Via “Nathan Newman”:http://www.nathannewman.org/log/archives/001769.shtml#001769, “Kevin Drum”:http://www.washingtonmonthly.com/archives/individual/2004_06/004194.php links to an “EPI graphic”:http://www.epinet.org/content.cfm/webfeatures_snapshots_05272004 showing differences in the growth of corporate profits, labor compensation and private salary income between the current business cycle and the average of the last eight recoveries. This time round, Kevin summarizes, “workers have gotten almost nothing while corporate profits have skyrocketed.” Then he asks,
bq. But how can anyone defend this? Easy. The free market extremists at the top of the modern Republican party argue that economic growth is caused by the risk-taking executives of Fortune 5000 companies, and therefore they deserve the benefits of that growth. Worker bees don’t make any contribution — they just work — so why should they get anything?
bq. Treating labor like a commodity is a morally bankrupt policy, but it’s one that’s become an epidemic in the Republican party …
The thing is, the “free market extremists” Kevin complains about have it backwards. Treating labor like a commodity is a way to transfer the burden of risk _away_ from businesses and on to workers. In general, CEOs of big corporations do not engage in the kind of risk taking that they typically ascribe to themselves. Or more precisely, there is plenty of evidence that they do not have to suffer the consequences of the risks they take. The United States has always been ahead of other advanced capitalist democracies in this department, because it offers less in the way of social insurance than its counterparts. (Instead of a welfare state it has a “prison system”:https://www.crookedtimber.org/archives/000386.html.) But much of what got called “downsizing” in the early ’90s and the “New Economy”:https://www.crookedtimber.org/archives/001213.html a few years later can be seen as a new round of risk-redistribution noticeable in even the U.S.’s “nominally unregulated”:http://www.journals.uchicago.edu/cgi-bin/resolve?AJSv104p1030PDF labor market. The stuff you see these days in the Business Section of Barnes & Noble about the brave new “Free Agent Nation” and its “creative class”:http://www.kieranhealy.org/files/drafts/culture-newecon.pdf is the optimistic spin the disappearance of defined-benefit pension funds, the decline of decent health benefits, the rise of temp work, and other changes in the employment bargain that push more of the risk onto workers.