"Why should autoworkers be forced to bear a “great cost” of a strike when the UAW is sitting on a $600 million strike fund? This is enough to pay all 53,000 GM workers $1,000 a week in strike benefits for three months. The only cost would be to the UAW executives who have long used the money as a personal slush fund."
UAW officials spout company line
By Jerry White
5 November 2015
The United Auto Workers and its PR firm BerlinRosen are pulling out all the stops in their effort to ram through a sellout agreement with General Motors.After workers in Fairfax, Kansas voted “no” by a large majority this past weekend, UAW Vice President Cindy Estrada held a conference call with local union officials from GM plants across the country. One official who later spoke to the Detroit Free Press said Estrada was worried about a repeat of the FCA debacle, when workers overwhelmingly rejected the first contract presented by the UAW.
According to a Facebook post by Vicki Hale, president of the Fairfax local, the International reps gave them the line: If the contract is defeated, the UAW would have no choice but to call a strike that “absolutely does not guarantee further gains.” If workers pressed for more it would “come out of the $1.9 billion in production allocation money.” In other words, the UAW is putting the gun of mass layoffs to the head of workers to break their resistance.
As union officials followed instructions to deliver this line to workers, the UAW and its PR firm rolled out a video on the UAW GM Talks Facebook page that included, among others, GM national bargaining committee officials Todd McDaniel from UAW Local 362 in Bay City, Michigan and Barry Campbell from UAW Local 598 in Flint, Michigan.
The basic line from the UAW executives is that GM is willing to spend only so much money on the contract. A fight for decent-paying jobs will be fruitless, and workers should just take what the company offers them. As it was once said, “The mouth speaks what the heart is full of.” In making such arguments, the UAW exposes itself as a tool of management and a propagandist for the company line.
Feigning sympathy with autoworkers who are determined to recoup their losses now that GM is making record profits, McDaniel begins with the damning admission, “We have active workers that hire in when they first start that are making less for working 40 hours a week… than some of our retirees.”
But accepting poverty wages, McDaniel insists, is the only way to keep your jobs. “When there is only so much money out there, it’s that push of maintaining job security that is killing us.”
He added, “Does the company have the money? Yes. Should they be paying it? Yes. Do our members, active and retired, deserve it? Yes. Can we get it all and still maintain jobs? No. We can only get so much without driving them over the border.”
For nearly four decades, the UAW—whose functionaries never take a pay cut—has insisted that endless sacrifices were needed to “save jobs.” While workers have been steadily impoverished through such concessions, this did nothing to stop the destruction of 1 million jobs at GM, Ford and Chrysler since 1979.
McDaniel’s Bay City powertrain plant is a case in point. The factory now has fewer than 300 workers, down from about 4,000 in the 1970s. GM only decided to keep bare-bones production going at the facility after the UAW agreed to concessions to make the plant “more competitive,” and after the impoverished city granted GM a 50-year tax abatement, the longest in state history.
Also on the video was Campbell, the chairman of Local 598 in Flint. Taking a “militant” posture, he says, “When we pass the demands of [workers] to management… they also have a stack of demands too. And it’s.. not a path to a better wage and benefits… it’s a path to make them more profitable at the expense of the workers. I think our membership understands that GM wants some things, but I don’t think they understand the amount of things that GM would like to take back from us.”
In a Facebook post Campbell added, “Your bargaining team had some very tough decisions to make to secure our investment for job security… Was it everything we wanted? No, but I’m very confident we took GM to the edge with a long and tiring fight.”
Long and tiring? Who is he kidding? What did UAW President Dennis Williams do? Threaten not to go golfing with GM executives?
In fact, there was no fight at all. The deal was worked out well in advance of any bogus “strike deadlines” and “last minute” settlements. It was an agreement between two business entities over how to increase the exploitation of autoworkers and divvy up the spoils. The only “long and tiring fight” the UAW is engaged in is against the resistance of rank-and-file workers.
In a Facebook post McDaniel warns, “I know there are people out there saying vote NO because this is only the ‘first’ offer…I firmly believe this agreement has all of the total cash value that we will get without a strike.”
A strike would “come at great cost,” McDaniel threatens, adding, “1st our members, many of whom aren’t prepared, may be out of work for many weeks or even months. 2nd we may not be able to get any job guarantees in an agreement after a strike and without work it’s only a matter of time before we close a few more plants making us even weaker in 2019 talks…
“3rd in order for a strike to be effective, you need public support. I don’t believe we will have it. The public, in many cases already, views us as over paid, lazy, and greedy. When the media starts reporting the economic gains we said NO to, do you really think they will support us?”
Back in the days of the Flint sit-down strikes, if anyone were to get up at a meeting and spout out such drivel, he would be immediately labeled a company agent and “stool pigeon.” But that was long ago. Today, Williams, Estrada and their flunkies on the regional and local level are proud to be known as “company men.”
Why should autoworkers be forced to bear a “great cost” of a strike when the UAW is sitting on a $600 million strike fund? This is enough to pay all 53,000 GM workers $1,000 a week in strike benefits for three months. The only cost would be to the UAW executives who have long used the money as a personal slush fund.
As for not winning public support, this is another lie. Millions of workers in the steel, telecom, airline and other industries, as well as teachers and other public sector workers, are facing the same attack on their jobs, health benefits and pensions. If autoworkers broke through the chains of the UAW and began a serious struggle against the money-mad corporate executives and Wall Street criminals, it would become a catalyst for a powerful counteroffensive by the entire working class. At the same time, it could lay the basis for a common fight of autoworkers in the US, Mexico and around the world against the attack on jobs and living standards by the global auto giants.
The UAW is opposed to such a struggle because it would disrupt the union business executives’ lucrative relations with the corporations and the government. The UAW is not a “workers’ organization” but a corporate-labor syndicate and industrial police force, which is paid billions in cash and corporate stocks to strangle the opposition of workers to the corporations’ dictates.
Half of US workers make less than $30,000 per year
"Amazon became a byword this year for savage treatment of
employees. Bezos joins several others in the top 15 notorious
for low-wage exploitation, including four heirs to the Wal-
Mart retail empire, James, Alice, Christy and Samuel Robson
Walton, and Phil Knight, chairman of Nike Inc., whose $24.4
billion fortune is extracted from his international network of
sports apparel-producing sweatshops."
Half of US workers make less than $30,000 per year
By David Brown
29 October 2015
Figures released Wednesday by the Social Security Administration (SSA) show that the majority of workers in the United States earn an income that puts them at or near the poverty level for a small family.Over half of US workers make less than $30,000 per year, and a staggering 40 percent of workers make less than $20,000 per year. The federal poverty line for a family of four is $24,250 and the line for a family of three is $20,090.
