Unions and the Rich

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

Here’s another take on why even public sector unions matter in the fight against the corporatization of the political economy. The chart on the right, from John Sides, shows the overall union density for each state on the X-axis, and this is probably a fairly decent proxy for the level of public sector union density too. He concludes that unionization has essentially no effect on state budget deficits, but Matt Yglesias makes a different and equally salient point:

Looking at this chart, what I think you would see is that unionization levels have a strong relationship to progressive taxation. New York, Hawaii, and Washington are all high-tax states, especially on rich people, while the non-union south has generally low levels of taxation and regressive tax structures. The conservative movement is financed by rich people whose primary interest in life is lower taxes. And on an intellectual level, the main wellspring of conservative economic policy ideas comes from people who believe that progressive income taxes are very economically damaging. A secondary intellectual inspiration is people like Greg Mankiw who believe that such taxes are an immoral imposition on a genetic elite. A key problem with this agenda is that higher taxes on rich people are a politically popular way to solve budget deficits. The solution is to create a dynamic in which political parties are entirely reliant on rich businessmen for their financing. Reducing labor unions to a state of political impotence will get the job done.

Italics mine. Needless to say, for more on this you should read my piece about the role of unions in the American political economy, which went online today. It’s good! I promise.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate