Unions & Income Inequality

As much as commenters on the Journal-Sentinel's articles like to refer to union members as a "thugs" there's no denying that unions have had a very positive role in the rights and safety of workers, both in America and around the world.  Yes, they've had problems-but so have companies and corporations (child labor, anyone?).

The decline of unions in America has seen a correlation with a rise in income equality.  Kevin Drum looks at a study in the American Sociological Review that seems to show it's not just a correlation-it's cause and effect to a degree.  The decline of unions doesn't explain all or majority of the rise in income inequality, but there is a visible effect, up to a third in non-union members (apparently unions create an environment that lift all wages, not just for union members).

Kevin Drum closes with:

In other words, deunionization has allowed income inequality to rise partly because unions are negotiating wages for fewer people than they used to, and partly because unions no longer have the power to force the political system to pay attention to the needs of the middle class. But if income inequality has to be reduced in order for middle class wages to grow—and it does—and if robust middle class wages are a key driver of the liberal project—and they are—then we're all in big trouble. Mass unionization is gone, and it's not coming back. This means we still need something to take its place, and we still don't have it. Until we do, the progressive movement will continue to tread water.

I think that in absence of a worker union comeback, what takes its place has to be a consumer union.  The average consumer now has access to an incredible amount of information, much of it useless, but if enough consumers who care get together and collect information (or pay someone to do it via a membership fee), you could see an effect on how businesses treats its employees.  I suppose the best model might be Consumer Reports-not focusing in the quality of product, but the quality of the company.  This also would hold companies accountable for their policies around the world, not just in the United States.

PS-note that Drum is saying here that he believes protection of the middle class is a function of union, and that Progressives are supportive of protecting the middle class.  Which political party has declared a virtual war on unions?