A (4:46)
Anybody now who employs a worker to do a service can try to reclassify that worker as a gig worker rather than an employee saving them money. This is an attempt to roll back the history of working people. 150 years in this country. Make no mistake. That's why Uber, Lyft and the others spent over $200 million on this obscure little vote. And here's the punchline of many people were told in California to do this or pass this because it will enable poor people to get a job driving a car because they're having such a hard time. And a lot of the vote that gave this gift to business were well intentioned people who wanted to provide an opportunity. You know, it's like those people in Florida who voted to raise the minimum wage. Think about it. An ad on the TV screen. Don't you want to help a poor person make a living driving a car for their family? Reminds me of nothing so much as a hundred years ago when to keep child labor going in America. The awful process of making five, six, seven year old kids work all day in a rat infested sewing shop. And you know what the ads then said? Poor people need for their children to work. If you don't let their children work, they'll be even poorer. Yeah, you frame the question that way and you can pull off the kind of defeat of the working class. Something needs to be done to undo this and the legislatures in California and across the country. And maybe a job for the new Biden administration is to take steps to prevent this from happening. Federal law can trump pardon the expression state law. That needs to be done. But now the other side again. Portland, Maine. Here's a remarkable story in Portland, Maine. Portland is one of the major cities in the state of Maine. In Portland, Maine, a group of local progressives, roughly half in the Progressive alliance of Portland and roughly half in the Southern Maine chapter of Democratic Socialists of America, they got together and put up some ballot initiatives, bringing rent control, bringing a rent commission to help tenants against landlords, and also raising the minimum wage with a new idea that you get time and a half during an emergency like the one we're living through. What an initial interesting set of ideas. But here's more. They won. They won it. All the votes went for them. Look what America can do. Last point. The socialists and the Progressive alliance together raised about $46,000 to fight for this. And the local business community, which of course doesn't want to pay higher wages, doesn't, doesn't want to have rent control. They raised $650,000 to fight it. Notice something? People beat money. And if you look at the national election, Democrats in many of the races, they lost below, the president spent much more than the Republican. Think about it. The last economic update we have time for in today's first half of the show has to do with China. And I'm going after it this time in a slightly different way. I notice in a number of media interviews I've been doing recently and debates. When China comes up, the people who don't want to face what the Chinese have done have come up with an interesting argument that I want to refute. Here's their yes, China is growing very fast. Yes, they admit China is going much faster than the United States. Yes, they admit. And that's been going on for 25 years. Yes, they admit that, too. But here comes the kicker that they come back with. That's only because 25 or 30 years ago, China gave up being a socialist country and brought in capitalism. Oh, this is a lovely story now. So now, having tried to deny that China has caught up and, and in some ways already surpassed the United States, we're going to admit it. But say that's because of capitalism, not because of socialism. Let's see some of the highest rates of growth happen under Mao. Let's remember Mao lives until 1976. He's in charge of Chinese economic development from the time of the successful Chinese communist revolution, 1949, until his death, 1976. So roughly the first 25 years of the People's Republic of China, some of the highest rates of growth happened at that time during his leadership. Likewise, some of the lowest. And you know why? Because they were recovering from something. When Mao took over in 1949, let me remind you what the Chinese economy had as a problem. Number one, they were one of the poorest countries on earth. Number two, Japan, one of the richest countries on earth, had invaded China in 1931. They had fought a war with the Japanese from 1931 to 1945. That's a very long time. Then China was part of World War II. And when World War II was over in 1945, China had a civil war between the right wing and the Mao wing. Very poor country, decimated by invasion from Japan, decimated by World War II, decimated by a major civil war that lasted four years from 1945-49. That means the first 25 years of China's development was a matter of recovery, of trying this and that. The communes, the Great Leap Forward, the variety of efforts. Yeah, he had some very high rates of growth and some very low ones. But eventually they settled on a plan which was in place in 1976 when he died. The notion that the economic growth achieved since the 1970s, which has always been in the 5% and higher, which is much higher than the United States ever got in that period. The notion that that's all due to what happened after Mao, is a kind of crude effort to deny to what they did in China. The credit to be given to what Mao initiated, what Mao went through to establish both the recovery of China and the basis for growth. It's a cheap shot, one more step in all of this. In many parts of the world, socialism means that the government has an enormous control over what happens. Yes, there may be private enterprises. There are, for example, in many of the Scandinavian countries. But they call themselves socialists, and they have for decades, because the government regulates, controls, and operates many of the industries. That's what the Chinese mean by socialism. It is not like the United States. It is precisely a place for private capitalism, no doubt under the control, the limit and the regulation of, of a powerful state apparatus. That's what they mean by socialism, and that's what's achieved China's remarkable growth. The idea that it's only the capitalist sector that gets the credit and not the whole society is pure ideological nonsense. We've come to the end of the first part of today's show. Before we move on, I want to remind you that we recently published my third book with democracy at work. It's called the Sickness Is the what Capitalism Fails When Capitalism Fails to Save Us From Pandemics or Itself. It's a compilation of essays that aims to explain how and why capitalism is the sickness we ought to worry about. You can get your copy today@democracyatwork.in fox. I want to also, as always, thank our Patreon community for their ongoing and invaluable support. It helps make this show possible each week. So if you haven't already, Please go to patreon.com economicupdate you'll find all our programs. Sign up today and please stay with us. We'll be right back with today's guest, investigative reporter Bob Henry Henley. Welcome back, friends, to the second half of today's ECONOMIC update. It is with real genuine pleasure and anticipation that I welcome back to our microphones and cameras, a frequent guest on this program, investigative reporter Bob Henley. He's a print and broadcast journalist who reports for the Chief Leader, which has been covering public unions since 1897. My mistake. And in recent years has broadened its coverage to include the entire labor movement. And that's what we're gonna be talking about today. Bob's writing regularly appears in Salon, Raw, Story, Insider, New Jersey and the Alternate. You have seen him on Democracy now, the PBS NewsHour, and heard him on NPR. So please join me in welcoming Bob to this program once again. Thank you, Bob, for joining us.