The Social Security Administration’s Average Wage figures are compiled by the agency from federal income taxes and employer W-2 forms. The report this year showed that the median wage for American workers in 2014 was $28,851, and that nearly a quarter of wage earners make less than $10,000, while the poverty rate for an individual is $11,770.
In short, America is a country where the vast majority of the population is impoverished or nearly so.
For many, low wages make it impossible to start a family or purchase a home. Home ownership rates have plunged to the lowest levels since 1967. Only two-thirds of adults aged 18-34 currently live outside of their parents’ household.
The rise of mass unemployment and poverty wages has left 14 percent of all households food insecure during 2014, according to the US Department of Agriculture. This has led the American Academy of Pediatrics to issue new guidelines for pediatricians screening all American children for hunger.
Meanwhile, an increasing share of households are dependent on a single income as the labor force participation rate has declined from its peak in early 2000 to its current rate of 62.4 percent, the lowest since 1977. About 46 million US households have only one wage earner, and another 30 million have no wage earners. The current average number of incomes per household is just 1.28.
Since the 2008 economic crisis, corporate profits have soared while teachers, autoworkers and oil workers have been told in contract negotiations that there is no money for raises, that health care costs need to be cut and that retirees are “living too long.”
Retirees have been particularly hard hit by these economic shifts. According to a report by the Government Accountability Office (GAO) released earlier this year, 29 percent of US households aged 55 or older have no retirement savings or pension plan. These households have a median yearly income of just $19,000, median financial assets of $1,000 and a net worth of $35,000. In short, they are completely unable to afford retirement and increasing medical expenses.
A growing share of older workers plan on delaying or entirely putting off retirement, but the GAO noted that over half of retirees were forced to stop working earlier than they planned “due to health factors, changes at their workplace, or other factors.”
Adjusted for inflation, there has been no increase in US wages since 1998, even as labor productivity has continued to increase. In the second quarter of 2015, labor productivity rose at an annualized rate of 3.3 percent compared to the first quarter, while real compensation dropped by 1.1 percent in nonfarm businesses, according to the Bureau of Labor Statistics.
Even as wages have stagnated, the stock market has soared, with the Dow Jones Industrial average growing by 131 percent since 1998. Following the 2008 crash, the markets have more than tripled, with the Dow reaching new heights of over 18,000 earlier this year, more than 4,000 higher than the former peak at the end of 2007. The CEOs riding this stock market boom have been compensating themselves handsomely for the cuts they have made to employee compensation.
The top-earning US 100 CEOs are sitting on personal retirement funds of $5 billion, according to a report published Wednesday by the Institute for Policy Studies. The report noted, “The company-sponsored retirement assets of just 100 CEOs add up to as much as the entire retirement account savings of 41% of American families (50 million families in total).” Overall CEO compensation has skyrocketed to record highs with the top 200 US CEOs averaging $22.6 million in compensation for in 2014.
The man at the top of the list is David Novak, the executive chairman of Yum Brands, who has a retirement fund of $243 million. This is enough to provide him payments of $1.3 million per month for the rest of his life. That means that every month he will receive more than the yearly income of 45 workers making the median wage.
HOW MANY OF THESE OPERATIONS ONLY HIRE "CHEAP" LABOR ILLEGALS???
Yum Brands owns Pizza Hut, Taco Bell and KFC, fast food restaurants notorious for paying their workers minimum wage while refusing to schedule them full-time in order to avoid providing health insurance or retirement benefits. Novak’s current yearly compensation is $10.5 million plus benefits.
The continued impoverishment of US workers takes place as countless billions are expended on the military. The US Air Force announced Wednesday that it had awarded an $80 billion contract to Northrop Grumman Corp. to design the next generation of strategic bombers and build a fleet of 100. This is part of a broader push by the Obama administration to modernize the entire nuclear arsenal at an estimated cost of $348 billion over the next 10 years.
The initial bipartisan budget agreement reached by the Obama administration and congressional leaders Monday would provide the military with over $600 billion in funding. When combined with continuing costs from America’s wars, nuclear armament spending and veteran care, the total spent for 2016 will be around $1 trillion: Enough to give every wage earner making less than the median a bonus of more than $12,000.
The stagnation of wages is the outcome of the program carried out by major corporations and both big business parties, working together with the trade unions, to make the working class pay for the decline of American capitalism and the economic crisis that erupted in 2008. American banks and corporations have sought to restore profitability by slashing labor costs, gutting pensions and eliminating health care benefits.
The goal of the government and trade unions has been to restore American “competitiveness” on the basis of permanently reduced labor costs. As part of the auto industry bailout of 2008, the Obama administration supported the expansion of second-tier workers who would make only $14 per hour, half of the wages paid to older workers. In the latest contract negotiations, the auto bosses and their trade union allies are seeking to further expand the share of workers paid such poverty “new-hire” wages.
Capitalism and mortality: Death rate soars for middle-aged US workers
This social counterrevolution has only accelerated under the Obama administration in the years since the financial crisis of 2008. The Wall Street crash of that year, triggered by the greed and criminality of the financial elite, has been utilized by that same financial aristocracy to strengthen its control over every aspect of social and political life in the United States.
Capitalism and mortality: Death rate soars for middle-aged US workers
4 November 2015
A study published this week in Proceedings of the National Academy of Sciences documents a sharp rise in the mortality rate for white, middle-aged working-class Americans over the past fifteen years. The report’s authors are Nobel laureate Angus Deaton and Anne Case, both economists at Princeton University.Their calculations show that the rising death rate since 1999 for this segment of the population translates into 96,000 more deaths than if the mortality rate had remained flat. Had the rate continued on its declining trajectory for the period 1978-1998, the authors state, there would be 500,000 more people alive today in the United States.
“Only HIV/AIDS in contemporary times has done anything like this,” commented Deaton.
The increase in the mortality rate is due mainly to a dramatic rise in the rate of deaths from suicide, drug abuse and alcoholism—all expressions of social and personal crisis.
Dr. Case and Dr. Deaton found that the overall mortality rate (measured as the number of deaths each year) for white, non-Hispanic adults between the ages of 45 and 54 increased by 34 per 100,000 between 1999 and 2013. For those with a high school education or less, the rate increased by 134 per 100,000 (reaching 735.8 per 100,000) over this same period. This is a rise of 22 percent. In the study, education level served as an approximate stand-in for income level.
