these new financial entities and instruments to prevent another disaster. While this is a fix for the boom and bust cycle characteristic of an unregulated market, it is insufficient to restore the balance between labor and business. American is still a rich and prosperous nation, but, as the wisest capitalist, Henry Ford, recognized, it cannot remain so unless workers enjoy the benefits of their productivity and are able to grow in wealth also. At this point in time, either we will find a way to regain our footing in the world economy in a way that spreads the wealth to workers as well as CEO’s, or we will continue to sell out our middle class and undermine the broad foundation of our economic strength.

Boo-hoo. You didn't graduate college.

Rofl!!!!!!

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Collective? I'm sure thats easy when your not surrounded by a bunch of (*)(*)(*)(*)ing retards!!!

I thought we were at war with Iraq. I have not seen any troops in the factories. But seriously. Isn't what your saying, albeit in a very lengthy but over-simplified way that the poor condition of the blue collar workers is all the republicans fault? Democrats are as much to blame with there liberal immigration policies which have kept wages down by flooding the labor marker with cheap labor, and high taxes which keep the middle class from getting a step ahead.

But what you really mean to say is, "workers of the world unite!" Right?

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We should invade their countries, kill their leaders and convert them to Christianity. -- Ann Coulter

Hmmm...I thought those Republicans had cut taxes for the middle class, at least the said they did. And, didn't the Republicans have an absolute lock on the Presidency, Congress, and the Supreme Court from 2001-2006? Why would we have a "flood" of illegals if Republicans are anxious to stop them? Obviously the Republicans conspired to let the flood gates open to keep wages low.

From 2001, at the end of the short recession, until 2006, wages remained stagnant (only rising slightly in 2006) while productivity went up 15% and corporate profits climbed to their highest share of national income in sixty-four years, while the share going to wages sank to its lowest level since 1929.

True about republican control of congress (but I think it was '94 to 2002) there are a lot of Neo-cons who go along with democrats but for different reasons. Many republicans are indebted to big business as are democrats and both are likewise indebted to special interest groups. I'll accept your accertions on wages but again, I would hesitate to solely blame republicans.

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We should invade their countries, kill their leaders and convert them to Christianity. -- Ann Coulter

It's cute whenever the socialists start whining about how "bad they have it," and how they pine for draconian governmental control.

Keep thinkin' that, Komrades.

Then again, I guess it's easier for lazy folks to just beg Mother Government for stuff, than it is to provide for yourself through hard work and motivation. Easier to knock "the other guy" down to your level, than it is to pick yourself up to his.

To those folks, I say: "Next time, trim around my mailbox, like I told you to, after you mow my lawn."

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"I should be calling collect from jail for the things I commit each night in my head" - D. Mustaine.

Workers who are identified as the “near poor” earn $20,000 to $40,000 per year. There are 50 Million of them. They are the janitors, nursing home aides, waiters, home-health aides, retail sales workers including cashiers, and food-prep and fast food workers. According to the Bureau of Labor Statistics this group works in 6 of the top 10 job growth categories so there will be an increasing number of workers in this group over the next decade or so. These workers live on the edge of economic disaster and have great difficulty in making ends meet. As you might expect there is a significant number of people in this group locally. They are the ones for whom the S-CHIP (State Children’s Health Insurance Program) was created because they generally do not receive health insurance at work, nor can many afford it for themselves. The government has attempted to subsidize insurance for their children. Unfortunately, President Bush vetoed a bipartisan bill to provide an expansion of the program to accommodate the growing need. A minority of Republicans prevented an override of the Presidential veto. If workers were paid a living wage this kind of assistance would not be an issue. The failure to approve an increase in the program is to be expected from a party that has done nothing to enforce the labor laws or attempt to insure that workers get fair treatment when corporate profits soar.

i think this has less to do with the one's in power and more to do with the lack of unions.

A good large union has a staggering effect at the negotiating table. Infact Italy has shown how a good union can have such a large effect that even politics sees it as a force to be reckoned with. (they did overdo it in Italy, but it shows the potential)

The OpEd is near-sighted and makes several false statements.

The emergence of the United States as an industrial superpower originated in the early 20th century and I would point to Henry Ford as a leader in this regard. Henry Ford initiated a 40 hr work week and doubled the wages of his employees all without a union in place at the time. This raised the "cost of wages" thoughout the country. Of course he also initiated other production improvements like the assembly line on a massive scale that hadn't been seen before in the auto industry.

And wage increases unrelated to increased production do not drive inflation but are a response to inflation. Inflation is caused by an increase in the money supply. The more dollars in circulation the less each one is worth. It was the printing of unsupported dollars based upon a change from species money to fiat money that lead to inflation. In a fiat money economy the government can simply print more money which drives inflation. Species money is tied to a commodity and has an actual value based upon that commodity whereas fiat money is not tied to a commodity and has no intrinsic value.

I would also cite the income tax as the major cause behind the decline in America's competitiveness as an industrial power. The increase in the income tax as a means for funding the US government directly correlates to the decline in industry in America. We see industrial jobs being outsourced to other country because they can produce the same goods for less on the international markets. It is estimated that the cost of US products is 15-25% more because if the hidden taxes imposed by the income tax. Without those hidden taxes our products would be competitive on the international markets and because of them they are not. If we cannot compete internationally then we lose the jobs associated with production because those jobs are outsourced to countries that can compete.

These problems that have lead to the loss of jobs and productivity in America can be blamed equally on both parties. Both supported the change from species money to fiat money. Both parties supported the income tax. Both parties support deficit spending.

These three factors are at the heart of why America is losing jobs and why the economy suffers. It is time to eliminate the income tax and replace it with another means of funding the government. It is time to go back to species money preferrably backed by gold or silver. It is time to stop deficit spending and to pay off the national debt. If we do these three simple things American would once agian become the industrial giant we have the capabilities to be.

Yes, to do these things requires that the US stop spending trillions of dollars on international interventionism and to stop creating more tax and spend social programs. We need to figure out how to phase out Social Security which will drive additional taxation starting by 2017. We need to phase out Medicare which is going to be a tax drain that America cannot support in the future. I know, many Americans are opposed to these ideas but they hide their heads in the sand by doing so. What needs to be done is clearly evident but will the People support what really needs to be done to return America to a sound economy that creates jobs which benefit the People and all of America?

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Soldiers swear to protect and defend the Constitution with their lives.

Politicians swear to protect and defend the Constitution with someone else's life.