[lbo-talk] poor, white and pisssed

Yoshie Furuhashi furuhashi.1 at osu.edu
Wed Feb 23 13:32:59 PST 2005


Wojtek Sokolowski sokol at jhu.edu, Wed Feb 23 12:14:50 PST 2005:
>Yoshie:
>>The irony is that, when corrupt gangsters who employed hooligans to
>>maim and even kill dissidents were in charge of US unions, US
>>workers had it better than today, as the gangsters stole less from
>>US workers than nice neoliberal fund managers who are bankrupting
>>their pensions:
>
>Autre temps, autre moeurs. The financial gains ore losses are due
>largely to the position of labor in the structure of the US economy,
>rather than dealings of gangsters or fund managers.

As far as changes in real wages and surplus values are concerned, yes, causes are systemic, but decisions concerning how pension funds are managed, like the issue of whether Social Security is privatized, are made politically, rather than indirectly determined by the market.

Dean Baker says that "Each year, the pension fund industry drains off an amount equal to 1 to 2 percent of the holdings of pension funds, in fees and commissions associated with the management of pension assets. These fees have totaled between $200 and $400 billion in the last five years" ("Mismanaging Money: The Investment Practices of the Pension Fund Industry," <http://www.uswa.org/uswa/program/adminlinks/docs/mismanaging-money-cepr.pdf>, April 24, 2003). Even the most corrupt union officials couldn't have taken that much from workers.

So, if workers are suspicious of suits on the East Coast, they have a good economic reason to.

Doug Henwood dhenwood at panix.com, Wed Feb 23 11:10:39 PST 2005:
>So why did about half of the white working class vote for W?

Probably only anywhere from a quarter to a third of white workers voted for W., and if we are counting only those who are the poorest among them -- the stratum discussed in the essay posted here -- perhaps even a smaller proportion than that voted for W. -- Yoshie

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