In recent years we have heard the most used terms of wealth inequality and its subset of income or wage inequality. Economists and think tanks on the left have presented quantifiable evidence showing a multi-decade trend toward wealth inequality, fueling much of the political activism of the left wing of the Democratic Party. An example of this type of data was published by the Urban Institute showing how in 1963 families at the top of the wealth distribution had six times the wealth of families in the middle, while in 2016 wealthy families had twelve times the wealth of those in the middle zone. half.
Currently, the Covid-19 pandemic is starkly revealing what can reasonably be seen as another economic disgrace from those on the lower end of the wealth spectrum. Many of the essential frontline workers, such as janitors, grocery store clerks, healthcare workers, and child care workers, among others, are those who have jobs that can’t be done via Zoom, email, and phone from home. and they are at a higher risk of contracting the virus given the demands of their work that clients face in person. This increased risk in combination with a relatively low wage for workers who provide the services we all need during these difficult times reinforces the argument that this cohort deserves more respect and financial influence.
It is hard to ignore how the decline of unions is clearly correlated with rising wealth inequality. Many believe that it is not just correlation that we are seeing, but causality. The loss of a collective voice of the working class due to the old chorus of anti-unionism has led not only to their less political influence, but also to a drop in their living standards. Perhaps the income disparity argument is now ready to move beyond a claim backed by longitudinal and graphical data to one of fundamental justice for workers who are crucial, especially during a national emergency.
Now may be the time to talk about structural reforms that benefit the working class. The overarching goal should be to reorient the economic system so that everyone, regardless of where they live on the wealth spectrum, can live a healthy and safe life while contributing to the common well-being of the country. This will mean examining and improving macro rules governing compensation, health care, the environment, safety regulations, family-friendly work hours, immigration, workplace complaints, and race relations. Increasing the power of low-income stakeholders should not be seen as zero-sum redistribution simply to rebalance a ledger, but rather by restoring and revitalizing a united voice for workers, overall prosperity is improved and democracy strengthened. People in the lower and middle levels of the economy also spend money. And a lot.
Working together to strengthen one’s economic interests is widespread among the ‘Haves’. Chambers of commerce, trade associations, and national trade organizations meet this need for business owners and managers. So why shouldn’t workers be empowered to push for political decisions through collective action? Unions fulfill this role. Many of the labor and social protections now codified in laws that we enjoy today began as union initiatives. Social Security, child labor laws, anti-discrimination laws, workplace safety laws, unemployment insurance, minimum wage, 40-hour workweek, and workers’ compensation laws are just some of the now common benefits that accrue because labor unions conceived, supported, and fought for these standards.
It is unlikely that we will return to the same economy that we had before the pandemic. In the future, we may look back on a series of social changes that the virus will have pushed us into. Hopefully one of these modifications will be a calculation of how the working class portion of essential workers should be treated and prioritized. A resurgence of unions for these workers is justified and overdue.