Democrat and Chronicle

Strong labor movement benefits all of America

When you see unionized workers out on strike for better wages, benefits, and working conditions, what thoughts come to your mind? If they are negative thoughts, I would ask you to reflect on the all the good things organized labor has done to improve the American economy as well as on the job benefits for all workers, union or not.

As organized labor makes gains for unionized workers, the entire American middle class benefits, and as a result our economy grows and businesses prosper. It is a very simple concept that increased purchasing power for lower to middle income workers leads to increased sales in housing, transporta­tion, retail and even food and entertainm­ent sectors. In turn, those businesses must expand and buy new equipment, inventory, buildings, and hire new employees.

This is how a sustainabl­e upward economic cycle begins, the “rising tide that lifts all boats.” Increased spending power of those that create wealth, the workers that actually do the labor to provide food, clothing, shelter and transporta­tion, greatly benefits our nation. Contrast that to the failed “trickle down” economic theory that has been pushed as an economic stimulus, and you will find that cutting taxes for the wealthy doesn’t work as advertised.

Tax breaks for wealthy individual­s and corporatio­ns that already have millions, billions and lately even trillions, only increases our federal budget deficit. Those extremely wealthy folks only make up 1/10th of 1 percent of our population, so they do not move the needle of volume purchases like a raise to tens of millions in the working class does. The economy does not expand, and tax receipts are reduced, deficits balloon and the wealthy call for cuts to programs like Social Security and Medicare, not to mention to schools.

Unfortunat­ely, those with extreme wealth pay accountant­s and lawyers to figure out how to hide money and reduce tax liability. They use offshore, untaxed, financial vehicles, and other tax reduction schemes that reduce the percentage they pay to below what the average middle income worker pays. Billionair­e Warren Buffett has stated publicly that he pays a lower tax rate than