The increase in mortality for middle-aged white Americans with a high school education or less is attributed to: poisonings (including drug overdoses), which rose from 13.7 to 58.0 deaths per 100,000 (an increase of 400 percent); suicide, which rose from 21.8 to 38.8 deaths per 100,000 (an increase of 78 percent); and chronic liver cirrhosis (caused by alcoholism), which rose from 26.7 to 38.9 per 100,000 (an increase of 46 percent).
The authors also document the growth of morbidity, or ill health, within this social layer, showing that reports of good health fell, while reports of physical pain, psychological distress and poor health rose sharply.
The study confirms and provides additional substantiation for the conclusions of previous reports, including one from September of this year that found a dramatic decline in life expectancy for poorer middle-aged Americans.
Behind these figures lies an immense social retrogression and sharpening of class divisions. They reflect a catastrophic decline in the social position of the working class resulting from the protracted decay of American capitalism and a relentless, decades-long assault by the ruling class on all of the past social gains achieved in the course of a century of bitter class struggle.
While white workers, particularly white men, are routinely denounced as “privileged” by the pseudo-left proponents of racial and gender politics, they have seen perhaps the most dramatic reversal in their conditions of life. Middle-aged blacks still have a higher mortality rate than whites, but the difference between the two groups is closing rapidly.
Consider the experiences of the age group involved. A worker aged 50 in 2013 was born in 1963, at the height of the postwar economic boom. He or she would have reached employment age around 1980, the onset of a ruling-class offensive aimed at driving down workers’ wages and living standards and dismantling social services and public infrastructure. With the “deindustrialization” of America, huge swaths of industry were shut down, working-class cities were devastated, and millions of decent-paying jobs were wiped out.
This social counterrevolution has only accelerated under the Obama administration in the years since the financial crisis of 2008. The Wall Street crash of that year, triggered by the greed and criminality of the financial elite, has been utilized by that same financial aristocracy to strengthen its control over every aspect of social and political life in the United States.
The number of manufacturing jobs in the United States peaked at 19.5 million in 1970, falling to 17.4 million in 1999 and collapsing to just over 12 million by 2013. The share of working-age men between the ages of 25 and 54 who are not working has tripled since the late 1960s. Those jobs that are available pay less and less. Households headed by someone with a high school education or less have seen a 19 percent decline in their inflation-adjusted income.
Immense resources have been diverted into financial speculation, with the stock market becoming the primary mechanism for redistributing wealth from the poor to the rich. The share of national income going to the top one percent has nearly tripled, increasing from about 8 percent in the 1960s and 1970s to more than 20 percent today.
The consequences have been disastrous for predominantly African American cities such as Detroit, but the most concentrated growth of poverty in recent years has occurred in the suburbs—an increase of 64 percent from 2000 to 2011, according to one study.
Workers who are now middle-aged have experienced an unending decline in living standards. They have had their homes taken away, their retirement and health benefits gutted, their life savings wiped out. Millions are drowning in debt, exhausted by overwork or scraping by on unemployment, often unable to provide for their families and facing the permanent stress of economic insecurity. The “American dream” has become the American nightmare.
The organizations through which workers previously resisted the dictates of the corporations have collapsed. The trade unions have become labor syndicates, serving as a police force for the corporations to suppress the class struggle and impose mass layoffs, wage cuts and speedup. Under these conditions, the anger and frustration of workers, unable to find any organized expression, have in many cases been turned inward and taken personally and socially destructive forms.
This, however, is not a permanent state of affairs. The increase in mortality for large sections of the American population testifies to the failure of the capitalist system and the bankruptcy of all of its agencies, including the official unions. The objective crisis of capitalism is already giving rise to a growth of social opposition and anti-capitalist sentiment, which will inevitably find expression in a new upsurge of class struggle.
That the ruling class has nothing to offer to address the spiraling social crisis is reflected in the lack of serious attention paid to the shocking findings of the Princeton economists. In an earlier period, they would have been treated as a national disgrace.
Today, the Democrats and Republicans compete with each other in slashing social programs. A decline in life expectancy is seen as a positive good by a ruling class that is determined to cut spending on health care and pensions in order to finance an ever-expanding stock market bubble.
Under capitalism, society is marching backwards. The only social force that can reverse this counterrevolution is the working class. The growing sentiment of anger and opposition must assume an organized, political and revolutionary form. The turn is to socialism and the building of the revolutionary leadership, the Socialist Equality Party, required to lead the struggle for the socialist transformation of society.
Joseph Kishore
TO KEEP WAGES DEPRESSED AND BUILD THEIR LA RAZA "The Race" MEXICAN ILLEGAL PARTY BASE, THE DEMOCRAT PARTY HAS RUTHLESSLY ASSAULTED THE AMERICAN WORKER, OUR LAWS ON HIRING ILLEGALS AND OUR BORDERS TO KEEP WAGES DEPRESSED.
Income inequality grows FOUR TIMES
FASTER under Obama than Bush.
FASTER under Obama than Bush.
“By the time of Bill Clinton’s election in 1992, the Democratic Party had completely repudiated its association with the reforms of the New Deal and Great Society periods. Clinton gutted welfare programs to provide an ample supply of cheap labor for the rich (WHICH NOW MEANS OPEN BORDERS AND NO E-VERIFY!), including a growing layer of black capitalists, and passed the 1994 Federal Crime Bill, with its notorious “three strikes” provision that has helped create the largest prison population in the world.”
"The U.S. now ranks at, or near, the top of developed countries for income inequality. Job creation has lagged far behind population growth. Automation has erased some jobs, but corrupt, inept government leadership is responsible for the deplorable job- deficit-low wage situation."
"The federal government encourages the massive illegal and legal immigration that plays a huge role in job scarcity and income suppression for American workers. To paraphrase Milton Friedman, a viable economy cannot exist with open borders and unrestricted immigration. An oversupply of workers willing to work for less pay, the outsourcing of jobs, and visa-immigrant hiring allow companies to replace American workers with immigrants for reduced labor and benefit costs."
Income inequality has risen during the last several decades to heights last seen in the 1920s. Most of the income growth has gone to a small fraction of the population, the ultra-rich elites, while real wages for the bottom 90 percent ...
November 3, 2015
The Causes of Income Inequality
Income inequality has risen during the last several decades to heights last seen in the 1920s. Most of the income growth has gone to a small fraction of the population, the ultra-rich elites, while real wages for the bottom 90 percent has been stagnant since the 1980s. The U.S. now ranks at, or near, the top of developed countries for income inequality. Job creation has lagged far behind population growth. Automation has erased some jobs, but corrupt, inept government leadership is responsible for the deplorable job- deficit-low wage situation.
