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Economic Policy Institute: As Unions Decline, Income Inequality Grows

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The Economic Policy Institute is one of the very few think tanks in Washington, D.C., that is not funded by Bill Gates or the Waltons. It is openly on the side of working people. It does valuable research. During the pandemic, unionized workers fared slightly better than non-union workers.

This study shows dramatically that as unions decline, income inequality grows.

Figure B in this article shows that as the percent of people in unions declined, the share of income going to the top 10% increased.

Union membership reached a peak (about 33% of all workers) in the late 1940s-early 1950s.

Since then, the spread of anti-union laws (so-called “right to work” laws) has caused a sharp decline in union jobs.

The anti-union movement has been funded over the years by big business and billionaires, of course. They are now fighting the movement for a $15 an hour minimum wage. They live in luxury but don’t understand why working people need a living wage just to pay the rent and put food on the table.

Over the past decade, I have repeatedly defended unions, and extremely stupid people have accused me of being paid by the teachers’ unions. Jeanne Allen of the pro-choice Center for Education Reform once tweeted that my “beautiful home” in Brooklyn Heights must have been paid for by the unions. Yes, I did live in a beautiful brownstone in Brooklyn Heights, but I paid for it myself, without a penny from any union.

I defend unions because they provide a pathway into the middle class for people who are poor and working class. By joining a union, they are part of an organization that will make sure they have a good salary, health benefits, and a pension. Why is so problematic for rightwing conservatives and the 1%? Billionaire John Arnold is offended by public pensions, and he has spent a few millions trying to persuade the public that pensions are bankrupting the public sector. I think it is more likely that the public sector has been starved by tax breaks for billionaires.

So, yes, I would like to witness the rebirth of unions in my lifetime. They are the very best protection for working people. They build a middle class. Our society needs more unions, a higher minimum wage, and representation for all workers.

Education Trust, which is amply funded by billionaires, says it advocates for equity when it promotes standardized testing. Twenty years of standardized testing shows that this is a useless and fraudulent effort. Education Trust should be advocating for unions if it really wants equity.

Let us hope that billionaires like Bill Gates, Michael Bloomberg, and Eli Broad, to mention just a few, will invest in union organizing drives. If they truly want to promote equity in American society, that is the best way to advance the cause. Not charter schools. Not vouchers. Not standardized testing. Unions. Unions that assure a decent standard of living and a decent retirement for every member.

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