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Title: The Liquidation of Society vs. The Global Labor Revival
Source: Matt Stoller
URL Source: http://www.nakedcapitalism.com/2011 ... -the-global-labor-revival.html
Published: Feb 24, 2011
Author: Matt Stoller
Post Date: 2011-02-24 18:44:45 by go65
Keywords: None
Views: 25911
Comments: 39

Today, the city of Providence, Rhode Island sent out layoff notices to every single teacher in the city. Every single one of them. If you want to understand why this is happening, why wages in the US keep getting cut, this chart tells the story.

That’s the number of strikes since 1947. What you’ll notice is that people in America just don’t strike anymore. Why? Well, their jobs have been shipped off to factory countries, their unions have been broken, and their salaries until recently have been supplemented by credit. It’s part of a giant labor arbitrage game, that the Federal Reserve and elites in both parties are happy to play. Strike, and you’re fired. Don’t strike, and your pay is probably going to be cut. Don’t like it? Sorry, we can open a plant abroad. And we have institutions, like the IMF, to make sure that we get goods from those factory- countries, and get them cheap.

But it’s not cheaper, or better, or more efficient. Firing your teachers isn’t exactly “winning the future”. And outsourcing manufacturing, as Boeing found out, is often a good way to increase coordination costs, create more operational risk, and destroy value. However, the system is good at maintaining the power of oligarch-style control of cultural institutions. If no one but the kids of rich people can read, only the kids of rich people will be able to organize society’s resources. Outsourcing work to China means that workers are scared and have no leverage, so they do what management wants. Again, this isn’t efficient; the UAW sought to make small cars in the 1940s, but was rebuffed by management. Workers are closest to production; treating them terribly is a good way to degrade product quality. Silicon Valley companies give their engineers free snacks and frisbees because happy employees that take ownership over their work create good quality products. Treating people terribly scares them, and makes them more pliable. Again, it’s about control.

The problem for the elites is that the system of control is breaking down. I noted a week and a half ago that the Egyptian revolution was a labor uprising against Rubinites. So to the extent that global labor arbitrage relies on sweatshops and environmental degradation in poor countries for cheap goods, successful strikes in poor countries undercuts the whole system. The reason to outsource work in the first place is to prevent workers in rich countries from gaining pricing and political power. Now workers in poor countries are getting pricing and political power? It’s actually a fragile system of control, and can be broken through either crackdowns on tax havens and oligarchs in wealthy countries or protests/strikes where the goods are made.

The Egyptian revolution was really a series of protests and highly politicized strikes, which is why people in Madison are taking inspiration from Cairo. In fact, the actions in Egypt may be creating a wave of labor actions worldwide, rippling to Wisconsin, Indiana, and Ohio. All of these strikes are aimed at a collusive set of tight relationships.

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#1. To: Godwinson, skip intro, lucysmom, war, fred mertz, buckaroo, we the people, brian s, jwpegler (#0)

I'm not usually a fan of the Capitalist Eric-type screeds, but this one is worth a read, he frames what is going on in the Arab world, as well as Wisconsin, as a worker revolt against the ruling class - or as history shows us time and time again, the net result of vast disparities in wealth.

Since January 3, 2011, Republicans have controlled the power of the purse.

go65  posted on  2011-02-24   18:46:25 ET  Reply   Trace   Private Reply  


#2. To: go65 (#0)

Firing your teachers isn’t exactly “winning the future”.

It is if they are NEA.

That union has just been so beneficial to improving education. LOL.

Now, I know I’m not going to change the minds of any of the True Believers…those who read all of Reverend Al’s sermons, and say things like, “You know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, …”. Can I get an ‘amen’??

no gnu taxes  posted on  2011-02-24   18:51:19 ET  Reply   Trace   Private Reply  


#3. To: go65 (#0)

In fact, the actions in Egypt may be creating a wave of labor actions worldwide, rippling to Wisconsin, Indiana, and Ohio.

The lower class fights back. I like it and thanks for the ping.

Fred Mertz  posted on  2011-02-24   21:22:18 ET  Reply   Trace   Private Reply  


#4. To: go65 (#0)

Power to the people!!!

I heard an Egyptian protester say that.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   21:53:56 ET  Reply   Trace   Private Reply  


#5. To: Fred Mertz (#3)

The lower class fights back. I like it and thanks for the ping.