Trade agreements are one cause of job and wage reduction. Over the last twenty years, we’ve amassed $10 trillion in trade deficits and exported 12 million manufacturing jobs, forcing workers to move into lower-wage service jobs. Government brags about the free trade agreements, CAFTA, NAFTA, KORUS, and TPP. But the “free” applies only to the foreign trading partners, which manipulate their currencies, pay sweatshop workers low wages, manufacture under environmentally-toxic conditions, and restrict U.S. imports. We hand over our technology, good-paying jobs, product labeling, and safety guarantees -- all to enrich multinational corporations and foreign industry. Industrial research and development have been decimated as companies move overseas or outsource jobs, leaving the nation a future of little technological innovation. The U.S. is left with hollowed-out industries and service jobs.
Trade agreements are one cause of job and wage reduction. Over the last twenty years, we’ve amassed $10 trillion in trade deficits and exported 12 million manufacturing jobs, forcing workers to move into lower-wage service jobs. Government brags about the free trade agreements, CAFTA, NAFTA, KORUS, and TPP. But the “free” applies only to the foreign trading partners, which manipulate their currencies, pay sweatshop workers low wages, manufacture under environmentally-toxic conditions, and restrict U.S. imports. We hand over our technology, good-paying jobs, product labeling, and safety guarantees -- all to enrich multinational corporations and foreign industry. Industrial research and development have been decimated as companies move overseas or outsource jobs, leaving the nation a future of little technological innovation. The U.S. is left with hollowed-out industries and service jobs.
The federal government encourages the massive illegal and legal immigration that plays a huge role in job scarcity and income suppression for American workers. To paraphrase Milton Friedman, a viable economy cannot exist with open borders and unrestricted immigration. An oversupply of workers willing to work for less pay, the outsourcing of jobs, and visa-immigrant hiring allow companies to replace American workers with immigrants for reduced labor and benefit costs. A well-known example is that of Disney IT workers who were forced to train their cheaper immigrant replacements. It is no coincidence that the rise in immigration has occurred simultaneously with the rise of the welfare state. People unemployed, or in low-wage and part-time jobs, rely on government subsidies. The result is larger national debt, more corporate wealth, and declining wages.
ObamaCare influences, and will influence to greater degrees, the lowering of incomes for Americans as healthcare costs rise. Higher premiums and deductions for health insurance are being shifted to employees, reducing benefits and wages. Medical care costs already have risen much faster than wages, leaving many struggling to pay for necessities. Ever-higher deductions mean that people can’t afford to use the insurance they are forced to buy because they can’t even pay the deductions.
Another contributor to job deficiency and wage stagnation is the increased regulation and taxation of small businesses instituted by Obama’s executive orders, EPA overreach, and ObamaCare. Small businesses traditionally have created two-thirds of new jobs annually. The bright spot in the economy, small businesses have created 78.7 percent of new jobs since the recession. Today, faced with these government anti-business policies, small businesses are closing their doors at a faster rate than new businesses are opening. The small businesses that remain open often don’t expand because of Obamacare and government regulations.
Income inequality is greatly impacted by the Federal Reserve’s policies of money-printing and zero interest rates, which have led to the funding of the financial and corporate markets while ignoring the needs of smaller businesses. The money supply and cheap lending has gone to the government, large corporations, and Wall Street, leaving the rest of the economy to sputter along with little capital and fewer jobs. The Fed’s policies of crony capitalism favor big business and big banks over that of smaller entities and are responsible for the increasing number of big business deals such as Walgreen's purchase of Rite Aid.
This government-driven, crony-capitalist economy defined by job scarcity and wage stagnation is the reason college graduates are burdened by $1.3 trillion debt, living with parents, can’t afford to marry or buy homes, and working as waitresses and bartenders. Job scarcity and low wages are the reasons we’re becoming a nation of renters rather than homeowners. They are the reasons that 51 percent of workers earn less than $30,000 a year. They are the reasons for the demise of the middle class and the burgeoning welfare rolls, the modern-day equivalent of slavery.
Income inequality and its devastating consequences are seldom mentioned on the nightly news. The media and bogus government statistics paint rosy pictures about economic recovery, and government masks the bad economy with welfare so that we don’t see Great Depression bread lines. But the only recovery has been in the Federal Reserve’s inflated stock market, not in the main street economy, where 94 million working-age adults are unemployed and 47 million are on some welfare program. The “Made in America” displays weekly touted by ABC news are the few exceptions, rather than the rule, in an American economy of boarded-up stores and factories.
The political implications of income inequality are most evident in the increasing rise and entrenchment of career politicians, supported by big donor funding and media favoritism. The integrity of the electoral process is endangered as election propaganda, funded by big money and hyped by corporate media bias, become more prominent in spreading lies, distortions, and innuendos to the voting public. Unrestricted campaign funding has given the moneyed elites first access to elected officials. At the same time, private-sector unions, small businesses, and citizens find their influence dwindling or irrelevant. This crony capitalism, resembling dictatorships and communist oligarchies, seriously threatens our democracy because money, power, and media control are consolidated in the hands of a few at the top. Voter apathy prevails, as voters feel increasingly powerless to change the course of events.
The United States, a once great economic powerhouse and the largest creditor nation, has become the largest debtor nation, and is fast becoming a banana republic. Past and present elected authorities and public officials have stripped bare our industries, put the nation under a mountain of debt, and turned the U.S. into a welfare depository. Government leaders have intentionally failed to protect our borders, jobs, and freedoms. These public “servants” and the wealthy elites have garnered riches for themselves, and purposely impoverished citizens and future generations. The greatest threats to our economy and national security are not foreign countries or terrorists; they are the enemies inside, corrupt government leaders and the money masters they serve.
ObamaCare influences, and will influence to greater degrees, the lowering of incomes for Americans as healthcare costs rise. Higher premiums and deductions for health insurance are being shifted to employees, reducing benefits and wages. Medical care costs already have risen much faster than wages, leaving many struggling to pay for necessities. Ever-higher deductions mean that people can’t afford to use the insurance they are forced to buy because they can’t even pay the deductions.
Another contributor to job deficiency and wage stagnation is the increased regulation and taxation of small businesses instituted by Obama’s executive orders, EPA overreach, and ObamaCare. Small businesses traditionally have created two-thirds of new jobs annually. The bright spot in the economy, small businesses have created 78.7 percent of new jobs since the recession. Today, faced with these government anti-business policies, small businesses are closing their doors at a faster rate than new businesses are opening. The small businesses that remain open often don’t expand because of Obamacare and government regulations.
