Unions and Inequality

Bob Herbert's NY Times piece yesterday weaves together some of the most damning data available on the decline of mobility, increase of inequality, and consequent assault on the American Dream. I applaud him for being able to recognized the importance of the union movement in maintaining the American Dream, including equality and mobility. I don't agree with unions on everything--and they don't agree with each other on everything--but I could say that about nearly any social institution. More importantly, Herbert is on to something when he says,

"Americans work extremely hard and are amazingly productive. But without the clout of a strong union movement, and arrayed against the mighty power of the corporations and the federal government, they don’t receive even a reasonably fair share of the economic benefits from their hard work or productivity."

As Jared Bernstein of the Economic Policy Institute pointed out in response to a September 2006 David Brooks piece in the NY Times, "Brooks argues that declining unionization is not a "driving force" because it only explains 10-20 percent of the rise in inequality. But that's as big as any other force that economists have measured."