The govt unions are taking money from people even lower class then all those people protesting.

A K A Stone  posted on  2011-02-24   22:16:43 ET  Reply   Trace   Private Reply  


#6. To: A K A Stone (#5)

The govt unions are taking money from people even lower class then all those people protesting.

They're not taking money, they are paid for work - its a common free market exchange.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   22:21:15 ET  Reply   Trace   Private Reply  


#7. To: go65 (#0) (Edited)

the city of Providence, Rhode Island sent out layoff notices to every single teacher

100% layoffs ensure that no child, or taxpayer is left behind. Sweet!


"We (government) need to do a lot less, a lot sooner" ~Ron Paul

I recall a re-run of MASH I saw where this uber right winger named Colonel Flagg...
Godwinson posted on 2011-02-23 11:47:32 ET
http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=18011&Disp=46#C46

Hondo68  posted on  2011-02-24   22:23:14 ET  Reply   Trace   Private Reply  


#8. To: lucysmom (#6)

You lefties have been inline all day. You must sense the final hands around your collective throat. You will lose because God is just and your ruining of lives will be stopped.

Well, [war's] got to do something for attention, his multiple personalities aren't speaking to him any more, and his imaginary friends keep finding excuses not to come over.

Rudgear  posted on  2011-02-24   22:24:48 ET  Reply   Trace   Private Reply  


#9. To: lucysmom (#6)

They're not taking money, they are paid for work - its a common free market exchange.

It is not free market. The people elect representitives to represent them. Then unions get in the middle and bribe democrats. Then the people who pay the taxes have absolutely no say in the matter. It is criminal theft by people with connections. Some of these union thugs make 500 thousand a year.

To say it is free market is a fucking lie. You know it too shill.

A K A Stone  posted on  2011-02-24   22:27:31 ET  Reply   Trace   Private Reply  


#10. To: A K A Stone (#9)

Then unions get in the middle and bribe democrats.

When Republicans do it with corporations, you call it free speech.

Then the people who pay the taxes have absolutely no say in the matter.

If I buy a Ford, should I have a say in how much the ceo gets paid? Investors?

It is criminal theft by people with connections. Some of these union thugs make 500 thousand a year.

How much do lobbyists make? The Koch bros have opened up a lobbying office handy to the Wisconsin state capitol.

But all of this is really moot as the unions and the people who work for the state of Wisconsin the unions represent have already agreed to pay a larger share of their health insurance and pension - the whole amount the governor asked.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   22:56:25 ET  Reply   Trace   Private Reply  


#11. To: A K A Stone (#9)

You know it too shill.

I know you are but what am I?

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   22:57:41 ET  Reply   Trace   Private Reply  


#12. To: Rudgear (#8)

You lefties have been inline all day.

What does that mean?

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   22:59:26 ET  Reply   Trace   Private Reply  


#13. To: lucysmom (#10)

Then unions get in the middle and bribe democrats.

When Republicans do it with corporations, you call it free speech.

It is not tax payers money then. The people elected representatives to represent them. Not unions. Do you not understand the difference?

A K A Stone  posted on  2011-02-24   23:00:56 ET  Reply   Trace   Private Reply  


#14. To: lucysmom (#10)

Then the people who pay the taxes have absolutely no say in the matter.

If I buy a Ford, should I have a say in how much the ceo gets paid? Investors?

No you shouldn't. The tax payers elected representatives to represent them not union thugs. Union people are less productive then Americans.

A K A Stone  posted on  2011-02-24   23:02:11 ET  Reply   Trace   Private Reply  


#15. To: lucysmom (#10)

It is criminal theft by people with connections. Some of these union thugs make 500 thousand a year.

How much do lobbyists make? The Koch bros have opened up a lobbying office handy to the Wisconsin state capitol.

You should change your name to lucys mom is a red herring.

A K A Stone  posted on  2011-02-24   23:02:56 ET  Reply   Trace   Private Reply  


#16. To: lucysmom (#10)

But all of this is really moot as the unions and the people who work for the state of Wisconsin the unions represent have already agreed to pay a larger share of their health insurance and pension - the whole amount the governor asked.

There is still the problem of the unions getting in between the people and their representatives. Even a dunce like FDR understood this. The Unions in the 1950's understood this. You know back in the 50's when we were prosperous.