Income inequality is greatly impacted by the Federal Reserve’s policies of money-printing and zero interest rates, which have led to the funding of the financial and corporate markets while ignoring the needs of smaller businesses. The money supply and cheap lending has gone to the government, large corporations, and Wall Street, leaving the rest of the economy to sputter along with little capital and fewer jobs. The Fed’s policies of crony capitalism favor big business and big banks over that of smaller entities and are responsible for the increasing number of big business deals such as Walgreen's purchase of Rite Aid.
DEATH OF THE AMERICAN MIDDLE-CLASS
This government-driven, crony-capitalist economy defined by job scarcity and wage stagnation is the reason college graduates are burdened by $1.3 trillion debt, living with parents, can’t afford to marry or buy homes, and working as waitresses and bartenders. Job scarcity and low wages are the reasons we’re becoming a nation of renters rather than homeowners. They are the reasons that 51 percent of workers earn less than $30,000 a year. They are the reasons for the demise of the middle class and the burgeoning welfare rolls, the modern-day equivalent of slavery.
Income inequality and its devastating consequences are seldom mentioned on the nightly news. The media and bogus government statistics paint rosy pictures about economic recovery, and government masks the bad economy with welfare so that we don’t see Great Depression bread lines. But the only recovery has been in the Federal Reserve’s inflated stock market, not in the main street economy, where 94 million working-age adults are unemployed and 47 million are on some welfare program. The “Made in America” displays weekly touted by ABC news are the few exceptions, rather than the rule, in an American economy of boarded-up stores and factories.
The political implications of income inequality are most evident in the increasing rise and entrenchment of career politicians, supported by big donor funding and media favoritism. The integrity of the electoral process is endangered as election propaganda, funded by big money and hyped by corporate media bias, become more prominent in spreading lies, distortions, and innuendos to the voting public. Unrestricted campaign funding has given the moneyed elites first access to elected officials. At the same time, private-sector unions, small businesses, and citizens find their influence dwindling or irrelevant. This crony capitalism, resembling dictatorships and communist oligarchies, seriously threatens our democracy because money, power, and media control are consolidated in the hands of a few at the top. Voter apathy prevails, as voters feel increasingly powerless to change the course of events.
The United States, a once great economic powerhouse and the largest creditor nation, has become the largest debtor nation, and is fast becoming a banana republic. Past and present elected authorities and public officials have stripped bare our industries, put the nation under a mountain of debt, and turned the U.S. into a welfare depository. Government leaders have intentionally failed to protect our borders, jobs, and freedoms. These public “servants” and the wealthy elites have garnered riches for themselves, and purposely impoverished citizens and future generations. The greatest threats to our economy and national security are not foreign countries or terrorists; they are the enemies inside, corrupt government leaders and the money masters they serve.
Income inequality has risen during the last several decades to heights last seen in the 1920s. Most of the income growth has gone to a small fraction of the population, the ultra-rich elites, while real wages for the bottom 90 percent has been stagnant since the 1980s. The U.S. now ranks at, or near, the top of developed countries for income inequality. Job creation has lagged far behind population growth. Automation has erased some jobs, but corrupt, inept government leadership is responsible for the deplorable job- deficit-low wage situation.
Trade agreements are one cause of job and wage reduction. Over the last twenty years, we’ve amassed $10 trillion in trade deficits and exported 12 million manufacturing jobs, forcing workers to move into lower-wage service jobs. Government brags about the free trade agreements, CAFTA, NAFTA, KORUS, and TPP. But the “free” applies only to the foreign trading partners, which manipulate their currencies, pay sweatshop workers low wages, manufacture under environmentally-toxic conditions, and restrict U.S. imports. We hand over our technology, good-paying jobs, product labeling, and safety guarantees -- all to enrich multinational corporations and foreign industry. Industrial research and development have been decimated as companies move overseas or outsource jobs, leaving the nation a future of little technological innovation. The U.S. is left with hollowed-out industries and service jobs.
The federal government encourages the massive illegal and legal immigration that plays a huge role in job scarcity and income suppression for American workers. To paraphrase Milton Friedman, a viable economy cannot exist with open borders and unrestricted immigration. An oversupply of workers willing to work for less pay, the outsourcing of jobs, and visa-immigrant hiring allow companies to replace American workers with immigrants for reduced labor and benefit costs. A well-known example is that of Disney IT workers who were forced to train their cheaper immigrant replacements. It is no coincidence that the rise in immigration has occurred simultaneously with the rise of the welfare state. People unemployed, or in low-wage and part-time jobs, rely on government subsidies. The result is larger national debt, more corporate wealth, and declining wages.
ObamaCare influences, and will influence to greater degrees, the lowering of incomes for Americans as healthcare costs rise. Higher premiums and deductions for health insurance are being shifted to employees, reducing benefits and wages. Medical care costs already have risen much faster than wages, leaving many struggling to pay for necessities. Ever-higher deductions mean that people can’t afford to use the insurance they are forced to buy because they can’t even pay the deductions.
Another contributor to job deficiency and wage stagnation is the increased regulation and taxation of small businesses instituted by Obama’s executive orders, EPA overreach, and ObamaCare. Small businesses traditionally have created two-thirds of new jobs annually. The bright spot in the economy, small businesses have created 78.7 percent of new jobs since the recession. Today, faced with these government anti-business policies, small businesses are closing their doors at a faster rate than new businesses are opening. The small businesses that remain open often don’t expand because of Obamacare and government regulations.
Income inequality is greatly impacted by the Federal Reserve’s policies of money-printing and zero interest rates, which have led to the funding of the financial and corporate markets while ignoring the needs of smaller businesses. The money supply and cheap lending has gone to the government, large corporations, and Wall Street, leaving the rest of the economy to sputter along with little capital and fewer jobs. The Fed’s policies of crony capitalism favor big business and big banks over that of smaller entities and are responsible for the increasing number of big business deals such as Walgreen's purchase of Rite Aid.
This government-driven, crony-capitalist economy defined by job scarcity and wage stagnation is the reason college graduates are burdened by $1.3 trillion debt, living with parents, can’t afford to marry or buy homes, and working as waitresses and bartenders. Job scarcity and low wages are the reasons we’re becoming a nation of renters rather than homeowners. They are the reasons that 51 percent of workers earn less than $30,000 a year. They are the reasons for the demise of the middle class and the burgeoning welfare rolls, the modern-day equivalent of slavery.
Income inequality and its devastating consequences are seldom mentioned on the nightly news. The media and bogus government statistics paint rosy pictures about economic recovery, and government masks the bad economy with welfare so that we don’t see Great Depression bread lines. But the only recovery has been in the Federal Reserve’s inflated stock market, not in the main street economy, where 94 million working-age adults are unemployed and 47 million are on some welfare program. The “Made in America” displays weekly touted by ABC news are the few exceptions, rather than the rule, in an American economy of boarded-up stores and factories.
