I am going to go way out in Left Field on this one, and read this Account before you start. My basic hypothesis that the basic causation for the low Wage Gains for Labor comes from the suppressed Interest rate policy of the Fed. It is really way out there, is it not? I am trying to organize my Thoughts on this Issue, but it is so obtuse as to be difficult to explain. The underlying assumption behind my thinking is that Operating Business Costs are so low that industry does not need trained labor, consistently high Production levels, or prevention of labor troubles. It also is Why Business is so currently opposed to extension of Health Care, Pensions, and Collective Bargaining in toto. Securing the Profits of Business may be one of the more deadly aspects in economic impact, and the most difficult to secure against; Business personnel being totally devoted to the highest Profits obtainable.
Now I have to design my Concept, a effort of definition hard to express because of no previous discussion. I start with a little bit of history. Without playing a endless cycle of past events which will prove nothing discrete, I will simply state that the position of Labor seems improved when Government Tax law or Regulations threaten the bottom-line of Business. Wages were suppressed before the unionization of the 1930s, bettered under the Government regulation of the 1940s, improved under the returning Veterans of WWII and Korea in the 1950s, started to slip in positional power after the Kennedy Tax Cuts, worsened after the derision of Government in the 1970s which left Business unregulated though highly taxed, the Wildcatting without Regulation of the 1980s destroying much of the power of Unions, the joblessness of the late 1980s and early 90s stagnated Wages and shredded funded Pension plans, the Clinton Tax increases bringing relief to Labor in the form of higher Wages and sustained benefits, and the destruction of Labor’s bargaining position has been consistent since the Bush Tax Cuts and refusal of Business Regulation. The most troubling aspect of development has been the abandonment of Politicians of the general welfare to search for the easy funding of business-financed Special Interests.
The previous accounting defines my suspicion, though it lacks for any positive evidence there is a correlation between the sweetening of Business Profits and the increasing plight of Labor in this Country. Most will claim there is no necessary connectivity between Privileges granted to Business by Tax law and Regulation, and the loss of Labor power to insist on just reward and protection. It is exactly this correlation which must be determined if such exists, and then remedial measures devised to protect the most important component in the economy from the predatory behavior of a well-financed class, one which gains immense Profits from suppression of the majority of Participants. One has to prove the Case, before We can get either legislation, Regulation, Tax Law, or economists to response to it. lgl