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As unions decline, inequality rises

327 pointsby vivekmgeorgeover 2 years ago

31 comments

susanasjover 2 years ago
I think this is a good article for tech workers to read to provide perspective on our place in the tech economy (particularly Americans): <a href="https:&#x2F;&#x2F;organizing.work&#x2F;2020&#x2F;12&#x2F;there-is-something-missing-from-tech-worker-organizing&#x2F;" rel="nofollow">https:&#x2F;&#x2F;organizing.work&#x2F;2020&#x2F;12&#x2F;there-is-something-missing-f...</a><p>particularly this part: &gt; Early on in my own career in the industry, I felt guilty about making a “good” salary. Why did I deserve to make more money than a teacher or a nurse? Of course, I don’t — they deserve a lot more too. But if I was making less it would go straight into the pockets of investors, not other workers. Tech workers’ labor has made six of the world’s ten richest people, and today computing and the internet are an integral part of every industry. Although some workers are highly paid, the differential between investor profits and employee salary is as stark as in any other industry, because workers are not organized.<p>it&#x27;s true that tech workers frequently make good money and we should be grateful for that, but when our industry is producing oligarchs like Musk, Zuckerberg, Bezos, it means that they are profiting from the things that tech workers produce. It&#x27;s how inequality is increased. It&#x27;s no coincidence that the rise of the tech economy has coincided with American inequality rising sharply.
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dzinkover 2 years ago
World War II was a much bigger reason and a cause for this. There is a problem with correlation vs causation in the article’s logic. I’d argue the unions were a bi-product of a historically rare moment in time vs cause of equality. The market bust and global world war increased taxation, demand for workers, and value of each worker in the early 40s. Much more importantly, for a few decades after WWII all other global world powers were rebuilding after being leveled by the war. The US instead remained as the last productive developed nation standing for decades and enjoyed likely huge margins as a result of both lack of competition and demand for supplies by the rest of the developed world. Those margins and the unscathed living conditions, also turned the US into a magnet for technical and scientific talent from everywhere else.<p>The more competition recovered in Japan and elsewhere, the less bargaining power and surplus could be captured by Unions. The Union-driven higher costs of manufacturing also drove outsourcing, off-shoring, and did not lead to higher quality output, (if Unions were producing higher quality that would have kept Japanese-manufactured cars from dominating US car sales shortly after).<p>Even further, exorbitant labor costs make it worthwhile for manufacturers to do capital investments in automation, and we are seeing the output of that.<p>The rise in middle class should probably be attributed to investments - in equities, bonds, house purchases. Growing up in Eastern Europe, where only housing investment was an option, and unions were abundant, the middle class that sprouted came from those who invested in property and business. Labor union power and wealth was too politically and corruption influenced to be a sustainable source of growth for the country.
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Zeykaover 2 years ago
I will never understand how some working class Americans can be against unions, maybe they just see themselves as embarrassed millionaires that would want to crush their workers to squeeze money out of them? It&#x27;s probably my European brain, but I cannot understand how someone, say Jerry, 60 year old factory worker from idaho, can be against unions...
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js8over 2 years ago
To everybody who thinks this is just correlation and not causation - read the post properly. They mention:<p>&quot;Labor unions both sustained prosperity, and ensured that it was shared; union bargaining power has been shown to moderate the compensation of executives at unionized firms.&quot;<p>And give a link to a study. This result has been seen across countries, and is the CAUSAL link you&#x27;re looking for.
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thepasswordisover 2 years ago
The exact attitude in this thread is why people don’t like unions.<p>It’s this smug idea that the workers are simply too stupid to understand that they should join the special club. Not that they don’t don’t like jt, or have made an informed decision about it, it’s because they are dumb and not capable of advocating for themselves.<p>I don’t want to be in your weird HOA club. Leave me alone and let me do my work and go get a job in HR so you can be a part of the PMC, which is obviously what you are after anyway.
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kaputmiover 2 years ago
I have mixed feelings about unions. On one hand – should workers be able to associate freely and bargain collectively against employers? Yes! But, should some groups of workers be able to impose on everyone that they must join their association in order to be a worker at X company, or an actor, or something? No, I don&#x27;t see why.