The political implications of income inequality are most evident in the increasing rise and entrenchment of career politicians, supported by big donor funding and media favoritism. The integrity of the electoral process is endangered as election propaganda, funded by big money and hyped by corporate media bias, become more prominent in spreading lies, distortions, and innuendos to the voting public. Unrestricted campaign funding has given the moneyed elites first access to elected officials. At the same time, private-sector unions, small businesses, and citizens find their influence dwindling or irrelevant. This crony capitalism, resembling dictatorships and communist oligarchies, seriously threatens our democracy because money, power, and media control are consolidated in the hands of a few at the top. Voter apathy prevails, as voters feel increasingly powerless to change the course of events.
The United States, a once great economic powerhouse and the largest creditor nation, has become the largest debtor nation, and is fast becoming a banana republic. Past and present elected authorities and public officials have stripped bare our industries, put the nation under a mountain of debt, and turned the U.S. into a welfare depository. Government leaders have intentionally failed to protect our borders, jobs, and freedoms. These public “servants” and the wealthy elites have garnered riches for themselves, and purposely impoverished citizens and future generations. The greatest threats to our economy and national security are not foreign countries or terrorists; they are the enemies inside, corrupt government leaders and the money masters they serve.
Trade agreements are one cause of job and wage reduction. Over the last twenty years, we’ve amassed $10 trillion in trade deficits and exported 12 million manufacturing jobs, forcing workers to move into lower-wage service jobs. Government brags about the free trade agreements, CAFTA, NAFTA, KORUS, and TPP. But the “free” applies only to the foreign trading partners, which manipulate their currencies, pay sweatshop workers low wages, manufacture under environmentally-toxic conditions, and restrict U.S. imports. We hand over our technology, good-paying jobs, product labeling, and safety guarantees -- all to enrich multinational corporations and foreign industry. Industrial research and development have been decimated as companies move overseas or outsource jobs, leaving the nation a future of little technological innovation. The U.S. is left with hollowed-out industries and service jobs.
The federal government encourages the massive illegal and legal immigration that plays a huge role in job scarcity and income suppression for American workers. To paraphrase Milton Friedman, a viable economy cannot exist with open borders and unrestricted immigration. An oversupply of workers willing to work for less pay, the outsourcing of jobs, and visa-immigrant hiring allow companies to replace American workers with immigrants for reduced labor and benefit costs. A well-known example is that of Disney IT workers who were forced to train their cheaper immigrant replacements. It is no coincidence that the rise in immigration has occurred simultaneously with the rise of the welfare state. People unemployed, or in low-wage and part-time jobs, rely on government subsidies. The result is larger national debt, more corporate wealth, and declining wages.
ObamaCare influences, and will influence to greater degrees, the lowering of incomes for Americans as healthcare costs rise. Higher premiums and deductions for health insurance are being shifted to employees, reducing benefits and wages. Medical care costs already have risen much faster than wages, leaving many struggling to pay for necessities. Ever-higher deductions mean that people can’t afford to use the insurance they are forced to buy because they can’t even pay the deductions.
Another contributor to job deficiency and wage stagnation is the increased regulation and taxation of small businesses instituted by Obama’s executive orders, EPA overreach, and ObamaCare. Small businesses traditionally have created two-thirds of new jobs annually. The bright spot in the economy, small businesses have created 78.7 percent of new jobs since the recession. Today, faced with these government anti-business policies, small businesses are closing their doors at a faster rate than new businesses are opening. The small businesses that remain open often don’t expand because of Obamacare and government regulations.
Income inequality is greatly impacted by the Federal Reserve’s policies of money-printing and zero interest rates, which have led to the funding of the financial and corporate markets while ignoring the needs of smaller businesses. The money supply and cheap lending has gone to the government, large corporations, and Wall Street, leaving the rest of the economy to sputter along with little capital and fewer jobs. The Fed’s policies of crony capitalism favor big business and big banks over that of smaller entities and are responsible for the increasing number of big business deals such as Walgreen's purchase of Rite Aid.
This government-driven, crony-capitalist economy defined by job scarcity and wage stagnation is the reason college graduates are burdened by $1.3 trillion debt, living with parents, can’t afford to marry or buy homes, and working as waitresses and bartenders. Job scarcity and low wages are the reasons we’re becoming a nation of renters rather than homeowners. They are the reasons that 51 percent of workers earn less than $30,000 a year. They are the reasons for the demise of the middle class and the burgeoning welfare rolls, the modern-day equivalent of slavery.
Income inequality and its devastating consequences are seldom mentioned on the nightly news. The media and bogus government statistics paint rosy pictures about economic recovery, and government masks the bad economy with welfare so that we don’t see Great Depression bread lines. But the only recovery has been in the Federal Reserve’s inflated stock market, not in the main street economy, where 94 million working-age adults are unemployed and 47 million are on some welfare program. The “Made in America” displays weekly touted by ABC news are the few exceptions, rather than the rule, in an American economy of boarded-up stores and factories.
The political implications of income inequality are most evident in the increasing rise and entrenchment of career politicians, supported by big donor funding and media favoritism. The integrity of the electoral process is endangered as election propaganda, funded by big money and hyped by corporate media bias, become more prominent in spreading lies, distortions, and innuendos to the voting public. Unrestricted campaign funding has given the moneyed elites first access to elected officials. At the same time, private-sector unions, small businesses, and citizens find their influence dwindling or irrelevant. This crony capitalism, resembling dictatorships and communist oligarchies, seriously threatens our democracy because money, power, and media control are consolidated in the hands of a few at the top. Voter apathy prevails, as voters feel increasingly powerless to change the course of events.
The United States, a once great economic powerhouse and the largest creditor nation, has become the largest debtor nation, and is fast becoming a banana republic. Past and present elected authorities and public officials have stripped bare our industries, put the nation under a mountain of debt, and turned the U.S. into a welfare depository. Government leaders have intentionally failed to protect our borders, jobs, and freedoms. These public “servants” and the wealthy elites have garnered riches for themselves, and purposely impoverished citizens and future generations. The greatest threats to our economy and national security are not foreign countries or terrorists; they are the enemies inside, corrupt government leaders and the money masters they serve.
