It's Capitalism, Stupid

David Leonhardt's column in today's business section of the Times discusses how so many people in the middle and at the bottom were left out of the boom years. We all know the gap between rich and the rest of us has grown astronomical since the early 70's, the first time in US history this has happened.

So what are reasons according to Leonhardt? I'll let you read his theories here. But one word is missing from the entire article, not surprising given the bias at the Times: UNIONS.

Could it be that the attack on unions spurred on by Ronald Reagan's firing the air traffic controllers 25 years ago has weakened them so much that they can no longer win fights for the higher wages needed to sustain our economy? Add the Democratic Party support for NAFTA and other anti-union breaking rules under Bush and we have the roots undermining the economy in the long run.

As Leonhardt searches for solutions, he neglects the basic rule of capitalism: maximize profits for your company, the rest of the nation and the world be damned. That means the lowest wages you can get away with. If you can get 8 year-olds for 50 cents a day abroad, then bye.

The economy will only be robust when there's a strong union movement to fight it out with the corporations.

Note: I still consider myself a capitalist – a laissez faire capitalist – where there are rules that force a balanced playing field for people to compete. That is NOT what we have. Instead, we have a government, the theoretical arbiter, clearly aligned with the big business interests. And the press, the 4th estate that should also be an arbiter, also pro-business and anti-union. The "paper of record," whether covering business or education, is a prime example.