Here's Where A Lot Of The Money Went

As Unions Weaken So Does the Middle Class

New Census Data Shows the Importance of Unions to the Middle Class

SOURCE: AP/Bebeto Matthews

A coalition of New York City unions rally for a "March for the Middle Class" across the Brooklyn Bridge to City Hall on Wednesday, June 15, 2011 in New York.

 By David Madland, Nick Bunker | September 23, 2011

New state income data released yesterday by the U.S. Census Bureau shows the importance of unions to boosting incomes for all middle-class households—union and nonunion alike. The 2010 income data makes it clear that strong unions are a critical factor in creating a middle-class society. Restoring the strength of unions would go a long way toward rebuilding the middle class.

The states with the lowest percentage of workers in unions—North Carolina, Georgia, Arkansas, Louisiana, Mississippi, South Carolina, Tennessee, Virginia, Oklahoma, and Texas—all have relatively weak middle classes. In each of these states, the share of income going to the middle class (the middle 60 percent of the population by income) is below the national average, according to Census Bureau figures.

Mapping the Census data that has been released this fall to previous years also shows that over time the strength of the middle class and the strength of the union movement have tracked closely together. In 1968, the share of income going to the nation’s middle class was 53.2 percent, when 28 percent of all workers were members of unions. Since then, union membership steadily declined alongside the share of income going to the middle class. By 2010, the middle class only received 46.5 percent of income as union membership dropped to less than 12 percent of workers.

As unions weakened, the lion’s share of the economy’s gains have gone to the wealthy. The share of pretax income earned by the richest 1 percent of Americans more than doubled between 1974 and 2007, climbing to 23 percent from 9 percent. And for the richest of the rich—the top 0.1 percent—the gains have been even more astronomical. Their share of income quadrupled over this period, rising to 12.3 percent of all income from 2.7 percent.

Without strong unions, the middle class has lost out to the wealthy.
To be sure, unions can sometimes act in an overly self-interested manner. But the core of what they do helps all workers and fuels a strong middle class. Unions make the middle class stronger by giving it a bigger say in our economy and our political system.

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