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mannyvover 2 years ago
What does inequality mean in this context?<p>The USSR, North Korea, and Cuba all have&#x2F;had lower levels of inequality than the west...by making everyone poor. That is the easy way to reduce inequality&#x2F;<p>What the left fails to realize is that absolute inequality doesn&#x27;t matter. The real questions is the vast majority feel better off? In China, hundreds of millions are wealthier than they were two generations ago. They have increased absolute inequaliry and increased equality at the same time.<p>In fact, inequality as a concept is a ridiculous measure. What does equality in that context even mean? That everyone should make the same amount, no matter the ability or position? 90% of humanity would vehemently disagree with that. In fact, people try to flee countries who implement that sort of resource allocation.
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TexanFellerover 2 years ago
Do China and similar powers have pervasive unions? If the rest of the wold doesn&#x27;t, unionizing in the US may be a very temporary victory as union demands encourage even more offshoring and automation. We compete globally now. Globalization may be the bigger source of inequality in the first place.
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pmoriartyover 2 years ago
Many people don&#x27;t want equality... especially those who see themselves as superior.
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jostmeyover 2 years ago
Politics aside, there might not be a causative link between unions and inequality—just a correlation. Supporting unions may or may not reduce inequality
Buttons840over 2 years ago
As unions grow they begin to resemble that which they were meant to counter-balance. I&#x27;ve wondered, if a subgroup of union members are unhappy, can they organize? Can they form a union within the union?<p>For example, if my workplace has an exclusive contract with one union, and me and my coworkers (who are all union members) don&#x27;t believe the union is representing us, can we organize to take collective action against both the union and our actual employer?<p>I known little about unions, so feel free to explain the basics if you need.
factfindingisfnover 2 years ago
Ha! This is a best loosely coupled. EPI discloses labor unions fund them. Labor Unions did nothing for families in the 60s,70s,80s, and 90s when all manufacturer jobs were driven out of the US due to bad labor negotiations. Joining a union is about as helpful for your job as joining a country club except you don’t get any real perks.
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candymanover 2 years ago
Seems like less regulation and less government leads to greater efficiency. The rich get richer often because of government loopholes. Carried interest is a simple one but in the 77,000+ pages of the tax code the rich have the resources to use lawyers and accountants to avoid paying taxes. Anyone getting a W2 has very limited wiggle room on avoiding the tax bite.
hintymadover 2 years ago
I think unions in private companies have value. The unions at least know they can’t demand too much or their companies will be out of business. On the other hand, I don’t get unions in public institutions: the government is unlikely to go out of business, so what is possibly the check and balance of the unions?
VeninVidiaViciiover 2 years ago
I think that’s the point. Workers want to be paid more if they feel like they are more deserving.
rejectfiniteover 2 years ago
Lots of American cope in this thread.<p>Read this. This is a Swedish general office worker union. Yes even IT<p><a href="https:&#x2F;&#x2F;www.unionen.se&#x2F;in-english&#x2F;this-is-unionen" rel="nofollow">https:&#x2F;&#x2F;www.unionen.se&#x2F;in-english&#x2F;this-is-unionen</a>
Overtonwindowover 2 years ago
What is the impact of inequality in a job seekers market? The perception I have is that employers are seeing difficulty in hiring. Would not inequality and diversity increase in such markets, as employers lower barriers and reduce leverage?
stri8edover 2 years ago
As does global warming, and pandemics. Why assume their is a causal relationship?
renewiltordover 2 years ago
Every time I read something on HN about immigrants I know what a tech union would look like. Like the AFL CIO of old, it will be anti-immigrant. That specifically does not work for me.<p>Confoederationes commercii delendae sunt
WalterBrightover 2 years ago
As the government share of gdp rises, so does inequality. Increasing tax rates, and increasingly progressive tax rates, provide an increasing barrier to moving up.
wendyshuover 2 years ago
&quot;The Economic Policy Institute is a 501 non-profit American, left-leaning think tank based in Washington, D.C.&quot;
k__over 2 years ago
In Germany at least, I have the feeling the Unions don&#x27;t do much.<p>I know a bunch of nurses, and they still are paid badly.