A K A Stone  posted on  2011-02-24   23:04:54 ET  Reply   Trace   Private Reply  


#17. To: A K A Stone (#16)

You know back in the 50's when we were prosperous.

Unending wars have a habit of ending prosperity in every era.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-02-24   23:26:46 ET  Reply   Trace   Private Reply  


#18. To: lucysmom (#10)

When Republicans do it with corporations, you call it free speech.

Maybe unions could get the SCOTUS to grant them free speech rights too. Wouldn't that be a hoot.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-02-24   23:30:16 ET  Reply   Trace   Private Reply  


#19. To: A K A Stone (#9)

It is not free market. The people elect representitives to represent them. Then unions get in the middle and bribe democrats. Then the people who pay the taxes have absolutely no say in the matter. It is criminal theft by people with connections. Some of these union thugs make 500 thousand a year.

In the current round of GOP budget cutting, how much did they cut from oil/gas subsidies, farm subsidies, or any other government handout to business?

The answer is zero.

Since January 3, 2011, Republicans have controlled the power of the purse.

go65  posted on  2011-02-24   23:31:00 ET  Reply   Trace   Private Reply  


#20. To: Rek (#17)

Unending wars have a habit of ending prosperity in every era.

That is certainly part of it. Along with things like NAFTA and other globalist sell outs.

A K A Stone  posted on  2011-02-24   23:36:31 ET  Reply   Trace   Private Reply  


#21. To: go65 (#19)

In the current round of GOP budget cutting, how much did they cut from oil/gas subsidies, farm subsidies, or any other government handout to business?

State governments subsidize gas and oil? Is there oil in Wisconsin, I never knew.

A K A Stone  posted on  2011-02-24   23:37:49 ET  Reply   Trace   Private Reply  


#22. To: Rek (#18)

Maybe unions could get the SCOTUS to grant them free speech rights too. Wouldn't that be a hoot.

They have free speech rights to protest like anyone else. Doesn't mean congress has to listen to them over the people who elected them.

What was it Obama said? Oh yes Elections have consequences and he won.

A K A Stone  posted on  2011-02-24   23:39:15 ET  Reply   Trace   Private Reply  


#23. To: A K A Stone (#13)

It is not tax payers money then.

Umm - what do you think lobbyists are after?

The people elected representatives to represent them. Not unions. Do you not understand the difference?

and union members appoint representatives to represent their interests to the representatives the voters elected to represent them. Its called negotiation.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   23:43:30 ET  Reply   Trace   Private Reply  


#24. To: lucysmom (#23)

Umm - what do you think lobbyists are after?

There is one lobbying group I've heard of that are trying to make tougher laws against drunk driving. I'm not sure if they are trying to get money or not. Do you know? They are called MADD

A K A Stone  posted on  2011-02-24   23:46:08 ET  Reply   Trace   Private Reply  


#25. To: A K A Stone (#14)

No you shouldn't.

Why not? Its my money.

The tax payers elected representatives to represent them not union thugs.

Elected representatives negotiate with union thugs, they don't represent them.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   23:46:44 ET  Reply   Trace   Private Reply  


#26. To: lucysmom (#23)

The people elected representatives to represent them. Not unions. Do you not understand the difference?

and union members appoint representatives to represent their interests to the representatives the voters elected to represent them. Its called negotiation.

Uh. The people already picked their representatives via the democratic process.

The unions are lobbyists.

A K A Stone  posted on  2011-02-24   23:47:29 ET  Reply   Trace   Private Reply  


#27. To: lucysmom (#25)

Why not? Its my money.

So you think when you buy a car it is still your money. lol

It seems you left your brain on mars.

A K A Stone  posted on  2011-02-24   23:49:12 ET  Reply   Trace   Private Reply  


#28. To: lucysmom (#25)

Lucy you should really think of waving the white flag on this one. You are getting your ass kicked all over the place.

A K A Stone  posted on  2011-02-24   23:50:09 ET  Reply   Trace   Private Reply  


#29. To: A K A Stone (#16)

There is still the problem of the unions getting in between the people and their representatives. Even a dunce like FDR understood this. The Unions in the 1950's understood this. You know back in the 50's when we were prosperous.

