“The Fine Print”, by Michael Schrader

 

Right-to-Work…For Poverty Wages…If There Are Any Jobs

 

(Written and posted 7 December 2012)

 

It has now been over ten years since I have moved to Oklahoma, and over that decade, I have seen this state slip further and further into stagnation and poverty.  There are few jobs available anymore, and those that are left typically pay minimum wage with no benefits.  Thus, a sizable portion of the state relies on government assistance, be it food stamps, Medicaid, unemployment, or disability benefits, to survive.  Over the past four years, the housing market has been flooded with foreclosures, with many houses being on the market for more than a year.  It is a buyer’s market, but there are no buyers, as everyone is experiencing the same financial duress.  Who can afford to buy a better house when you can’t even afford to keep the one that you have?

 

I have spent the past several years scouting out other parts of the nation to find a place to go to where there are opportunities to live beyond the poverty line.  While on my travels, I have had extensive conversations with the locals to get a true flavor of the economic health of the locale beyond the touristy Potemkin villages.  I have been surprised, and disheartened by what I discovered – much of the country is suffering the same poverty and stagnation as Oklahoma.  Most of the Central and Mountain time zones are in severe economic stagnation, while the Eastern and Pacific times zones, while suffering through the Great Recession as well, are on the road to recovery.  Interestingly, the states that are suffering the worst, like Oklahoma, are red, while the states that are on the road to recovery, are blue.  Of course, there are some states, like Michigan, that are blue on the federal level and red on the state and local level, that are an economic mixed bag.

 

Here in Oklahoma, there is only one city that has any economic pulse, and that is Oklahoma City and its surroundings.  Interesting, for a state that despises government, and who’s political leaders constantly denounce government spending, it is because of government spending that it’s only city with an economic pulse still has one.  The three big employers in the Oklahoma City area are the state government, the flagship state university, and a military base, each one a government entity that spends copious amounts of money.  Without the state government, what would Oklahoma City be?  Nothing.  Without the University of Oklahoma, what would Norman be?  Nothing.  Without the military base, what would Midwest City be?  Nothing.  These three government entities are what draw private investment to Oklahoma City; take them away, and the private sector investment goes away.  Yet the Republican legislature which meets in the government town, and the Republican governor, who lives in the government-provided palace in the government town, constantly rail about the evils of the government and how government, especially the federal government, spends too much and is a complete failure.  Talk about biting the hand that feeds you; would they be singing the same tune if the federal government decided to close down the military base, one of the largest employers in the state?

 

The danger with the demagogues in Oklahoma and other states is that they can easily convince a poor and relatively uneducated electorate that there are bogeymen like the federal government, the intellects, minorities, and unions that are responsible for their poverty, and to willingly agree to give the demagogues the power to enact policies that will further acerbate their condition.  In Oklahoma, one of those demagogues is a former governor who is still revered even though it was one of his policies that has contributed, and in my opinion, caused, the decline and stagnation of Oklahoma.

 

The governor?  Frank Keating.  The policy?  Right-to-work.  Keating used his personal charisma to convince the people to vote for “right-to-work”.  What is “right-to-work”?  If you don’t know, you should.  “Right-to-work” advocates will tell you that it is an economic enhancement policy that encourages businesses to expand by eliminating “closed shops”, which are anathema to businesses.  What are “closed shops”?  Closed shops are businesses where all employees must join a union, and where all contracts between employer and employee are done collectively through the union.  For example, if you have a closed shop with 100 employees, instead of having 100 employment contracts between the employer and each employee, there is one common contract between the employer and all employees, with the employees being represented by a union.  If the employees representatives (the union) and the employers fail to reach an equitable contract, then all employees terminate employment with the employer simultaneously (a strike).  It is easy for an employer to replace one unhappy employee; not so much one hundred.  Unionism and collective bargaining is representative democracy at its finest.  It is because of collective bargaining and unions that employees only work 40 hours per week, work in safe conditions, and receive decent wages, pensions, and benefits.  Prior to the rise of unions, American workers toiled away in slavery-like conditions, if not worse, for even slaves had food and housing provided to them. 

 

Ironically, some of the richest men and women in America are union members.  Professional athletes belong to unions, and because of the unions they are allowed to be free agents and switch teams and get paid what their talents are worth.  There is a reason that prior to Kurt Flood and the players’ union that players stayed with the same team their entire careers – once a player signed with a team, he was pretty much owned by that team unless he was traded.  In other words, either a player played for what the team was offering or he didn’t play at all; he was not free to provide his services to another team.  Actors and actresses were treated pretty much the same way before the rise of the Screen Actors Guild.  If an actor or actress was signed by Warner Brothers, he or she could only work on Warner Brothers movies, even if offered a higher-paying part by Universal.  Interestingly, a certain B-Movie actor led the SAG to prominence and power, and then subsequently became the most famous and powerful union-buster.  His name?  Ronald Reagan.  Talk about biting the hand that fed you!

 

Despite what advocates may say, “Right-to-work” is nothing more than union-busting.  Because the unions hold employers accountable and demand fair treatment of the workers, who are responsible for generating the wealth for the employers, employers and their allies will do whatever it takes to destroy the unions, and we, the uneducated masses, fall for it every time.  In states where “right-to-work” is the law, wages have declined, including here in Oklahoma.  When wages and benefits decline, people have less discretionary income, and with less discretionary income, are unable to purchase other goods and services.  When demand drops, ultimately supply drops.  When supply drops, people lose their jobs.  When people lose their jobs, demand falls even further.  And the vicious cycle continues until there is no demand and no supply and everyone is living on government support.  Of course, since the government relies on taxes to fund its programs, if no one is working, then the government doesn’t collect taxes and the programs can no longer be funded.  In the end, either people move or starve, a phenomenon that is occurring throughout the central states.

 

Don’t believe me?  Ask Jim Delaney, the commissioner of the Big 10 Conference.  Why did the conference add Rutgers and Maryland, two mediocre football teams at best?  Because that is where the people are moving to.  As occurred almost a century ago during the Great Depression, people are moving out of the center of the country to the coasts, as that is where the opportunities are.  Houston is a coastal city, and has turned blue.  Florida is coastal and is also blue.  Washington, Baltimore, New York, Boston- all thriving, all blue.  Seattle, Portland, California- still growing, all blue.  Like it or not, there is a pattern.

 

It pained me to hear that Michigan’s Republican legislature and Republican governor are making Michigan a “right-to-work” state.  Having just traveled throughout Michigan, the only area that has any vibrancy is the Detroit area, which is dominated by unionized industries.  Yes, Michigan has a host of problems, but outside of Detroit, I didn’t see much that was encouraging.  Unfortunately, where the Republican party is concerned, ideology trumps all, even if that ideology will lead to your ultimate demise.

 

I used to be a conservative, but I am not anymore.  Conservativism means maintaining the status quo, clinging to failed policies and ideologies.  A coworker was surprised to find that I am rather blue, because a middle-aged white male is supposed to be Republican!  I am part of a very small, but hopefully growing, group of middle-aged white men who have seen enough and would rather try something new than cling onto the failed policies of the past and hope that if we try them enough, we will eventually succeed.  The facts are the facts – policies like “right-to-work” have been a complete failure, have been one of the causes of the current malaise, and need to be buried forever.

 

 

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