Giving Credit Where Credit is Due: Carter destroyed Big Labor far more than Reagan
The following is the first of a three-part series on the decline of unions.
Unions have never represented a majority of the American workforce. However, to listen to today’s union bosses, one might be led to believe that they did. Ever since their peak, in 1945, when unions represented a total of 35.5 percent of the workforce unions in the private-sector have been on an almost steady decline. The common fallacy is that the union decline is due to the Reagan Era. That, however, is a false narrative.
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On December 27, 2010, Alfred E. Kahn died. He was 93 years old. You might not know who Alfred Kahn was, but if you are an air traveler or work in the airline industry, you have been affected by his work. In fact, most likely, the vast majority of Americans have benefited by Kahn’s work without knowing who to thank. Alfred Kahn was a Cornell University economist and, according to the New York Times, “best known as the chief architect and promoter of deregulating the nation’s airlines.” More importantly, Alfred E. Kahn worked for President Jimmy Carter.
Kahn’s work in deregulating the airline industry during the Carter administration was an economic boon to tens of millions of middle-class Americans who, due to lower costs, were suddenly able to travel by air, rather than by car, rail or bus. Deregulation also lowered the costs for companies, as the increasing competition made business travel more affordable. By largely getting rid of bureaucratic inefficiencies and increasing competition, according to a Heritage Foundation study, prices fell 40% for travelers within the first 20 years of airline deregulation giving more and more of the American public the ability to fly affordably. Airline routes, instead of taking up to eight years to be approved (or disallowed altogether) under the old Civil Aeronautics Board were established much more quickly; and, perhaps most importantly, under deregulation, air travel became safer.
However beneficial Kahn’s work has been to the American flying public, it is only one of several keys to unlocking one of the biggest fallacies ever foisted on the American public. That fallacy is that the policies of Ronald Reagan are the primary cause of the fall of private-sector unions. The fact of the matter is, they are not. Reagan’s policies are not what has busted unions over the last 30 years. In fact, it is the work of Democrat Jimmy Carter and his deregulators that has had a far more detrimental impact on unions than Reagan ever did. In addition, it is also why, regardless of the efforts of union bosses and their Democrat stooges in Washington, despite a potential temporary upswing, no amount tinkering with the National Labor Relations Act will enable private-sector unions to regain their footing in a 21st Century economy.
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