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navaneover 2 years ago
Not saying unions don&#x27;t equalize, but 1940-1945 had something else going on besides being peak union.
optionover 2 years ago
we should stop worrying about inequality and instead fixate on these two metrics: (1) how well off are the poorest and those unable to work and (2) how well off is the middle class
jelliclesfarmover 2 years ago
Inequality rises due to overpopulation. It’s a numbers game.
timkaover 2 years ago
Fair means inequal.
ameliusover 2 years ago
Can we start a union for developers that sell in the App Store?
jmyeetover 2 years ago
This is spot on. The evisceration of unions is the legacy of the Reagan&#x2F;Thatcher years (ie the 1980s). Real wages have been stagnant for 40+ years [1]. Much of modern American culture can be summed up with this quote [2]:<p>&gt; “John Steinbeck once said that socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.”<p>The Cold War and the hugely successful propaganda against communism spilled over to utterly decimate the labor movement in the US. You will however immediately lose most Americans as soon as you use the word &quot;socialism&quot;. Let me summarize the usual rebuttals:<p>1. Socialism isn&#x27;t communisum. The first is more about equality of opportunity. The second is more equality of outcome;<p>2. Socialism is not a poverty cult. Society is insanely wealthy. It&#x27;s simply about sharing the wealth such that like 8 people don&#x27;t own 50% of the economy;<p>3. Debt is built into your existence. Student debt, medical debt, housing debt, etc. This is by design to rob you of autonomy and keep you as compliant workers. Often this is referred to as &quot;neofeudalism&quot; or &quot;neoserfdom&quot;.<p>5. There is no value without labor;<p>6. &quot;The workers owning the means of production&quot; simply means labor sharing in the value they create. And no, an Amazon warehouse worker getting paid minimum hour and being penalized for taking bathroom breaks is not &quot;sharing&quot;;<p>7. Too many people have unrealistic views about their ability to negotiate and their overall ability, which is why you&#x27;ll see so many comments like &quot;I don&#x27;t want to be kept down by low performers&quot;.<p>8. The financialization of housing turns people into NIMBYs who want to see their home values go up even though cost of housing is the leading factor in homelessness and has historically been used as a tool for segregation after explicit segregation was outlawed;<p>9. Creating monopolies such that companies can charge $1000&#x2F;month and otherwise bankrupt you for needing lifesaving healthcare is state violence;<p>10. The police as an institution that exists today is a tool for protecting capital and those who own it; and<p>11. You are not Elon Musk. You will never be Elon Musk. Elon Musk doesn&#x27;t know who you are. Elon Musk would melt you down for rocket fuel if it increased profits.<p>[1]: <a href="https:&#x2F;&#x2F;www.pewresearch.org&#x2F;fact-tank&#x2F;2018&#x2F;08&#x2F;07&#x2F;for-most-us-workers-real-wages-have-barely-budged-for-decades&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.pewresearch.org&#x2F;fact-tank&#x2F;2018&#x2F;08&#x2F;07&#x2F;for-most-us...</a><p>[2]: <a href="https:&#x2F;&#x2F;www.goodreads.com&#x2F;quotes&#x2F;328134-john-steinbeck-once-said-that-socialism-never-took-root-in" rel="nofollow">https:&#x2F;&#x2F;www.goodreads.com&#x2F;quotes&#x2F;328134-john-steinbeck-once-...</a>
ed25519FUUUover 2 years ago
Of course, correlation does not equal causation!<p>But in some cities, the govt is required to do work only with labor unions. In that case, joining a union might help, because the government has taking away your competition!
avereveardover 2 years ago
This article puts together two graphs and absolutely give no backing as to which one is the causation of the other beyond &quot;see?&quot; or if there&#x27;s any backing model for their correlation than one could go and test.<p>This is sensationalistic propaganda, not research.
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RcouF1uZ4gsCover 2 years ago
This analysis ignores the effects of WWII.<p>At the end of WWII, the USA was the only industrial economy in the world, not significantly damaged by the fighting.<p>If you see, the spike of worker union participation is right after the end of WWII.<p>Basically, for a couple of decades the USA had a monopoly on advanced manufacturing. Then as Europe and Japan caught up, there was more of a push towards efficiency as US companies faced more competition
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