Economic Update: US Labor Unions - Past, Present, Future

Podcast: Economic Update with Richard D. Wolff
Host: Democracy at Work, Richard D. Wolff
Guest: Frank R. Annunziato
Air Date: April 13, 2017

Episode Overview

In this episode, Richard D. Wolff delves into the history, current state, and future prospects of labor unions in the United States. Joined by longtime labor activist and union scholar Frank R. Annunziato, Wolff examines why American unions have declined, explores the impact on the middle class, and discusses what it would take to revive a powerful labor movement. The episode moves from recent economic and political news—touching on higher education, automation, and infrastructure policy—into a deep discussion on labor history and current challenges for unions.

Key Discussion Points & Insights

I. Economic Updates: The Context (00:00 – 28:45)

United Airlines Incident as a Lesson in Capitalism (02:30 – 07:25)

• Overbooking and Passenger Abuse: United Airlines forcibly removed a paid passenger to make space for employees, a decision driven by profit maximization rather than customer service or basic decency.
• Wolff’s Critique: “This is a kind of capitalism gone mad in which even the conventional boundaries of what you can do for profits are violated.” (06:07, Wolff)
• The deeper critique is that profit motives frequently override social responsibility, a recurring feature of capitalist enterprises.

The Crisis in Higher Education (07:25 – 17:10)

• Debt Trap for Students: The diminished value of a college degree coincides with skyrocketing tuition and unsustainable student debt levels—the default rate on student loans surpasses all other types.
• Desperate Solutions: Some students resort to "sugar baby" arrangements or Income Sharing Agreements (ISAs), essentially selling their future income to investors.
• Wolff’s Reflection: “Welcome to higher education in a capitalist system… that’s how it treats these things.” (16:37, Wolff)
• Cuomo’s Tuition-Free Plan: The plan is critiqued for putting stringent conditions on students—such as mandatory in-state residence—while businesses enjoy subsidies with few strings attached.

Automation and Job Losses (17:11 – 25:29)

• Wave of Job Loss Looms: Self-driving technology threatens 4-5 million jobs (truck, Uber, taxi drivers).
• Societal Choices:
  • Capitalist response: Maximizing profit by firing workers.
  • Alternative: Reducing the work week to share work and avoid mass unemployment.
• Wolff’s Analysis: “Technology has always been justified on the grounds that it makes life easier. But it’s capitalism that prevents that from happening.” (24:16)

Infrastructure, Public-Private Partnerships, and Corporate “Hustle” (25:30 – 28:45)

• The BlackRock/Infrastructure Debacle: Major corporations evade taxes, starving public coffers, then offer “public-private partnerships” that introduce tolls and guaranteed profits.
• Wolff’s Analogy: “This is a hustle… born and developed in a capitalist economic system, because that’s how this system works.” (28:20)

II. Main Theme: US Labor Unions—Deep Dive with Frank Annunziato (30:22 – 56:54)

The Dire State of American Labor Unions (32:37 – 35:00)

• Membership Crisis: Only 10.7% overall, with private sector unionization at a mere ~6%.
• Historical Role: Unions credited as the main force behind the creation of the American middle class.
• Legal & Political Assaults: Hostile laws and court decisions have made union organizing increasingly difficult.

"The labor movement is on death's doorstep right now."
Frank Annunziato, 32:37

Why Did Unions Decline? The Historical Trajectory (35:01 – 41:23)

• Strength out of Crisis: The Great Depression led to robust New Deal legislation and explosive union growth.
• WWII and its Aftermath: Post-war America saw a resurgent capitalist class and anti-union politics (1947’s Taft-Hartley Act, and the rise of “right-to-work” states).
• Purge of the Left: Anti-communism was weaponized to remove the most militant and creative union leaders.

"What you were actually doing was decapitating the labor movement."
Wolff, 40:53

Why the Decline Continues—Systemic and Internal Failures (41:24 – 44:00)

• Lack of Political Support: No president since Lyndon Johnson has genuinely backed unions.
• Internal Weaknesses: Unions (especially private sector) stopped supporting organizing in the public sector; a loss of imagination and willingness to take risks.