Read more: http://www.americanthinker.com/articles/2015/11/the_causes_of_income_inequality.html#ixzz3qSBDYQVs
Follow us: @AmericanThinker on Twitter | AmericanThinker on Facebook
Obamacare open enrollment: A widening health care disaster for workers
Obamacare open enrollment: A widening health care disaster for workers
3 November 2015
“All of Obama’s policies have been geared toward increasing social inequality. … The claim that the health care overhaul is an oasis of progress in this desert of social reaction is simply a lie”— World Socialist Web Site, March 22, 2010Open enrollment for the Affordable Care Act (ACA) began November 1 for plans taking effect January 1. The coming year will be the third in which the ACA, signed into law by President Obama in March 2010, will be operational. The World Socialist Web Site’s assessment five years ago that the “reform” commonly known as Obamacare would usher in a frontal assault on the health care available to working people is being richly confirmed.
The ACA has nothing in common with universal health care. That was merely the slogan initially advanced to disguise a corporate-designed scheme to dramatically shift health care costs onto the working class.
The central component of the scheme, the “individual mandate,” requires that individuals and families without health insurance through their employer or a government program such as Medicare or Medicaid obtain insurance or pay a tax penalty. Low-income people can qualify for modest tax subsidies to go toward premiums.
The uninsured are required to purchase coverage from private, for-profit insurance companies on the health care “exchanges” set up under the law. This vastly increases the market for private insurance firms without placing any real restraints on the prices they charge—a formula for windfall profits.
By the government’s own forecast, enrollees will face a 7.5 percent average premium rate increase in 2016. Other sources project rate hikes in excess of 20 percent. A recent study showed that many insurers are requesting double-digit rate increases next year and state insurance commissions are approving them.
A frenzy of mergers in the health care industry will fuel further premium increases. In the space of a few weeks in July, Aetna Inc. and Humana Inc. merged in a $37 billion deal, and Anthem Inc. agreed to acquire Cigna Corp. for $54 billion. As a result, the five largest health insurers in the US were consolidated into three.
Drug makers Allergan and Pfizer are in the advanced stages of talks to merge and form the world’s largest pharmaceutical company, valued at $330 billion. The price of top brand name prescription drugs are already surging, having increased by 12.9 percent in 2013, the last year for which data is available.
Last week the giant drug store chain Walgreens announced a deal to take over one of its main competitors, Rite Aid, creating a mega-chain to compete with CVS for total domination of the market.
Premiums and drug costs are only one aspect of the burden to be borne by those purchasing coverage under the ACA. The average deductible for the lowest tier “bronze” plans on the exchanges was $5,200 in 2015, and the prevalence of such “high-deductible” plans is sure to expand in 2016. This means that aside from mandated “essential services,” such as certain forms of wellness care and screenings, no medical care is covered until the entire deductible is paid out of pocket. Co-payments for doctor visits and other services are also required.
Research published in the current issue of the Journal of the American Medical Association looked at 135 health plans in 34 state marketplaces available during last year’s open enrollment period. The study found that as of April 2015, 18 plans in nine states lacked in-network specialists for at least one specialty. These included obstetricians/gynecologists, dermatologists, cardiologists, psychiatrists, oncologists, neurologists, endocrinologists, rheumatologists and pulmonologists.
What all of this means is that a substantial portion of the 12 million people who have purchased coverage on the health care exchanges will be forced to self-ration medical care due to economic necessity. Workers and their children will forego doctor visits, prescriptions for life-saving medicines will go unfilled, needless suffering and deaths will occur.
This appalling state of affairs is not an unfortunate byproduct of the ACA. By design from its inception, the legislation has been crafted to cut costs for the government and corporations and boost the profits of the health insurers, pharmaceutical corporations and health care chains.
According to the big business parties and their corporate sponsors, Americans are living too long and health care costs are sucking up too much of the national wealth. There is a calculated drive to lower life expectancy for working people.
That is why the introduction of Obamacare has been accompanied by a concerted drive to restrict access to basic medical tests—that is, to ration health care for workers. In recent months, official bodies have called for reducing or delaying mammograms, pap smears, prostate tests and other standard screening procedures.
One indication of the catastrophic implications of the assault on health care is a recent study showing that since 1998, the death rate for middle-income white Americans age 45-54 has risen sharply, resulting in half a million deaths, comparable to the 650,000 Americans who have lost their lives from AIDS since 1981. Researchers point to suicides and substance abuse, driven by increasing financial stress, as the main contributing factors. The ACA will only increase the number of such tragedies.
The implications of Obamacare go far beyond those buying insurance on the ACA exchanges and extend to all segments of health care. The legislation is serving as a model for the assault on employer-sponsored health care coverage as well as the bedrock government-run programs Social Security and Medicare.
Today, approximately half of all Americans receive their health care coverage through their employers. Employer-paid health benefits was an important social gain wrested from the corporations by the struggles of workers in the aftermath of World War II and has been central in raising the living standards of working class families.
But the workings of Obamacare aim to destroy these gains. As Ezekiel Emanuel, a close ally of Obama and key architect of the ACA, predicted in 2009: “By 2025, few private-sector employers will still be providing health insurance.” These plans will give way to vouchers handed out to employees to purchase coverage on insurance exchanges, either those set up under the ACA or others.
In the current contract struggle of US autoworkers, the drive by the auto companies and their union partners to dismantle the “cradle-to-grave” medical coverage won by autoworkers and retirees is in line with the Obama administration’s policy of shifting health care costs to workers.
The recent budget deal between Obama and congressional Republicans rolls back a significant provision in the ACA, the requirement that businesses with more than 200 workers automatically enroll their employees for health insurance. And while employers are basically absolved of responsibility for providing insurance, fines for individuals for not obtaining insurance will rise substantially in 2016—to $695, or 2.5 percent of income, whichever is higher.
Paul Ryan, the newly elected speaker of the House of Representatives, has advocated transforming Medicare into a voucher program and partially privatizing Social Security. That he is now presented as a “moderate” unifying force by the ruling elite and the media is an indication of how far to the right the political establishment in America has veered. The foundations are already being laid for the dismantling of Medicare and Social Security.
As the real content of Obamacare becomes clear to millions of workers and middle class people, who suddenly discover that they cannot get access to drugs or doctors and standard medical procedures are no longer covered by their insurance plans, there will be an explosive growth of social opposition.
The third year of the Affordable Care Act is the occasion to call the reactionary legislation by its rightful name: a health care counterrevolution. The only rational and progressive solution to the health care crisis in America is to replace the privately owned and controlled system with socialized medicine, in which the health care industry is nationalized, restructured, and placed under the democratic control of a workers government. This will make possible the provision of quality health care for all as a basic social right.
