The point isn't that unions were greedy. They were doing what they were supposed to do under the Wagner Act--protecting their members interests--in a period of inflationary expectations (fueled in part by the big contracts won by other unions). Yet the larger social result of this institutional arrangement was a destructive game of leapfrog in which the most powerful labor organizations (like the UAW) did quite well, but those without collective bargaining power--that is, most people--got it on the chin. And it took the brutal early-80s recession to wring inflation out of the economy.
Today, though, there's little union power--and little threat of stagflation, says Krugman:
But where are the unions demanding 11-percent-a-year wage increases? ...
And since there isn't a wage-price spiral, we don't need higher interest rates to get inflation under control.
OK. But then why do Democrats want to legislate a restoration of organized labor's power by allowing unions to sign up workers without secret ballots? Do they want to bring back the wage price spiral? The irony seems lost on Krugman, though it's hard to believe it really is.
I suspect it's simply a train of thought Krugman doesn't want to follow right now. His plan for reducing income inequality is built, in part, on rebuilding union strength. Doubt about the wisdom of that effort would complicate things--quite apart from whether it's what his Democratic fan base wants to hear ... 2:59 A.M. link
Dare to Gush: He's not excitable. He's "open to the moment"! ... 1:32 A.M.
Monday, June 2, 2008
Bill Clinton calls Todd Purdum a "sleazy ...slimy ... scumbag:"HuffPo'sMayhill Fowler delivers again. ... P.S.: Why'd he do that! ... P.P.S.: Brendan Nyhan notes the creepiness of Clinton aide Jay Carson demanding that Dems "protect" the "brand" when talking to reporters. ... P.P.P.S.: What about the zippy Burkle brand? That took decades to build! ... 3:48 P.M.