"We're not as imaginative. We're not as bold. We're not as willing to take risks as we used to be."
Annunziato, 44:00

Signs of Hope and the Role of New Movements (45:18 – 47:44)

• Occupy Movement: Identified as a spark in reviving social consciousness and critique—a precursor to Bernie Sanders and the resurgence of progressive energy.
• Advice from History: Successful unionization often comes from "the half crazies" willing to do what others won’t.

Role of Academics and Media (49:14 – 50:04)

• Critical Analysis is Vital: Wolff’s work is cited as important for providing the news analysis missing from mainstream outlets.
• Need for Public Intellectuals: Professors and analysts should support, but not overshadow, younger activists.

International Examples and New Ideas for Organizing (51:18 – 55:29)

• France’s Model: Labor action is defined by willingness to strike rather than high membership. Proposals to experiment with multiple unions and minority unionism in workplaces.
• Need for Imagination and Radicalism: Encouraging new approaches, including calls for socialized medicine and articulating broad visions of a better life for American workers.

"We can't be afraid of articulating what a good life could be."
Annunziato, 55:29

Closing Reflections (55:30 – 56:54)

• Radical Imagination Needed: The labor movement can only be revived if it dares to dream and act boldly.
• The Role of Elders: Elders must support new generations, help amplify ideas, and share their knowledge.

Notable Quotes & Memorable Moments

• On United Airlines and Capitalism:

  • "This is about an airline that wants to make money. ... It is not something only United Airlines does. But when you behave this way and when other passengers use their phones to catch videos of what you're doing, then you're caught."
    (Wolff, 06:07–07:21)

• On Student Debt and Alternatives:

  • "Literally sell your body or sell your future income, or borrow more money than you can possibly pay back ... in order to get a degree that is less effective for getting a good job than it’s ever been."
    (Wolff, 16:05)

• On Automation:

  • "Technology has always been justified on the grounds that it makes life easier. But it’s capitalism that prevents that from happening...by using technology for profits and not to save labor for working people."
    (Wolff, 24:16)

• On Union Decline:

  • "There's only about 10.7% of all workers that are members of unions. ... I think we have a real problem on our hands."
    (Annunziato, 32:37)

• On the Purge of Communists:

  • “You lost the people who were providing the ideas that were magic to the American public. ... Those people were kicked out, booted out and discredited.”
    (Annunziato, 41:06)

• On Leadership and Decline:

  • “Who was the last president you would say in this country was pro union? ... Lyndon Johnson.”
    (Annunziato, 42:20)

• On Rebuilding:

  • “We can't be afraid of articulating what a good life could be.”
    (Annunziato, 55:29)

Key Timestamps

| Segment | Timestamp | |--------------------------------------------------------------|--------------| | United Airlines/Capitalism Critique | 02:30–07:25 | | Student Debt & Higher Ed Critique | 07:25–17:10 | | Automation & Job Losses | 17:11–25:29 | | Infrastructure Public-Private Partnerships "Hustle" | 25:30–28:45 | | Intro of Frank Annunziato | 30:22–32:07 | | State of US Labor Unions | 32:37–35:00 | | Decline: WWII to Cold War Purges | 35:01–41:23 | | Continuing Decline and Political Weakness | 41:24–44:00 | | On Occupy and New Activism | 45:18–47:44 | | Role of Academics & Media | 49:14–50:04 | | International Models; Experimentation with Union Strategies | 51:18–55:29 | | Final Thoughts & Role of the Elder Generation | 55:30–56:54 |

Conclusion

This episode argues that the US labor movement is at a historic low point—undermined by hostile legislation, internal failings, and a lack of political leadership. Drawing on history and comparative examples, Wolff and Annunziato urge a renewed spirit of imagination, risk-taking, and structural experimentation. They encourage both elders and young activists to challenge the status quo, speak boldly for worker power, and envision a better future.

For those looking to understand the role of unions—what went wrong, what can be done, and why it matters—this episode is indispensable listening and an inspiring call to action.