Kate Randall
"Amazon became a byword this year for savage treatment of
employees. Bezos joins several others in the top 15 notorious
for low-wage exploitation, including four heirs to the Wal-
Mart retail empire, James, Alice, Christy and Samuel Robson
Walton, and Phil Knight, chairman of Nike Inc., whose $24.4
billion fortune is extracted from his international network of
sports apparel-producing sweatshops."
OBAMA-CLINTONomics is a simple device - Serve the super rich and pass the cost of their looting and Wall Street crimes on to the backs of the last of the American middle-class!
"Of course, the wealth of the financial elite cannot come from nowhere. Ultimately, the continual infusion of asset bubbles is the form taken by a massive transfer of wealth, from the working class to the banks, investors and super-rich. The corollary to rise of the stock market is the endless demands, all over the world, for austerity, cuts in wages, attacks on health care and pensions."
“As a result, the share of wealth held by the richest 0.1 percent of the population grew from 17 percent in 2007 to 22 percent in 2012, while the wealth of the 400 richest families in the US has doubled since 2008.”
OBAMA-CLINTONomics and the final death of the American middle-class
"Obama expanded the Wall Street bailout, handing trillions of dollars to the criminals who wrecked the economy. He then utilized the financial meltdown to restructure the auto industry on the basis of brutal pay cuts, setting a precedent for the transformation of the US into a low-wage economy."
"In the midst of the deepest slump since the Great Depression, the administration starved state and city governments of resources, leading to the destruction of hundreds of thousands of education and public-sector jobs and the gutting of workers’ pensions. Obama’s Affordable Care Act set in motion the dismantling of employer-paid health insurance and massive cuts in the Medicare insurance system for the elderly."
UAW sanctions closure of GM assembly plant in Wisconsin
By George Gallanis
4 November 2015
The tentative contract agreement between General Motors (GM) and United Auto Workers (UAW) sanctions the permanent closure of the GM Janesville plant in Wisconsin. The shutdown of the 4.8 million-square-foot plant, which has been on “standby” since 2009, exposes the lie that the UAW won “job security” in the deal.The nearly 100-year-old plant, 100 miles northwest of Chicago, ceased production of SUVs on December 23, 2008, with more than 2,000 workers losing their jobs just days before Christmas. Around 60 workers continued assembly production under the GM/Isuzu light truck partnership until April 23, 2009. Roughly 50 skilled trade workers went on to decommission the plant.
The forced bankruptcy and restructuring of GM, overseen by the Obama administration, led to the closure of 14 plants, and the elimination of 20,000 jobs. Several plants, including Janesville; Spring Hill, Tennessee; and Orion Township, north of Detroit, were put on “standby.” Both Spring Hill and Orion were subsequently reopened after the UAW “modified” the national agreement and the local union agreed to impose even deeper concessions on workers in those plants.
Prior to being decommissioned and placed on standby, the Janesville plant produced large SUVs, such as the Chevy Suburban and Tahoe and the GMC Yukon and Yukon XL. The highly profitable models are now made at GM’s Arlington, Texas, plant. The UAW has long encouraged a fratricidal competition between plants to land new products.
The Janesville plant employed about 7,000 workers in the 1970s before it saw thousands of jobs slashed. It closure was a death sentence for nearby supply companies that provided parts for the plant. Approximately 1,150 supplier jobs were lost in Janesville.
The local economy has been devastated, forcing hundreds of workers to relocate to different GM factories across the country. This meant uprooting their families and leaving their homes, with others having to drive hundreds of miles to other factories.
Commenting on the Facebook page “Reopen the General Motors Janesville Assembly Plant,” a local resident said, “I would be crazy with excitement if it was to open again. Janesville has taken a big hit when it closed. I love Janesville and its people.”
Another person commented, “Yes, they need to do the right thing and open the plant back
so the good people can come and don’t have to drive thousands of miles to work. And won’t have half the danger of getting killed. Because of being too tired to drive home to be with their family.”
Responding to the announcement of the closure, Tim Silha, president of UAW Local 95 in Janesville, said: “It is with deep regret that we need to announce that the national parties have agreed to the shuttering of the local GM plant in Janesville, as part of the newly negotiated tentative national contract. Despite all our best efforts, the leadership fell short of our quest to reactivate the facility.”
While defending the union’s efforts to underbid workers at other factories, Silha predictably blamed the closure on the Republican Party. “Recent legislation passed by the Wisconsin Republican controlled legislature, such as Right to Work and Act 10, were the straws that broke the camel’s back. Despite all the lobbying efforts Local 95 did to curb such laws our voice fell on deaf ears, as the votes went right down party lines. We wish to thank our Democratic lawmakers for all their support through these legislative battles.”
In fact, it was the Democratic Party—in particular the Obama administration—that ordered the closing of the Janesville plant in the first place! The Democrats, no less than the Republicans, are the tools of the big corporations and Wall Street. The multimillionaire financiers Obama put in charge of restructuring GM wiped out thousands of jobs, expanded the hated two-tier wage and benefit system, froze the wages of tradition workers and abolished the eight-hour day.
Having extracted billions in profits from the backs of workers, GM this year alone has doled out $10 billion to its wealthiest investors through stock buybacks and dividend payments. The UAW praises the Democrats because in exchange for selling out GM workers, the UAW-controlled retiree medical trust was handed billions of dollars in GM stock.
In addition to shutting the Janesville plant, the new contract commits the UAW to collaborate in the further destruction of jobs. Despite the lies about “creating or saving 3,300” jobs, there are several factories, including the Marion Metal Center in Indiana, that have no product commitments, meaning they are likely to be closed. As for creating “job opportunities,” this means the UAW will do everything to slash labor costs in order to induce GM to “in-source” jobs from low-cost suppliers or from the company’s operations in Mexico, China and other low-wage countries.
The UAW is opposed to any genuine struggle to defend jobs because it would disrupt its “partnership” with the corporation. That is why rank-and-file workers must take the conduct of the struggle out of the hands of the UAW in order to mobilize the full strength of all autoworkers in the US and internationally against the whipsawing by the global auto giants.
On December 24th, 2008, just one day after most production was shuttered at the GM Janesville Assembly Plant, the World Socialist Web Site wrote: “Once again, the UAW is collaborating with the government and the auto bosses to blackmail workers into accepting a historic rollback in wages, living standards and working conditions as part of the auto industry bailout. The concessions wrenched from workers will not be used to ensure the long-term health of the industry and the jobs of autoworkers, but to provide lucrative returns for the corporate executives and biggest investors.
“Autoworkers should reject the demand for concessions and organize a struggle, independently of the UAW, based on a new strategy. This means breaking with the two parties of big business and advancing a socialist solution to the economic crisis, including the nationalization of the auto industry under the democratic control of working people.”
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