You mean back in 1950 when 35% of private sector workers were unionized and the American car was the envy of the world? That was when CEOs made 50x the average worker, now its 500 times the average worker.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   23:55:42 ET  Reply   Trace   Private Reply  


#30. To: Rek (#18)

Maybe unions could get the SCOTUS to grant them free speech rights too. Wouldn't that be a hoot.

Perhaps unions could incorporate.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-24   23:58:38 ET  Reply   Trace   Private Reply  


#31. To: lucysmom (#29)

You mean back in 1950 when 35% of private sector workers were unionized and the American car was the envy of the world? That was when CEOs made 50x the average worker, now its 500 times the average worker.

Where did you get those numbers? I don't doubt CEO's make a lot bigger percentage these days. Just wonder where you got the numbers at.

A K A Stone  posted on  2011-02-24   23:58:57 ET  Reply   Trace   Private Reply  


#32. To: lucysmom (#30)

I'm not who is a better spinner yet. You or former member war. Yeah he got all mad and took his marbles home. That's ok, we'll get some more marbles.

A K A Stone  posted on  2011-02-25   0:00:23 ET  Reply   Trace   Private Reply  


#33. To: lucysmom (#30)

Perhaps unions could incorporate.

They can go public or be member owned. After all lots of similiar types of services are also incorporated and for profit, why not unions? Isn't that the capitalist way?

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-02-25   0:07:09 ET  Reply   Trace   Private Reply  


#34. To: go65 (#0)

The Egyptian revolution was really a series of protests and highly politicized strikes, which is why people in Madison are taking inspiration from Cairo. In fact, the actions in Egypt may be creating a wave of labor actions worldwide, rippling to Wisconsin, Indiana, and Ohio. All of these strikes are aimed at a collusive set of tight relationships.

Notice how few Zionists are on tv now?

Where The Daily Show's Jon Stewart has to now shill for them?

Egypt comes to the world.

mcgowanjm  posted on  2011-02-25   8:25:44 ET  Reply   Trace   Private Reply  


#35. To: A K A Stone (#21)

State governments subsidize gas and oil? Is there oil in Wisconsin, I never knew.

I'm talking about federal.

But if you want to focus on Wisconsin, go and look at the spending/tax cut package enacted by Gov. Walker in January. Walker added $117 million to the deficit in his first month of office - now if only he could invade a middle eastern country he would be the next Bush.

Since January 3, 2011, Republicans have controlled the power of the purse.

go65  posted on  2011-02-25   9:48:41 ET  Reply   Trace   Private Reply  


#36. To: go65 (#35)

When you cut taxes, the people who earned it keep more of their money. That money is spent by the people who worked for it. If the government steals it through taxes it is wasted on things like bribes to unions or it goes to pay bureaucrats to sit on their asses. We need less bureaucrats and more people producing stuff.

A K A Stone  posted on  2011-02-25   9:51:34 ET  Reply   Trace   Private Reply  


#37. To: A K A Stone (#36)

If the government steals it through taxes it is wasted on things like bribes to unions or it goes to pay bureaucrats to sit on their asses.

I can think of a lot of private sector careers that require sitting on one's ass. On the other hand, I don't think many teachers pend their day in that position.

You have the courage to tell the masses what no politician told them: you are inferior and all the improvements in your conditions which you simply take for granted you owe to the efforts of men who are better than you. Ludwig von Mises in a letter to Ayn Rand

lucysmom  posted on  2011-02-25   11:36:39 ET  Reply   Trace   Private Reply  


#38. To: lucysmom (#37)

I can think of a lot of private sector careers that require sitting on one's ass. On the other hand, I don't think many teachers pend their day in that position.

I never hear anything about decreasing those vice principal positions. Management covets it's own in these situations, and generally it's last hired, first fired. And usually that's the ones who actually deal with the public or provide the basic service.

"http://first-draft-blog.typepad.com/.a/6a00d8341c5ced53ef0148c7a28c4b970c-320wi"

Rek  posted on  2011-02-25   14:08:38 ET  Reply   Trace   Private Reply  


#39. To: go65 (#0)

the city of Providence, Rhode Island sent out layoff notices to every single teacher in the city

The Democrat Mayor Angel Taveras sent out layoff notices to every single teacher in the city because everyone knows that the failed and greedy NEA need to be swatted down to save our country.


"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899

jwpegler  posted on  2011-02-25   14:17:55 ET  Reply   Trace   Private Reply  


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